Opportunities in the Crossover Market
Whilst traditionally there has been little crossover between the domestic and commercial heating boiler markets, recent developments in technology mean the components used in domestic and commercial appliances are now very similar. Here, Graham Williamson, business director of commercial heating at Ideal Boilers, discusses the opportunities available for installers in this crossover market.
It may sound obvious, but for many years, the view within the heating industry has been that commercial heating installers only ever work on commercial and industrial applications, whilst their domestic counterparts only operate in the domestic sector. This can largely be attributed to the differences in technology between the sectors and the perception that installers would have to learn new skills to enter the other’s arena.
However, product advancements within the heating industry have seen a rise in the number of appliances that are suitable for both domestic and commercial applications. It is this trend that has seen the ‘crossover’ market for domestic and commercial installations really emerge. This includes higher output domestic boilers and lower output commercial appliances, which are suitable for large domestic properties and smaller commercial applications for example.
For installers in both fields, this now means they can apply their existing knowledge and experience to many installations that they previously did not feel they would be able to carry out with confidence, without the need or requirement to undertake additional training. Another factor that has further propelled this crossover market, particularly for domestic installers entering the commercial arena, is the acceptance of wall hung condensing technology in commercial applications. This technology has rapidly gained in popularity as a result of their ease of installation, compact size and flueing flexibility.
Ultimately, this has opened up whole new markets for domestic and commercial installers. The domestic boiler market for example offers commercial installers the opportunity to take a share of the 1.4 million boilers sold every year. Whilst in comparison the commercial boiler market is relatively small and very mature, with only 20,000 new units sold annually, the nature of the market means there are greater margins to be made. The commercial sector is also growing year on year since the introduction of Part L2A and L2B of the Building Regulations last year, so there has never been a greater need for installers who are competent in HE boiler installations.
Bridging the gap between domestic and commercial boilers is Ideal Boilers’ icos HE 30 and 36 models. Specifically designed for homes that require that extra heat output, the appliances are also suitable for small commercial properties. Highly efficient (SEDBUK A rated), the icos HE 30 and 36, like other models in the icos range, are easy to fit and install, highly reliable and engineered to the highest standards that you would expect from a World Class Manufacturer.
On the commercial front, the Imax W 45 wall mounted boiler is also capable of installed as a single unit, making it the ideal choice for larger domestic properties, such as five bedroom, three bathroom family homes or open plan apartments. Similar to large output domestic boilers like the icos HE 30 and 36, the Imax W 45 is a highly efficient fully condensing boiler, with up to 98% efficiency nett (88.5% gross cv) non condensing and 108% nett (97.3% gross cv) at 30% load, fully condensing.
As one of the leading heating manufacturers in the UK, Ideal Boilers believe it is essential that installers have access to all the information they need so they can take advantage of this crossover market. With this in mind, we have recently updated both our commercial and domestic product range guides. The commercial guideM now includes all the technical and specification information on the icos HE 30 and 36 models, which accompanies all the existing information on Ideal’s complete range of commercial boilers. Similarly, along with providing installers with information on Ideal’s market leading range of domestic boilers, the domestic range guide features the Imax W range.
Overall, whilst many domestic and commercial installers have traditionally been reluctant to tender for work in the commercial and domestic markets respectively, at Ideal Boilers, we believe there is plenty of scope for installers to apply their extensive experience into the crossover market and take advantage of the increased profit opportunities available. The fact is, there are now a range of smaller commercial boilers suitable for large domestic properties and large domestic boilers suitable for small commercial applications that installers in both fields can capitalise on.
For your copy of Ideal Boilers’ latest range guides, call the commercial heating team on 01482 498 690 or email commercial_heating@idealboilers.com.
For more information on the company’s extensive range of commercial boilers visit www.idealcommercialboilers.com.