Insight from Fair Fix, the boiler specialist, reveals that a reduction in radiator and boiler manufacturing has led to increased prices for consumers, but an industry rebound might spell promise for cash-strapped homeowners.
Fair Fix has analysed the changing market size of the UK’s boiler and radiator manufacturing industry over the past decade, based on annual revenue.
Heating our homes is essential, and advancements in boiler technology have seen the market increase in size by 16% over the last decade, growing from revenue of £1.36 billion in 2013 to £1.58 billion in 2022.
However, as is the case with many industries, the pandemic caused market size to decline significantly, falling by -22% in just one year from a decade-peak of £1.79 billion in 2020 to £1.39 billion in 2021.
As a result, fewer boilers and parts were manufactured and this rebalance of supply and demand has resulted in rising prices for consumers.
In fact, it’s reported that the average price of a boiler hit £2,500 in 2022 after an increase of £500. It’s expected that a further £300 has been added to this so far in 2023.
However, the good news is that the market has bounced back by 13.3% in 2022 and is forecast to increase by a further 6.6% between now and 2025.
While this is promising news for consumers, 2025’s projected revenue of £1.68 billion is still less than the industry’s pre-pandemic peak.
Founder of Fair Fix, Tyrone Ekrem, commented: “The relative strength of the boiler manufacturing industry is due to the vital role of boilers in the home. However, the decline in market size is somewhat worrying given that there is currently such high consumer demand.
This reduction in manufacturing goes a long way to explaining why so many people in the UK are waiting so long to get their boiler fixed and then having to pay through the nose for the required parts.
If the forecasted industry recovery comes to fruition, prices might start to fall slowly, but cash-conscious homeowners will still want to research the most cost-effective way of caring for their boiler.”
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