Poland’s thermal insulation materials market to maintain double-digit growth in 2019

The market for thermal insulation materials in Poland has been booming on the back of a buoyant construction industry. 2019 will mark the third consecutive year of double-digit growth in its value, according to a new report from PMR, “Thermal insulation materials market in Poland 2019. Market analysis and development forecasts for 2019-2024”.

Rapid growth, positive outlook

According to PMR’s estimates, the value of the thermal insulation materials market in Poland – calculated as domestic production plus export-import – grew by more than 13% in 2018, to almost PLN 6.6bn (€1.5bn). The increase was supported by strong growth in the construction industry.

We expect the market’s growth to remain in double-digit territory in 2019, thanks chiefly to continued robust activity in the residential construction sector. The office and public-utility buildings sectors will help drive the market, too.

The upward trend in residential construction will continue in the coming years. However, without additional investments under the Mieszkanie+ programme, the threshold of 200,000 flats a year will not be exceeded. And non-residential will face declines after 2020. On the other hand,  government programmes supporting thermal upgrades will have a positive impact on the market for thermal insulation materials going forward. According to our forecasts, the rate of market growth will remain positive throughout the rest of the forecast period, but will not be as high as in 2017-2019.

Potential for thermal upgrades in single- and multi-family buildings

Both in the single-family and multi-family housing segment, we see potential for thermal upgrade works.

About 40% of 165,200 multi-family buildings surveyed by the Central Statistical Office (GUS) require a thermal upgrade. And the government has just announced a new programme that will provide billions of zlotys in funding for thermal upgrades of large panel system tower blocks, including thermal insulation. There are approximately 60,000 such blocks in Poland.

In the single-family housing segment, the “Clean Air” programme, in operation since September 2018, will continue to stimulate thermal upgrades.

Government programmes thus represent an opportunity for the market for thermal insulation materials. However, one should not forget about the risks associated with such programmes, which can be suspended or scrapped.

AUTHOR:
Szymon Jungiewicz
Construction Business Unit Director

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