The 4th edition of the Water Heating Market Report UK 2021-2025 represents an informed and up-to-date review of this dynamic market and covers residential and commercial hot water storage systems, instantaneous water heaters and boiling water heaters & taps.

The market for water heating systems has been growing at a steady pace between 2016 and 2019, before a sharp decline in 2020 caused by the Covid-19 pandemic and its widespread impact on the construction sector.

Increasing legislation and the drive towards carbon net zero represents a major influence in the long-term development of the UK water heating industry. For example, the Future Homes Standard, to be introduced by 2025, will require new build homes to be future proofed with low carbon water heating. It is anticipated that homes built to this standard should have 75% to 80% fewer CO2 emissions than those built to current building regulations.

This is likely to impact on the type of hot water facility specified in new build homes. Heat pumps are anticipated to become the primary heating technology for new homes under the Future Homes Standard. Solar systems are also likely to be more widely specified.

Given the scale of change required between now and 2025, the government has confirmed an interim uplift to Part L of the Building Regulations in December 2021, that will take effect from June 2022. These interim standards will cover important areas, including improvement to minimum standards for water heating systems in new build and retrofit applications, all geared towards increasing energy efficiency.

Standard Assessment Procedures (SAP) are a requirement of the Building Regulations and are required to assess the home energy rating for all newly built dwellings in the UK. In July 2018, the most recent version SAP 10 was published with many of the fuel types have had their prices, CO2 and primary energy factors changed with the most significant being electricity related carbon emissions. This reduction will have a positive impact on the specification of electric water heating products.

Mains pressurised hot water systems will continue to replace traditional low pressure open vented systems in the UK. Installers are becoming more familiar with these systems, leading to them being used in a growing number of residential upgrades, particularly in larger homes with 2+ bathrooms. However, demand for combination boilers with no hot water storage facilities remains significant, particularly in smaller homes and apartments.

The Marketing to Contractors & Housebuilders feature (which is sponsored by South East Construction Expo) in the Sectors section of our Directory provides an overview of the sector, including
details of its various media channels and events, together with access to our downloadable database of those with responsibility for procurement at key firms.

The prospects for the UK water heating market in Q4-2021 are positive, with a strengthening construction pipeline of new work and RMI activity going forward. The market is expected to achieve annual growth rates of around 3% in value terms between 2022 and 2025, with a more settled economic outlook and the increasing demand for more intelligent, energy efficient solutions.

Key areas covered:

  • An assessment of the effects that Covid-19 and Brexit will have on this market, including the current supply chain issues and the high cost of imports.
  • The government 2050 carbon net zero target and the influence of increasing environmental legislation regarding energy efficiency.
  • Increasing focus on renewable technologies, particularly heat pumps and solar energy, and the impact this has on residential and commercial water heating systems.

Key areas of insight include:

  • Changing legislation regarding the efficiency and environmental impact of water heating – including 2019 Clean Growth Strategy, 2025 Future Homes Standard, Interim Part L 2021, SAP 10.
  • Influence of developments such boiling water taps used for hot drinks and food preparation, hygienic non-touch single-point water heaters.
  • Increasing use of mains pressurised systems, with growing demand for high flow rates, performance showering, multi-bathroom properties etc.
  • Product innovation and technological developments including air-source water heaters, twin tank technology, self-sustaining systems etc.
  • The growth of smart water heating controls in homes and commercial applications. The increased requirement for interoperability and remote control of intelligent systems.

The Water Heating Market Report UK 2021-2025 is available now and can be ordered here.

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