Automatic Fire Sprinkler System Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Automatic Fire Sprinkler System Manufacturing industry has experienced inconsistent revenue flow over the past five years. The bursting of the US housing bubble in the late 2000s hurt demand. The long-awaited recovery of US construction markets is expected to gain traction in 2013. Further economic improvement will decrease unemployment, increase consumer and business spending, and create robust demand conditions for new office buildings, retail locations, factories, hotels, apartments, and other structures that typically contain automatic fire sprinkler systems, causing stronger revenue growth. For these reasons, industry research firm IBISWorld has added a report on the Automatic Fire Sprinkler System Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Continued demand abroad, regulations at home will lift industry demand

The Automatic Fire Sprinkler System Manufacturing industry has experienced inconsistent revenue flow over the past five years. The bursting of the US housing bubble in the late 2000s hurt demand for automatic fire sprinkler systems. In 2009 alone, revenue plunged 23.6%, with commercial and residential construction having experienced a subdued construction since then. On the positive side, the industry pulled itself out of its recession-induced slump in 2010 as manufacturers focused on supplying automatic fire sprinkler systems to growing export markets. As industrial activity continues to increase over 2012 and US construction markets manage some improvement, industry revenue is expected to jump 3.1% to $285.2 million, IBISWorld industry analyst Nima Samadi says. Over the five years to 2012, revenue is estimated to fall at an annualized rate of 1.3%.

Export demand helped lift the industry into positive territory in 2010: automatic fire sprinkler systems and parts exports soared 15.1% to $117.5 million, Samadi says. Foreign developing markets where construction activity has continued to escalate strongly have been accounting for an increasing share of Automatic Fire Sprinkler System Manufacturing industry revenue. International construction demand is expected to continue growing strongly over the next five years. As more developing and newly industrialized countries grow and attract foreign investment into major metropolitan areas, construction activity abroad will create demand for automatic fire sprinkler systems. IBISWorld estimates that exports will increase at an annualized rate of 2.8% over the five years 2012 to $145.4 million.

A more stringent regulatory environment will also drive demand for industry products. States are beginning to adopt the 2009 version of the international residential code, which mandates that fire sprinklers be installed in new single-family homes. This should encourage more residential home builders to install sprinkler systems in the homes they are constructing, increasing demand for automatic sprinkler systems.

The long-awaited recovery of US construction markets is expected to gain traction in 2013. Further economic improvement will decrease unemployment, increase consumer and business spending, and create robust demand conditions for new office buildings, retail locations, factories, hotels, apartments, and other structures that typically contain automatic fire sprinkler systems. Over the five years to 2017, industry revenue is forecast to grow. The Automatic Fire Sprinkler System Manufacturing industry has a high level of market share concentration, with a small number of national and regional manufacturers. For more information, visit IBISWorld’s Automatic Fire Sprinkler System Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures fire-protection systems that use automatic sprinklers. These systems typically consist of a network of pipes connected to a building's water supply. Industry products include devices that detect fire and automatically release water to combat the flames.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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