The UK panel builders’ market has been increasing since
2013, reflecting a strong performance in a number of product and end use sectors.
Market value saw particularly strong growth of 8% by value in 2015, as a result
of the robust performance of the infrastructure and industrial sectors during
the year. Current indications are, however, that the UK panel builders’ market
experienced a dip in 2016 as industrial and infrastructure output declined.
Factors supporting the market include growth in
specialist markets, such as hazardous environments, along with tightening
regulation, further environmental legislation and investment in development of
the renewable energy sector. Other positive influences include the growth of
R&D in the advanced manufacturing sector, the increasing adoption of
automation in manufacturing, increasing investment in UK datacentres and the
modernisation of the country’s rail network.
Factors negatively affecting market growth include
ongoing public sector austerity measures and a very competitive market that is
keeping prices deflated. Also, some significant end use sectors, such as oil
and gas, have seen sharp falls in capital expenditure which may affect growth
if fresh investment is not committed in the short-term.
Leading end use markets include industrial and
manufacturing, water and sewage, power generation, oil, gas and marine,
construction and transport. Power distribution panels represent the largest
product sector, followed by motor and process controls and building control
systems. Safety, security and other panels make up the remainder of the market.
Product development is primarily concerned with modularisation,
allowing for quick and flexible installation, reduced maintenance,
environmental factors and health and safety, motivating demand for more
sophisticated products which can withstand hazardous environments. Product
development has resulted in panels becoming smaller and more streamlined with
quicker fit solutions and more standardised components, which should lead to
panels becoming more standardised, and modular elements becoming increasingly
common in panel building.
“The panel builders
market is expected to return to growth in 2017, and to maintain moderate growth
levels of around 2-3% per annum until 2021” said Fiona Watts of AMA Research. “Refurbishment and development of the power
generation asset base, other than coal-fired power stations, and integration of
renewable energy technologies into the ‘smart grid’ will provide opportunities
for panel builders.”
Growth in the pharmaceutical / chemical and advanced
manufacturing sectors will also continue to benefit the panel builders’ market,
as a result of increased construction and further development of factories and
research and development sites in these sectors. Other sectors providing
opportunities for the panel builders’ market include the IT and datacentre
sector and the rail sector. However, investment in capital projects in oil and
gas needs to improve if the sector is to significantly benefit the UK panel
building industry in the medium term.
The ‘Panel
Builders Market Report – UK 2017-2021 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services with
over 25 years’ experience 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
235724.
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