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UK Domestic
Heating Market by Value (£m MSP) 2004-2013
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The
domestic heating market has experienced a variable rate of growth
over the last few years, principally influenced by legislative
measures concerning the compulsory installation of high efficiency
condensing boilers. The market is now essentially mature but still
offers further growth potential through product innovation to
improve thermal performance, energy-efficiency and
control/flexibility.
The
market has an estimated value of around £1.3 billion at
Manufacturer Selling Prices (MSP) in 2009. This represents a
decrease of around 11% when compared to the market size in 2008 and
reflects the impact ofthe current UK economic recession on the
building and home improvement markets.
Current forecasts indicate that in the short term,
the domestic heating market will remain depressed, reflecting the
impact of the current economic recession. In 2010, the market for
domestic heating products is estimated to be £1.28 billion at MSP.
However, in the medium to longer term, the domestic heating market
is expected to experience a return to growth, and by 2013, the
market value is forecast to be around £1.4 billion at MSP, which
would represent an increase of around 7-8% compared to the market
size in 2009.
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In 2009, the market for domestic central heating products
can be broken down into three key sectors: refurbishment (77%), first
time installations (14%) and new build (9%). A major area of support for
the market is expected to come from the domestic refurbishment sector.
With rising fuel prices and new legislative measures, householders are
now more aware of energy efficiency and the environmental impact of
energy using products, such as those used in domestic heating systems.
Electricity as a source of fuel is growing in popularity. Electric
systems now account for around 12% of the total UK domestic heating
market, reflecting growth in the number of flats and apartments. In the
space heating sector, electric fires now account for around 46% of the
total fuel effect fires market.
Combination condensing boilers have become the UK’s best selling type of
boiler, accounting for around 70% of sales. However, there is increasing
awareness of the limitations of combination boilers, particularly
concerning low flow rates when hot water demand is high. As a result, the
market share of system boilers - that currently represent around 7% of
market - is growing steadily and this growth is expected to continue.
The
majority of central and water heating products are distributed via the
trade channels such as builders/plumbers merchants, electrical
wholesalers and specialist heating distributors. However, replacement and
retrofit products are often distributed via the DIY multiples. Around 70%
of space heating products are distributed via the retail channels. These
include electrical multiples, specialist independents, DIY multiples,
department stores and other retail outlets.
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, levels of
personal disposable income, patterns of hot water consumption and niche
market drivers such as the self build and conservatory markets. |
