BSRIA Worldwide Market Intelligence has released a new report on the Eastern European commercial boiler market.
The research firm reports that gas-fired products, which are now about 65 percent of the Eastern European commercial boiler market, are growing quickly, most noticeably in Romania and Russia. Overall, Poland has the biggest commercial boiler market by volume followed closely by Russia, BSRIA says.
However, there was little change in the Polish commercial boiler market in terms of volume sales in 2004, with overall flat demand in the construction sector dampening sales for new build. Although the market is the biggest of its kind in Eastern Europe, it is relatively small when compared to the main Western European countries.
The Russian market too, did not show significant changes in 2004, BSRIA reports. The firm says the commercial market is small compared to the domestic boiler market and in relation to the size of the country. Most non-individual central heating is for very large boiler plants above the commercial boiler range, with outputs of several megawatts. The smaller commercial boiler market, however, is growing, especially for end users who choose to switch from district heating to commercial systems.
In terms of overall growth, the Ukraine is clearly outperforming any other Eastern European country, BSRIA says, growing more than three times faster than the Eastern European average growth rate. The commercial boiler market is estimated at 2,300 units in 2004, up from 1,900 units in 2003. The market is still very small for a country the size of Ukraine, reflecting the dominance of district heating and main alternative in individual central heating (boilers <50kW).
Romania, which already accounts for nearly 20 percent of the overall market, is also expected to outperform the average Eastern European growth rate for commercial boilers over the next four years. This has been mainly attributed to strong growth expectations for wall hung cascade and floor standing atmospheric boilers. The economic policy of the new government should further boost economic growth and attract foreign direct investment.
Market by Product Type
According to BSRIA, gas atmospheric boilers, consisting of wall-hung (cascade/modulating), and floor-standing atmospheric gas boilers, are the largest segment in the Eastern European commercial boiler market, accounting for more than 45 percent of total volume sales. Gas atmospheric boiler sales derive mainly from Russia, the Czech Republic, and Romania, which together account for nearly two thirds of the total Eastern European market. The gas atmospheric boiler segment was also the second-fastest growing segment in Eastern Europe.
The second-largest commercial boiler segment in Eastern Europe is the pressure jet category (consisting of pressure jet gas and pressure jet oil boilers), which accounted for nearly 40 percent of all volume sales in 2004. Pressure jet burners are particularly popular in Poland, where they account for more than half of all commercial boiler sales and sold mostly in the higher outputs and areas outside the gas network.
Boilers without burners and solid fuel boilers account for the remaining share. Boilers without burners are particularly popular in Russia, Poland and the Ukraine, where they account for more than 10 percent of each country’s individual overall markets.
Solid-fuel boiler sales by volume mainly derive from Russia and Poland, which account for more than half of all Eastern European solid fuel boilers sold in 2004, but still less than 10 percent of each country’s overall commercial boiler sales. When looking into each country’s individual sales, Slovakia accounts for the highest proportion of solid fuel boilers, accounting for more than 20 percent of the country’s overall commercial boiler sales.
The Supply Structure
BSRIA reports that the supply structure of Eastern Europe’s largest commercial boiler market, Poland, is very concentrated and mainly dominated by Buderus and Viessmann, with both having a wide range of boilers in terms of performance outputs.
The floor-standing atmospheric gas boiler market is dominated by Buderus, De Dietrich, Viessmann and two domestic manufacturers Torus and Termet, while the shares of the pressure jet commercial boiler market are divided among Viessmann, Ferroli, De Dietrich, Wolf, and Novotherm, the research firm reports.
In solid fuel commercial boilers, the competition on the market is mainly between domestic manufacturers and involves HEF, Lumo, Ogniwo, and Graso.
In Russia, which represents Europe’s second-largest commercial boiler market, the supply structure is split fairly evenly between Russian-made boilers and imports. There are many small Russian factories with some production of boilers in the commercial output range, particularly in the floor standing gas sector.
The Russian jet burner boiler market is mainly dominated by imports; however, there is also a trend towards fitting imported burners to Russian made boilers. A number of European importers are present on the market, but no one company has sold more than a few hundred units in 2003-2004, BSRIA reports. The major importers include Mora, Viessmann, Vaillant, ACV, and Buderus.
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