Tuesday, January 19, 2016

Double digit growth forecast in the UK Kitchen and Bathroom PODs market

The bathroom and kitchen PODs market was worth an estimated £137 million at MSP in 2015, having recovered well since 2012, according to a newly released report by AMA Research. This performance reflects the improving situation in the UK economy and strong opportunities afforded by the residential and student accommodation sectors in particular. However, although the market has seen a significant rise in recent years, it is remains significantly below its peak value in 2009.
The prefabricated POD market saw a rapid decline between 2009 to 2012, driven primarily by the global economic crisis and the downturn in the housing and construction sectors, which led to some major suppliers exiting the marketplace. Since then, however, the market has shown good signs of recovery, with this becoming more pronounced over the past two years, and is expected to remain buoyant over the forecast period to 2019.
PODs continue to provide advantages of consistency of build quality under factory conditions, speed of assembly and reduction of trades on site, all of which will sustain market growth in the face of the skills shortages. The prefabricated PODs market continues to be dominated by shower-room PODs, which account for around 50% of the market by value, followed by bathroom PODs, both of which lend themselves to self-contained, sealed units. Kitchen PODs represent only 5% of the overall POD market, with the wider variation in layouts, sometimes open plan, meaning fewer opportunities for standardised POD units.
The majority of PODs are manufactured from either Glass reinforced plastic and composite (GRP) or steel frame, with a smaller proportion manufactured in concrete and other materials, such as timber. These proportions have changed in recent years reflecting a number of changes in the marketplace. Firstly, there has been a contraction in the number of suppliers producing concrete PODs for the UK market; secondly, the trend towards using lighter materials on construction projects has increased, meaning that modular steel frame has become more popular; thirdly, the key area of student accommodation favours the use of GRP (as do some budget hotels), driven by cost.
Forecasts for 2016 are bullish, reflecting a significant improvement in economic conditions and business optimism. In the medium-long term, the bathroom and kitchen PODs market is expected to experience a reasonable level of growth, tailing off slightly towards the end of the forecast period, and by 2019 the market value is forecast to be 29% above 2015 levels. However, growth levels will depend on the performance of individual end use markets. 
“The key sectors served by PODs, such as student accommodation, flats and apartments, care homes, hotels, are all expected to show growth in the coming years, perhaps with the exception of the MOD sector” said Hayley Thornley, Research Manager at AMA Research. “As the POD market has matured, new opportunities are also arising for refurbishment of existing PODs, alongside new build. Upgrading and renewal of POD interiors in student accommodation, for example, to compete with the quality of new build projects, presents a developing area of work in this marketplace.”    
The ‘Bathroom and Kitchen PODs 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.

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