Underfloor heating (UFH) has been widely used in Europe for more than thirty years. The UK market is younger and less developed, accounting for just under 5% of the total UK heating market. However, the UK UFH market saw high growth in the early part of the decade, gaining popularity in the self build and luxury sectors of the house building market in particular. Towards the end of 2007 the market started to experience the first effects of the ‘credit crunch’ as consumer confidence fell and interest rates started to increase.

The market has seen a significant decline in 2009 in response to the economic conditions, with further decline expected in 2010, as both domestic and non domestic construction output continues to struggle. The economic downturn has particularly affected the housing market which has led to the non domestic UFH sector gaining market share. However, the public sector, notably health and education, is the dominant user within this area and whilst it has sustained the market to some extent in recent months, the change of government following the General Election in May, is likely to see large cuts in expenditure in this market.

Towards the end of 2010 and into 2011, it is hoped that the economic situation will start to improve. UFH is still a relatively new market and if it is able to penetrate the mass domestic market and gain share in the industrial and commercial sectors there is no reason that we wouldn’t see a return to the high levels of growth seen at the start of the decade.

The UFH supply chain remains fragmented and is characterised by a large number of suppliers. In the current market, the market leaders mainly consist of subsidiaries of international heating companies who design, supply and install UFH. For example, Wavin, Uponor and Devi are widely viewed as market leaders and are part of international groups. The contracting market has developed in recent years, with manufacturers offering training schemes to allow this to continue. It is anticipated that most manufacturers and suppliers will eventually end their involvement in installation.

Distribution remains dominated by direct supply. There has been a shift towards distribution via the internet, particularly in the domestic RMI sector where installation and design is relatively standard, as more emphasis is placed on cost. A number of the major merchants are active in the heating sector but are not heavily involved in distribution in this market, although if there is increased adoption of underfloor heating by national housebuilders there is likely to be a greater supply through builders’ merchants. The DIY multiples and tile and flooring specialists are now more involved in the distribution of UFH, with most companies stocking a limited range of products.