Boiler market to grow this year in Hungary, Ariston says

Analysis

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While 2020 brought about an 8-10% decline in the boiler market in Hungary, 2021 could be a boom year again, due to a variety of government programs supporting home construction and renovation, according to a press release by Ariston Thermo Hungária.

In recent years, the construction of new homes in Hungary has increased significantly, mainly due to rising living standards, changes in the legal system, and social support for families, the company says, adding that the coronavirus epidemic slowed down this trend considerably.

The Otthon Melege Program (Warm Home Program), interest-free loans issued by the MFB and CSOK (Family Housing Support Program) are also giving the opportunity for more and more families to use energy-saving, environmentally friendly heating solutions, the company argues.

According to the managing director of Ariston Thermo Hungária, Hungary has lagged behind other Eastern European countries in terms of state-of-the-art solutions in recent years.

Gábor Pavek said that in Hungary 49% of households using individual heating have gas-fired equipment, meaning that the role of condensing boilers will remain a priority. In this area, Hungary is also performing well compared to neighboring countries. But we are lagging behind Poland and the Czech Republic in heat pumps.

However, heat pumps, hybrid systems, and renewables are steadily increasing their share of the market, so Hungary can catch up in the next two years, he added.

The managing director also said that while last year did not bring any significant results in domestic sales, 2021 and 2022 are expected to be years of growth. Not only new constructions but also the renovation market will start to develop this year, which will mainly be reflected in the replacement of outdated boilers.

The main upturn in the domestic market is expected to be in the sales of condensing boilers and heat pumps, which will continue after 2022. A key role in boiler replacement is played by the Otthon Melege Program, which has been supporting the dissemination of modern heating technologies in Hungary since its launch.

The future performance of the Hungarian boiler market is highly dependent on the continued improvement of the country's economic outlook, which will have an impact on replacement demand and residential and non-residential construction activity. Financial incentive schemes will continue to have a strong impact on sales, as they have done in recent years, especially in the condensing boiler market, the company notes.

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