Study on the Competitiveness of the EU Gas Appliances Sector

246 Pages·2015·1.43 MB·English

Ref. Ares(2015)2495017 - 15/06/2015
Study on the Competitiveness of
the EU Gas Appliances Sector

Within the Framework Contract of Sectoral
Competitiveness Studies – ENTR/06/054

Final Report

Client: Directorate-General Enterprise & Industry

Rotterdam, 11 August 2009
Disclaimer: The views and propositions expressed herein are those of the experts and do not
necessarily represent any official view of the European Commission or any other organisations
mentioned in the Report

ECORYS SCS Group
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Table of contents
1 Introduction 1
2 Objectives and policy rationale 5
3 Main findings and conclusions 7
4 The gas appliances sector 11
4.1 Introduction 11
4.2 Definition 11
4.3 Overview of sub-sectors 16
4.3.1 Heating, ventilation and air conditioning (HVAC) 16
4.3.2 Domestic appliances 18
4.3.3 Fittings 20
4.4 The application of statistics 22
4.5 Statistical approach to sector and subsectors 23
5 Key characteristics of the European gas appliances sector 29
5.1 Introduction 29
5.2 Importance of the sector 30
5.2.1 Output 30
5.2.2 Employment 31
5.2.3 Demand 32
5.3 Production, employment, demand and trade within EU 33
5.3.1 Production share EU-27 output per country 33
5.3.2 Employment 39
5.3.3 Demand by Member State 41
5.3.4 Intra EU trade in GA 41
5.4 Industry structure and size distribution of firms 46
5.5 Companies' behaviour 50
5.5.1 Tendencies in market strategies 50
5.5.2 Research strategies 53
5.5.3 Procurement strategies 53
5.6 Selected 11 Member States analysis 56
5.6.1 Czech Republic 56
5.6.2 Denmark 56
5.6.3 France 57
5.6.4 Germany 59
5.6.5 Italy 62
5.6.6 Netherlands 64
5.6.7 Poland 65
5.6.8 Slovakia 67
5.6.9 Slovenia 68
5.6.10 Spain 69
5.6.11 United Kingdom 71
5.7 Notified bodies and their role in the sector 74
5.7.1 Role of notified bodies 74
5.7.2 Czech Republic 77
5.7.3 Denmark 78
5.7.4 France 79
5.7.5 Germany 81
5.7.6 Italy 82
5.7.7 Netherlands 84
5.7.8 Poland 85
5.7.9 Slovakia 86
5.7.10 Slovenia 87
5.7.11 Spain 88
5.7.12 United Kingdom 89
6 Regulatory and framework conditions 91
6.1 Introduction 91
6.2 Regulatory scheme of the Gas Appliance Sector (GAS) 92
6.2.1 Essential aspects of directives of importance for the GAS 95
6.2.2 Transposition of directives of relevance for GA into national law 98
6.2.3 Assessment of the EU regulatory scheme 100
6.2.4 Environmental aspects and energy efficiency of GA 101
6.2.5 The scope of the GAD 103
6.3 Analysis and assessment of framework areas for the GAS 105
6.3.1 Distribution channels for gas appliances 105
6.3.2 Market environment in gas appliance service markets 109
6.3.3 Access to input markets 114
6.3.4 Access sales markets 117
6.4 Impact of energy markets on the perspectives for gas appliances 117
6.4.1 Overview of the present situation and outlook for gas sales in the EU 117
6.4.2 Overview of natural gas supply in the EU 118
6.4.3 The issue of gas quality 120
6.4.4 Natural gas grid access 121
6.4.5 Non-grid gas access 123
6.4.6 Price competitiveness of gas 124
6.4.7 Comparison of energy prices 125
7 Competitive position of the European gas appliances sector 133
7.1 Introduction 133
7.2 The European gas appliances sector in the EU-27 133
7.2.1 Size and evolution of the EU GA production 133
7.2.2 Regional structure of the sector in the EU GA production 135
7.2.3 Size and evolution in the demanded values for gas and non-gas
appliances 136
7.2.4 Regional structure of the sector in the EU Demand 137
7.3 The European gas appliances sector in the world 137
7.3.1 Key players in world market and their strategies (including global
value chains) 137
7.3.2 Characteristics of the Turkish GAS 139
7.3.3 The Chinese GAS 141
7.3.4 The US GAS 142
7.3.5 The Japanese GAS 144
7.3.6 Comparison of the EU-27 with important competing nations 145
7.3.7 Comparison with important competing nations, GA versus other
goods 149
7.3.8 Revealed Comparative Advantage intra EU-27 (RCA) 150
7.3.9 EU-27 Revealed Comparative Advantage (RCA) at global level 152
7.4 General trends in product-design and product features 152
7.4.1 Technologies for HVAC 153
7.4.2 Domestic appliances 159
8 Strategic outlook 161
8.1 Market developments and trends for the EU gas appliance market 161
8.1.1 Economic development 161
8.1.2 European housing market 163
8.1.3 Energy market development 166
8.1.4 Gas appliance market development 167
8.2 SWOT-analysis 173
9 ANNEXES 183

Tables
Table 4.1 List of gas appliances under GAD per category: cooking 13
Table 4.2 List of gas appliances under GAD per category: heating 14
Table 4.3 List of gas appliances under GAD per category: hot water production 14
Table 4.4 List of gas appliances under GAD per category: refrigeration 15
Table 4.5 List of gas appliances under GAD per category: washing 15
Table 4.6 List of gas appliances under GAD per category: lighting 15
Table 4.7 List of fittings under GAD 15
Table 4.8 Statistical definition GA, Prodcom database 24
Table 4.9 Statistical definition non-GA, Prodcom database 24
Table 4.10 Statistical definition GA, market dataset 27
Table 5.1 Indexed development of GA production in EU-27, 1995-2007 (current
prices) 31
Table 5.2 Employment indicators for EU-27 and EU-15 32
Table 5.3 Market demand indexed at 1995 levels 33
Table 5.4 Average annual production share of GA per country in 1995, 2001 and
2007 36
Table 5.5 GDP share of GA production values, average annual development
over time. 39
Table 5.6 Employment indicators for the selected Member States 40
Table 5.7 Export specialisation in intra EU trade, 1999 to 2007 43
Table 5.8 Industry structure in the EU-25 and EU-15 in 2006 46
Table 5.9 List of Notified Bodies established for the GAD 76
Table 5.10 List of Czech notified body in accordance with the GAD 78
Table 5.11 List of Danish Notified Bodies in accordance with the GAD 79
Table 5.12 List of French notified bodies in accordance with the GAD 81
Table 5.13: List of German Notified Bodies in accordance with the GAD 82
Table 5.14 List of Italian notified bodies in accordance with the GAD 83
Table 5.15 Dutch notified body in accordance with the GAD 84
Table 5.16 List of Polish notified bodies in accordance with the GAD 85
Table 5.17 : List of Slovakian Notified Body in accordance with the GAD 86
Table 5.18: List of Slovenian Notified Body in accordance with the GAD 88
Table 5.19 List of Spanish notified bodies in accordance with the GAD 88
Table 5.20 List of UK notified bodies in accordance with the GAD 90
Table 6.1: Ranking of regulatory and framework factors on the GAS’s
competitiveness 91
Table 6.2 Categorization of boilers by the Boiler Efficiency Directive 96
Table 6.3 Regulatory framework for gas appliance services 110
Table 6.4 Developments in the number of domestic customers and distribution
grid lengths in the EU from 1995 to 2006 122
Table 6.5 Electricity prices for households in EURO/ 100 kWh, all taxes
included 126
Table 6.6 Natural gas prices for households in EURO/ Gigajoule, all taxes
included 127
Table 6.7 Heating oil prices for households in EURO/ 1000 litres, all taxes
included 129
Table 6.8 Consumer LPG motor fuel prices in EURO/ 1000 litres, including all
taxes. 130
Table 7.1 Average annual growth rates from 1995 to 2007 134
Table 7.2 Per country share of global GA trade 139
Table 7.3 Turkish trade with EU-27 in gas appliances (millions Euros at current
prices) 140
Table 7.4 Chinese trade with EU-27 with gas appliances (millions Euros at
current prices) 142
Table 7.5 Market shares of specific gas appliances in the US 143
Table 7.6 US trade with the EU-27 with GA (millions Euros at current prices) 143
Table 7.7 Japanese trade with EU-27 in GA (millions Euros at current prices) 145
Table 7.8 Export and import ratios: Extra EU GA trade 1999-2007 147
Table 7.9 Export specialization 1999-2007 of GA -trade 148
Table 7.10 RCA at national level 151
Table 7.11 RCA at Global level 152
Table 8.1: The economic framework conditions for the EU-27 163
Table 8.2: The European market for residential construction 165
Table 8.3: The European housing stock and completions 165
Table 8.4 Forecasted average annual growth rates from 2007 until 2013 169
Table 8.5 EU-27 average annual growth rates from 1995 to 2007 and from 2007
to 2013 172
Table 8.6 The SWOT-analysis for the GAS 175
Figures
Figure 4.1 General classification of fittings for gas appliances 21
Figure 5.1 Production value per identified GA subsector (in Million EUR) 31
Figure 5.2 Market demand in the EU-27, (in million Euros) 32
Figure 5.3 Per country share of total EU-27 GA production for 1995, 2001 and
2007 34
Figure 5.4 GA production per country in million Euros at current prices for 1995,
1999, 2003 and 2007 37
Figure 5.5 GDP share of GA production values for 2007 38
Figure 5.6 Employment shares 40
Figure 5.7 Market demand per household in the EU-27 Member States in
thousand Euros at current prices 41
Figure 5.8 Intra EU-27 trade between old and new Member States 42
Figure 5.9 Intra EU-27 trade between old and new Member States 42
Figure 5.10 Intra EU trade GA balance per country 1999-2007 (millions Euros) 45
Figure 5.11 Number of companies with more than 250 employees in selected
countries in 2006 48
Figure 5.12 Number of companies with less than 250 employees in selected
countries in 2006 48
Figure 5.13 Total number of employees within selected firms and countries in
2006 and 2005 49
Figure 5.14 Production per employee within selected countries in 2006 and 2005 50
Figure 6.1 Distribution channels in Germany 106
Figure 6.1 Distribution channels in United Kingdom 107
Figure 6.1 Distribution channels in France 107
Figure 6.2: Gas related accidents in the EU 113
Figure 6.3 The European natural gas networks in 2002 119
Figure 7.1 Real production volume developments of sub-sectors’ production
values in the EU-27 countries, compared to similar non-gas products
from 1995-2007, indexed at 1995 production values. 134
Figure 7.2 Real demand volume developments for GA and non-GA in the EU12
from 1995-2007, indexed at 1995 demand volumes. 134
Figure 7.3 Nominal production values in million Euros of GA and non-GA in the
EU-27 from 1995 to 2007 135
Figure 7.4 Development of sub-sectors’ GA production value market shares in
the EU-27 countries, compared to similar non-GA production, 1995-
2007 135
Figure 7.5 GA production share of total appliances 136
Figure 7.6 EU-27 Demand for GA and appliances of other feedstock (Million
Euros) 136
Figure 7.7 Regional demand of GA as a percentage of non GA 137
Figure 7.8 Global GA export shares by country 1999-2007 138
Figure 7.9 EU-27 GA Trade. Extra EU-27 Imports.and Exports (millions Euros
at current prices) 147
Figure 7.10 GA extra EU-27 trade as percentage of total EU-27 appliances trade 149
Figure 7.11 GA extra EU-27 trade as percentage of total EU-27 Manufacturing 150
Figure 8.1: Overview of power generation composition in the EU 166
Figure 8.2: Expected indexed market growth 2007-2013 for GA 168
Figure 8.3: EU-27 market developments for selected appliance categories from
2007 to 2013 169
Figure 8.4: EU-12 market developments for selected appliance sectors until 2013 170
Figure 8.5: EU-15 market developments for selected appliance sectors until 2013 171
Figure 8.6 EU-27 combined Ex-Post and Ex-Ante developments 172