The UK water heater market bounced back in 2021. Sales of all types of water heater sold in the UK posted positive results compared to 2020 but supply issues are still hampering the demand.
BSRIA recently interviewed local manufacturers to find out more about the competition between renewable-based units and traditional water heaters in the last year and how the market performed following the Covid-19 crisis.
The results from our analysis point towards growth of heat pump water heaters as well as traditional electric and gas-driven water heaters in 2021. After the slowdown, resulting from covid restrictions, 2021 is seen as a positive year for all product types as building activities return to normal. With inflation hitting historical highs over the winter of 2021/22, pressure persists on raw material prices and transport costs, with average prices increasing by 5% - 8% [NR3] [AB4] in 2021 according to local suppliers, but with demand remaining strong.
The government’s announcement to cut carbon emissions has had noticeable consequences for the heating market. It has boosted the sales of highly energy-efficient heat generators and water heaters. BSRIA data indicate dedicated-renewable cylinder sales rose 11 percent by volume whilst sales of heat pump water heaters jumped 27 percent.
The water heater market is largely driven by like-for-like replacement. However, the generous incentives available to replace old boilers with heat pumps have given a boost to the refurbishment market.
To accelerate the move away from fossil-fuels the government has announced a pending ban on non-condensing gas water heaters in the coming months, from either June or September 2022. This means further change to the market is expected in the future.
Lately, suppliers report an increase in hybrid-type installations in commercial applications. While energy consumption to heat sanitary water is not a major concern for most households, in systems fitted in hotels, schools, or healthcare institutions, rising energy bills are top of the agenda for facility managers.