Heating equipment market in Russia: 2023 results and prospects for 2024
In 2023, the Russian heating equipment market continued its growth, coping with the challenges of 2022.
In 2023, the situation on the Russian heating equipment market was calmer than in the stormy 2022. At the same time, the past year saw several interesting trends that are likely to carry over to this year as well. Here's a look at what 2023 was like for the heating equipment market and what to expect in 2024.
Key Indicators for 2023
The Russian heating market is the second largest in the world after the Chinese market. The reason for this is the harsh climatic conditions in which a significant part of our country's population lives.
The volume of the heating boilers market in 2023 continued its growth, increasing by about 12% relative to 2022. The main reason for this trend is the active development of countryside construction, as well as the need to replace the devices installed 15-20 years ago. The share of imported devices in the Russian market is about 50%. At the same time, the share of Chinese, Belarusian and Turkish boilers among foreign supplies has grown significantly in recent years, replacing European brands.
The volume of the water radiator market, according to
Georgiy Litvinchuk, Director of Litvinchuk Marketing,
remained generally at the level of 2022. At the same
time, there were multidirectional dynamics within it:
the volume of sales of steel radiators, even despite
good demand indicators, grew by no more than 7%,
while sales of aluminum and bimetallic radiators
decreased by 5%. Production of radiators in Russia in
2023 increased by 10% compared to 2022, while
imports of such products decreased by almost a third due to the growth of domestic production and large volumes of carryover stocks.
In which segments was there a shortage of supply in 2023? First of all, it is various burner equipment (including for industrial boilers), a significant share of which was supplied from Europe. Also, a number of manufacturers supplying indirect heating boilers, pumps and condensing equipment left the Russian market.
Heating equipment market outlook for 2024
This year, at least, the demand for heating equipment will remain at the current level. One of the key reasons is the continued pace of construction, primarily of residential buildings. Thus, last year, 110.1 million square meters of housing were commissioned in Russia - and this is a record figure. At the same time, it is quite likely that demand will redistribute in favor of equipment used in individual housing. This is explained by the growing demand for housing: in 2023, more than half (53.6% or 59 million square meters to be exact) of commissioned housing were individual houses. And this is a very good trend for the heating equipment market: in a private house there is more space per person, which requires more equipment for heating. And so far, the market has all the prerequisites for the continuation of such a trend in the current year.
Another interesting trend that is likely to continue
in 2024 is the growing demand for underfloor
heating. Such a solution is suitable only for new
housing, but given the growing share of housing
developments, we should expect an increase in the
demand for such options. We should not discount
already built housing, where heating systems need
to be changed. According to Rosstat, there are
more than **71 thousand ** dwellings (apartments
and houses) in Russia. Assuming that heating radiators are replaced every 20 years, a minimum of 10 million pieces will be needed annually.
The course on automation of equipment and the possibility of its integration into “Smart House” systems will continue. All the more so, it gives quite tangible advantages: reduction of consumption of utility resources (which is important not only from the point of view of saving money, but also from the point of view of conscious attitude to the environment) and increase of safety of functioning of engineering systems of the object.
Speaking about the market prospects in terms of its segments, it is worth noting that it has not fully succeeded in replacing the products of the departed brands of the middle and high price segment. This opens up opportunities for new foreign players ready to offer their heating equipment of these classes. Among the legislative novelties it is worth mentioning the experiment on marking of some heating devices (heating radiators and their sections, as well as various convectors), which started from April 1, 2024 to February 28, 2025.
Discussions on this topic have been going on for quite a long time: in particular, the EURAROS association has been advocating for the return and further improvement of state supervision over the circulation of heating equipment for the last few years. There is a possibility that already next year this norm will become mandatory, which, of course, should be taken into account when planning to enter the Russian market. What heating equipment will be in demand in 2024 and what market segments should new players pay attention to? In general, these are the same items that were in short supply in 2023: burner and condensing equipment, pumps, indirect heating boilers.
Advantages of participating in the Aquaflame by Aquatherm Moscow exhibition
The Russian market of heating equipment still
has free segments with minimal competition.
However, new players face large-scale tasks:
preparation for entering the market,
familiarization with its trends and search for
reliable partners. To solve them will help to
participate in industry exhibitions, such as the
International Exhibition of household and
industrial equipment for heating, water supply,
engineering and plumbing systems, swimming
pools, saunas and spas Aquaflame by Aquatherm Moscow.
In 2024 Aquatherm Moscow exhibition was visited by 29,133 specialists from 83 regions of Russia and 33 countries of the world. At the same time 93% of visitors have a direct impact on purchasing decisions in the company, and 76% of participants found new partners as a result of the exhibition. The most demanded segment is heating equipment: 64% of visitors were interested in it.