the building insulation market | France

1.1 Definition and scope of study

Insulation brings together all the techniques that have two ultimate purposes:

• Protect the interior of the house which is acoustically affected by external influences;
• Contain  heat and improve the internal energy balance of a building structure;

The market can be divided into two sub-segments: the market for insulation materials and that of insulation work.

The market is structured between suppliers of raw materials, manufacturers of insulating materials, specifiers, distributors and finally installers who work with end customers. Moreover, the market is driven by the rate at which houses are built, but also by renovation. The insulation market is dynamic and has experienced a CAGR of 6.2% over the last five years globally.

In France, the insulation market is a hot topic since it is a crucial pillar in the energy transition. Indeed, the building sector emits more than 123 million tons of CO2 every year, thus making it one of the major challenges for the coming years. In 2020 there are more than 20 million housing units still in a situation of energy insecurity. These dwellings are referred to as "thermal sieves" and require renovation by 2050.

To facilitate this upgrade, public policies have been put in place. For instance, consumers have enjoyed financial incentives such as tax deductions, zero rate eco-loans, etc. The building insulation market is thus boosted by this government effort, which has helped the market grow at an annual rate of some 10% over the past 5 years.