The gas furnace business record offers extensive information on arising market patterns, development, company possibility, item summary, and market prospective for comprehending the future range of the market. The gas stoves marketing research record provides market shares, item sales and income over the historic and projection duration of 2025.
This record approximates the gas furnace market dimension and projection up and down cagr for the particular duration. It assists visitors determine the development chances, advancement elements, difficulties, developments, and innovations in the gas stove market.
The gas furnace business growth evaluation in several areas specifically north america, europe, australia or europe pacific, southeast australia or europe, center eastern and africa, southern america. This record has discussed the effect of the covid-19 evaluation and worldwide healing.
The specified section by kind, applications, manufacturing, swot evaluation, prominent market gamers with affordable landscape and research study methods. Following the worldwide covid-19 outbreak, outlined evaluation of the gas stoves market condition (2015-2025), market advancement patterns and local functions of commercial design has likewise been consisted of. This market record enhances the aesthetic discussion and assists you know the truths far better.
Furnace Market
The gas furnace market share evaluation record offers an affordable evaluation of little and big worldwide gamers. Likewise, the record provides in outlined info regarding the gamers on the basis of kind, monetary setting, cost, development techniques, item profile, and local existence of the gamers in the worldwide gas furnace market. The record likewise covers the essential areas which are most likely to have fantastic market development over the projection duration.
This record elaborates the gas furnace market dimension, market qualities, and market development of the market, and simplifies inning accordance with the kind, application, and usage location of the gas furnace market. The record likewise presents gamers in the market from the point of view of the market chain and advertising chain and explains the prominent business.
The natural gas furnace market is estimated to absorb between 46,000 and 50,000 furnaces per year. Of these furnaces, about 36,000 to 40,000 occur in the NW Natural service territory. Information from Distributors, supported by information from contractors and a bottom up estimate of market demand for furnaces indicates that, in 2004, about 44% of the furnaces went to new construction while the balance (56%) went to the replacement market.
The low penetration in new construction was supported by developer interviews which indicated that the default furnace was a single stage mid efficiency unit, and while developers often offered a furnace upgrade option, the sales staff did not understand the benefits nor did they appear to try to sell the options. Compared with other jurisdictions, America has a higher penetration of efficient furnaces than British Columbia, which has a colder climate.
Furnace Market Price Analysis
However it has not achieved market transformation which does appear to have happened in Wisconsin. The Oregon Department of Energy provides a significant incentive for furnaces with variable speed blower motors (variable speed motor furnace).
Overall; about 43% of the furnaces sold in Oregon in 2004 were equipped with a variable speed motor furnace. This is significantly higher than the share in British Columbia (24%) and Wisconsin (20%). In high efficiency furnaces the share is 77% relative to British Columbia (53%) and Wisconsin (23%). The higher share in Oregon is likely a result of the Oregon Department of Energy’s (ODOE) $ 350 incentive, as the incentive in both B.C. and Wisconsin was $ 150. In B.C., when the incentive for variable speed motor furnaces was removed, the share of high efficiency furnaces with variable speed motor furnaces in the replacement market dropped from 57% to about 43%.
Pricing Analysis As part of this project, pricing information was collected from furnace distributors, contractors and developers to provide a basis for determining customer economics, and to better understand pricing mark-up behaviour. In the new construction market, the incremental cost of a high efficiency furnace at the distributor level was $267. This increased to $ 854 at the contractor level, and then to about $ 1,200 at the developer level which was the price the consumer paid.
The mark-up at the contractor level is almost twice as high in new construction as in replacement. This may be a result of the lower market share of high efficiency furnaces and possibly may drop if the market share of efficient furnaces in new construction can be increased. For the replacement furnace market, the incremental cost of the high efficiency furnace was $ 465 at the distributor level and $ 956 at the contractor or retail level.
For the variable speed motor furnace feature (which includes a 2-stage furnace), in the new construction market, the additional cost at the distributor level was $318, increasing to $ 908 at the contractor level, and $ 1,200 to the consumer.
Again, the mark-up at the contractor level is higher that for the replacement market, and may drop if the market share for variable speed motor furnaces can be increased for new construction. In the replacement market, the incremental cost of the variable speed motor furnace at the distributor level was $ 419, increasing to $ 875 at the contractor or retail level. Compared with a study of mark-ups in the furnace distribution channel done by the US DOE, and changes in the incremental cost of variable speed motor furnaces in British Columbia, it may be possible to increase efficiency in the distribution channel in Oregon and reduce the incremental cost to consumers.
This should be considered as part of program design. Another area identified in this study that may require assistance is for small contractors who sell on price alone. The higher end manufacturers and their dealer networks have sophisticated and successful upsell strategies for higher efficiency, variable speed motor furnaces and enhanced filters.
They believe these are better products and can sell them when they can talk with the end customer. However training for small contractors on selling these products may be beneficial. The main market that is underserved by both the Department of Energy efficient furnace program and the DOE variable speed motor furnace tax credit is new construction.
Two options to address this market in the near term are: a standalone furnace program; or a comprehensive new construction energy efficiency program, such as the new Energy Star program.
Some developers feel that the comprehensive approach gives them more ability to differentiate their product, and given the low level of interest by builders today in promoting the high efficiency furnaces, the comprehensive program may be the preferred approach. In addition, having complete new home developments with high efficiency furnaces will allow for volume bids for both the furnace and variable speed motor furnaces and should reduce the price premiums noted in the distribution channel.
The Department of Energy should continue to ramp up the Energy Star new home program. In addition to the new homes program, the Department of Energy may wish to develop and provide point of purchase materials outlining the benefits and economies of high efficiency furnaces and variable speed motor furnaces and make this material available for use by developers who currently provide high efficiency furnace options.
In the medium term, the Department of Energy should continue to work with furnace brands to support the development of new building code standards that will encourage the more efficient use of energy, including natural gas furnace.