Despite the slow start for the Green Deal in 2013, MTW Research has published new findings that energy saving building product sales are set to rise by 30% in 2014, as Green Deal and Energy Companies Obligation (ECO) measures return to growth.
The new report found that while sales of the Green Deal and ECO products declined in 2013, prospects for 2014 are significantly more positive. MTW forecast Green Deal assessments are likely to exceed more than 100,000 per month in 2014, with the number of measures installed also rising rapidly.
Sales of energy efficient building products through the ECO scheme are also quantified in MTW’s report, with double digit growth forecast as energy providers increase activity in order to meet their obligations. The report identifies more than 50 product sectors which are likely to benefit from ECO and the Green Deal in 2014 onwards. The research found that providers are likely to widen the scope of measures on offer to households, broadening the range of products, which are likely to grow in 2014 and 2015.
The report also underlines the potential for the Green Deal and ECO, forecasting key product sales to 2018. Discussing the findings, MTW’s director, Mark Waddy, said:
“In terms of market potential, there are clear indications that 12 million measures installed in ten million homes is possible – much of this enshrined in law. The scope for manufacturers, distributors and installers to capitalise on this growth market is significant, with more than £1.2 billion being spent on energy saving products through the Green
Deal and ECO in the next few years.”
With sales set to increase across a wider range of products, the research found that ECO is likely to provide the single most significant boost to the domestic energy efficient products market in the medium term.
“Going forward, ECO and the Green Deal are unlikely to be just about boilers and insulation, though of course these remain very important.
“The market will continue to broaden and grow in terms of products being installed, representing a changing market with rapidly increasing opportunities for suppliers and installers. Our best case scenarios suggest that eco building product sales are forecast to grow by 90% in the next few years.”
The report offers a detailed perspective into recent events for the Green Deal and ECO, but more importantly forecasts a burgeoning market across a range of building product markets from lighting, HVAC, showers, taps, controls, doors and windows, microgeneration, insulation and others. The report illustrates the very slow start to the Green Deal, but also demonstrates that the tide has turned for the scheme and forecasts a rapidly rising number of ‘live’ Green Deals in the next 12-18 months.
Examining conversion rates of assessments to measures installed, MTW suggest that monthly double-digit growth is likely for Green Deal products for some time to come.
The report also provides total UK market sizes for a wide range of energy saving building products, with sales in 2014 topping £5.2 billion and rising fast. The Green Deal and ECO installations are rapidly accounting for a larger proportion of these sales each year, according to MTW, reflecting a market that the UK building products industry cannot afford to ignore.
The report and accompanying contractor database is available now from MTW Research’s website: www.marketresearchreports.co.uk