Positive outlook for the Polish market of thermal insulation materials encourages producers to make investments in generation capacity

More information on this topic is presented in the PMR report:

For the purposes of its latest report, PMR has conducted in-depth interviews with key players of the Polish market of thermal insulation materials. The findings from the interviews suggest that after quite a successful 2015, the companies expect to see continued improvement in the sector. In view of positive prospects, firms currently operating in the market invest in extension of existing generation capacity. There is also a new market player in the mineral wool segment, which has drawn a lot of attention from competitors.

 

A strong upturn in residential construction and a high level of activity in the industrial construction segment in 2015 brought about improvement in the thermal insulation materials market last year following several weaker years. PMR’s estimates put the 2015 sales figure for thermal insulation materials sold in the domestic market at over PLN 3.9bn, up by approximately 4%. Increases were seen across all the main market segments, with the highest growth rate reported for XPS boards (7%), while slower growth was recorded for sales of foam products (6%), mineral wool (4%) and EPS boards (3%).

Market participants we interviewed using in-depth interviews identified the general economic situation, in particular the situation in the construction sector, as the main driver behind the growth of the thermal insulation materials market.

In view of positive macroeconomic forecasts for Poland combined with the anticipated continuation of growth in residential construction and a high level of activity in the power sector, companies operating in the thermal insulation materials market expect that the positive trend that recently set in will strengthen in 2016 and 2017. Our interviewees also believe that the market will be driven by:

- increasingly stringent requirements for energy performance of new buildings, which oblige investors to use larger volumes of thermal insulation materials as well as materials of improved quality

- subsidy schemes for construction of energy efficient houses and initiatives supporting thermal insulation of existing buildings

- steadily growing awareness of the Polish population regarding thermal insulation of buildings and the trend for green construction.

As a result, despite an expected correction in the building construction segment as of 2018 and a major downturn in industrial construction anticipated to start from 2019, the thermal insulation materials market should avoid a major decline and level off at over PLN 4.4bn at the end of the current decade.

Bullish expectations as to the market’s growth have a positive effect on capital outlays by firms, which expand their generation capacity and improve their product offering. In addition to upgrades of existing production lines, an extensive number of new process lines have been launched across all market segments in recent years. Moreover, several projects are still under construction or in planning.

The strong appeal of the domestic market of thermal insulation materials is also confirmed by the entry of a new market player in the mineral wool segment, which opened a state-of-the-art production plant in Bytom that is capable of delivering 41,000 tonnes of products a year in September 2015. Petralana is the first mineral wool producer of entirely Polish origin. Its investment made major waves in the segment dominated by large international firms. Products manufactured by Petralana are already available, while the company is carefully watched by its competitors.

 

 


More information on this topic is presented in the PMR report:
Thermal insulation materials market in Poland 2016. Market analysis and development forecasts for 2016-2021