How to Conduct a Market Analysis for Building Products

Conducting a market analysis is a vital process for building product manufacturers and suppliers seeking to understand demand, assess competition, and develop strategies for growth.

Whether launching a new product, expanding into a new market, or refining an existing offering, a structured market analysis helps businesses reduce risk and identify opportunities.

At Leading Edge, we specialise in market research and competitor analysis for the construction and building products sectors, helping businesses navigate market complexity with data-led insight.

Here are seven essential steps to conducting a market analysis, alongside how partnering with a specialist agency can enhance your results.

1. Identify Industry Trends and Market Drivers

A successful building product strategy depends on anticipating market developments and aligning with evolving customer needs.

✔ Sustainability Focus – The push for low-carbon, recyclable, and energy-efficient materials is reshaping specification choices, driven by Part L regulations, the Future Homes Standard, and net-zero goals.

✔ Modern Methods of Construction (MMC) – Modular, prefabricated, and offsite techniques are changing material demand and influencing product innovation.

✔ Supply Chain Pressures – Ongoing logistics challenges and price volatility have heightened the need for reliability and alternative sourcing strategies.

How Leading Edge Adds Value:

Our sector-specific knowledge helps you filter out noise and focus on the trends that genuinely affect your product category.

We monitor regulatory changes, sustainability initiatives, and innovation across the supply chain, ensuring your strategy is built on robust intelligence.

➡ Explore our Construction Market Analysis Services.

2. Assess Barriers to Entry

Understanding potential challenges before entering a market is critical.

For building products, this often includes:

✔ Certification & Compliance – Products often require rigorous approvals (e.g., BBA, CE marking, fire safety classifications) before being accepted by specifiers.

✔ Entrenched Supplier Relationships – Contractors, developers, and merchants often favour trusted brands, making market penetration difficult for new entrants.

✔ Distribution Complexity – Getting your product onto the shelves of national merchants or into specialist distributors often requires tailored commercial strategies.

How Leading Edge Adds Value:

We engage with key stakeholders, including merchants and contractors, to understand supplier preferences and procurement barriers, helping you tailor your approach for better market access.

3. Determine Market Size and Growth Potential

Understanding the scale and growth trajectory of your target market provides a foundation for investment and sales planning:

✔ Residential, Commercial, and Infrastructure Segments – Demand varies across sectors, with infrastructure often driven by public spending, while residential demand is linked to housebuilding policy and consumer confidence.

✔ Emerging Sub-Markets – Sustainable materials, pre-finished solutions, and MMC-compatible products are driving growth in certain categories.

How Leading Edge Adds Value:

We quantify market demand, map sector opportunities, and deliver forward-looking market forecasts, enabling clients to confidently assess potential growth areas.

➡ Learn about our Forecasting and Market Sizing Services.

4. Define Your Target Customer

The building products sector involves multiple decision-makers, each with different purchasing priorities:

✔ Architects and Specifiers – Prioritise compliance, sustainability, and performance data.

✔ Contractors – Focus on ease of installation, reliability, and product availability.

✔ Housebuilders and Developers – Require cost-effective, scalable solutions that meet regulatory standards.

✔ Merchants and Distributors – Value supplier reliability, stock turnover, and margin potential.

✔ Public Sector Buyers – Emphasise long-term durability, sustainability, and whole-life costs.

How Leading Edge Adds Value:

We conduct interviews and surveys with specifiers, contractors, and merchants, helping you understand buying drivers, pain points, and decision-making timelines.

5. Analyse the Competitive Landscape

Benchmarking your business against competitors helps define your positioning and highlights opportunities for differentiation:

✔ Product Performance – How do your technical specifications compare?

✔ Sustainability Credentials – Do competitors lead on low-carbon innovations or EPDs?

✔ Pricing and Brand Perception – Are you viewed as a premium, mid-market, or budget supplier?

How Leading Edge Adds Value:

We gather direct feedback from industry decision-makers about competitor strengths, weaknesses, and brand perception, giving you insight that goes beyond publicly available information.

➡ Search our Case Studies for Competitor Benchmarking projects.

6. Build Your Pricing and Distribution Strategy

Pricing and supply chain efficiency are crucial for success in the building products sector:

✔ Direct vs. Merchant Supply – Should you work through Travis Perkins, Jewson, or specialist distributors, or sell directly to contractors?

✔ Trade Discounts and Bulk Pricing – How will you balance competitiveness with margin protection?

How Leading Edge Adds Value:

We interview merchants and contractors to understand purchasing behaviour and margin expectations, helping you develop commercially viable pricing and distribution models.

7. Develop an Evidence-Based Go-To-Market Plan

With insight gathered across the market, competitors, and customer base, you can refine your commercial approach:

✔ Positioning: Are you a performance leader, sustainability innovator, or value provider?

✔ Marketing Channels: Which platforms resonate most with your audience—CPD seminars, trade shows, or online product directories?

✔ Sales Approach: Should you focus on direct sales to contractors, or specification-driven relationships with architects?

How Leading Edge Adds Value:

We help clients translate research into action, using market intelligence to inform marketing plans, messaging, and channel strategies—ensuring your go-to-market approach aligns with what decision-makers want.

➡ See our Building Products Market Research Services.

Why Market Analysis Matters in the Building Products Sector

In a sector driven by performance, compliance, and supply chain relationships, making assumptions can be costly.

Robust market analysis ensures:

✔ Products are aligned with real-world demand.

✔ Brand positioning is clear and competitive.

✔ Investment decisions are based on evidence, not guesswork.

Partner with Leading Edge for Building Products Market Insights

At Leading Edge, we bring over 35 years of research experience supporting building materials manufacturers, suppliers, and distributors.

Our market intelligence helps businesses reduce risk, unlock opportunities, and stay ahead of competitors.

✔ Market Sizing & Forecasting

✔ Competitor Benchmarking