Underfloor Heating Market - 5 Key Facts

• In 2017, the UK underfloor heating market accounted for around 7% of the total heating systems sector.
• Imports of UFH remain high, with some manufacturers sourcing components from abroad, although full assembly of UFH kits may take place within their own facility.
• The domestic sector is currently a key driver of growth within the underfloor heating market, both for electric and water-based systems.
• Product innovations have made UFH systems easier to install, broadening their appeal for the retrofit market. Low profile UFH options are now widely available.
• The distribution of UFH continues to be dominated by direct supply, although the online sector continues to grow.

These facts have been extracted from AMA Research's 'Underfloor Heating Market Report - UK 2018-2022' available for purchase now. 

Online sales of plumbing products in the UK to increase by 43% by 2022

The internet is the fastest growing channel of the overall UK plumbing and heating products market and has experienced strong growth levels in the last 5-7 years. In 2017 alone, the UK internet plumbing market is estimated to have increased by 17% in value terms. However, forecasts indicate that the pace of growth is gradually slowing down over the course of the review period. This change of pace can be partly attributed to market saturation of internet users and fewer new suppliers entering the market.

Despite the current uncertain economic climate with the UK’s departure from the EU, the UK internet plumbing and heating distribution market has continued to grow. With strong demand driven by lower prices and added convenience, internet retailers have been able to capitalise on changing consumer cross-channel shopping habits with a notable shift towards online purchases. Own-label products sold on the internet are performing particularly well.

Shower controls and bathroom taps represent the largest sector of the internet plumbing market with a share of around 23%, followed by bathroom furniture and accessories, baths and sanitaryware, heating products such as boilers and standard radiators and shower enclosures, screens, trays and wetroom products. Towel warmers and decorative radiators account for a much smaller share of the total market.

Key factors that have influenced growth in this market over the past few years include the growing number of UK households with internet access – estimates indicate that around 90% of households have access in 2017 – and significant growth in the level of online e-retail sales over the past 7 years. The usage of mobile internet technology has also increased substantially, with a growing number of purchases being made through mobile handsets or tablets.

The majority of plumbing products sold on the internet are through specialist online plumbing retailers, of which around 65% are pure-play retailers that do not have a showroom and only trade online. Non-specialists account for around a quarter of the total internet plumbing market and include merchant/trade outlets, DIY multiples, marketplace websites such as Amazon and eBay, and other general retailers. Non-specialists also include plumbing manufacturers that may make specific products available for consumers to buy online.

“Factors such as improved delivery/collection options, the growing range of products available online, along with technological improvements should drive Internet sales of plumbing products.” said Hayley Thornley, Market Research Manager at AMA Research.

“By 2022, it is estimated that the UK internet plumbing market will have increased by around 43% compared to 2018. However, it is likely that the pace of growth will start to slow as this market matures.”

There is still scope for growth – there are still around 2.8 million UK households which do not have an internet connection, and the use of mobile internet technology is also likely to grow significantly. Although in the medium term, the number of UK households with internet access is likely to reach saturation, with the majority also likely to have a faster broadband connection, the trade/installer channel is less mature in terms of online purchasing and it is estimated that, despite growth slowing down, the market will continue to grow by 10-15% per year for the remainder of the forecast period.  

The ‘Internet Plumbing and Heating Market Report – UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Electrical Products Distribution Market Report - Online Focus - 5 Key Facts

• The market for the online distribution of electrical products grew by 299% between 2012 and 2017.
• 42% of online sales of the electrical product market are distributed via internet only distributors.
• Lighting has the largest share within the electrical products market, making up 20% of the market by value.
• Online sales represented only 3% of the electrical products market by value in 2012, this grew to 8% in 2017.
• Over half the overall electrical products market is distributed via direct sales and electrical wholesalers.

These facts have been extracted from AMA Research's 'Shower Market Report - UK 2017-2021 Analysis' available for purchase now. 

UK underfloor heating market forecast to grow by 7% in 2018

The underfloor heating (UFH) market has performed well over the last few years, driven by good levels of commercial and domestic construction and RMI, and now accounts for almost 7% of the total UK heating systems sector. More recent growth can also be attributed to rising energy prices and concerns over fuel bills, and the fact that UFH is now seen as a more affordable mainstream heating option. In 2017, the market grew by 6%, with similar growth forecast for 2018.

The domestic sector accounts for almost two-thirds of the overall UFH market value, and includes new build activity by housebuilders, the self-build market and RMI / DIY retrofit projects in residential homes. Non-domestic applications account for the remainder. Although large-scale health and education projects represent the most significant non-domestic end-user markets, opportunities are arising in the care home, industrial, warehousing, leisure and entertainment, commercial office and retail sectors.

Water-based underfloor heating makes up the largest share by value, compared to electric systems. The supply structure is dominated by direct supply, with some manufacturers and other specialists offering a ‘supply and fit’ service. Elsewhere, UFH systems increasingly form a core component of the product ranges of companies such as tile manufacturers and kitchen and bathroom specialists. DIY multiples and merchants also continue to play a major role. Much of the recent growth in the market has come from online retailers, the number of which continues to expand.

Factors that influence demand for underfloor heating include housebuilding activity, which is expected to continue at a steady pace, as demand for new and affordable housing is likely to remain a major political issue. The conversion of commercial office spaces into multi-residential flats and apartments, particularly in areas of high population density, should create additional opportunities for UFH, as they are likely to be smaller in size and high-spec.

Ease of installation continues to be an important consideration within construction, given the ongoing skills shortages and a need to reduce both build time and cost. This is expected to contribute towards further growth in modular build/off-site construction, which should benefit the UFH market. Retrofit activity in both the domestic and commercial sectors are also expected to see steady growth.

In addition, the commitment towards further development of the renewable energy sector and sustainable homes should continue, irrespective of whether the Government meets its 2020 targets, and this is likely to favour adoption of UFH.  Growth will also be driven by product development focused on flexibility and maximising individual control of systems, which is likely to increase the efficiency of UFH systems further, and the increasing uptake of intelligent technology.

 “Although the market value has increased by almost 25% since 2013, there remains significant scope for growth in this sector” said Keith Taylor, Director of AMA Research.

“The level of installations remains low compared with European countries such as Germany and the Nordic nations. Penetration is forecast to continue to grow with demand driven by concerns over volatile energy bills, ongoing running costs of systems and maximising comfort, and the fact that underfloor heating is becoming a more mainstream product.”

The ‘Underfloor Heating Market Report – UK 2018-2022’ 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.

The UK pipes and fittings market has grown by 21% since 2012

The UK pipes and fittings market has achieved good levels of growth over the last five years, and although growth has slowed more recently, the market has achieved overall value growth of 21% since 2012. Key factors influencing market growth in recent years include increasing levels of demand from key end-use sectors, principally in new housebuilding and non-domestic construction, and rises in raw material prices such as copper and plastic over the last two years. The plumbing pipe systems sector accounts for over half of the pipes and fittings market, as defined by AMA Research, with the rainwater, soil and waste products sector accounting for the remainder.

Flexible plastic plumbing pipe systems are the dominant material used in hot and cold potable water installations, particularly for new build. Factors driving the growth of the plastic sector include technological developments, improved reliability, installation efficiency, the growth of underfloor heating and the price advantage over metal products. In addition, in the residential sector, the faster rate of growth of new build, compared with RMI, has boosted the market share of plastic, as plastic tends to dominate the new build sector.

Hayley Thornley, Research Manager at AMA Research, commented:

“In particular, plastic push-fit and press-fit fittings have experienced growth due to the considerable savings made on installation time. In addition, with increasing health and safety legislation, and the lack of ‘traditional’ skills of soldering and welding pipework, there has been a continuing shift in the market towards flame free jointing. Use of multi-layer barrier pipes, including a metal layer to protect against degradation, has also grown significantly in the water supply sector.”

Although the market for copper pipe has grown relatively more slowly in recent years, it is still used across the majority of heating installations, and copper pipe remains a popular choice among plumbers, particularly in exposed areas, where its ‘traditional’ aesthetic appeal remains strong, and copper shows signs of starting to stabilise its market share

PVC-U continues to dominate the above ground rainwater guttering, soil and waste pipework sector. There is continuing demand for seamless aluminium guttering and cast-iron effect PVC-U guttering, which provides the effect of cast iron.

The focus on reducing water consumption has increased in recent years and rainwater harvesting has become an important way of achieving this, especially in densely populated areas, such as London and the South East, where water shortages are more likely.

The outlook for the UK pipes and fittings market in 2018 is moderately positive, supported by continued growth in construction levels and RMI expenditure, though the rate of growth is likely to be slower than in the period 2012-2016. However, residential RMI – which the market is highly reliant on - is likely to experience low annual growth rates reflecting weaker consumer confidence, rising inflation, a reduction in the DIY skills base and fewer high value RMI projects such as bathrooms, kitchens and extensions. A flat house moving market is also having a negative impact on RMI activity at present.

The ‘Pipes and Fittings Market Report – UK 2018-2022’ 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.

Ventilation and Air Conditioning Market Report - UK 2017-2021 - 5 Key Facts

• The UK ventilation and air conditioning market is significant, with an estimated total value of over £1.1 billion at manufacturers selling prices (MSP) in 2016.
• Residential ventilation products have around 44% share by value and include intermittent extract fans and mechanical ventilation systems.
• The leading seven suppliers account for a total of around 66% of the market.
• PAC systems are estimated to account for around 60% share of the UK air conditioning market, while central station systems account for the balance.
• Cassettes, split systems and mini-split systems are estimated to account for over 85% of PAC sales in the UK. 

These facts have been extracted from AMA Research's 'Ventilation and Air Conditioning Market Report - UK 2017-2021 Analysis' available for purchase now. 

Water Heating Market Report 2017-2021 - 5 Key Facts

• The UK water heating market is forecast to grow by around 10% by 2021.
• The boiling water heater and taps sector is expected to grow by 27% over the same period.
• Electrical wholesalers account for around 12% of hot water storage product distribution in 2016.
• The top 4 hot water storage product suppliers accounted for 60% of the market in 2016.
• Vented cylinders only account for around a fifth of all cylinders sold in 2016 by volume. 

These facts have been extracted from AMA Research's 'Water Heating Market Report - UK 2017-2021 Analysis' available for purchase now. 

Electricity Generating Set Market Report - UK 2017-2021 Analysis - 5 Key Facts

• The UK Genset market (up to 750 kVA) has grown by 24% between 2013 and 2016, underpinned by good growth in key end use sectors such as construction, infrastructure, telecoms and hire.
• Increasing power requirements from end-users is underpinning the market as has the need to provide back-up power generation for “mission critical” installations in sectors such as health.
• Key focus of product development has been centred on reducing emissions, lower noise output and increased fuel efficiency as well as the development of remote monitoring systems.
• Exports continue to take up significant proportion of UK manufacturing and further export market growth could be stimulated by the current lower value of Sterling.
• Market forecasts indicate overall growth of around 17% between 2016 and 2021 with demand for Gensets underpinned by increasing power needs by end users, growth of the hire sector and concerns regarding the security of energy supply.

These facts have been extracted from AMA Research's 'Electricity Generating Set Market Report - UK 2017-2021'  available for purchase now. 

‘Improve, don’t move’ trend boosts home extension applications

The number of planning applications decided and granted has increased during the last 2-3 years, following an ongoing period of decline in the years between 2010 and 2013. In 2015 and 2016, the total number of developments granted increased by 8% and 4% respectively. This growth was driven by the improving economic situation, which has boosted consumer confidence and the market for home improvements, and a requirement to increase living space within the home.

The overall home improvement market has grown in recent years. The trend towards ‘improve, don’t move’ has benefitted the home extensions market in particular, as extensions can provide additional living space or accommodate a growing family. This trend has also led to consumers spending more on upgrading their properties, particularly in terms of kitchen, bathrooms and glazing options, but also on flooring, underfloor heating and other elements.

Home extensions – single storey extensions in particular – represents one of the largest and fastest growing sectors of the home improvements market. Approximately 75,000 applications for single storey extensions were granted in 2016, a number which has risen over the last few years. Single storey extensions remain a popular form of home extension, partly because a large proportion no longer require planning permission under permitted development rights.

The number of double storey extensions has also grown, albeit at a slower rate than single storey extensions. In many major cities, especially London, loft and basement extensions are a growing feature of the market. Mainly owing to a lack of space, these extensions often represent a cost-effective method of adding living areas to properties without reducing outdoor space. Multi-level basement extensions have recently become popular, with London alone accounting for up to three-quarters of all basement applications. However, this has led to over-development concerns with some authorities imposing limits to the level of work which can be carried out.

Keith Taylor, Director of AMA Research, commented: “Despite the threats facing the UK housing market, the home extensions sector is expected to experience reasonably good growth over the next few years with home improvements seen as a cost-effective way of achieving greater living capacity and longer-term capital growth. Other drivers include more relaxed rules with regards to permitted development rights. Affordability issues are likely to remain the main barrier to growth, with banks and building societies now requiring additional information relating to borrowers' finances before any lending decision is made, and wage inflation remaining low.”

Although the outlook for the UK economy remains uncertain owing to the recent election results and the EU withdrawal, modest growth is forecast in terms of construction and RMI activity. Activity in the residential RMI sector is expected to continue in the short to medium term, and is forecast to reach £30bn by 2021. The share of residential RMI output taken by building extensions, currently at around 25%, is forecast to continue growing.

The ‘Home Extensions Market Report - GB 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.

Electrical Wholesale Market Report - UK 2017-2021 Analysis - 5 Key Facts

• The electrical wholesale market is forecast to grow by 14% by 2021.

• The national companies account for 74% of the market, down from 77% in 2014.

• Lighting, and cable systems remain the largest product sectors within the electrical wholesale market, accounting for around 47% of market value.

• Electrical Wholesalers are estimated to account for 33% of lighting market. This represents a reduction in share due to the growth of LED lighting, but is expected to regain share in future.

• Electrical contractors remain the largest customer group, representing 76% of the market. 

These facts have been extracted from AMA Research's report 'Electrical Wholesale Market Report - UK 2017-2021 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724. 

Space Heating Market - UK 2016-2020 - Key Facts

• The UK space heating market is estimated to be worth £569 million in 2016, an increase of some 4% since 2014.
• Domestic space heating accounts for 53% of the market.
• The retail sector accounts for 70% of sales of domestic space heating.
• The commercial space heating market is expected to grow by 10% through to 2020.
• Commercial heating systems (boilers, radiators, heat emitters) are estimated to account for 48% of the sector.

These facts have been extracted from AMA Research's report 'Space Heating Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK electricity generating set market has increased by 24% since 2013

The UK generating set market, up to 750 kVA, has experienced 24% overall growth 2013-16. Whilst the growth rate slowed to around 3% in 2016, factors that fuelled significant growth in earlier years -  such as improvements in residential output, recovery of the manufacturing sector and growth of data centres – all continued to stimulate demand for generating sets in 2015-16.  Another significant factor underpinning demand has been the steadily increasing power requirements of office and commercial buildings.

The market also benefits from the need for emergency power generation capacity which has been exacerbated in recent years by the increasing incidence of weather related disasters such as flooding and damage to power lines leading to supply interruptions. In addition, continuing concerns regarding the shortage of grid capacity and the slow progress of some replacement generation plants have also led to increased demand for gensets, particularly in “mission critical” sectors such as healthcare and data centres.

The main focus of new product development has been around noise, engine efficiency and emissions with the development of advanced optimised engine management systems being introduced to maximise power output whilst minimising fuel consumption and emissions.  An increasingly common solution to the issues of reducing fuel consumption and emissions is the use of hybrid generating sets that combine a conventional diesel engine with renewable energy sources, such as solar photovoltaic. 

Other product developments have included the use of cloud computing to enable remote monitoring, the incorporation of fully bunded internal fuel tanks, and the development of gensets offering longer service and fuel replenishment intervals to minimise the cost of maintenance and site visits. The power to weight ratio of gensets has also tended to increase, whilst the footprint of the genset has tended to decrease, making them easier and less costly to install.

Into the medium-term, annual growth rates averaging of 2-4% are currently forecasts for UK genset market for the period 2016-21, reflecting continuing positive prospects for the market, although at a slower growth rate than in 2014-15. However, future prospects are difficult to predict, given the uncertainties as to how the UK economy will perform following the EU ‘Brexit’ decision. One immediate consequence of the ‘Brexit’ vote has been the decline in the value of Sterling, which has given a short-term boost to export-led industrial sectors, though the long-term implications remain unclear.

“The genset industry is likely to be supported by continued growth in the construction sector going forward, including a significant pipeline of major infrastructure projects under the Government’s National Infrastructure Plan (NIP) which currently covers over £480bn of projects” said Jane Tarver at AMA Research. “Government measures to alleviate concerns over security of energy supply, including the Capacity Market and the Short Term Operating Reserve (STOR) will continue to provide opportunities for UK generator suppliers to provide standby reserve power, though concerns over the use of diesel generators for this application may lead to pressure to switch to alternative fuels.”

Environmental concerns and tightening of regulations are likely to stimulate value-added product developments, focusing on emissions reduction, engine efficiency, and advanced monitoring and control systems. The hire market is also likely to benefit from increased power and lighting needs for the growing outdoor events sector such as music & sporting events, festivals, etc. In addition, the recent trend for providing additional WiFi and telephone connectivity at such events could also provide further opportunities for growth.

The ‘Electricity Generating Sets 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.

Positive 5 year outlook for the UK ventilation and air conditioning market

The UK ventilation and air conditioning market is significant and was estimated to be worth £1.17 billion in 2016. Growth has been steady since 2013, with the recovery in the UK economy stimulating construction activity, as well as consumer and business confidence levels. Although the market situation in early 2017 is more subdued, the current market forecast for remains moderately positive, with growth of around 3% per year from 2019 onwards.

The UK ventilation and air conditioning market exhibits the characteristics of an increasingly mature market. Positive influences on the ventilation and air conditioning market include increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation, and the generally increasing awareness about the importance of indoor air quality and energy use. 

Considerable replacement and refurbishment opportunities are present in existing buildings; there are still a large number of buildings with inadequate or inefficient VAC systems. In addition, Government initiatives are also motivating the VAC market. For example, the Enhanced Capital Allowance Scheme which offers up to 100% first year tax relief on a number of energy saving plant and machinery, including VAC equipment.

Keith Taylor, Director of AMA Research, commented: “Following the UK Brexit vote in mid-2016, the outlook for this market, like many others will depend on the path taken to exit the EU and the type of trade and legislative deals formulated. By 2021 it is estimated that the UK ventilation and air conditioning market will have increased by 10 - 11% when compared to the estimated market size in 2017.”

The future performance of the UK ventilation and air conditioning market is likely to be influenced by overall trends in housebuilding and non-domestic construction, RMI activity, fuel prices, energy efficiency legislation, renewable technologies, levels of personal disposable income, plus climatic factors and air temperatures. 

Enhanced levels of market penetration are also likely to arise from product innovation and technological developments, for example variable speed drives, multiple scroll compressors, EC motors, filter sensors and heat recovery systems. In recent years, there has been good growth in VRF or VRV air conditioning systems, reflecting the fact that they offer more efficient operation and can therefore save operational costs.

There is also increasing demand for intelligent ‘smart’ controls that can remotely manage ventilation and air conditioning systems, as well as a greater emphasis on the integration of VAC controls into the building management systems of commercial buildings. 

The ‘Ventilation and Air Conditioning 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.

Domestic Central Heating Market - UK 2016-2020 - Key Facts

• The domestic central heating market is expected to grow by 11% between 2017 and 2020.
• Boilers dominate sales and are estimated to account for 60% of the market.
• The market for domestic central heating products can be broken down into 3 key areas: refurbishment (79%), new build and first time installations.
• The market for smart heating controls is expected to achieve annual growth of 15-25% in value terms between 2017 and 2020.
• Around 53% of UK households have a combination boiler, of which 40% are of the condensing type.

These facts have been extracted from AMA Research's report 'Domestic Central Heating Market Report - Focus on Smart Heating Controls - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK home automation market grows by 20% in 2016

The UK home automation market has nearly tripled in size between 2012 and 2016, according to a report recently published by AMA Research. It is estimated that the market increased by 20% in 2016, in value terms. Although home automation systems have been available in the UK for many years, it is in recent years they have expanded from an upper market niche into a more mainstream market.

This crossover to the mainstream is a key development that is changing the structure of the market with a large variety of entry level and lower cost home automation products having been made available at very competitive prices in the past 2-3 years.

Technological advances driving the home automation market include the progress of wireless controls and “app” or application programme-driven control interfaces, which emphasize user-friendliness. Remote control of the system has meant that the consumer is increasingly able to control all aspects of the connected home from within the home, whilst travelling, at work or even abroad via smartphones, tablets and PCs. Take up of wireless routers/Internet has also benefited the home automation market, with increasing numbers of suppliers offering wireless systems based around the home Wi-Fi network.

The offering of modular systems which enable future expansion has also driven growth, and in addition, the development of systems aimed at self-installation has expanded significantly helping to substantially reduce costs and make systems more affordable to a wider market.

“Greater interest and purchase of home automation systems has been encouraged by the wider availability of smartphone app controlled devices that are now more affordable and enable greater monitoring and control of a range of devices and systems in the home” said Hayley Thornley, Market Research Manager at AMA Research. “Many suppliers of home automation systems have embraced these developments and introduced control panels with icons that resemble smartphone controls, which are deemed to be more user-friendly than some of those previously used.”

The rapid increase in availability of home automation products has led to many independent standalone systems and devices without inter connectivity. System manufacturers are working to find a standard protocol that would enable many more devices to operate across services even where devices are purchased from different manufacturers, with some opening up their operating platforms to third-party developers to encourage the development of suitable devices to fit their systems.

The market is currently considered to be in the initial growth stage, with medium-term prospects for home automation remaining positive with over 50% growth currently forecast to 2021. Growth rates are, however, expected to gradually reduce in the medium term.

The growth of intelligent heating controls is expected to continue into the medium-term, with rapid innovation likely to be the key driver, and micro-generation of energy is also likely to provide a key driver for growth in future years. More intelligent IoT devices that can make smart choices and an increase in voice control devices is also likely to generate interest.

However, ultimately the rate of uptake will be influenced by a number of factors including rates of disposable income, the extent that home automation systems are adopted by mainstream housebuilding organisations, modularity or inter connectivity of devices, ease of installation and the perception by householders of how much value the system will adds to the property when set against other choices.

The ‘Home Automation 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.

Modest growth forecast for the UK panel builders market

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.

UK electrical wholesale market to grow by 14% over the next 5 years

In 2016, the electrical wholesalers market was estimated to have grown by 4% compared with 2015. Following a period of consistent growth since 2013, supported by a strengthening economy and improved construction output, growth is estimated to have slowed in 2016 as uncertainty about the impact of ‘Brexit’ constrained construction output, raw material prices declined, and Government austerity measures continued to restrain public sector markets. These factors are expected to continue to limit the market growth somewhat in 2017/18.

There are plenty of factors supporting the market however, including growth in specialist markets, product development, demand for additional services and non-core products, and evolving legislation leading to a requirement for higher specification and new products, in addition to an improving economic and construction background and improved consumer confidence. Wholesalers’ margins have also continued to improve over the past 2-3 years.

Factors currently affecting market growth negatively include continued public sector budget constraints, uncertainty over the outcome of a Brexit process, price competition with many products in the mature phase of their life cycle, threat from competitive channels and longer product life-spans reducing the replacement market. The decision to significantly reduce Feed in Tariffs, is also impacting negatively on the renewables sector, a market that had offered good potential to wholesalers.

Cables and lighting remain the largest product sectors within the electrical wholesale market, accounting for almost 50% of the value of products sold. Product sectors experiencing relatively good performance in the current market include electrical accessories such as cable systems, circuit protection and wiring accessories as well as lighting and newer product areas such as smart control and automation, with product development primarily driven by environmental concerns, renewable energy issues and energy efficiency, motivating demand for more efficient products and more sophisticated control and testing equipment.

Electrical wholesalers remain market leaders in the distribution of electrical products and are particularly strong in core product areas such as electrical accessories and lighting equipment. Whilst the wholesalers’ share of lighting is currently marginally down on historical levels as newer LED technology has a higher proportion of direct sales, this is unlikely to be a long-term trend, with wholesalers expanding LED ranges and gaining knowledge and experience in the field.

“The electrical wholesaler market continues to be dominated by three large companies, which together account for the majority share of the market” said Keith Taylor, Director of AMA Research. “However, some newer entrants to the electrical wholesaler market, which offer a multi-channel approach coupled with more transparent pricing, have seen rapid share growth in recent years, and could potentially threaten the hold of the ‘Big three’ in the future.”

The wholesalers also face significant competition from the direct sales and specialist distributor channel, as well as internet retailers, merchants and electronic component distributors.

The electrical wholesaler market is expected to continue to grow in the short to medium term, although at a more modest rate, with current forecasts for construction output more cautious due to the uncertainty of the outcome of Brexit and continued restrictions in the public sector. From 2017, average growth levels of 2-3% per annum, with overall growth between 2016-2021 of 14%, is forecast. Obviously, the withdrawal from the European Union will have an impact on the overall economy and the construction industry, though quite what this impact will be remains to be seen. Price increases will also have an impact.

Going forward, electrical wholesalers are expected to continue to widen product portfolios, introduce additional value-added services and embrace e-commerce to become more flexible and remain competitive. The development of niche product sectors will provide an opportunity to add value and differentiate on a basis other than cost, reducing price sensitivity.

The ‘Electrical Wholesale 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 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.

Passive Fire Protection - UK 2016-2020 - Key Facts

• The market for passive fire protection products is expected to see value growth of 8% by 2020.
• New build growth in the offices and industrial sectors has supported demand across a number of product areas including structural fire resistance, glass, partitions, doors etc.
• Fire resistant doors, fitting and seals are the largest sector of the market, accounting for around 60% of total market value.
• Trade sources suggest that intumescent coatings are used in up to 70% of new steel construction.
• New construction activity remains a key driver for passive fire protection products, and forecasts for 2015 indicate that non-domestic new work will increase by 4%.

These facts have been extracted from AMA Research's report 'Passive Fire Protection Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724

Electrical Accessories - UK 2016-2020 - Key Facts

• The UK market for electrical accessories is expected to grow by 10% through to 2020.
• Low voltage cable systems account for 60% of the overall Wiring Accessories market.
• Circuit protection equipment is the largest product sector within the Low Voltage Circuit Protection & Switchgear market, accounting for 40% of the market, ahead of switchboards and distribution boards.
• The outlook for low voltage cable systems is positive as the economy modestly improves, leading to growth of 12% by 2020.
• The wiring accessories market is dominated by 5 key suppliers which together accounted for an estimated 59% of sales.

These facts have been extracted from AMA Research's report 'Electrical Accessories Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724

UK water heating market to grow by 10% over the next 5 years

The value of the UK water heating market increased by a modest 1% in 2016, according to a new report by AMA Research. The market for domestic and non-domestic water heating products has seen relatively steady growth overall since 2013, with the recovery in the UK economy stimulating construction activity as well as consumer and business confidence levels. In addition, the growing concerns about energy efficiency and the environment have a positive influence on this market.

The core product sectors of the UK water heating market include hot water storage systems, which account for an estimated 67%, followed by instantaneous water heaters and boiling water heaters and taps. The majority of water heating products are distributed via the trade channels such as builders/plumbers’ merchants, electrical wholesalers and specialist heating distributors. In addition, there are an increasing number of products sold via online retailers or manufacturer’s own websites.

The number of homes with hot water storage has declined significantly in recent years, with the vast majority of new homes now having a mains pressurised system installed as standard - predominantly in the form of an unvented storage cylinder in larger properties, and a combination boiler in smaller to medium properties and apartments. Sales of vented cylinders have declined significantly as a result of this shift, and are now almost entirely installed in replacement applications. Sales of mains pressurised systems have been driven by the increasing level of domestic hot water consumption, influenced by lifestyle factors such as demand for high performance showering and multi-bathroom properties.

The market for instantaneous water heaters has seen some moderate growth more recently, particularly in the commercial sector. However, demand for multi-point instantaneous water heaters has been negatively impacted by the development of the market for combination boilers. This sector is dominated by replacement demand, which is a large, but declining market.

The market for boiling water heaters for hot drinks has seen good growth over the last 5 years, particularly in commercial applications such as offices, staff canteens and factories. In addition, there is an increasingly significant market for boiling water taps in the UK.

Trends in the market include; a move towards more energy efficient systems; a growing number of pre-plumbed unvented systems being used in the new build sector; and the introduction and growth of IoT devices in the heating market over the last 2-3 years, with smart heating controls that can manage both the heating and hot water increasingly available.

“Although the market situation in early 2017 is slightly subdued, the current forecast for the UK water heating market remains moderately positive, with more steady growth from 2018 onwards” said Hayley Thornley, Market Research Manager at AMA Research. “Following the UK Brexit vote in mid-2016, the outlook for this market is very much dependent on the path taken to exit the EU and the impact this has on the construction sector and consumer confidence.”

It is forecast that the UK water heating market will increase by around 10% between 2017 and 2021. Aside from economic factors, the future performance of the UK water heating market is likely to be influenced by overall trends in house building and construction, RMI activity, fuel prices, energy efficiency legislation, renewable technologies, levels of personal disposable income and changing patterns of hot water consumption.

The ‘Water Heating 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.