BSRIA has released its first snapshot of the UK HVAC and smart energy market landscape for products post Brexit.
The HVAC and smart energy product market is estimated to be worth £4.5 billion in the UK per annum. Market growth was expected to be a healthy 3.1 per cent for 2016 prior to the Brexit vote but BSRIA research with suppliers post Brexit now anticipates this will shrink to a “meagre 1.1 per cent”, knocking off £95 million compared with the pre-Brexit view.
Commercial fire and security and building control products account for 68 per cent of the 1.6 billion smart technologies market. These products are more likely to be put in towards the end of commercial projects.
In 2017 the continued pull through of commercial projects nearing completion which were started two years ago will mask any further falls from Brexit, with almost no effect on fire as it is regulation driven.
Building control products should follow a similar pattern to central plant but growth is lower as many sales are to public areas (health, education, central government).
Andrew Giles, director of worldwide market intelligence, BSRIA commented: “For domestic controls the main markets are valves and actuators, thermostats and domestic controllers. This is a very large market ranging from simple thermostat and valves to very sophisticated smart home devices linking in with apps and other housing devices and services. It has a strong link with the heating market and is principally sold for refurbishment and replacement applications.
"There will be a maximum effect on the market in 2016 of two per cent lower growth, a large chunk of which of which can be attributed to Brexit. Looking further ahead: the uncertainty could start to affect the market adversely in 2017 – but will be partly offset by a high level of project completions so – it will not be until 2018 that suppliers see the full implications.”