New reporting from AMA Research has shown that the impact of the pandemic contributed to a 10% decline in the value of the UK residential central heating market last year.
The residential central heating market has an estimated total value of around £1.2 billion at manufacturers’ prices in 2020, according to AMA. Over recent years this market has benefited from more stringent energy efficiency legislation and the introduction of new technologies such as smart heating controls.
Michelle Turner, market analyst at AMA Research, comments: “Thanks to the increased focus from the UK 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.”
In June 2019, the UK became the first major economy to pass laws to end its contribution to global warming. The target will require 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 in the near future.
For example, the government’s 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.
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.
