Key Note estimates that the UK domestic-heating market reached a high of £1.81bn at manufacturers' selling prices (msp) in 2006, having increased by 1.7% on 2005 and by 24.1% over the entire review period (2002 to 2006). The main boost to sales has been changing legislation that requires more efficient, `greener' boilers, which are higher in value, alongside a buoyant housing market and a strong consumer market.

The market is divided into the large central-heating sector, covering boilers, boiler spares, radiators, pumps and controls, and the now much smaller space-heating sector. Boilers represent around half the total value of the market, the increase in their value being attributed to revised building regulations, which require greater efficiencies in building materials and systems that specify condensing boilers. The controls sector has experienced renewed growth from greater use of digital and integrated products. UK radiator manufacturers have been hit hard by overcapacity affecting margins and prices, and by significant growth in low-cost imports, which have been encouraged by the strength of the pound. However, local manufacturers have responded with attractive designer-led and aesthetically pleasing radiator products, which have boosted sales and helped to update the image of central-heating systems generally.

The recent boom in the UK housebuilding sector has enhanced the demand for domestic heating products, particularly small systems for flats and similar properties for single and smaller households. Consumer spending has been strong, encouraging homeowners to update existing older and less-efficient systems. Moreover, a significant rise in fuel prices has further influenced demand for the new fuel-efficient oil and gas condensing and combination (combi) boilers, which can save owners up to a third on fuel costs.

Although consumer confidence has been strong, rising inflation and interest rates now threaten these growth patterns and the outlook for the short to medium term is for slower growth in demand for domestic heating products. An erratic weather pattern in recent years has seriously affected demand for space-heating products and, although this could quickly change, with a return to colder winters, forecasters believe that the UK can expect a generally warmer climate in future years as global warming takes effect.

Corporate mergers and acquisitions have slowed in the wake of previous activity that resulted in the establishment of larger European multinational companies. These now appear to have consolidated production facilities on a Europe-wide basis, with strategic sites in major market areas. New manufacturing names have appeared, which still incorporate the brands of the former acquired companies.

Manufacturers are emphasising the role of new technology and breathing new life into a formerly staid market. Anticipating further legislative pressures on fossil-fuel-burning systems, they have invested significantly in expanded research and development (R&D) facilities and are investigating further ways of producing more fuel-efficient systems. Developments include combined-fuel and solar-heating systems, voltaic and fuel-cell technology and combined heat and power (CHP) systems.

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
By Type of Fuel
Product Sectors
Boilers
Radiators
Pumps
Controls
MARKET TRENDS
More Efficient and Environmentally Friendly Products
Declining Demand for Space-Heating Products
Gas Versus Other Fuels
Fluctuating Oil Prices
Solid-Fuel Heating in Decline
Radiator Trends
Pumps and Controls
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
Household Disposable Income
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
BY MARKET SECTOR
Boilers
Space Heating
Radiators
Controls
Pumps
OVERSEAS TRADE
Intra-EU Trade
Extra-EU Trade
Principal Trade Partners
Imports
Exports

3. Industry Background
RECENT HISTORY
Corporate Activity
Energy Efficiency
Gas and Electricity Supply
Current Developments
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
Boilers and Radiators
Heating Controls
Electrical Heating Appliances
Fuel
HOW ROBUST IS THE MARKET?
LEGISLATION
Part L Building Regulations
Price Controls
Heating Installations
Product Standards
KEY TRADE ASSOCIATIONS
The Association of Controls Manufacturers
Association of Manufacturers of Domestic Electrical Appliances
Association of Plumbing and Heating Contractors
Boiler and Radiator Manufacturers Association Ltd
Building Research Energy Conservation Support Unit
Combined Heat and Power Association
Council for Registered Gas Installers
Domestic Appliance Service Association
Heating & Hotwater Information Council
Heating and Ventilating Contractors' Association
Heating, Ventilating & Air Conditioning Manufacturers Association
HETAS Ltd
Institute of Domestic Heating & Environmental Engineers
Institute of Plumbing and Heating Engineering
LP Gas Association
National Association of Chimney Engineers
National Association of Chimney Sweeps
National Fireplace Association
Oil Firing Technical Association
Plumbing and Heating Industry Alliance
Society of the British Gas Industry
Solid Fuel Association
Underfloor Heating Manufacturers' Association

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Baxi Holdings Ltd
Company Structure
Current and Future Developments
Financial Results
BBT Thermotechnology UK Ltd
Company Structure
Current and Future Developments
Financial Results
Danfoss Randall Ltd
Company Structure
Current and Future Developments
Financial Results
Honeywell Control Systems Ltd
Company Structure
Current and Future Developments
Financial Results
Ideal Stelrad Group Ltd
Company Structure
Current and Future Developments
Financial Results
MTS (GB) Ltd
Company Structure
Current and Future Developments
Financial Results
Quinn Radiators Ltd
Company Structure
Current and Future Developments
Financial Results
Rettig (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Vaillant Ltd
Company Structure
Current and Future Developments
Financial Results
Vokera Ltd
Company Structure
Current and Future Developments
Financial Results
OTHER COMPANIES
Boilers
Alpha Heating Innovation
Ferroli Ltd
GAH (Heating Products) Ltd
Grant Engineering (Ireland) Ltd
Halstead Boilers Ltd
HRM Boilers Ltd
Johnson and Starley Ltd
Lennox Industries
Malvern Boilers Ltd
Mistral Boilers Ltd
Ravenheat Manufacturing Ltd
Sime Ltd
Strebel Ltd
Trianco Heating Products Ltd
Viessmann Ltd
Warmflow Engineering Co Ltd
Radiators
Heat Line
Vogue (UK) Ltd
Zehnder Ltd
Pumps and Controls
Grundfos Pumps Ltd
Horstmann Controls Ltd
Pegler Ltd
Siemens Building Technologies UK
Sunvic Controls Ltd
Yorkshire Fittings Ltd
Others
Glen Dimplex
OUTSIDE SUPPLIERS TO THE INDUSTRY
Energy Suppliers
Installers
Builders' and Plumbers' Merchants
MARKETING ACTIVITY
Exhibitions and Trade Shows

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
THE HOUSING MARKET
Housing Park
New Housebuilding
Property Transactions
HOUSEHOLD EXPENDITURE ON FUEL
CONSUMER PENETRATION
Ownership of Central Heating
By Region
By Social Grade
Purchasing Patterns
LIFESTYLE CHANGES
ENERGY PRICES

7. Current Issues
THE ROLE OF THE INTERNET
INTERNATIONAL MARKETS
THE IMPACT OF THE EURO
THE POLITICAL SCENE
PRODUCT DEVELOPMENT
CONSUMER DEMAND
CORPORATE ACTIVITY

8. The Global Market
EUROPE
REGIONAL VARIATIONS

9. Forecasts
INTRODUCTION
The Economy
Population
Gross Domestic Product
Inflation
Unemployment
FORECASTS 2007 TO 2011
MARKET GROWTH
FUTURE TRENDS
Demographics
Market Segmentation
Boilers
Space Heating
Radiators
Controls
Globalisation
Product Development and Technological Change

10. Company Profiles
Baxi Holdings Ltd
Bbt Thermotechnology Uk Ltd
Danfoss Randall Ltd
Honeywell Control Systems Ltd
Ideal Stelrad Group Ltd
Mts (gb) Ltd
Quinn Radiators Ltd
Rettig (uk) Ltd
Vaillant Ltd
Vokera Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Improves
Willingness to Borrow Slips Slightly
SPENDING FROM SAVINGS
Slight Increase in Spending from Savings
Saving Grows in Relative Importance

11. Further Sources