The Fire Protection systems market is generally
regarded as a relatively mature sector and is influenced by a
number of factors, including the general health of the economy,
levels of consumer confidence and spending, changing Building
Regulations and Standards, and most significantly the underlying
performance of the UK building and construction market.
Output values are now declining in the
non-domestic construction market which includes all new work and
RMI. The changing situation in 2008 has fed through into output
and new order figures for 2009, with rapid decline in sectors such
as offices, retail and industrial. The uncertainty surrounding the
UK and global economies continues to have an effect on
non-domestic construction into H2 2009 with levels of business
confidence and investment remaining subdued, and no indication of
a recovery in investment in new build work into the medium term.
The active fire protection market is comprised
of alarms and extinguishers / sprinkler systems, with the market
estimated at around £330m in 2008. In terms of passive fire
protection, the market for fire doors had experienced steady
growth up to 2007. However, the recent downturn in the
construction of new houses and flats, together with a decline in
many commercial and industrial sectors has had a negative impact
on the industry and, as such, has reduced the market value to
around £300m, while the fire door fittings market is worth
approximately £200m.
The situation into H2 2009 continues to remain
pessimistic for the office sector in particular with new projects
postponed, further reductions in demand for new and refurbished
office space, continuing downward pressures on average rental
values and more evidence of commercial office developers facing
increasing financial restraints. As a result, the market for
suspended ceilings and partitions is likely to decline by 5-7% in
2009, with ‘fire performance’ products accounting for 15-20% of
the sector – though definition is subject to some interpretation.
The growth in fire resisting ductwork and damper
systems is again largely influenced by overall construction
output. Market size for ductwork and damper systems is estimated
at over £75m in 2008 but forecast to decline by up to 5% in 2009.
Decline in the housing market is likely to
influence the active and passive fire protection sector with
regard to fire doorset installations, fire alarms and sprinklers,
mainly in multi storey apartments with safety and sustainability
becoming increasingly important issues. In addition, further
decline within the non-domestic construction sector - particularly
in offices, retail and industrial will have a negative effect on
the passive fire protection market and will see decline in fire
resistant glass, partitions, and cable during 2009. Medium term
prospects are more uncertain as rising Government debt levels are
likely to result in some cutbacks in public sector capital
spending programmes – particularly from 2011.
Continuing concerns over terrorism and public
safety should provide further specification opportunities within
the commercial sector, with many organisations likely to increase
or upgrade their fire safety measures. In particular, transport,
stadia or other buildings / locations where there are large crowds
etc, are considered key areas, with the Olympics development
programme offering good market opportunities.
