AMA Research are pleased to announce the publication of the 12th edition of the report "Domestic Central Heating Market Report - UK 2014-2018 Analysis". The report represents an informed and up-to-date and detailed review of the market and offers excellent value for money.
The report reviews developments within the industry, with emphasis on both QUALITATIVE AND QUANTITATIVE market assessment - both essential requirements to good marketing planning. Recent trends, key influencing factors and forecasts of future developments are assessed.
The UK domestic heating market is significant, with an estimated total value of £1.1 billion at manufacturers selling prices in 2014. Since January 2013 this market has seen a notable upturn, in line with the UK economic recovery and the related upturn in housebuilding and consumer confidence. Government initiatives such as the ECO scheme and the Green Deal plus the further tightening of energy efficiency legislation has also supported growth in all product sectors of this market.
Abacus Direct, ACV, Ariston Thermo Group, Armstrong Integrated, Baxi Heating UK, Biasi, Broag, Calpeda, Danfoss Randall, Double Quick, Ferroli, Glen Dimplex Group, Glow- worm, Grant Engineering, Grundfos, Heatline, Honeywell, Ideal Heating, Invensys Controls, Jaga Heating Products, JIS (Europe), Johnson and Starley, Kermi, Keston Heating, Kudox, Laing GmbH, MHS, Myson, Pegler Yorkshire, Quinn Radiators, Radiating Style, Radox Radiators, Ravenheat, Rettig, Salus Controls, Secure Controls, Siemens Building Technologies, Sime, Smedegaard, Stelrad Radiators, Strebel, Sunvic Controls, TFC Group, The Radiator Compan, Timeguard, Tuscan Foundry Products, Ultra Finishing, Vaillant Group, Viessmann, Vogue, Vokera, Wilo, Worcester Bosch Group, Zehnder.
The UK domestic central heating market is substantial, with an estimated total value of around £1.1 billion at manufacturers' prices in 2014. Over recent years this market has benefited from more stringent energy efficiency legislation and the drive to sustainability. With around 92% of UK homes with central heating installed, the market is now mature but still offers further growth potential through product innovation to improve thermal performance, energy efficiency and control.
Between 2009 and 2012, the UK domestic central heating market was comparatively volatile - in line with the uncertain economic situation at this time. However, since January 2013 the market for domestic central heating products has seen a notable increase, with demand picking up as the economy improves. This growth can be partly attributed to the introduction of Government initiatives such as the ECO scheme and the Green Deal in 2013 plus the further tightening of energy efficiency legislation in all product sectors of this market.
Estimated at £637 million at MSP in 2013, the boiler sector dominates the industry's sales. This is followed by radiators, heating controls and circulator pumps. The majority of these products are distributed via the trade channels such as builders/plumbers merchants and electrical wholesalers. However, replacement and retrofit products are often distributed via the DIY multiples and Online retailers. Other distributors include specialist heating retailers, hardware stores and catalogues. A number of products are also sold into OEMs.
In 2013 the market for domestic central heating products can be broken down into three key areas; refurbishment, which accounts for over 80% of sales, new build and first time installations. A major area of support for the market is expected to come from the domestic refurbishment sector. With new legislative measures, householders are now more aware of energy efficiency and the environmental impact of domestic central heating products.
The future performance of the UK domestic heating market is likely to be influenced by overall trends in house building, home improvement, fuel prices, energy efficiency legislation, renewable technologies, and technological developments also niche market drivers such as the self-build and conservatory markets.
Increasing legislation represents a major influence in the long term development of this market. For example, legislation developed by the European Commission; the Eco-Design of Energy related Products (ErP) Directive. Since July 2013 all radiators sold in the UK also have to conform and have outputs verified to British Standard BS-EN442, something which supports the UK radiator industry as a whole, as it will eliminate (low cost) imports that do not meet this new mandatory standard.
Higher levels of efficiency are also likely to be driven by the 2014 revisions to Part L of the Building Regulations. These changes mean that new build homes will have to be 6% more efficient than under current regulations. Housing developers are more likely to demand energy-saving fittings such as high efficiency boilers with new 'ErP ready' circulator pumps.
As part of the transition to a low carbon economy, 53 million gas and electricity meters will be replaced with smart meters by 2020. The widespread roll-out of these meters is expected to start in 2015. Householders will become more aware of their energy usage and seek energy efficiency measures in order to save money. In addition, with the evolving trend towards 'the internet of things' the development of smart heating controls will start to transform the heating controls sector. These systems are particularly useful to people who want flexible control of their heating systems or those who own second homes that are left empty for long periods of time.
Future growth in the use of renewables will be driven by the Governments' renewable energy strategy with initiatives such as the domestic Renewable Heat Incentive (RHI) and Feed-in Tariffs (FIT). This will lead to further development of heating systems that are compatible with these technologies. It is anticipated that the trend towards low carbon homes will result in the adoption of a wider range of technologies in order to deliver a comfortable home heating environment. These are likely to use a combination of both fossil fuel and renewable heat sources.
The outlook for the UK domestic central heating market in Q4-2014 remains positive, with the continuing recovery in the UK economy and the related upturn in housebuilding and consumer confidence. However, with the election in mid-2015, uncertainties do exist regarding Government policy after this time. By 2018 it is estimated that the UK domestic central heating market will be worth some £1.3 billion, representing an increase of around 18% when compared to the estimated market size in 2014.