In 2009, the electrical wholesale market was estimated to be worth £2.8 billion. This represents a decline of 8% on 2008. The electrical wholesalers’ market has experienced difficult trading conditions in recent years, reflecting the poor economy.

From 2011, the market is expected to return to average growth resulting in a market value in 2014 forecast at over £3.2 billion. This will be driven by the improving economy but limited by the maturity of the market overall.

Factors supporting the market in spite of poor trading conditions include high levels of government expenditure, growth in specialist markets and evolving legislation leading to a requirement for higher specification products and those with improved sustainability credentials.

Factors negatively affecting market growth include low levels of construction, low raw material prices, increased price competition, growing competition from competitive channels and longer product life reducing the replacement market.

The leading electrical wholesalers in the UK are Rexel, Edmundson Electrical, City Electrical Factors, and Electric Center. These four companies account for around three quarters of the electrical wholesalers market.

Electrical wholesalers remain market leaders in distribution of electrical products and are particularly strong in core product areas such as electrical accessories and test equipment. It is unlikely, in the short to medium term, that they will relinquish their hold on this market.

Cables, circuit protection & switch gear and lighting remain the largest product sectors within the electrical wholesalers market, accounting for over half of the electrical wholesalers’ market. Electrical wholesalers are widening product portfolios to provide growth as consolidation in the market makes beneficial acquisitions more difficult. Whilst this offers potential for wide expansion, it will put the wholesalers in more direct competition with other channels.

Emphasis of product development currently focuses on energy efficiency, motivating demand for more efficient products and those which help to monitor and reduce energy usage. These products tend to have a higher initial cost, although they will provide longer term savings in energy usage and often have longer life cycles requiring less replacement.

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electrical industry market research news, e-lec.org