AMA Research have
published a new report covering the "Distribution of Electrical
Products in Building Applications - UK 2009”. This report provides
a unique analysis of electrical products distribution in the UK,
reviewing individual product sectors in a wider context. It
provides a review of the market in terms of market size, key
sector trends, product mix, distribution trends and distribution
mix, overall and for each product sector.
The overall market for
electrical products used in building applications is estimated at
just over £12bn in 2008, (although this excludes products used in
mobile accommodation, automotive or utilities applications,
also consumer electronic goods or office electronic equipment). A
wide range of product areas are covered and broadly grouped these
include: electrical accessories, lighting and security, heating
and ventilation, tools and test equipment, automation products,
data networking and built-in domestic appliances. Most electrical
product sectors are relatively mature markets and therefore market
growth is relatively steady, at around 3% per annum.
The distribution of
electrical products is complex and involves a number of routes to
market, due to the wide range of products covered, with products
often passing through more than one distribution channel.
Electrical wholesalers and Direct sales are estimated to account
for the highest share of the market at 26% each. Specialist
distributors also have a significant share, estimated at around
16%, due to their dominance in certain sectors, particularly
security & fire. Retail sales account for around 13%, the majority
of which are through the DIY multiples, although electrical
retailers and specialist retailers are also strong. The trade
catalogue/internet distributor channel, which includes electronic
component distributors and industrial products distributors, has
grown in recent years and is now estimated to account for around
10% of the market.
Key distribution
trends include; online sourcing and through catalogue operations,
intense competition and multi-channel distribution, broadening of
product ranges, consolidation through acquisitions and mergers,
product development and a stronger emphasis on energy efficient
and sustainable products.
A mature market,
growth in the electrical products market will depend on a number
of external factors such as: housebuilding and construction
levels, increased usage of electrical and electronic appliances,
raw material and energy prices and legislation, all of which
should provide value growth in the medium term, although
increasing competition levels and price pressures may affect the
market negatively.
