In recent years, gas heating and hot water heaters ( referred to as boiler ) exceeds the estimated industry growth of the industry. Insiders had predicted the domestic boiler market will be adversely affected government restrictions on the real estate industry . However, the government 's purchase of the policy did not affect the enthusiasm of investment real estate developers and consumers. Gas heating water heater industry is low sensitivity to the real estate market , coupled with the small base product market , the products are the most recent years the growth rate of 20-30 % annual growth.

As the household heating boiler most common way is being accepted more and more users . Among them, the sales of non-condensing furnace is much higher than the condensing furnace , from the 2012 survey data, non-condensing furnace industry accounted for 98.8% of sales and 97.6% of sales. However , condensing furnace has been small scale , because the base is small, the affected high-end projects and retail users , condensing furnace sales in recent years has also maintained a large proportion of the growth. Overall, condensing furnace in the domestic sales of smaller main reasons :

Poor gas quality and water quality. Domestic temperament , water condensing furnace problem is difficult to ensure that life , insiders often joked condensing furnaces to China, acclimatized.

Dealer , installer training is not in place. Most dealers and installers familiarity with the condensing system far less than conventional oven , under normal circumstances , dealers are more willing to push them to skillfully operate a conventional oven , in order to avoid trouble caused by unfamiliar system .

Promotion brings the price higher difficulty . Condensing furnace in the domestic price is much higher than non-condensing furnaces. Approximate retail value of the non- condensing furnaces condensing furnace is 1.2 to 1.8 times the price , if there is no government subsidies, in the case before the lower gas and electricity prices , the use of input-output ratio of condensing furnace is difficult to achieve the ideal state.

Lack of consumer education , the lower the level of user awareness . In the minds of consumers , condensing furnace is a high -tech product , but for this type of product characteristics and energy efficiency are not particularly aware of .

We Porter's five forces model to analyze under this industry. Bargaining power supply from upstream , on one hand rising raw material prices will make industry competition , on the other hand with the continuous rise of domestic suppliers and boiler manufacturers increased their strength , imported parts supplier's strong position is gradually weakened.

The threat of new entrants see the rapid development of the boiler industry is bound to attract large number of new entrants , competitive system available in the market is basically dominated by foreign brands , domestic brands are constantly eroded market share , with excellent relationship or a good price advantages, the new brand will survive , but will face a very strong threat from existing manufacturers .

From the bargaining power of consumers to see , along with intensified competition in the industry , the market is showing a growing trend of price-oriented , in some projects in China brand products supply prices have been lower than the ex-factory price of imported brands boiler .

From the perspective of alternatives to see the threat , in the north central heating is still prevalent , electric heating and air conditioning alternatives little threat to the boiler .

Competition from existing competitors in the industry point of view , the fierce competition will inevitably lead to a decline in product prices , in addition, domestic manufacturers in Europe, the brand's ability to emulate technically growing, the level of competition will be as price competition , brand competition, quality competition and growing.

Now the biggest bottleneck in the development of domestic gas source or problems with the gas gradually ease , the rise of MERCOSUR and the limitations of the enlarged central heating , experts believe that even if the rapid development of the market , increasing sales base , the next five years the industry will still be maintain growth of about fifteen to twenty percent , China's is expected to become the world's largest boiler market.