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HPM-04-APR-2016

Heating sales on rise Domestic central heating market grows by £100m 6 Got a story? Ring us on 01732 748041 or e-mail twood@unity-media.com NEWSDESK A new report on the 2016 domestic central heating market, has revealed that sales of boilers, radiators, controls and pumps have grown by £100 million as Internet of Things (IoT), the Renewable Heat Incentive (RHI) and Energy Company Obligation (ECO) underpin demand growth. The report from MTW Research shows that 250,000 central heating installations were undertaken in the last three years as a result of the ECO scheme, with MTW indicating that this provided a welcome boost for heating manufacturers, distributors and installers. Sales growth for central heating products is forecast at £20 million for 2017 despite more challenging market conditions in 2016. Based on data from 140 heating suppliers, the research uncovered 18.4 million central heating products sold in 2016. The report indicates that while pricing pressure remains a key issue, investment in added value features such as IoT, ‘Smart Technology’ and enhanced user/ installer benefits is giving rise to a ‘two-tier’ market in terms of positioning and growth. Higher value, UK and West European manufactured heating products are edging ahead in terms of value growth, while lower value imports continue an ‘inexorable race to the bottom,’ according to MTW. The report also identifies a number of growth sectors in the domestic central heating market in 2016, prompting further optimism for manufacturers and distributors. One example is the higher value biomass boiler market, with solid fuel rising by 40% in the last few years as biomass sales are supported by the RHI, despite biomass tariffs reducing by 20%. While the report identifies key products outperforming the space and water heating markets, the most significant contributor in 2016 is the Domestic Internet of Things Market (DIoT), with rapid growth in smart heating controls and DIoT devices. MTW’s director, Mark Waddy, said: “Our data models indicate the global IoT market rising by 24% in 2016, with UK IoT market growth of 13%. ‘Smart’ heating products, such as IoT controls, IP connected radiators, smart valves and intelligent boilers are transforming the UK heating market in 2016 with double digit growth for the smart central heating market in the near term.” MTW also reviewed the burgeoning heat pumps market in value and volume, reporting near double digit growth with ground and air source heat pumps gaining share of the overall domestic heating market in 2016. Sectors such as heat pumps and the circulators market have continued to benefit from Energy related Products legislation with boiler and heat pumps sales boosted by a £6 million bonus pay out from RHI installations. The report indicates that heating sales are set to rise to near double-digit growth by 2020, though sectors such as the radiators market, valves and the heating controls market are becoming increasingly polarised in terms of value and volume. MTW highlights a number of differentiators supporting sales growth across the water and space heating industry, though with Internet retailers continuing to gain share, there are clearly some underlying challenges for the UK central heating market in 2016 and beyond. The research also included analysis of 140 heating suppliers and channel shares to 2020, uncovering an optimistic market for central heating sales in 2016 with growth of £100 million forecast across the spectrum of the heating market. While cautious undertones abound, the report identifies several reasons to be cheerful. JT’s special achievement Paul Crossley, managing director at JT, (second left) has been awarded a Special Achievement award at the KBB awards to honour his services to the bathroom industry. This award marks over 20 years’ service to the bathroom business, where he has led the Leeds-based shower tray manufacturer to become one the industry’s most recognised brands for quality and innovation. Wolseley product recall Wolseley has issued a product recall for its Center brand 2kW fan heaters (product code 105161). A spokesperson said: “Product safety is our priority and, therefore, we are recalling this product which has been sold by Wolseley since January 2014. “We would urge all customers in APRIL 2016 HEATING & PLUMBING MONTHLY possession of one of these heaters not to use it and refer to: www.plumbcenter.co.uk/product-recall or our freephone customer hotline 0800 0722 557.” Stelrad staff in safe hands Stelrad Radiators has won an International Safety Award with distinction from the British Safety Council in recognition of its commitment to keeping its workers and workplaces healthy and safe during the 2015 calendar year. Stelrad Radiators is one of 30 organisations to win a distinction in the Support for the RHI remains strong Despite damning media reports on the government’s green energy policies, there still seems to be plenty of support for the Renewable Heat Incentive (RHI). The Department of Energy and Climate Change has recently released a series of research documents on renewable heating technologies. It shows that householders are taking advantage of the RHI, with figures showing 46,142 successful applications were received from “owner-occupiers” by February 7, 2016. And it’s not just consumers that are warming to the idea of the RHI. Microgeneration Certification Scheme installers see a bright future for renewable heating technologies. Over 60% of installers perceived that demand for renewable heat technologies had increased since 2013 and over three quarters felt that the renewable heat technology market was competitive. 2016 International Safety Awards and the only company in the heating and plumbing sector. The awards recognise a company’s commitment to preventing workplace injuries and work-related ill health during the previous calendar year. BMA raises £5,000 for CBT The Bathroom Manufacturers Association (BMA) has presented the Children’s Burns Trust (CBT) with a cheque for £5,117 after a year of fundraising, which included dress down Fridays, the Three Peaks Challenge and a charity golf day. NEWSINBRIEF WWW.HPMMAG.COM VERIFIED* HPM’s individual reader enquiries have now passed 535,000 from buyers and installers of your products and services *source: March 2013 HPM RSC analysis bureau


HPM-04-APR-2016
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