The value of the electrical accessories market fell in 2008 and 2009 from a peak of £1.6bn in 2007, due to difficult trading conditions and the economic downturn, resulting in a decline of 20% over two years.

The market was estimated to be valued at around £1.3bn in 2010, a decline of 17% since its peak in 2007.

Though the difficult economic situation continued into 2010, there was a substantial rise in raw material prices, in particular copper, and this inflated prices offsetting low demand and leading to a marginal increase in value terms. It is estimated that in 2011 the market will return to growth. There are only a few anecdotal signs of the economy recovering at the time of writing, but housebuilding is expected to pick up during the year and the market will also be supported by major projects already committed or started in both the public and private sectors.

The market is split into 3 distinct product groups – Wiring Accessories, Circuit Protection and Low Voltage Cable Systems and includes a number of products used for low voltage electrical installations with power ratings of up to and including 1kV AC or 1.5 kV DC. The market is dominated by low voltage cable systems with value share of 58%, followed by circuit protection with 26% and wiring accessories with 16%. As the electrical accessories market is mature, the product mix has remained fairly stable in recent years.

Raw material prices play an important role in market performance for electrical accessories, with the price of cable in particular being highly dependent on copper prices. These have fluctuated widely in recent years – there was a substantial fall in 2008/09 with prices falling by around 65%. Since then copper prices have tripled and are now at their highest point ever.

There has been downward pressure on product prices as manufacturers compete in markets suffering from reduced demand, though product development, higher raw material prices and a weakened currency has led to prices increasing over the past two years, supporting the market. Activity at supplier level during the recession has been focused on consolidation, rationalisation and cost cutting exercises, with many taking the opportunity to integrate earlier acquisitions, streamlining purchasing processes and even repositioning their businesses.

The electrical accessories market being a mature and sizeable market, recovery will be slow with the market value not expected to return to its 2007 peak level even by the end of the forecast period. Current forecasts indicate modest annual increases of 2-3% from 2012 onwards as the economy improves and house building activity increases, and it is expected that the market value will be around £1.5bn in 2015. However, this will depend on the speed of economic recovery and any fluctuations in raw material prices.

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