UK water heating market saw marginal growth in 2014, with an increase of a further 2% by value expected during 2015. Between 2010 and 2012, the UK water heating market was comparatively volatile in line with the uncertain economic situation at this time. However, since 2013 the market for water heating products has modestly increased, with demand picking up as the economy improves.
The core product sectors of the UK water heating market are; hot water storage systems, which account for around 70% of the market, instantaneous water heaters and boiling water heaters and taps.
The number of homes with hot water storage has declined significantly in recent years, with the increasing reliance on combination boilers for hot water provision. The vast majority of new homes now have a mains pressurised system installed as standard, predominantly in the form of an unvented storage cylinder in larger properties and a combination boiler in smaller to medium properties and apartments.
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 has 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.
Positive influences on this market include the growing concerns about energy efficiency and the environment. The government has introduced a significant amount of environmental legislation in recent years placing a greater emphasis on carbon emissions and fuel efficiency. In general terms, water heating products are being increasingly designed to deliver improved thermal performance, in order to achieve lower running costs. This trend has been influenced by the further revisions to Part L in 2013. These changes have contributed to a reduction in the overall space and water heating load in the new build sector, with more stringent energy efficiency and insulation requirements.
The majority of water heating products are distributed via the trade channels such as builders/plumbers merchants, electrical wholesalers and specialist heating distributors. In addition, there are an increasing number of products sold via the internet either through online retailers or, in the case of boiling water taps, direct via manufacturers’ websites.
“The future performance of the UK water heating market is likely to be influenced by overall trends in house building and construction,
RMI activity, fuel prices, energy efficiency
legislation, renewable technologies, levels of personal disposable income,
patterns of hot water consumption and niche segments such as the self-build
market” said Keith Taylor, Director of AMA Research. “The ErP Directive and other initiatives
such as the ECO scheme and the Green Deal will also influence growth to some
extent, and the widespread roll-out of smart meters over the next few years
will impact on the demand for energy efficient water heating solutions.”
Current forecasts are based on steady recovery in the economy and on consumer and business confidence levels. By 2019 it is estimated that the UK water heating market will have increased by 6-7% when compared to the estimated market size in 2015.
The ‘Water Heating Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.