Strong recovery in the UK market for Building Boards in 2014/15 set to continue

The UK market for building boards - incorporating primarily dry lining, rigid polymer and specialist boards - is estimated to have grown by around 6% in 2015, according to a new report published by AMA Research. Following a difficult period in 2009/10, the market has recovered in recent years, and performed particularly well in 2014 when the market grew by an estimated 9%. Demand is primarily driven by developments in new housing, commercial newbuild and, to a lesser extent, domestic extensions, loft conversions and non-domestic refurbishment.

The return to growth in housebuilding and commercial newbuild has generated higher levels of demand for all product groups, although overall growth rates have been somewhat constrained by lower levels of newbuild and interior refurbishment work in some key commercial sectors. Another factor driving growth has been the trend towards higher specifications for value-added products, driven by increasingly tighter building regulations, and associated demand for higher levels of product performance. The offsite building sector is a particular area of demand, especially timber frame systems, where high levels of fire protection are critical.

By value, rigid polymer insulation boards are estimated to account for around 60% of the total as defined in the report, followed by plasterboards at 30% and specialist building boards at around 10%. The polymer boards sector is dominated by PIR, followed by polystyrene (extruded and expanded) and phenolic foam. These products are mostly used on housing and commercial newbuild, particularly where insulation products with other properties are required. Plasterboards can broadly be split between standard wallboards and baseboards on the one hand, and performance boards on the other. Standard boards account for the majority of sales by volume, with demand largely driven by housebuilding and office newbuild and refurbishment. Performance boards are not generally used on volume housebuilding development, key markets being architectural specification and offsite construction.

The specialist building boards sector is diverse, but consists mostly of boards made from composite materials with cores of cement, calcium silicate and, to a lesser extent, magnesium oxide, alongside other types of composite boards, including wood plastic and stonewool. It is estimated that cement based boards and boards of calcium silicate account for around two thirds of sector sales. Key applications for specialist building boards include; fire protection, rainscreen cladding backing, ceramic and stone tile backing, timber frame sheathing and internal wall linings, and key drivers include fire performance specifications and demand for moisture resistance alternatives to plasterboards in ‘wet rooms’.

While there are just three manufacturers of plasterboards dominating the European market, the specialist building boards sector is more diverse. Distribution is mainly through specialist distributors, and many of these are also able to fabricate panel systems using proprietary facing materials from manufacturers.

“Our forecasts for this market are for steady growth through of between 3-5% per annum to 2020, notwithstanding impacts from political or economic events” said Andrew Hartley, Director of AMA Research. “Underpinning growth is likely to be the demand for more new homes and strong levels of activity in the commercial office, higher education, Academy and Free Schools sectors.”

The ‘Building Boards Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience in the construction and home improvement markets.  The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.