Water Heating Market Insights 2023 - AMA Research

5 Signals Leading to a Positive Future for the Water Heating Market

Water Heating Market Insights

We analyse Water Heating market insights in our latest edition of the Water Heating Market Report 2023-2027. Exclusively from AMA Research, we dive into:

  • Market size and trends
  • Regulatory developments
  • Product mix
  • Industry supply
  • Distribution
  • Market prospects

Here are 5 water heating market insights from the report:

Steady Growth Expected into 2027 for UK Water Heating

By 2027, the UK water heating market is forecast to be worth some £313 million at MSP, representing a CAGR of 3.57% when compared to the estimated market size in 2023.

Net Zero Goals are Driving the Market

The drive towards net zero carbon emissions and the implementation of the 2025 Future Homes and Buildings Standard will have considerable impact on this industry.

Residential Still Holds the Majority of Market Share

The non-domestic sector is estimated to account for around 32% of UK water heating sales. These include water heating systems used in commercial and industrial applications.

With the introduction of the Future Homes and Buildings Standard in 2025 and the UK Government Clean Growth Strategy, there will be an increasing focus on renewable technologies in residential homes and commercial buildings.

These will have considerable impact on the type of water heating systems that are specified in the future.

Product Innovations

Unvented cylinders will continue to dominate residential hot water storage sales. These include compact solutions designed to work with renewables such as heat pumps and solar. These technologies require a hot water store.

Demand for dedicated-renewable or hybrid renewable hot water cylinders will grow, particularly those designed for use with heat pumps or solar.

There will also be an increase in demand for hot water cylinders that can be installed in small spaces. Compact cylinders with reduced dimensions will be specified in smaller new homes, including horizontal solutions that allow cylinders to be installed in loft spaces etc.

Boiling Water Taps 

Boiling water taps will increasingly take share from boiling water heaters and be specified both in residential homes and in commercial premises. These taps are now regarded as a ‘must have’ appliance in many UK kitchens.

Using AI in Water Heating Controls

We asked the editor of this report to speak about how AI will affect water heating controls throughout the UK. Here’s what Abdul Tantouch had to say: 

“The trend towards the use of connected heating controls will also become more important.

Smart AI heating thermostats have the capability to allow the user to not only remotely control home heating, but also the management of stored hot water. These systems also offer the possibility to link to a DSR scheme, enabling homeowners to shift energy use to when tariffs are at their cheapest, with the potential to reduce running costs by up to 50%.”

Discover more about the market in the Water Heating Market Report. Want to see our full range of HVAC reports? Head to our HVAC & Electrical Hub to discover everything we have on offer.

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