The electrical accessories market is estimated to be valued at just under £1.5bn in 2014, according to a new report from AMA Research. The market has seen growth of 16% since it bottomed out in 2009 and is now only 7% below its peak in 2007.
Although the difficult economic situation
impacted negatively on market value between 2008 and 2010, a substantial rise
in raw material costs inflating prices and offsetting low demand, coupled with
modest improvements in the economy and growth in the construction market
resulted in 10% market growth in 2011. While the market declined in 2012, signs
that the economy was improving started to appear in 2013, housebuilding picked
up and in addition, the electrical accessories market continued to be supported
by major public sector projects, committed to prior to cuts, and as a result
the market saw healthy growth in 2013.
The electrical accessories market, according
to AMA’s definition, is dominated by low voltage cable systems with value share
of over 50%, followed by circuit protection with around a quarter of the market
and wiring accessories, which accounted for the remainder. As the electrical
accessories market is mature, the product mix has remained fairly stable in
Raw material prices play an important role in
determining market performance for electrical accessories, with the price of
cable in particular being highly dependent on copper prices. These have fluctuated
widely in recent years. Legislation on energy efficiency and carbon emissions
as well as volatile fuel prices has seen interest in, and use of, integrated
systems spreading into the wider domestic and light commercial markets to
provide greater control for heating, lighting and all electrical systems.
Activity at supplier level during the
recession has been focused on consolidation, rationalisation and cost cutting
exercises, with many taking the opportunity to integrate earlier acquisitions,
streamlining purchasing processes and even repositioning their businesses.
As the electrical accessories market is a
mature and sizeable market, recovery will be relatively slow and steady.
However, market value is expected to surpass its 2007 peak level by 2016.
Pressure on pricing is likely to remain a key aspect of the market for some
time. The current focus on solutions and systems within the electrical products
market will continue to lead to demand for integrated systems in both the
domestic and commercial sectors in the medium term, as well as an increased use
of pre-fabricated wiring assemblies and wireless switches.
The demand for environmentally friendly
products continues to be a major issue and this is a factor which is likely to
be more influential in future years, as homeowners and business operators
alike, use whatever means they can to improve the environmental credentials of
their properties. This will lead to increased use of individual and central
controls for lighting and other electrical products, perhaps creating demand in
the electrical accessories sector.
Product development will continue to focus on
environmental efficiency, wireless systems, integrated controls, reduced space
and impact, quick installation such as prefabricated units and low installation
application such as plug and play connections to reduce time on site and cut
‘down time’ during RMI situations.
forecasts indicate annual growth rates of 5-6% from 2015 as the economy
improves and house building activity increases” said Keith Taylor, Director of AMA Research. “It is expected that the market value will
be around £1.8bn in 2018. However, this will depend on the speed of economic
recovery and any fluctuations in raw material prices.”
Accessories Market Report - UK 2014-2018 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services within
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