Annual growth rates of 4-5% forecast in the UK Dehumidifiers market

The overall UK market for dehumidifiers experienced strong growth in 2014 at 9%, following a number of years of modest growth rates of between 1-3%. The positive trend continued in 2015, although a slowdown in construction in the latter half of the year is thought to have had a negative impact, resulting in estimated growth of around 3% in 2015. Key market influences include a more buoyant economy, growth in the industrial sector and higher levels of construction in the domestic and commercial sectors.

The domestic sector accounted for just over 40% of the market by value in 2015, though in volume terms this share would be significantly higher. This sector has experienced good growth in recent years supported by RMI and rising levels of housebuilding. In addition, the extensive flooding and prolonged wet weather in 2014 that affected some areas of the UK supported demand for dehumidifiers. 

Other drivers in the domestic sector include; a higher level of product awareness; increased awareness of condensation problems; greater marketing activity by manufacturers; wider availability of dehumidifiers; and increasing price competition supported by the growth of lower value imported products.

The performance of the non-domestic sector has been mixed in recent years, largely due to the varied performance of different end-use sectors. Key drivers for growth include rising demand and investment in, among others, several industrial sectors including the food processing and manufacturing sector, pharmaceuticals, electronics and automotive. A higher level of building and construction activity is also supporting the dehumidifier market, particularly building dryers to the hire sector and direct to building contractors. Other sectors include growing demand for warehousing and storage facilities, largely driven by online purchasing. This often involves electronic products or similar, where the use of dehumidification is vital to ensure the quality of the product. This is also an important factor in other sensitive ‘electronic’ environments such as data centres.

In general, the positive trend in the dehumidifier market is expected to continue in the medium term, with the market forecast to see annual growth of 4-5% between 2016 and 2019. However, a prominent feature in the dehumidifier market in recent years has been the high level of price competition, driven by the introduction of many foreign and ‘own-brand’ products, particularly in the domestic sector, and this is likely to continue to affect the market negatively.

The UK domestic dehumidifier sector has been subject to a number of changes in recent years, with many new companies entering the market as well as withdrawing from it. Other trends include distributors and retailers offering ‘own brand’ products, which has increased the level of price competition in the sector. There is some overlap in the non-domestic sector with heating, air conditioning, ventilation suppliers also offering dehumidifiers. It seems likely that the supply structure will become increasingly blurred, with companies offering products that provide greater integration across the air handling/air quality industry.

“In product terms, it seems likely that there will continue to be a shift to greater integration of products offering air handling and air control features” commented Hayley Thornley, Research Manager at AMA Research. “The focus on energy efficiency is likely to support the growth of multi-functional products offering air conditioning and dehumidification. In the commercial sector, there is already a trend to install ‘air control’ products which offer both, and in the leisure sector this has been the case for some time.”  

Additional factors that are likely to support future growth include; a general improvement in the economic environment and consumer confidence, increasing consumer awareness of the problems associated with excess humidity, wider distribution of products and availability of dehumidifiers via supermarkets and department stores and the growing popularity of online retailing, particularly in the electrical appliance sector. Additional shower installations in homes and ensuite bathrooms may also support demand for dehumidifiers, along with the growth in the use of power showers and more regular use of showers in general. Niche sectors such as saunas, steam and cabin showers may also provide some opportunities, particularly those increasingly installed in luxury bathrooms in upmarket homes.

The ‘Dehumidifiers Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.