The prefabricated plant rooms market is a developing sector and as such, has seen significant growth in recent years. However, the sector’s performance is highly dependent on the performance of both the wider Manufacturing industry, the Mechanical and Engineering sector (M&E) market and the Construction industry. 2013 and 2014 saw improved economic performance and continuing growth in key end use construction markets. This resulted in improved consumer and business confidence which showed through in the prefabricated plant room market.
Prefabrication within the plant room market remains a growing concept with low penetration across many end use sectors, offering potential for continued high levels of growth. Some sectors, such as retail and leisure, have embraced this type of technology but there remains an ever widening number of end user markets into which this technology is being placed. The underlying trend towards increasing levels of off-site manufacturing for the perceived cost and health and safety benefits has continued to support the market.
Health and education represent the largest end use sectors, accounting for 34% of the market by value, with projects in this sector likely to be both complex and high value. Leisure also accounts for a significant share, followed by the retail and domestic end use markets. Industrial sectors such as manufacturing and warehousing represent a further 5% with the remaining market made up of other sectors such as corporate offices, other public sector and agriculture. Leisure and agriculture markets are expected to continue producing opportunities for prefabricated plant rooms over the next few years, with hotels anticipated to exhibit good growth. However, as earlier adopters of this type of technology, penetration in these areas is higher, limiting growth to some extent.
The focus on energy efficiency should continue to benefit the market. Energy management is a key concern with increasing legislation and higher energy costs. The ability to build efficiency into M&E designs from an earlier stage should aid this sector. The number of new entrants continues to grow in this market, but there are still relatively few manufacturers currently active in the UK. The lack of maturity in the prefabricated plant room market means it is likely to continue to experience strong growth rates over the next few years. The upturn in both construction output and the M & E industry, also suggests that strong growth should continue in this market.