The UK residential central heating market saw a sharp decline in value of around 10% due to the pandemic in 2020 but variables in the future could mean a strong revival for the industry, according to a research group.
The UK residential central heating market is substantial, with an estimated total value of around £1.2 billion at manufacturers’ prices in 2020. However, over recent years this market has benefited from more stringent energy efficiency legislation and the introduction of new technologies such as smart heating controls.
In June 2019, the UK became the first major economy to pass laws to end its contribution to global warming, requiring the UK to bring all greenhouse gas emissions to net zero by 2050. As a result, it is likely that the type of products used to centrally heat UK residential homes will change considerably soon.
For example, the government Future Homes Standard, to be introduced by 2025, will require all new build homes to be future proofed with low carbon heating and world leading levels of energy efficiency. This will include the use of renewable heating technologies such as heat pumps as an alternative to boilers, and as such AMA Research has now included these in its market calculations.
Michelle Turner, market analyst at AMA Research, commented: “Thanks to COVID-19 and the further increased focus from the government to be carbon net zero by 2050, the effects can only have positive implications on the Residential Central Heating Market.
“Further pushed by the changes to boiler legislation and the subsequent knock-on effect as to the popularity of heat pumps, changes are certainly afoot in this market, and they are positively green.”
Furthermore, there are several key factors affecting the market prospects for the residential central heating market in the UK, including economic influences such as new housebuilding activity, consumer confidence levels, and the cost of imports.
Now that the UK has left the EU, trade deals with UK trading partners will have a significant influence on market prospects. The impact of the Covid-19 pandemic is also likely to be substantial, particularly in the short-term.