The value of the UK water heating market increased by a
modest 1% in 2016, according to a new report by AMA Research. The market for
domestic and non-domestic water heating products has seen relatively steady
growth overall since 2013, with the recovery in the UK economy stimulating
construction activity as well as consumer and business confidence levels. In
addition, the growing concerns about energy efficiency and the environment have
a positive influence on this market.
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. 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 online retailers or
manufacturer’s own websites.
The number of homes with hot water storage has declined
significantly in recent years, with the vast majority of new homes now having 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. Sales of vented cylinders have declined significantly as a result
of this shift, and are now almost entirely installed in replacement
applications. Sales of mains pressurised systems have been driven by the
increasing level of domestic hot water consumption, influenced by lifestyle
factors such as demand for high performance showering and multi-bathroom
properties.
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. In addition, there is an
increasingly significant market for boiling water taps in the UK.
Trends in the market include; a move towards
more energy efficient systems; a growing number of pre-plumbed unvented systems
being used in the new build sector; and the introduction and growth of IoT
devices in the heating market over the last 2-3 years, with smart heating
controls that can manage both the heating and hot water increasingly available.
“Although
the market situation in early 2017 is slightly subdued, the current forecast
for the UK water heating market remains moderately positive, with more steady
growth from 2018 onwards” said Hayley Thornley, Market Research Manager at AMA
Research. “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. Aside from economic factors, 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 and changing patterns of hot water
consumption.
The ‘Water Heating Market Report – UK 2017-2021
Analysis’ report is published by AMA Research, a leading provider of market
research and consultancy services with over 25 years’ experience 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.
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