Digest №1 - Russian HVAC market (2021)

We release a digest for you with current useful materials: articles, market researches, news, webinars, video-conferences – as the industry is continuing its development! 

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We continue to keep you up to date with market trends, current news, latest changes and innovations and help your professional development.

Our digest is devoted to HVAC market. You will learn about the high increase in sales of HVAC equipment in Russia in 2020, analyze the results of the HVAC sales in Russia in 2019, learn about the reasons for the growth.

Also you will learn about climate systems market conditions and its key indicators in Europe and Russia. There is information about the differences of indicators dynamic in different regions of Russia.

Moreover, you will read about current trends and prospects of the HVAC market in Russia.

At the end of the digest you will learn about export records of the central heating radiators market in Russia and the total value of exports.

You will read about the modernization of hot water supply in the Russia and its costs in different regions of Russia.

The Russian market of heating equipment showed an increase in sales in 2020

Sales growth in 2020 was demonstrated by the Russian market of heating, ventilation and air conditioning (HVAC) systems. According to preliminary data from Business stat, compared to 2019, sales increased by 8-12%, the sales volume was slightly less than 860 thousand units of household heating boilers. The market leader once again became the Korean company NAVIEN, which took the first place in the number of sales of gas wall-mounted boilers. The manufacturer from Korea sold more than 120 thousand units of heating equipment in Russia, most of which cost an average of 34 thousand rubles.

Experts call a number of factors the reasons for the growth of sales in the Russian HVAC market. Among them are:

  • the instructions given to the government by the President of the Russian Federation within the framework of the development of gas supply and gasification of the regions, 
  • the transfer of the activities of many companies to a remote format, 
  • the mortgage boom. 

All this forced some Russians to buy heating equipment for new apartments and houses, and others to upgrade the current heating system, which they finally had time for because of the pandemic.

Source (in Russian)

Climate Systems Market: Europe and Russia

The world market of equipment for air conditioning, heating and ventilation (HVAC) has been one of the most dynamically developing since 1990 and in the next couple of decades, experts assure, will continue to grow by 5-7% per year, mainly due to the growing demand for climate systems with centralized control. Read more about the situation in the industry in our review.

In Russia, where the HVAC market traditionally accounts for 11-12% of the European market, sales began to fall back in 2019 (for the first time since 2015). After all, unlike Europe with its record summer heat in 2019, Russian July and August were record-breaking cold. The positive dynamics turned out to be only in Moscow and the Moscow region, the cities of the Upper Volga and Central Russia (+4-15 %). In other regions, sales decreased by 2-11 % compared to 2018.

Source (in Russian) 

Market trends and prospects

  • Minimum emissions. In the conditions of global warming, only refrigerants that are safe for the ozone layer, such as carbon dioxide (CO₂), will be in demand in the new HVAC climate systems. In Russia, this solution was implemented by the Auchan and Metro networks. It allows you to get significantly more heat compared to freon at the same cost of electricity.

The main task of the equipment manufacturer is to ensure a balance of comfort and well-being of residents in the building when operating HVAC systems with almost zero emissions into the environment.

  • Climate control in agricultural premises. The construction of housing in previously unsuitable regions forces people to actively use climate systems for growing environmentally friendly food. In these niches, HVAC manufacturers will be successful in the next decade.
  • The Internet of Things. Building management automation technologies are developing rapidly. In the HVAC industry, they simplify maintenance (diagnostics are accelerated, reports are compiled). In the coming years, artificial intelligence will be used in self-diagnostics of buildings (the system detects a malfunction, automatically orders spare parts, plans a service). The demand for intelligent thermostats will increase, which will increase the sales of systems in all market segments.
  • The desire to control the environment. Modern consumers prefer smart home systems, they are more willing to visit shops, theaters and restaurants with clean, high-quality air. At the same time, more than 66% of millennials, according to Nielsen surveys, are willing to pay more for products and services of companies that care about the environment. Therefore, for owners of commercial buildings, this trend is another way to stand out from the competition.

Source (in Russian)

The market of central heating radiators in Russia: export records

Russian manufacturers in 2020 maximized export shipments of central heating radiators to the world market.

The domestic market of central heating radiators within the framework of 2020 demonstrated a stable trend of increasing shipments to the world market, while a steady trend was, among other things, an increase in the value volumes of export shipments.

According to the research "The market of central heating radiators in Russia: research and forecast until 2025", prepared by the marketing agency ROIF Expert in 2021, the total value of exports of central heating radiators by domestic suppliers in 2020 showed an increase of almost 18% and exceeded the indicators of the last reporting period by $ 5 million. And in general, the results of 2020 are the maximum values of export deliveries.

Source (in Russian)

The modernization of hot water supply in the Russian Federation was estimated at 2 trillion rubles

In the near future, the parliament will send a recommendation to the relevant departments (the Ministry of Construction and the Ministry of Energy), as well as to the subjects of the Russian Federation, to develop a targeted state program for financing the transfer of houses from open to closed DHW systems.

At a round table held last week with the participation of experts and representatives of the heat supply industry, Deputy Chairman of the Committee Sergey Yesyakov noted that the closure of hot water systems in the country requires large costs with a very long payback period: so, it may take from 6 to 12 million rubles to transfer only one house to a closed DHW system. At the same time, according to the materials of the Committee, at least 60% of the housing stock needs to be re-equipped. As a result, for example, a complete re-equipment of St. Petersburg can cost 100 billion rubles, Yekaterinburg — 28 billion, Irkutsk — 10.4 billion. These amounts do not take into account the costs of performing related work in related industries, which can double the above amounts. The total cost of work across the country may exceed 2 trillion rubles.

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