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.

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