HVAC

Part
01
of four
Part
01

Market Size - HVAC: United Kingdom

According to several industry reports, in 2018, the HVAC market size in the UK was estimated to be $1.57 billion.

HVAC Market

  • In 2017, the HVAC market size in the UK was £1 billion or $1.31 billion.
  • In 2018 the HVAC market size in the UK was £1.2 billion or $1.57 billion.
  • The UK HVAC market is projected to grow at a CAGR of over 4% between 2020 and 2024.
  • "The core product sectors of the market are air conditioning, ventilation and accessories, with air conditioning products by far the largest product group making up over half of the total market value"
  • "Positive influences on the ventilation and air conditioning market include increasing health & safety and energy efficiency legislation, revised Building Regulations and environmental legislation, and the generally increasing awareness about the importance of indoor air quality and energy use."



Part
02
of four
Part
02

Market Size - Boiler and HVAC finance: United Kingdom

After exhaustive research, we have established that there are no preexisting reports revealing the market size for Boiler and HVAC finance in the UK. Moreover, there are almost no reports or articles addressing the Boiler and HVAC finance segment of the UK market. Based on our research, we could only obtain data regarding the boiler and HVAC industry, companies providing finance, and boiler on finance plans in the UK. British Gas is the largest energy provider in the UK with a market share of 30%. The global market size for heating ventilation and air conditioning (HVAC) market was $93.2 billion in 2018. By 2024, the market size for global industrial boiler market is expected to reach $14 billion.

MARKET SIZE — BRITISH GAS: UNITED KINGDOM

  • British Gas, subsidiary of Centrica is one of the ‘Big Six’ energy suppliers in the UK, with reported annual revenue of $27.1 billion in 2016.
  • British Gas is the largest energy provider in the UK, with a market share of 30% and the combined market share of the 'Big Six' energy supply companies in the United Kingdom is 76%.
  • ‘Big Six’ describes the six largest UK energy companies which include British Gas, EDF Energy, E.ON UK, npower, ScottishPower, and SSE.


MARKET SIZE — BOILER: UNITED KINGDOM

  • The market size for global industrial boiler market is expected to reach $14 billion by 2024.
  • In 2015, the total sale of the UK boilers was 1.63 million, down from 1.66 million in 2014.
  • The common boiler finance plans in the UK will start from around £17 or $22.34 on average, payable over 5 years, with no deposit.


MARKET SIZE — HVAC FINANCE: UNITED KINGDOM

  • The global market for heating ventilation and air conditioning (HVAC) is expected to reach $133.2 billion by 2023 from $93.2 billion in 2018, growing at a compound annual growth rate (CAGR) of 6.2%.
  • The market size of HVAC is valued at over £1 billion or $1.31 billion.

Research Strategy


    While looking through the industry reports such as KPMG, Deloitte, IBIS, PR NewsWire, Global NewsWire, Market Watch, Reuters, Markets and Markets, and others, we could not find any information on the boiler and HVAC finance for the UK or global. Most of these reports talk about the energy market, "Big Six" companies, boiler and HVAC industry market size for the world. Our next search involved looking through the UK-based reports from Statista, Mordor Intelligence, AMA Research, and BSRIA among others. But this search also did not focus on boiler and HVAC finance market. These reports mostly focus on the boiler and HVAC industry and the key players in this industry.

    A search through media publications and press releases such as The Guardian, Daily Mail, Business Insider, Forbes, HPM Mag, XE, and Fortune among others also could not provide any fruitful results. Most of these articles/publications focus on the market details, key players, current news, and trends for boiler and HVAC industry and not on boiler and HVAC finance segment.

    Later, we decided to identify some information regarding this segment from the British Gas Annual Report and its website. These sources also did not provide any relevant details on boiler and HVAC finance segment. Broadening the scope of this research beyond 24 months also did not provide any fruitful result. Therefore, based on our research, we have established that there is no precompiled statistics on the market size for boiler and HVAC finance in the UK.

    An approach to triangulate the information was also not possible due to the unavailability of sufficient statistics to calculate the market size. For this, we tried to look for global boiler and HVAC finance market, boiler and HVAC finance separately, boiler on Finance companies and HVAC on finance companies. But no data points were found publicly or even in paid reports. We then tried to identify the key players in the boiler and HVAC finance segment to triangulate information based on the 80-20 rule but no industry report or media publication was found that lists such information. Hence, this strategy also failed.

    Based on our research, we could only obtain data regarding boiler and HVAC industry, companies providing finance, and boiler on finance plans in the UK through Statista, PR NewsWire, Market Watch, US Witch, and others. The data regarding boiler and HVAC finance segment is unavailable publicly due to the niche segment of the industry. We have summarized our key findings related to boiler and HVAC market, and boiler and HVAC finance plans in our research.
Part
03
of four
Part
03

Market Leaders in the UK Boiler Equipment Industry

The 10 biggest players in the boiler original equipment manufacturer industry in the United Kingdom include Worcester Bosch, Ideal, Viessmann, Vaillant, Baxi and Potterton, Grant, Alpha Innovation, Glow-Worm., Main, and Ferroli.

1. Worcester Bosch

  • Worcester, commonly known as Worcester Bosch, is part of Bosch Group Brand and is one of the most popular boiler manufacturers in the UK. The company offers extended warranty policies ranging from 5 to 10 years, high-efficiency ratings, and overall quality. Worcester boiler product range includes gas boilers, propane (LPG) equipment, and oil-fueled types.
  • The brand is trusted both in the United Kingdom and globally.
  • Worcester Bosch started manufacturing boilers in 1962 and is known as one of the most recommended boiler brands by engineers.
  • The company is the biggest selling boiler brand that produces combi, system, and regular boiler equipment to meet properties of all sizes.

2. Ideal

  • While Ideal is a mid-range brand that offers products at a price-point that is generally about 15% below that of Worcester Bosch, it still offers extended warranty periods ranging 2 to 12 years.
  • Ideal is considered the best quality brand and the one offering the most durable products within the affordable boiler category price range.
  • The company has been in the market for over 100 years. It offers a range of combi, system, and conventional boilers, and is considered the top customer care provider in the industry.
  • Ideal manufactures its products in the United Kingdom and stands out as one of the top three biggest sellers together with Worcester and Vaillant.

3. Viessmann

  • Viessmann is a company that sells its products globally with great success.
  • The brand has been manufacturing boilers since 1917 and has expanded to an international scale. It sells boilers in 11 different countries and is considered as one of the United Kingdom's most popular boiler brands.

4. Vaillant

  • Vaillant stands at a similar price point as Worcester Bosch. It provides a service team that takes care of boiler repairs and maintenance, as well as a 2, 3, or 5-year warranty.
  • Vaillant sells its products globally.
  • The company has led the heating market for over 135 years and offers its products in more than 80 countries.
  • Vaillant's EcoTec series has similar popularity that one of Worcester's products.
  • This German engineering boiler company provides 10 years of warranty for its products.
  • The company's estimated revenue is $101.78 million dollars yearly.

5. Baxi and Potterton

  • Baxi owns Potterton, which manufactures under its own name and offers the highest efficiency ratings on the market, a 7 to 10-year warranty policy, and pricing just below Worcester Bosch's range. Potterton is a mid-range brand located at the same price and quality category as Ideal. It offers warranty periods ranging from 2 to 10 years.
  • Like Ideal, Grant, and Glow-Worm, Baxi and Potterton are considered among the best affordable boiler brands.
  • Manufactured in the United Kingdom, Baxi is a British brand that has been around since 1850.
  • Potterton naturally follows Baxi Group's lead, offering a high-performing range of combi, regular, and system boilers.
  • Baxi has an estimated annual revenue of $445.14 million dollars.
  • Potterton's estimated annual revenue is $6.69 million dollars.

6. Grant

7. alpha Innovation

  • Alpha Innovation offers products with reliable performance at an affordable price range. The brand is renowned for being a great value alternative to other mainstream companies such as Worcester and Vaillant.
  • Alpha is a part of the Italian-owned group Immergas. This is one of Europe's leading commercial and domestic boiler manufacturer groups.
  • Alpha Innovation annual revenue is of $10 million dollars.

8. Glow-Worm

  • Glow-Worm is one of the best budget boiler companies in the United Kingdom. Its pricing starts at approximately £650 for a combi boiler, and most models average under £1,000. Glow-Worm boilers are recommended for low-cost projects and are a common solution for flats, grant-assisted installations, and social housing.
  • Just like Ideal, Glow-Worm is considered one of the best quality and durable brands within an affordable price range.
  • The company features the "Energy" series, which includes a number of combi, regular, and system boilers. Glow-Worm can generally provide a suitable option for most property sizes.
  • Glow-Worm has been manufacturing heating systems for more than 80 years and is supported by a service team of over 250 engineers. It also features a UK-based call center.

9. Main

  • Main Heating belongs to Baxi Heating, while Baxi Heating has a portfolio of some of the best known and most respected brands in the domestic and commercial heating industry across the UK and Ireland including Potterton, Heatrae Sadia, Megaflo, Remeha, Potterton Commercial, Andrews Water Heaters, and Packaged Plant Solutions.

10. Ferroli

  • Ferroli is an Italian boiler manufacturer that has been at the leading edge of heating appliance development and design for over half a century. The company operates in 14 countries throughout Europe and Asia.

Research Strategy:

To identify the biggest players in the boiler original equipment manufacturer industry in the United Kingdom according to their market share, we began our research by looking at the market or industry reports. This research approach was unsuccessful because the information we were able to gather was based on a global market share of boiler manufacturers. Unfortunately, data was not segmented by country or region. We then focused on trusted listings of the best and top boiler original equipment manufacturer industry in the United Kingdom. This approach was partially unsuccessful, as the sources provided some of the best and top boiler original equipment manufacturer industry in the country but they did not provide the market share and the listed best and top brands were not based on the market share information. We looked at the websites for each of the companies listed as the top brands to find their market share within the industry, but most information related to the services they offer and a description of the companies, but no market share data was found. Combing through trusted media sources for market share information also proved unsuccessful because most information pointed at the overall UK boiler market industry rather than the individual companies. Helpful information on each of the companies listed was included.
Part
04
of four
Part
04

Key Players - Finance Market for HVAC: United Kingdom

The top energy companies that offer boiler financing include British Gas, EON Energy, SSE, EDF Energy, Scottish Power, Npower, Ovo Energy, First Utility, Utility Warehouse, and Utilita.

Top 10 energy companies financing new boilers in UK (by market share)

top 1: British Gas

  • Company Name: British Gas
  • Website Link: https://www.britishgas.co.uk/
  • Company Overview: British Gas is one of the largest energy companies in the UK that offers financing options for new boilers. British Gas' Homecare service allows consumers a number of options when it comes to their boiler and heater services including annual service for a 5-year warranty.
  • Market Share: 29% (*Q3 of 2018)

Top 2: EON Energy

  • Company Name: Eon Energy
  • Website Link: https://www.eonenergy.com/
  • Company Overview: The 2nd leading energy company that finances new boilers is Eon Energy. Eon Energy offers a number of deals for consumers when financing their new boilers including a 0% APR for three-years.
  • Market Share: 11% (*Q3 of 2018)

top 3: SSE

  • Company Name: SSE
  • Website Link: http://sse.com/
  • Company Overview: SSE is the third company that offers financing on new boilers and boiler coverage for its consumers. In 2016, the company started Boiler Rescue, a program that gives free boiler servicing for SSE consumers who experience boiler breakdowns during winter.
  • Market Share: 10% (*Q3 of 2018)

top 4: Scottish power

  • Company Name: Scottish Power
  • Website Link: https://www.scottishpower.co.uk/
  • Company Overview: Next on the list is Scottish Power. The company not only offers financing for new boilers, but also offers year-round boiler care and boiler insurance for "up to £1,500 worth of repairs per year."
  • Market Share: 8% (*Q3 of 2018)

top 5: EDF Energy

  • Company Name: EDF Energy
  • Website Link: https://www.edfenergy.com/
  • Company Overview: Aside from offering financing options for new boilers, EDF Energy also offers year-round boiler repair, servicing, and boiler insurance.
  • Market Share: 8% (*Q3 of 2018)

top 6: npower

  • Company Name: Npower
  • Website Link: https://www.npower.com/
  • Company Overview: Npower works in partnership with Allianz Global Assistance to provide boiler coverage and policies for consumers.
  • Market Share: 7% (*Q3 of 2018)

top 7: ovo energy

  • Company Name: Ovo Energy
  • Website Link: https://www.ovoenergy.com
  • Company Overview: Ovo Energy offers financing for its trademark Quantum system, they claim that their smart home heating system can save customers up to £244/year compared to other standard storage heaters.
  • Market Share: 3% (*Q3 of 2018)

top 8: first utility

  • Company Name: First Utility
  • Website Link: https://www.first-utility.com/
  • Company Overview: True to its name, First Utility is the first company in the UK to offer the Nest Thermostat E. Aside from offering financial grants/options on boilers, the company also introduced Nest Thermostat E, a smart thermostat, which is compatible to most of UK's central heating systems.
  • Market Share: 3% (*Q3 of 2018)

top 9: utility warehouse

  • Company Name: Utility Warehouse
  • Website Link: https://www.utilitywarehouse.co.uk/
  • Company Overview: The ninth energy company that offers financing options for new boilers is Utility Warehouse. Winner of Which? UK's Utilities Brand of the Year for 2018, the company also offers Warm Home discounts for qualified pensioners.
  • Market Share: 2% (*Q3 of 2018)

top 10: utilita

  • Company Name: Utilita
  • Website Link: https://utilita.co.uk/
  • Company Overview: The final company that offers financing options for new boilers is Utilita. Just like Utility Warehouse, the company offers a Warm Home discount that is guaranteed under the government's Energy Companies Obligation (ECO) program.
  • Market Share: 2% (*Q3 of 2018)

Research Strategy:

We searched a number of articles, press releases, and reports for a list of the biggest players in the finance market for HVAC in the UK. We reviewed several sources such as Ibis World, Techsci Research, BSRIA, and ACR Journal. Unfortunately, the information regarding the biggest players, companies, or manufacturers that provide financing for new HVAC equipment or boilers does not appear to be publicly available. A report from TechSci Research provided a meta-analysis of the HVAC Industry in the UK including key players on the market and their market shares but unfortunately, the report is protected by Firewall.

We then studied British Gas' business model, its connection to the HVAC industry, how it provides finance for new boilers, and their direct competitors. An article from Which? UK provided insight on how energy companies/gas companies provide finance for new boilers under the "Energy Companies Obligation (ECO) scheme" by the UK government. This article provided us with a list of the largest energy companies/gas companies in the UK that offers financial grants/schemes for new boilers.

After identifying some of the large energy/gas companies that offers financing options for new boilers, we then searched for the market share of these companies in HVAC financing. We reviewed each company's websites for their annual reports and press releases to get a glimpse of their financial standings, but since these are privately held companies they are not required to disclose such information to the public. However, the Office of Gas and Electricity Markets website has a list of the market shares of the largest energy/gas companies in the UK. Although the market share indicated does not necessarily reflect each company's share of the HVAC financing industry, we instead assumed that the market share could be proportional to each company's share in the HVAC industry, taking into consideration how the industry is not very segmented and the biggest players have almost the same market share (except for British Gas, which holds the biggest market share by a wide berth).
Sources
Sources

From Part 03
Quotes
  • "Worcester, a Bosch Group Brand, commonly known as Worcester Bosch, is one of the most popular boiler manufacturers in the UK. The company offers long warranties ranging from 5-10 years, high efficiency ratings, and quality. However, with one of the highest price points available, Worcester Bosch is not right for everyone."
  • "Idea is a mid-range brand offering warranties extending between 2 and 10 years, with a price-point generally about 15% below that of Worcester Bosch. "
  • "Vaillant is one of the largest boiler manufacturers in the UK, with a similar price point and service offering to Worcester Bosch."
  • "Potterton is a mid-range brand in the same price and quality category as Ideal, and offers a warranty ranging from 2 years to 10. Baxi owns Potterton, but also manufactures under their own name. With some of the highest efficiency ratings on the market, a 7-10 year warranty, and pricing just below Worcester Bosch, Baxi should be a top choice for most."
  • "Glow Worm is one of the best budget boiler brands in the UK. With pricing starting at around £650 for a combi boiler and most models averaging under £1,000, Glow Worm boilers are a best fit for low-cost projects and are a common solution for flats, social housing, and grant-assisted installations. "
Quotes
  • "Boiler manufacturers like Viessmann, Worcester Bosch and Vaillant are trusted names not just within the UK and Europe, but all around the world. They are known as premium, top of the line boiler brands. Whereas brands like Ideal, Baxi and Glow Worm etc. fall in the affordable or cheap boiler category."
Quotes
  • "Alpha is part of the Italian-owned Immergas Group, one of Europe's leading manufacturers of domestic and commercial boilers."
From Part 04
Quotes
  • "Some of the major players operating in the United Kingdom HVAC market are Bosch Thermotechnik GmbH, Vaillant GmbH, Daikin Europe N.V, Danfoss A/S, Ingersoll-Rand European Holding Company B.V, Carrier Corporation, CIAT Air Conditioners, Ferroli Limited, Midea Europe GmbH, Mitsubishi Electric Europe B.V. etc."
Quotes
  • "We want to make getting your new gas boiler as easy as possible. That’s why you can spread the cost over three years with 0% APR Representative. But if you prefer, you can also pay the full amount up front. We’re a credit broker and not a lender."