The explanations provided by companies in the business do not show the growth to be the result of the overall rebound, but of the problems of the system: people disconnecting their homes from the inefficient public central heating system and the announcement about heating subsidies being eliminated. These are the factors that drove the market put at 125,000-135,000 units and EUR55-75 million euros last year, which seems likely to grow in 2011.
Sever Scarlat, general manager of Baxi Romania, a vendor of heating solutions, says that with the decline of the construction industry that was no longer driving sales as it did until 2008-2009, the main boiler sales drivers in the 2010 were “those that disconnected from the public central heating system and those that replaced their old boilers.”
He expects even more people to disconnect from the public central heating system as “once subsidies are eliminated, heating expenses will go up and even triple in some cases.”
Scarlat estimates last year’s boiler sales growth at about 20% to 125,000 units and expects the market to grow by at least 20% in 2011, largely because of heating subsidies being eliminated.
There are no accurate data as to the number of individual boilers installed in people’s homes but if taking into account the current sales pace, every year 1.5% of Romania’s homes have boilers installed. The number of those still connected to the public heating system is ten times higher, though.
Overall estimates point to a 25% increase of the boiler market in 2010; there is significant potential for growth this year, too, “by 20% to 25%”, as a result of the heating subsidies being eliminated, believes Adrian Balsanu, regional sales manager with the thermotechnology division of Robert Bosch.
The representatives of Ariston Thermo Romania estimate the local boiler market to have gone up 35% to 135,000 units last year, largely because of the “contradictory announcements about heating subsidies being eliminated.”
Sales might go up by over 30% in certain parts of the country, said Catalin Draguleanu, Ariston Thermo’s sales manager.
The company sold about 50,000 boilers last year and expects to sell 60,000 in 2011.
“The local wall hung boiler market reached EUR55 million in 2009 and went up to EUR75 million in 2010. These are estimates, because part of the sales was made at 19% VAT (value added tax) and part at 24% VAT,” Draguleanu added.