Water Heating Market Report - UK 2021-2025 - AMA Research

Water Heating Market Report - UK 2021-2025

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The 4th edition of the Water Heating Market Report UK 2021-2025 represents an informed and up-to-date review of this dynamic market and covers residential and commercial hot water storage systems, instantaneous water heaters and boiling water heaters & taps.

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The 4th edition of the Water Heating Market Report UK 2021-2025 represents an informed and up-to-date review of this dynamic market and covers residential and commercial hot water storage systems, instantaneous water heaters and boiling water heaters & taps.

Key areas covered:

  • An assessment of the effects that Covid-19 and Brexit will have on this market, including the current supply chain issues and the high cost of imports.
  • The government 2050 carbon net zero target and the influence of increasing environmental legislation regarding energy efficiency.
  • Increasing focus on renewable technologies, particularly heat pumps and solar energy, and the impact this has on residential and commercial water heating systems.

Key areas of insight include:

  • Changing legislation regarding the efficiency and environmental impact of water heating – including 2019 Clean Growth Strategy, 2025 Future Homes Standard, Interim Part L 2021, SAP 10.
  • Influence of developments such boiling water taps used for hot drinks and food preparation, hygienic non-touch single-point water heaters.
  • Increasing use of mains pressurised systems, with growing demand for high flow rates, performance showering, multi-bathroom properties etc.
  • Product innovation and technological developments including air-source water heaters, twin tank technology, self-sustaining systems etc.
  • The growth of smart water heating controls in homes and commercial applications. The increased requirement for interoperability and remote control of intelligent systems.

Some of the companies included:

Crown Water Heaters, Ferroli UK, Fabdec, Zip Heaters, Heatstore, Riello, Baxi Heating UK, Billi UK, Hyco Manufacturing, Insinkerator, Kingspan, Heatrae Sadia, Worcester Bosch, Ariston Thermo, Joule Hot Water Systems UK, Valliant, Glen Dimplex UK, Viessmann, Glenhill Building Products,Triton, Warmflow Engineering Co and more.


Market Summary

  • Market size by value 2016 to 2021, rates of change.
  • Market overview by product sub-sector.
  • Imports and exports data.
  • Market splits including mix by product type, type of fuel used.

Market Influences and Drivers

  • Main influences that drive the water heating industry including detailed PESTLE analysis.
  • Analysis including impact of Brexit, changes in government policy and energy efficiency standards.
  • Economic forecasts and impact on confidence levels.
  • Changes in buying trends, lifestyle factors, variations in population demographics. Product innovations and the development of connected IoT technologies.
  • Growth of renewables, effect of climate change, eco conscious production methods etc.

End Use Sectors

  • Summary of sectors driving demand for water heating products, market split by sector.
  • Residential new build prospects and influences including housebuilding activity, mix by type of dwelling, self-build market activity.
  • Residential RMI prospects and influences including impact of Covid-19 pandemic on level of home renovations.
  • Non-residential construction prospects and influences, new work activity and RMI output. Market split by sector.

Product Sub-Sectors

  • Hot water storage systems – market size by value 2016 to 2021 and rates of change.
  • Household penetration and ownership by type of cylinder, analysis by sub-sector; >15 litres and <15 litres, unvented and vented, direct and indirect, renewable cylinders, thermal storage, pre-plumbed systems. End users, key suppliers, leading company market shares and profiles.
  • Instantaneous water heaters – market size by value 2016 to 2021 and rates of change.
  • Market splits – gas-fired and electric, multi-point and single-point.
  • End users, key suppliers, leading company market shares, and profiles.
  • Boiling water heaters and taps – market size by value 2016 to 2021 and rates of change.
  • Market split – heaters and taps.
  • End users, key suppliers, leading company market shares and profiles.

Distribution Sectors

  • Review of distribution – map, key channels, developments.
  • Company overview and financials of key trade distributors – merchants, electrical wholesalers, online specialists, etc.

Market Forecasts and Product Innovations

  • Ten-year UK water heating market view 2016 – 2020, plus forecasts to 2025, rates of change.
  • Ten-year market view by product sub-sector to 2025 and rates of change.
  • Summary of market prospects and influences.
  • Product innovations and notable new product designs including air-source water heaters, twin tank technology, self-sustaining systems etc.

The market for water heating systems has been growing at a steady pace between 2016 and 2019, before a sharp decline in 2020 caused by the Covid-19 pandemic and its widespread impact on the construction sector.

Increasing legislation and the drive towards carbon net zero represents a major influence in the long-term development of the UK water heating industry. For example, the Future Homes Standard, to be introduced by 2025, will require new build homes to be future proofed with low carbon water heating. It is anticipated that homes built to this standard should have 75% to 80% fewer CO2 emissions than those built to current building regulations.

This is likely to impact on the type of hot water facility specified in new build homes. Heat pumps are anticipated to become the primary heating technology for new homes under the Future Homes Standard. Solar systems are also likely to be more widely specified.

Given the scale of change required between now and 2025, the government has confirmed an interim uplift to Part L of the Building Regulations in December 2021, that will take effect from June 2022. These interim standards will cover important areas, including improvement to minimum standards for water heating systems in new build and retrofit applications, all geared towards increasing energy efficiency.

Standard Assessment Procedures (SAP) are a requirement of the Building Regulations and are required to assess the home energy rating for all newly built dwellings in the UK. In July 2018, the most recent version SAP 10 was published with many of the fuel types have had their prices, CO2 and primary energy factors changed with the most significant being electricity related carbon emissions. This reduction will have a positive impact on the specification of electric water heating products.

Mains pressurised hot water systems will continue to replace traditional low pressure open vented systems in the UK. Installers are becoming more familiar with these systems, leading to them being used in a growing number of residential upgrades, particularly in larger homes with 2+ bathrooms. However, demand for combination boilers with no hot water storage facilities remains significant, particularly in smaller homes and apartments.

The prospects for the UK water heating market in Q4-2021 are positive, with a strengthening construction pipeline of new work and RMI activity going forward. The market is expected to achieve annual growth rates of around 3% in value terms between 2022 and 2025, with a more settled economic outlook and the increasing demand for more intelligent, energy efficient solutions.

Contents Listing

1. INTRODUCTION 7
1.1 CONTEXT 7
1.2 DEFINITIONS 7
1.2.1 Hot water storage systems 7
1.2.2 Instantaneous water heaters 9
1.2.3 Boiling water heaters and taps 9
1.3 ABBREVIATIONS 10
2. MARKET SUMMARY 11
2.1 MARKET SIZE 11
2.2 MARKET OVERVIEW 12
2.2.1 Hot water storage systems 12
2.2.2 Instantaneous water heaters 13
2.2.3 Boiling water heaters and taps 13
2.3 IMPORTS AND EXPORTS 14
2.4 MARKET SPLITS 16
2.4.1 Market mix by product type 16
2.4.2 Market mix by type of fuel used 16
3. MARKET INFLUENCES AND DRIVERS 18
3.1 MAIN MARKET INFLUENCES AND DRIVERS 18
3.2 POLITICAL INFLUENCES AND DRIVERS 18
3.3 ECONOMIC INFLUENCES AND DRIVERS 20
3.4 SOCIAL INFLUENCES AND DRIVERS 21
3.5 TECHNOLOGICAL INFLUENCES AND DRIVERS 23
3.6 LEGAL INFLUENCES AND DRIVERS 24
3.7 ENVIRONMENTAL INFLUENCES AND DRIVERS 25
4. END USE SECTORS 26
4.1 SUMMARY OF THE SECTORS DRIVING DEMAND FOR THIS PRODUCT 26
4.2 RESIDENTIAL NEW BUILD PROSPECTS AND INFLUENCES 26
4.2.1 Starts and completions 26
4.2.2 Mix of housing completions 28
4.2.3 Self build market 29
4.3 RESIDENTIAL RMI PROSPECTS AND INFLUENCES 30
4.4 NON-RESIDENTIAL CONSTRUCTION PROSPECTS AND INFLUENCES 31
5. MARKET SUB SECTORS 33
5.1 HOT WATER STORAGE SYSTEMS – MARKET SIZE (VALUE) 33
5.1.1 Hot water storage systems – Sub-sector market summary 33
5.1.2 Hot water storage systems – Sub-sector product mix 35
5.1.3 Unvented and vented systems (capacity >15 litres) 36
5.1.4 Small unvented and vented systems (capacity <15 litres) 40
5.1.5 Hot water storage systems – Sub-sector end users 41
5.1.6 Hot water storage systems – sub sector suppliers / key players 42
5.1.7 Company market shares and profiles 42
5.2 INSTANTANEOUS WATER HEATERS – MARKET SIZE (VALUE) 56
5.2.1 Instantaneous water heaters – Sub-sector market summary 57
5.2.2 Instantaneous water heaters – Sub-sector product mix by source of fuel 58
5.2.3 Instantaneous water heaters – Sub-sector product mix by type of installation 58
5.2.4 Multi-point instantaneous water heaters 59
5.2.5 Single-point instantaneous water heaters 60
5.2.6 Instantaneous water heaters – Sub-sector end users 61
5.2.7 Instantaneous water heaters – Sub-sector suppliers / key players 62
5.2.8 Company market shares and profiles 62
5.3 BOILING WATER HEATERS AND TAPS – MARKET SIZE (VALUE) 64
5.3.1 Boiling water heaters and taps – Sub-sector market summary 65
5.3.2 Boiling water heaters and taps – Sub-sector product mix 65
5.3.3 Boiling water heaters 66
5.3.4 Boiling water taps 67
5.3.4 Boiling water heaters and taps – Sub-sector end users 68
5.3.5 Boiling water heaters and taps – Sub-sector suppliers / key players 68
5.3.6 Company market shares and profiles 68
6. DISTRIBUTION 74
6.1 MARKET MAP 74
6.2 CHANNEL SHARES BY SUPPLIER 75
6.2.1 Hot water storage systems 75
6.2.2 Instantaneous water heaters 76
6.2.3 Boiling water heaters and taps 76
6.3 KEY COMPANY PROFILES 76
6.3.1 Plumbers’ merchants 76
6.3.2 Electrical wholesalers 79
6.3.3 Online specialists 81
7. INNOVATION 83
7.1 DEMAND SIDE RESPONSE TECHNOLOGY 83
7.2 USE OF HYDROGEN 83
7.3 NEW PRODUCTS 83
8. MARKET FORECASTS 85
8.1 TEN-YEAR MARKET VIEW 85
8.1.1 Hot water storage systems – Forecast 85
8.1.2 Instantaneous water heaters – Forecast 86
8.1.3 Boiling water heaters and taps – Forecast 87
8.2 HOT WATER STORAGE SYSTEMS PROSPECTS AND INFLUENCES 87
8.3 INSTANTANEOUS WATER HEATERS PROSPECTS AND INFLUENCES 89
8.4 BOILING WATER HEATERS AND TAPS PROSPECTS AND INFLUENCES 90
APPENDICES 92
APPENDIX A: ECONOMIC ENVIRONMENT 92
A.1 OVERVIEW AND OUTLOOK 92
A.2 GDP 92
A.3 INFLATION & INTEREST RATES 94
A.4 EMPLOYMENT & WAGES 94
A.5 HOUSEHOLD CONSUMPTION 95
A.6 STERLING 96
A.7 TRADE & BUSINESS INVESTMENT 97

Tables & Charts

CHART 1: UK WATER HEATING MARKET BY VALUE (£M MSP) 2016 – 2021 11
TABLE 2: IMPORTS AND EXPORTS OF ELECTRIC STORAGE WATER HEATERS AND IMMERSION HEATERS 2018, 2019, 2020 (£M) 14
TABLE 3: IMPORTS AND EXPORTS OF INSTANTANEOUS ELECTRIC WATER HEATERS 2018, 2019, 2020 (£M) 15
TABLE 4: IMPORTS AND EXPORTS OF INSTANTANEOUS GAS-FIRED WATER HEATERS 2018, 2019, 2020 (£M) 15
TABLE 5: IMPORTS AND EXPORTS OF NON-ELECTRIC INSTANTANEOUS OR STORAGE WATER HEATERS 2018, 2019, 2020 (£M) 15
CHART 6: MARKET MIX BY PRODUCT TYPE (STORAGE, INSTANTANEOUS, BOILING) BY VALUE 2020 16
CHART 7: MARKET MIX BY HOUSEHOLD MAIN FUEL TYPE 2020 17
TABLE 8: UK WATER HEATING MARKET PESTLE SUMMARY 2020 18
TABLE 9: KEY ECONOMIC VARIABLES 2019 TO 2022 21
CHART 10: UK HOUSEHOLD PENETRATION OF SMART HEATING CONTROLS (2018, 2021, 2025) 23
CHART 11: MARKET MIX BY TYPE OF INSTALLATION (RESIDENTIAL, COMMERCIAL) BY VALUE 2020 26
TABLE 12: GB TOTAL RESIDENTIAL STARTS AND COMPLETIONS (ENGLAND, WALES AND SCOTLAND) (000’S) 2016 TO 2024 27
CHART 13: HOUSE BUILDING COMPLETIONS 2007-2020 % MIX BY TYPE OF DWELLING 28
CHART 14: NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK & RMI BY VALUE 2016 – 2025 (£BN AT CURRENT PRICES) 31
CHART 15: NON-RESIDENTIAL NEW CONSTRUCTION OUTPUT ANALYSIS BY SECTOR 2020 AND 2025 – % BY VALUE 32
CHART 16: UK HOT WATER STORAGE MARKET BY VALUE (£M MSP) 2016 – 2021 33
CHART 17: UK HOUSEHOLDS WITH HOT WATER STORAGE – % BY VOLUME (1997, 2005, 2020) 34
CHART 18: UK HOUSEHOLD OWNERSHIP OF HOT WATER STORAGE SYSTEMS BY TYPE 1997 – 2020 (000’S) 35
CHART 19: HOT WATER STORAGE MARKET PRODUCT MIX (UNVENTED >15L, UNVENTED <15L, VENTED) BY VOLUME 2020 35
CHART 20: HOT WATER STORAGE >15L % MARKET MIX BY PRODUCT TYPE (UNVENTED, VENTED) 2000 AND 2020 36
CHART 21: HOT WATER STORAGE >15L % MARKET MIX BY INSTALLATION TYPE (DIRECT & INDIRECT, UNVENTED & VENTED) 2020 38
CHART 22: PRE-PLUMBED UNVENTED CYLINDERS BY RESIDENTIAL END USE APPLICATION (NEW BUILD, EXISTING HOMES) 2020 40
TABLE 23: HOT WATER STORAGE SYSTEM SUPPLIERS % MARKET SHARES BY VALUE 2020 42
TABLE 24: BAXI HEATING UK 43
TABLE 25: KINGSPAN HOT WATER SYSTEMS 44
TABLE 26: GLEDHILL BUILDING PRODUCTS 45
TABLE 27: TELFORD COPPER AND STAINLESS CYLINDERS 46
TABLE 28: ARISTON THERMO UK 47
TABLE 29: JOULE HOT WATER SYSTEMS UK 48
TABLE 30: WORCESTER BOSCH GROUP 49
TABLE 31: IDEAL BOILERS 50
TABLE 32: VAILLANT GROUP UK 51
TABLE 33: GRANT ENGINEERING UK 52
TABLE 34: VIESSMANN 53
TABLE 35: GLEN DIMPLEX UK 54
CHART 36: UK INSTANTANEOUS WATER HEATERS MARKET BY VALUE (£M MSP) 2016 – 2021 56
TABLE 37: MAIN ADVANTAGES AND DISADVANTAGES OF INSTANTANEOUS WATER HEATERS 57
CHART 38: INSTANTANEOUS WATER HEATERS MARKET PRODUCT MIX (ELECTRIC, GAS-FIRED) BY VOLUME 2020 58
CHART 39: INSTANTANEOUS WATER HEATERS MARKET PRODUCT MIX (MULTI-POINT, SINGLE-POINT) BY VOLUME 2020 59
TABLE 40: INSTANTANEOUS WATER HEATERS SUPPLIERS % MARKET SHARES BY VALUE 2020 62
CHART 41: UK BOILING WATER HEATERS AND TAPS MARKET BY VALUE (£M MSP) 2016 – 2021 65
CHART 42: BOILING WATER HEATERS AND TAPS MARKET PRODUCT MIX BY VOLUME 2020 66
TABLE 43: BOILING WATER HEATERS AND TAPS SUPPLIERS % MARKET SHARES BY VALUE 2020 68
TABLE 44: ZIP HEATERS UK 70
TABLE 45: QUOOKER UK 71
CHART 46: DISTRIBUTION STRUCTURE FOR WATER HEATING PRODUCTS 74
CHART 47: HOT WATER STORAGE DISTRIBUTION BY CHANNEL (MERCHANTS, ELEC WHOLESALERS, ONLINE, OTHER) BY VALUE 2020 75
TABLE 48: TRAVIS PERKINS LTD 77
TABLE 49: WOLSELEY UK 78
TABLE 50: EDMUNDSON ELECTRICAL LTD 79
TABLE 51: REXEL UK LTD 80
TABLE 52: CITY ELECTRICAL FACTORS LTD (CEF) 81
TABLE 53: UK WATER HEATING MARKET BY VALUE (£M MSP) 2016-2025 85
TABLE 54: UK HOT WATER STORAGE SYSTEMS MARKET BY VALUE (£M MSP) 2016-2025 86
TABLE 55: UK INSTANTANEOUS WATER HEATERS MARKET BY VALUE (£M MSP) 2016-2025 86
TABLE 56: UK BOILING WATER HEATERS AND TAPS MARKET BY VALUE (£M MSP) 2016-2025 87
CHART A1: GROSS VALUE ADDED BY SECTOR 93
CHART A2: CPI INFLATION AND BANK OF ENGLAND BASE RATE 94
CHART A3: AVERAGE WEEKLY EARNINGS BY SECTOR 95
CHART A4: DISPOSABLE INCOME PER CAPITA & SAVINGS RATIO 96
CHART A5: STERLING EXCHANGE RATES TO THE DOLLAR AND THE EURO 97
CHART A6: TRADE & BUSINESS INVESTMENT, 2019-2020 98

 

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