The building insulation market - France

The market can be divided into two markets: insulation materials and 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. The market is driven by new housing starts, but also by renovation. It's a dynamic market worldwide, with an average annual growth rate of 6.5% between 2023 and 2030. In France, the insulation market is at the heart of current concerns, as it is a pillar of the energy transition. Every year, the building sector emits over 123 million tonnes of CO2. In 2024, there were 5.2 million homes in mainland France with a DPE rating of F or G, considered to be "thermal wastes". Although these renovation projects are costly, they are increasingly supported by the state: in 2023, 75% of applications concerned F and G homes (DPE label): the average cost of this work is €54,671, but the average subsidy is €37,080. For several years now, government policy has offered a wide range of financial assistance to consumers, including tax deductions and zero-rate eco-loans (see Regulations section). The building insulation market has been boosted by these government efforts, and in particular by the use of bio-sourced materials in a dual response to environmental issues. Players in this market include manufacturers of insulating materials, such as Knauf and Rockwool, market leaders, as well as installers who carry out innovative insulation work in buildings and homes, such as Isocomble and Isorenov. New trends are emerging in this market: ITE (thermal insulation from the outside) is designed to be more respectful of interior space, and is also more respectful of acoustic comfort. The trend towards home automation (connected homes) is growing all the time, and is having a major impact on insulation.