30% growth for Green Deal and ECO products in 2014

mtwDespite the slow start for the Green Deal in 2013, MTW Research, an independent publisher of market research reports and databases for the UK construction and building products industry, has published new findings that claim energy saving building product sales are set to rise by 30% in 2014, as Green Deal and ECO measures return to growth. The organisation forecasts a ‘burgeoning market’ across a range of building product markets, including doors and windows.

The new report found that whilst sales of Green Deal and ECO products declined in 2013, prospects for 2014 are ‘significantly more positive’.

MTW that forecasts 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 (Energy Companies Obligation) 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 research also found that providers are likely to ‘widen the scope of measures on offer to households’.

MTW’s director, Mark Waddy, commented: “In terms of market potential, there are clear indications that some 12 million measures installed in 10 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 Green Deal and ECO in the next few years.”

With sales set to increase across a wider range of products, the research found that the ECO is likely to provide the ‘single most significant boost to the domestic energy efficient products market in the medium term’.

Waddy revealed that: “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 forecasts a ‘burgeoning market’ across a range of building product markets, including lighting, showers, taps, controls, doors and windows, microgeneration and insulation.

The report illustrates the ‘very slow start’ to the Green Deal, but also claims that ‘the tide has turned’ for the scheme, forecasting a rapidly rising number of ‘live’ Green Deals in the next 12-18 months.

Examining conversion rates of assessments to measures installed, MTW suggests 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’. Green Deal and ECO installations are ‘rapidly accounting for a larger proportion of these sales each year’ according to MTW.

For further information, visit MTW Research’s website www.marketresearchreports.co.uk or call 08456 524324.

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