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Domestic heating sector grows despite downturn

A survey on the performance of the domestic central heating sector has shown that it has grown one per cent year-on-year between 2008 and 2010, falling from a rate of 8 per cent in 2006.

The UK Domestic Central Heating Market Development, published by MBD, predicts that the market will have a value of £1.63 billion by the end of the current year.

The company states the moderate market development in the second half of the review period is a reflection of the economic downturn and reduced new housing output, hindering stronger sales growth.

However, a downturn in the market is believed to have been avoided, said MBD, largely due to increased demand for more energy-efficient products, which has partly been driven by government schemes and grants.

The report contains positive news for the industry, stating that sales are expected to increase up to 2015, with annual growth levels anticipated to fluctuate between 3 per cent and 6 per cent.

The value of the market is expected to reach £2.05 billion (at 2010 prices) by 2015, with growth set to continue to be driven by increased demand for greener central heating systems and by government-backed schemes and initiatives.

Sales of boilers are expected to increase, says MBD, with annual growth levels anticipated to fluctuate between 4 per cent and 7 per cent. The value of the boilers sector is forecast to reach £1.05 billion in 2015, equivalent to overall growth of 30 per cent in real terms compared with 2010.


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