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Press Release: UK Residential Energy Efficicency Products Market Development Report

Released: July 2009

After researching the UK residential energy efficiency products market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

Market Review 2004-2008:

The UK market for energy efficiency products is not one market, but a group of diverse markets all of which can have a substantial effect on fuel consumption through improving efficiency. The primary product sectors can be defined as double glazing, central heating and thermal insulation.

Before analysing the trends demonstrated within the individual sectors of the UK residential energy efficiency market, it is important to note that data for double glazing includes sales from the domestic conservatories sector. Moreover, demand for double glazing fluctuated over the five-year period, declining by a notable 9% to a review period low of £2815 million in 2008. Prior to this, growth of 1% and a marginal increase were recorded during 2006 and 2007 respectively, although the value of the sector remained below the 2004 peak of £3139 million, estimated at £3100 million in the latter year. Overall, the UK sector for double glazing declined during the period under review, falling by 10% in 2008, compared with 2004.

In contrast to double glazing, demand for central heating in the UK increased during the five-year period under review, equivalent to overall growth of a notable 23% between 2004 and 2008. In spite of this, the value of the sector declined by 3% to £1540 million in 2008, falling from a peak of £1583 million in the previous year. On the whole, demand for central heating has benefited from strong levels of construction output during the majority of the review period, with the proportional importance of the sector increasing from 25% in 2004 to 29% in 2008.

Building thermal insulation represents the only sector of the UK residential energy efficiency market to demonstrate growth during each year of the review period. Despite ongoing turmoil within the economy, demand for thermal insulation increased by a notable 6% in 2008, taking the value of the sector to a five-year peak of £889 million. Furthermore, double digit growth of 11% was reported during both 2004 and 2006, representing the highest increase recorded within any sector of the residential energy efficiency market over the period under review. Overall, the value of the sector for building thermal insulation rose by a strong 38% between 2004 and 2008, although it remains to command the smallest share of the total market, equivalent to 17% during the latter year.

Market Forecast 2009-2013:

The overall UK market for residential energy efficiency products, including double glazing, central heating and thermal insulation, is anticipated to decline during the first two years of the forecast period. In real terms, sales are expected to fall by 3% and 1% during 2009 and 2010 respectively, resulting in a forecast period low of £5056 million (at 2008 prices) in the latter year. This largely reflects ongoing turmoil within the UK economy, which is likely to place an increasing amount of pressure on the construction and housing markets over the next few years. However, MBD believe that sustained growth of between 2% and 3% during the remaining three years, will culminate in peak market value of £5381 million (at 2008 prices) in 2013, representing an increase of 6% in real terms compared with 2008. In addition to a recovery within the economy, The Energy White Paper, changes in the Building Regulations and Government programmes such as the extension of EEC, the Code for Sustainable Homes and the introduction of Home Information Packs, are believed to further boost UK demand for energy efficiency products over the next five years.

Note to Editors:

MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

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