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Heat pumps the next big thing on heating market - Ariston

Italian heating systems producer Ariston Thermo, while finishing a record year globally, has retained its leading position on the Hungarian market, with the popularity of heat pumps growing significantly in recent times, says a press release sent to the Budapest Business Journal.

Gábor Pavek, managing director of Ariston Thermo Hungária Kft.

At the end of the last financial year, Ariston achieved global revenue of EUR 1.61 billion, up 3.4% compared to the preceding year. EBITDA was adjusted at EUR 202 million, in line with 2017 results, while net income amounted to EUR 82 mln, equal to 5.1% of turnover, according to the press release.

On the Hungarian market, Ariston has several innovative products such as the Lydos Hybrid electric water heater, so far the only hybrid WiFi water heater on the domestic market. Even so, the most popular market in Hungary remains that for condensing boilers, a simple and relatively inexpensive solution for households.

The company says that while stable, growth has slowed down a notch compared to the period between 2015 and 2017, with sales growth of about 15%, compared to the 20% annual growth in the aforementioned period. The slowdown may be attributable to the increasing popularity of hybrid systems and smart home concept products.

Heat pumps expected to be a hit

The company says that the expansion of renewables, largely unknown on the Hungarian market as recently as 2016, could be a driving force behind the popularity of heat pumps and the decline of condensation technology. Ariston notes that while it is not the cheapest investment at present, a growing number of family house owners are planning in the long run and choosing this solution. Within Hungary, the greatest interest in heat pumps has been seen in Budapest, Northern Transdanubia and around Lake Balaton.

“While the condensing boiler remains in apartments, the heat pump is expected to be the most popular product in family houses in the coming year,” says Gábor Pavek, managing director of Ariston Thermo Hungária. “Previously, the population and mechanics had no information about renewables, but now more and more partners recommend this solution to customers,” he adds.

Pavek also stresses that previously high renewable prices have now been consolidated and the state is helping households with energy modernization tenders. The rate of heat pumps has now reached 24-30% annual growth on the Hungarian market, which he predicts will continue to strengthen in the upcoming years.

Improvements are much needed, as EU statistics agency Eurostat puts Hungary currently among the bottom third in the European field in terms of the proportion of renewables. While Hungary has already achieved the results planned for 2020, it seems almost hopeless that it will catch up with the Scandinavian countries, the press release notes.