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Water Heating Market Report - UK 2017-2021 Analysis

Published: 17/02/2017 / Number of Pages: 68 / Price: £745.00

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Introduction and Overview

The 2nd edition of the 'Water Heating Market Report - UK 2017-2021 Analysis' reviews the development of the market for water heating products in the UK, driven by the growth of mains pressurised water heating systems in particular. The report represents an informed, up-to-date and detailed review of the domestic and non-domestic water heating market.

Key areas covered:

  • Hot water storage systems - unvented cylinders, vented cylinders, thermal stores, gas-fired water heaters, renewables cylinders, small cylinders.
  • Instantaneous water heaters - multi-point, single point.
  • Boiling water - heater units, taps.

Key areas of insight include:

  • Impact of renewable technologies on domestic and non-domestic water heating systems.
  • Influence of developments such boiling water taps used for hot drinks and food preparation, both in domestic properties and in commercial premises.
  • Impact of changing legislation regarding the efficiency and environmental impact of water heating -ErP 2015, Part L, new simplified rules on energy efficiency incorporated with building regulations.
  • Development of mains pressurised systems, with increasing demand for high flow rates, performance showering, multi-bathroom properties etc.
  • Impact of fluctuating fuel prices with consumers and businesses looking for alternative methods of hot water heating.
  • Increasing use of smart heating controls for remote management of both heating and hot water.

Some of the companies included: 

ACV UK, Advance Appliances, AEL Heating, A.O. Smith Water Products, Ariston Thermo Group, BDR Thermea, Biasi UK, Crown Water Heaters, Dimplex, Electric Heating Company (EHC), Fabdec, Flamco, GAH Heating, Gledhill Building Products, Grant Engineering UK, Hamworthy Heating, Heatstore, Hyco Manufacturing, Johnson and Starley, Ideal Stelrad Group, Joule, Kingspan Hot Water Systems, McDonald Engineers UK, Morco Products, Newark Copper Cylinder Company, OSO Hotwater UK, Redring Xpelair, Rinnai, RM Cylinders, Rointe, Stiebel Eltron, Strebel, Strom, Telford Group, Therma Q, Triton, Vaillant, Viessmann, Warmflow Engineering Co, Worcester Bosch, Zip Heaters UK.


Hot Water Storage Systems

  • Overall market size, trends and forecasts to 2021. Key market influences including legislative changes - Part L. ErP, Government grants and incentives etc, housebuilding and RMI expenditure. Domestic ownership levels for 2016 and historical developments. Source of fuel. Product mix etc.
  • Cylinders >15 litre capacity - product mix by type, vented and unvented, direct and indirect. Market size, product trends, key end use sectors.
  • Renewable cylinders - solar and heat pump compatible cylinders, twin and triple coil. Market trends, prospects, end use sectors.
  • Thermal storage systems - benefits, characteristics, applications etc.
  • Pre-plumbed cylinders - market and products trends, benefits, key sectors, e.g. new house build, existing properties.
  • Small cylinders <15 litre capacity - vented and unvented, market and products trends, market size, suppliers.
  • Major manufacturers - market share, factors influencing market position, characteristics, turnover, product range.
  • Review of distribution - key channels and developments, market share and an overview of the main distributors in each channels.
  • Installation and specification - process in new build, refurbishment etc.

Instantaneous Water Heaters

  • Overall market size, trends and forecasts to 2021. Legislative changes - Part L, ErP etc. Government initiatives - smart meters etc. Advantages and disadvantages.
  • Multi-point heaters - gas-fired, electric. Key product and market trends, condensing technology, applications, market prospects.
  • Single-point heaters - gas-fired, electric. In-line, hand wash units. Product trends, developments etc.
  • Leading manufacturers - market shares, characteristics, products and turnover.
  • Review of distribution - key channels, distributor profiles and developments.

Boiling, Water Heaters & Taps

  • Overall market size, trends and forecasts to 2021. Key market influences and drivers.
  • Product mix - boiling water heaters, boiling water taps. Including market trends, key influences, benefits, applications, product developments etc.
  • Supply and distribution - market shares of leading suppliers and distributors, characteristics, turnover, key distribution channels, new product launches etc.

Report Summary

The value of the UK water heating market increased by a modest 1% in 2016, following two years of slightly higher growth. The market for domestic and non-domestic water heating products has seen relatively steady growth since 2013, with the recovery in the UK economy stimulating construction activity, also consumer and business confidence levels. The core product sectors of the UK water heating market include hot water storage systems, which account for an estimated 67%, followed by instantaneous water heaters and boiling water heaters and taps.

Positive influences on this market include the growing concerns about energy efficiency and the environment. The UK Government has introduced a significant amount of environmental legislation in recent years placing a greater emphasis on carbon emissions and fuel efficiency. However, the number of homes with hot water storage has declined significantly in recent years, with an increasing reliance on combination boilers for hot water provision. The vast majority of new homes now have a mains pressurised system installed as standard. Sales of vented cylinders have declined significantly as a result of this shift towards mains pressurised systems. With the trend towards off-site solutions, there is a growing number of pre-plumbed unvented systems, particularly in the new build sector.

The market for instantaneous water heaters has seen some moderate growth more recently, particularly in the commercial sector. However, demand for multi-point instantaneous water heaters have been negatively impacted by the development of the market for combination boilers. This sector is dominated by replacement demand, which is a large, but declining market. The market for boiling water heaters for hot drinks has seen good growth over the last 5 years, particularly in commercial applications such as offices, staff canteens and factories. In addition, there is an increasingly significant market for boiling water taps in the UK.

Although the market situation in early 2017 is more subdued, the current forecast for the UK water heating market remains moderately positive, with more steady growth from 2018 onwards. Following the UK Brexit vote in mid-2016, the outlook for this market is very much dependent on the path taken to exit the EU and the impact this has on the construction sector and consumer confidence. It is forecast that the UK water heating market will increase by around 10% between 2017 and 2021.


List of Report Contents

  1. Contents Listing
  2. 1. INTRODUCTION 7
  3. 1.1 BACKGROUND 7
  4. 1.2 SOURCES OF INFORMATION 7
  5. 2. SUMMARY AND MARKET PROSPECTS 9
  6. 2.1 SUMMARY 9
  7. 2.2 KEY TRENDS 10
  8. 2.3 MARKET PROSPECTS 11
  9. 3. HOUSING AND ECONOMIC INFLUENCES 12
  10. 3.1 GDP 12
  11. 3.2 INFLATION & INTEREST RATES 14
  12. 3.3 UNEMPLOYMENT 15
  13. 3.4 HOUSEHOLD CONSUMPTION 15
  14. 3.5 HOUSING & CONSTRUCTION 16
  15. 3.6 STERLING 17
  16. 3.7 POPULATION PROFILE 17
  17. 3.8 CONCLUSIONS 18
  18. 4. UK OVERALL MARKET FOR WATER HEATING 19
  19. 4.1 DEFINITION 19
  20. 4.2 MARKET SIZE 19
  21. 4.3 SECTOR MIX 20
  22. 4.4 MARKET INFLUENCES 21
  23. 4.4.1 Non-domestic Construction 21
  24. 4.4.2 House Building Starts and Completions 22
  25. 4.4.3 Mix of Housebuilding Completions 24
  26. 4.4.4 House Moving Levels 26
  27. 4.4.5 Self Build 26
  28. 4.4.6 Park Homes and Leisure Homes 27
  29. 5. HOT WATER STORAGE SYSTEMS 28
  30. 5.1 DEFINITION 28
  31. 5.1.1 Open Vented System 28
  32. 5.1.2 Mains Pressurised System 28
  33. 5.1.3 Commercial and Industrial Systems 29
  34. 5.2 MARKET OVERVIEW 29
  35. 5.2.1 Market Size by Value 2012 - 2021 29
  36. 5.3 KEY MARKET TRENDS AND INFLUENCES 32
  37. 5.3.1 Domestic Ownership 32
  38. 5.3.2 Source of Fuel (Mains Gas, Oil, LPG, Electricity) 33
  39. 5.3.3 Environmental Legislation and Energy Initiatives 35
  40. 5.3.4 Renewable Energy Technologies 36
  41. 5.3.5 The Internet of Things 37
  42. 5.4 PRODUCT TRENDS 38
  43. 5.4.1 Product Mix 38
  44. 5.4.2 Unvented and Vented Systems (capacity >15 litres) 38
  45. 5.4.3 Unvented and Vented Systems (capacity <15 litres) 42
  46. 5.5 SUPPLIERS 43
  47. 5.5.1 Market Shares 43
  48. 5.5.2 Key Suppliers 44
  49. 5.5.3 Other Suppliers 45
  50. 5.6 DISTRIBUTION 48
  51. 5.6.1 Channel Shares (Merchants, Wholesalers, Multiples, Internet) 48
  52. 5.6.2 Key Companies 48
  53. 5.7 INSTALLATION AND SPECIFICATION 51
  54. 5.7.1 New Build 51
  55. 5.7.2 Refurbishment 52
  56. 6. INSTANTANEOUS WATER HEATERS 53
  57. 6.1 DEFINITION 53
  58. 6.2 MARKET OVERVIEW 53
  59. 6.2.1 Market Size by Value 2012 - 2021 53
  60. 6.2.2 Market Prospects 54
  61. 6.3 PRODUCT TRENDS 55
  62. 6.3.1 Advantages and Disadvantages 55
  63. 6.3.2 Multi-Point Instantaneous 55
  64. 6.3.3 Single-Point Instantaneous 56
  65. 6.4 SUPPLIERS 58
  66. 6.4.1 Market Shares 58
  67. 6.4.2 Key Suppliers 58
  68. 6.4.3 Other Suppliers 59
  69. 6.5 DISTRIBUTION 60
  70. 7. BOILING WATER HEATERS AND TAPS 61
  71. 7.1 DEFINITION 61
  72. 7.2 MARKET OVERVIEW 61
  73. 7.2.1 Market Size by Value 2012 - 2021 61
  74. 7.2.2 Market Prospects 62
  75. 7.3 PRODUCT TRENDS 63
  76. 7.3.1 Product Mix 63
  77. 7.3.2 Boiling Water Heaters 63
  78. 7.3.3 Boiling Water Taps 64
  79. 7.4 SUPPLIERS 65
  80. 7.4.1 Market Shares 65
  81. 7.4.2 Key Suppliers 66
  82. 7.4.3 Other Suppliers 67
  83. 7.5 DISTRIBUTION 68
  1. Tables & Charts
  2. CHART 1: UK WATER HEATING MARKET BY VALUE (£M MSP) 2012 - 2021 9
  3. TABLE 2: GDP DATA - 2013-2016 - KEY CONSTITUENT ELEMENTS 13
  4. CHART 3: INTEREST RATES AND INFLATION (CPI) FROM 2000-2021 14
  5. CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2021 16
  6. TABLE 5: EXCHANGE RATE FLUCTUATIONS 2012-2019 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
  7. CHART 6: UK WATER HEATING MARKET BY VALUE (£M MSP) 2012-2021 19
  8. CHART 7: UK WATER HEATING MARKET PRODUCT MIX (STORAGE, INSTANTANEOUS, BOILING) BY VALUE 2016 AND FORECAST 2021 20
  9. CHART 8: NON-DOMESTIC CONSTRUCTION OUTPUT NEW WORK AND RMI BY VALUE 2012 - 2021 (£ BILLION AT CURRENT PRICES) GB 21
  10. CHART 9: NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK ANALYSIS BY SECTOR 2016 AND 2021 - % BY VALUE GB 22
  11. TABLE 10: HOUSE BUILDING STARTS AND COMPLETIONS (UK) 2012 TO 2021 - BY VOLUME ('000 DWELLINGS) 23
  12. CHART 11: HOUSEBUILDING COMPLETIONS IN ENGLAND - % MIX BY TYPE OF DWELLING (FLATS VERSUS HOUSES) 2009-2021 25
  13. TABLE 12: UK RESIDENTIAL PROPERTY TRANSACTIONS VALUED AT £40K OR ABOVE 2012-2021 26
  14. TABLE 13: UK HOT WATER STORAGE MARKET (£M MSP) 2012-2021 30
  15. CHART 14: UK HOUSEHOLDS WITH HOT WATER STORAGE % PENETRATION BY VOLUME (1997, 2005 AND 2016) 32
  16. CHART 15: HOUSEHOLD OWNERSHIP OF HOT WATER STORAGE SYSTEM BY TYPE 1997-2016 (000'S) 33
  17. CHART 16: MARKET MIX BY SOURCE OF FUEL USED (GAS, OIL, OTHER) - BY VOLUME 2016 34
  18. CHART 17: HOT WATER STORAGE MARKET PRODUCT MIX (VENTED, UNVENTED >15L, UNVENTED < 15L) BY VOLUME 2016 38
  19. CHART 18: MARKET MIX BY PRODUCT TYPE (VENTED, UNVENTED) BY VOLUME 2000 AND 2016 39
  20. CHART 19: MARKET MIX BY PRODUCT TYPE (DIRECT AND INDIRECT, VENTED AND UNVENTED) BY VOLUME 2016 40
  21. CHART 20: PRE-PLUMBED UNVENTED CYLINDERS BY TYPE OF INSTALLATION (NEW BUILD, EXISTING HOMES) BY VOLUME 2016 42
  22. TABLE 21: HOT WATER STORAGE SUPPLIERS % MARKET SHARES BY VALUE 2016 43
  23. CHART 22: HOT WATER STORAGE DISTRIBUTION BY CHANNEL (MERCHANTS, ELECTRICAL WHOLESALERS, INTERNET, OTHER) BY VALUE 2016 48
  24. TABLE 23: UK INSTANTANEOUS WATER HEATER MARKET (£M MSP) 2012-2021 53
  25. TABLE 24: ADVANTAGES AND DISADVANTAGES OF INSTANTANEOUS WATER HEATERS 55
  26. TABLE 25: INSTANTANEOUS WATER HEATER SUPPLIERS % MARKET SHARES BY VALUE 2016 58
  27. TABLE 26: UK BOILING WATER HEATERS & TAPS MARKET (£M MSP) 2012-2021 61
  28. CHART 27: MARKET MIX BY PRODUCT TYPE (BOILING WATER HEATERS, BOILING WATER TAPS) BY VALUE 2016 63
  29. TABLE 28: BOILING WATER HEATERS & TAPS SUPPLIERS % MARKET SHARES BY VALUE 2016 66

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