Residential Central Heating Market Report – UK 2023-2027 – New Report from AMA

The 16th edition of the Residential Central Heating Market Report UK 2023-2027 provides an informed and up-to-date analysis of the market. The report offers insights into market size, growth prospects, key drivers, and competitive landscape, assisting industry stakeholders in making informed decisions.

The residential central heating market in the UK is estimated to have significant value. It experienced a decline in 2020 but rebounded in 2021 due to increased building activity and consumer confidence. However, the market is currently facing economic challenges such as rising inflation, Brexit, and the impact of the Ukraine war. There has been a slowdown in housing market demand, but a strong focus on energy efficiency and funding initiatives has helped mitigate declines.

Different sub-sectors within the market have performed to varying degrees. Controls and heat pumps have seen growth, driven by consumer interest and government support. Investment in boilers and radiators has slowed due to tightening household finances and indications of slower delivery in public sector housing programs.

The UK has set ambitious targets for transitioning to more energy-efficient options, including hybrids and renewables like heat pumps. There are plans to ban the sale of 100% gas-only boilers by 2035, leading to anticipated growth in sustainable technologies. Manufacturers are preparing for these changes through new product development.

Key players in the market include Worcester Bosch, Vaillant, Ideal, Baxi (boilers), Stelrad, Purmo, Zehnder, Kudox (radiators), Danfoss, Siemens, Honeywell, Drayton (heating controls), British Gas (Hive), Google (Nest), Honeywell, Tado (smart controls), Daikin, Viessmann, Nibe, Bosch, Vaillant (heat pumps), Grundfos, Wilo (circulators).

Distribution channels primarily consist of merchants and electrical wholesalers, with online retailers and specialist heating companies also gaining share. Energy companies play an indirect role in the market.

Key Issues Covered in the Report

The report assesses the impact of the pandemic and economic challenges on the residential central heating industry. It highlights the focus on energy efficiency, including the UK’s carbon net zero target. The growth of smart heating solutions, style and design considerations, demographic influences, and the trend towards off-site solutions are also discussed.

Areas of Particular Interest

• Impact of economic challenges: The effects of factors like inflation, Brexit, and the Ukraine war on the residential central heating market, including material costs, supply delays, and housing market demand.
• Focus on energy efficiency and sustainability: The emphasis on energy-efficient heating solutions and the UK’s target of achieving carbon net zero by 2050, along with increasing environmental legislation related to water and energy efficiency.
• Growth of smart heating solutions: The adoption of smart controls and heating technologies, offering enhanced convenience, energy management, and control options for homeowners.
• Style and design trends: The growing importance of style and design in residential central heating solutions, considering aesthetics and their integration into the overall design of living spaces.
• Demographic influences: The impact of the ageing UK population and the corresponding demand for inclusive heating solutions that cater to the needs of all individuals.
• Off-site construction trend: The trend towards off-site solutions to expedite the construction process, reduce on-site labor costs, and influence the selection and installation of residential central heating systems.

Product Sub-Sectors

Central heating is defined as heating from a central source.

Residential central heating systems include:

• Wet Central Heating Systems – that use water as the medium to get heat from the central source (boiler) to the areas to be heated. The principal fuels that are used are gas (including LPG), oil, solid fuel, and electrical energy.
• Dry Central Heating Systems – are operated centrally and use electric storage and warm air systems to heat areas of the home.

For the purposes of this report, the UK market for residential central heating systems concerns wet central heating systems and includes the following products:

• Boilers
• Circulators
• Radiators
• Heating Controls (smart and conventional)
• Heat Pumps

It should be emphasised that installation costs, maintenance, spare parts, and aftermarket activities are excluded from our market definition, which focuses upon product sales.

Distribution

• Review of distribution – map, key channels, developments.
• Company overview and financials of key distributors.

Market Forecasts and Product Innovations

• Ten-year UK Residential Central Heating market view 2018 – 2023, plus forecasts to 2027, rates of change.
• Overview of market prospects.
• Ten-year market view by product sub-sector to 2027 and rates of change.
• Summary of market prospects.
• New product innovation and Future Scenarios.

The Residential Central Heating Market Report UK 2023-2027 is available now and can be ordered here.