The heating market - France

The heating market has undergone significant transformation since 2020, against a backdrop of energy crisis and inflation concerns. EU households continue to have heating and hot water as their predominant energy consumers, accounting for 79% of total final energy consumption, with a notable 23% of heating and cooling in the sector produced from renewable energies. On the French market, sales of installation work for heating and air-conditioning equipment exceed 20 billion euros in 2021, indicating stability despite a drop in the number of manufacturing plants from 64 in 2011 to 48 in 2022.

The renewable heat sector, notably wood energy and aerothermal heat pumps, is booming. Consumers are clearly moving towards energy-saving measures.

The French market is strongly oriented towards electric and gas heating for private homes, and natural gas, electricity and fuel oil remain the main energy sources for heating needs in the tertiary sector. The manufacturing, distribution and installation sectors reflect these trends, with notable growth in installations.

Manufacturers like Groupe Muller and Atlantic lead the market, while retailers like Leroy Merlin and installers like Idex are key players. Connected heating solutions are gaining ground, with installation costs ranging from around 150 euros for basic packages to over 1,000 euros for sophisticated models.

Regulations such as RT2012 and the Ecodesign Directive, as well as economic incentives such as Fonds chaleur and MPrimeRenov', are encouraging reduced consumption and the adoption of renewable energies.Trends and movements in the French heating market.

The French heating market is undergoing a significant transformation, characterized by increased attention to ecological considerations and the introduction of renewable heating options.

This evolution is a response to growing consumer awareness of the environment and the influence of an energy crisis associated with inflation rates approaching 7% by 2022. While French consumers are increasingly cost-conscious, the trend remains towards energy efficiency and ecologically sustainable heating solutions. The wood industry generates sales of between 4 and 5 billion euros, aerothermal heat pumps reach around 6 billion euros, and the solar heat sector generates sales of over 1 billion euros. The geothermal energy market is also very active, with sales of around 280 million euros.

These figures underline the considerable interest in renewable heating solutions, which also reflects the many job opportunities in these sectors. Data on household heating consumption show that heating accounts for between 60 and 65% of household energy expenditure, with a drop of around 5 to 10 percentage points since 2000. Electricity and gas remain the two main sources of domestic heating, with fuel oil next in terms of prevalence of use. The data suggest a decreasing reliance on traditional heating sources and a move towards more sustainable options.

Heating consumption in the commercial sector showed a slight decline, partly due to the 2020 health crisis which had an impact on business activities. However, there appears to be a structural decline in overall consumption and a gradual interest in renewable heating sources in the tertiary sector. French society is clearly increasingly aware of the importance of energy, with 90% expressing concern about energy and heating consumption. Despite this growing concern, a significant number of people do not adjust heating temperatures at night to save energy.

In terms of production, the French landscape includes a variety of manufacturers specializing in different types of heating solutions, which show a stable trend despite a decline in the number of manufacturing establishments. In the wholesale and installation sectors, there was a rebound in the number of establishments after 2014, reflecting the resilience and adaptability of the market. Major market players include groups such as Muller, De'Longhi and Atlantic, each holding around 13% of radiator sales, underlining the competitiveness and diversity of the market. Retailers and installers also play a vital role, with professionals the preferred resource for consumers seeking advice and installation services.

With their emphasis on sustainable development, French regulations and economic incentives are steering the market towards low-energy and renewable-energy solutions.

Key players shaping the heating market landscape

The heating market reveals a diverse range of companies that play a substantial role in shaping industry trends, consumer preferences and technological advances. Here's a closer look at some of the major market players who have carved out a place for themselves in the heating sector:

• The Muller Group is a major player in the heating industry, known for its versatile range of products designed to meet a wide range of heating needs. Its reputation for quality and innovation has won it a significant market share, as it offers a variety of heating systems that appeal to both environmentally conscious consumers and those looking for reliable, efficient heating solutions.
• Vaillant Notable for its rich heritage and commitment to sustainable development, Vaillant is recognized as a leader in heating and hot water solutions. Its product range extends from boilers to renewable technologies such as heat pumps. Vaillant is known for its constant pursuit of excellence, providing high-quality products that are both durable and environmentally friendly.
• Atlantic has established itself as a major player in the heating market with a wide range of products including electric radiators, water heaters, heat pumps and boilers. The company's success is attributable to its focus on energy efficiency and user comfort, as well as the integration of green technologies into its product ranges.
• Leroy Merlin is a generalist brand offering a complete range of heating products for both DIY enthusiasts and professionals. The company offers a wide range of heating systems, from traditional radiators to cutting-edge intelligent heating solutions, positioning itself as a one-stop shop for customers looking to modernize their existing systems or introduce new, energy-efficient heating solutions to their homes.
• Castorama, another major generalist retailer, offers heating solutions to a wide audience. Its commitment to affordability without compromising on quality has made it a preferred destination for consumers wishing to make informed choices about their heating needs, whether for renovation projects or new installations.
• Idex is emerging as a major player in the installation sector, with a solid track record in the provision of tailor-made energy solutions. Its expertise extends from the design and installation of heating systems to maintenance and operation, enabling customers to optimize their energy consumption while benefiting from the latest advances in heating technology.
• Garanka Specializing in the servicing and maintenance of heating systems, Garanka is known for its customer-centric approach. Its extensive network of professionals gives individuals and businesses access to first-rate expertise to keep their systems running smoothly.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 15/01/2024

Summary and extracts

List of charts

• Sales (excl. VAT) for activity 25.21Z
• Sales (excl. VAT) 46.74B
• Sales (excl. VAT) for activity 43.22B
• Trends in furnace sales
• Sales by renewable heat sector
• Employment in the various renewable heat sectors
• Breakdown of household consumption in the home
• Number of dwellings by energy source
• Apartments - heating breakdown by type
• Type of heating in primary residences
• Energy consumption in the tertiary sector by type of activity
• Heating consumption of commercial sites by energy type
• Heating consumption in the tertiary sector
• Frequency of use
• Percentage of French people who have carried out energy-saving renovation work
• Main ways to reduce heating consumption
• Establishments registered under activity 25.21Z
• Employees registered under activity 25.21Z
• Employees by region
• Activity sales index 25.21Z
• Employees registered under activity 46.74B
• Number of establishments registered under activity 46.74B
• Number of establishments registered under activity 43.22B
• Employees registered under activity 43.22B
• Main purchasing channels for electric heaters
• Average trends in regulated electricity sales tariffs
• Segmentation of the French water-source radiator market
• Heating delivery by type
• ENR heating equipment deliveries by type
• Sales of controlled mechanical ventilators for multi-family housing and commercial buildings (single-flow CMV)
• Sales of controlled mechanical ventilators for multi-family housing and commercial buildings (double-flow CMV)
• Sales of controlled mechanical ventilation systems (CMV) for single-family homes (single-flow)
• Sales of controlled mechanical ventilators (double-flow CMV) for single-family homes