The electrical accessories market was valued at £1.3 billion in
2009, a decline of 17% from its peak in 2007. The collapse of many
major banks at the end of 2008 saw credit availability fall
dramatically and the housing market suffered, with house prices
falling and construction in the domestic sector slowing
dramatically. Low consumer confidence and spending saw other
markets, including manufacturing and retail, experience poor
trading resulting in a decline in non-domestic construction and
manufacturing, driving the fall in value in the electrical
accessories market. The UK economy is expected to start to improve
from 2011, leading to higher levels of construction and increasing
demand for electrical accessory products. Therefore the market is
forecast to experience growth between 2011 and 2013.
Low voltage cable systems dominate the market, followed by circuit
protection with and wiring accessories. However, cable systems
have lost some share to circuit protection equipment as this
sector benefits from growth in domestic consumer units and RCDs in
response to changes in wiring regulations.
Pricing is a key characteristic of the market with competition
from falling demand putting pressure on prices. It is likely to
remain a key aspect of the market for some time into the future
with low cost imports and raw material prices increasing as global
demand regains old levels. Volatile fuel prices and legislative
changes such as legislation concerning environmental issues and
the introduction of the IEE Wiring Regulations 17th Edition which
came into force in July 2008, have also affected the market.
There has been further consolidation of suppliers and this is
likely to continue as large multi-national organisations seek to
enhance product portfolios and as less profitable suppliers are
forced out of the market in the current economic climate. Key
suppliers include Schneider Electric, Siemens, Eaton Electrical,
Honeywell, and ABB.
The distribution structure of the electrical accessories market is
complex with a wide range of possible routes to market. Electrical
wholesalers are central to the distribution network. Significant
changes to the main distribution routes have been largely due to
the trend to relocate production facilities outside of the UK.
This has led to pre-packers playing an increasingly important role
in distribution, particularly for products destined for retail
channels. Direct supply from manufacturers to importers and
contractors is also increasing. Super distributors have maintained
a role in the distribution network, largely due to their ability
to act as stock holders for customers further down the supply
chain and are often used by large electrical retailers.
