In general terms, the market has grown only moderately in 2001-03, though overall market growth levels disguises wide variations in performance between product sectors, with locks in particular benefiting from a switch to higher specifications. It is a market characterised by fiercely competitive pricing, fuelled by the large number of players in the market, as well as high volumes of low-priced imported products on the market.

The commercial construction market has been relatively buoyant in recent years, particularly the education, health and office sectors, which combined have boosted the fittings market. New build has been relatively flat in 2002/03, but should see some growth in the medium term. The domestic window replacement market, however, is a very mature market where long term growth is not anticipated. Nonetheless, the market remains large for windows at least in the short-medium term, and the door replacement market is expected to show marginal growth in the next few years. The buoyant conservatory market currently also offers a growth area for the handles and fittings market.

In terms of materials, the growth in the use of PVCu for windows and doors has resulted in major changes over the last decade in terms of product design, suppliers and methods of distribution for the major hardware products - particularly hinges, locks and handles. However, the trend to PVCu is slowing down as the material is reaching saturation levels in the replacement market, though there has been substantial growth in the new build and some commercial sectors in recent years.

Handles and locks represent the largest product sectors, each accounting for an estimated 30% of the hardware market. The key area of growth in the locks market in recent years has been the development of multi-point locking systems which is estimated to represent around 35% of the locks market in 2003. Shoot-bolt systems have been the largest growth sector, particularly in the home improvement sector, where retail companies are looking for additional marketing features, with new build specifiers also looking for higher quality systems.

Assa Abloy are now regarded as market leaders in the lock sector, with Laird Group and IR Architectural Hardware also key players. Distribution is widely spread among Builders Merchants, Independent Hardware companies, DIY Multiples, Architectural Ironmongers, Locksmiths and the Direct Sell window companies, with all accounting for substantial shares of the market.

Sales of door and window handles were an estimated £159m in 2003. Handle supply and distribution is widely spread with Builders Merchants/Joinery Centres, DIY Multiples, Systems Companies/Fabricators and Architectural Ironmongers all taking significant shares of the market. Many players supply the market, often with niche products.

Our estimate for the value of the market for hinges for door and window applications is £56m in 2003. Friction stays continue to increase share, stimulated by the influence of the replacement window market, and growing usage of PVCu in new build domestic and commercial applications.

In terms of distribution, the friction stay sector is dominated by Window Fabricators/System companies, though Builders Merchants and DIY Multiples are strong in the distribution of butt hinges. Major suppliers include Nico, Laird and Basta Parsons in the butt-hinge sector. Securistyle dominate the friction stay market, with Cotswold, Cego/Euromond, Avocet, Latham and Nico also leading suppliers. Grorud and Spilka are leading suppliers in specialist hinge sectors.

Door closers are primarily specified in the commercial and public non-housing sectors with Builders Merchants and Architectural Ironmongers the main channels of distribution. Leading suppliers include Briton, Dorma, Jebron and Perkins & Powell. Other leading sectors of the fittings market include ventilators, signs/letterplates, PVCu tilt `n' turn gearing and emergency exit hardware.

In overall terms, the distribution of door and window fittings is divided between four major sectors. Window Fabricators and Systems Companies account for an estimated 33%, with Builders Merchants/Joinery Centres accounting for around 16%.

DIY Multiples account for around 22% of the market, though their share of the locks and handles sector is higher. Architectural Ironmongers account for an estimated 14% of the market, though their share is heavily dependent on the commercial sector, which has experienced stronger recovery in the last 2-3 years.

The development of these major distribution channels reflects the fragmented nature of the product range and the importance of frame materials and end-use applications influencing the source of supply. Builders Merchants have steadily lost share, primarily due to the switch from timber to PVCu in the new build market, where windows and hardware are often sourced through specialist window companies.

The supply structure is equally very fragmented for the same reasons and differs within specific product groups. Substantial changes have occurred in the supply structure over the last few years. Assa Abloy are a leading supplier, while IR Architectural Hardware are also a broad-based international supplier of hardware. The Laird Group also have major interests across all sectors of the hardware market. Further rationalisation of the supply structure is anticipated as price pressures continue to dampen margins.

Market prospects for 2004 remain cautiously optimistic in terms of volumes, with reasonable growth anticipated in the commercial sector. Domestic new build should also offer some growth, though the replacement market will be relatively flat reflecting the maturity of the sector. Value growth, however, will be restricted due to competitive pressures, exacerbated by the growth of imports.