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Decorative Radiators Market by Value (£m MSP)
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The market for decorative radiators
has shown impressive rates of growth of between 10-20% per annum in
recent years. The market is maturing, though still offers further
growth potential as acceptance of the product widens. However, the
decorative radiator market has an estimated value of £75 million at
manufacturer selling prices in 2008 and this represents a decrease
of around 8-9% compared to 2007, reflecting the impact of the
credit crisis on the domestic sector in particular. There are many
factors that influence the growth of the decorative radiator market
in the UK; including the level of acceptance in the house building
market, the growth of the conservatory sector and self-build,consumer
tastes in heating and the level of specification in commercial
applications. The above table illustrates the size of the market in
value terms since 2005, with forecasts to 2010.
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Current forecasts indicate
that in the short term, the UK decorative radiator market will continue
to fall, reflecting the impact of the current economic downturn. In 2009,
the market for decorative radiators is forecast to be around £69 million
at MSP, which represents a further decrease of around 9% compared to
2008.
However, in the medium to
longer term, the market for decorative radiators is expected to
experience a return to growth, and by 2012, the market value is forecast
to be around £80 million at MSP, which would represent an increase of
around 16% compared to 2009.
Price competition has been a
major factor affecting value growth in the market for decorative
radiators. There are growing levels of imports being driven by retailers
sourcing own brand products directly from lower cost sources abroad.
Foreign and UK suppliers are increasingly attracted to the margin
opportunities available in the UK decorative radiator market, which has
resulted in higher levels of competition and a greater number of
suppliers.
The market for decorative
radiators can be broken down into three key sectors: domestic
refurbishment (65%), domestic new build (20%) and commercial
installations (15%). A major area of growth is expected to come from the
domestic refurbishment sector. Consumers are seen as the early adopters
of these products and are now paying greater attention to the role that
radiators have in the home, particularly as open-plan contemporary
designs expose every detail in the home.
Decorative radiators are
distributed through builders and plumbers merchants (53%), DIY Multiples
(30%), bathroom/heating specialists (10%), or direct via the Internet or
mail order (7%). DIY multiples in particular, have been a major
contributing factor to market growth of towel warmers over recent years.
Forecasting trends for the
next 4 years is particularly difficult when issues such as the future
direction of government policy and the performance of the economy are
uncertain. The home improvement market is beginning to feel the impact of
the fall in house prices and consumer confidence. In addition, spending
on higher ticket “deferrable” projects such as new bathrooms, house
extensions and conservatories is also starting to decline. However, there
is more than £16 billion likely to be spent on the 2012 Olympic Games
Infrastructure during the next 4 years. The decorative radiator market
should be supported by the new build and RMI activity planned as a direct
result of this.
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