The Gas Heating Professional Committee of the Gas Branch of the Chinese Society of Civil Engineering conducted a market survey on the production and sales of gas heating water heaters in 2017. The distribution and production scale of production enterprises were statistically analyzed, and the relevant situation of the current 'coal to gas' project in the north was summarized. The 2017 market production and sales survey statistics announcement was released.

This survey surveyed more than 150 companies in the industry, including 107 manufacturers of complete gas heating water heaters and over 50 manufacturers of gas heating water heater components (fans, controllers, water pumps, proportional valves, burners, air pressure switches, expansion tanks, etc.). The survey adopts methods such as enterprise reporting, comparison of production and sales of complete machines and components, user surveys, market analysis, and customs data verification. This statistical work is based on the principles of science, rigor, and authenticity. It took two months to organize and analyze the data, striving for its authenticity and accuracy.

1、 Enterprise situation

（1） Enterprise distribution

As of the end of 2017, 228 companies have obtained production licenses for gas heating water heaters. The number and distribution of gas heating and hot water boiler production enterprises in various regions are shown in Table 1 and Figure 1.

The production base of gas heating water heaters in China is mainly located in the south. As of the end of 2017, there were 102 gas heating water heater production enterprises in Guangdong, an increase of 37 compared to 2016, far exceeding other regions. Affected by the 'coal to gas' policy, there were 38 gas heating and hot water boiler production enterprises in Hebei Province in 2017, an increase of 24 compared to 2016; In 2017, there were 26 gas heating and hot water boiler production enterprises in Shandong region, an increase of 16 compared to 2016. In addition, the number of new component manufacturing enterprises in 2017 has exceeded the original number of enterprises in 2016, and the number of various component manufacturing enterprises has shown a doubling growth trend.

（2） Enterprise scale

In 2017, there were 6 domestic brands with annual sales exceeding 200000 units, 13 companies with annual sales exceeding 100000 units, and 29 companies with annual sales exceeding 50000 units.

In 2017, there were 5 companies with annual sales exceeding 100000 units and 8 companies with annual sales exceeding 50000 units among imported brands. Imported brand enterprises mainly come from Germany, Italy, Türkiye, South Korea, Poland, Slovakia, etc.

2、 Market situation

（1） Production in 2017

According to statistics, the total production of domestic gas heating water heaters (domestic brands+imported brands produced domestically) in 2017 was 4.977 million units. Among them, the production of domestic brands was 4.523 million units, accounting for 90.9% of the total annual production; The domestic production of imported brands is 454000 units, accounting for 9.1% of the total annual output.

（2） Sales in 2017

1. Annual total sales volume

According to statistics, the total sales of gas heating water heaters in the Chinese market in 2017 were 5.5 million units, an increase of 3.4 million units or 162% compared to 2016 (2.1 million units). Among them, the domestic sales of domestic brands were 4.346 million units, an increase of 262% compared to 2016 (1.2 million units), accounting for 79.0% of the total annual sales; The sales volume of imported brands produced domestically was 454000 units, an increase of 19.5% compared to 2016 (380000 units), accounting for 8.3% of the total annual sales volume; The sales volume of the original imported brand was 700000 units, an increase of 34.6% compared to 2016 (520000 units), accounting for 12.7% of the total annual sales.

2. Distribution of Domestic Brand Sales by Enterprise Size

In 2017, the annual sales volume of domestic production enterprises' gas heating and hot water boiler products (domestic brands) was 4.346 million units, accounting for 79.0% of the total annual sales volume.

(1) There are 6 companies with annual sales exceeding 200000 units, with a total sales volume of 2.251 million units, accounting for 51.8% of the total sales of domestic brands and 40.9% of the total annual sales.

(2) There are 13 companies with annual sales exceeding 100000 units, with a total sales volume of 3.318 million units, accounting for 76.3% of the total sales of domestic brands and 60.3% of the total annual sales.

3. Distribution of imported brand sales by enterprise size

In 2017, the annual sales volume of imported brands (original imported+domestically produced imported brands) of gas heating water heaters was 1.154 million units, accounting for 21.0% of the total annual sales volume.

(1) There are 5 companies with annual sales exceeding 100000 units, with a total sales volume of 813000 units, accounting for 70.5% of the total sales of imported brands and 14.8% of the total annual sales.

(2) There are 8 companies with annual sales exceeding 50000 units, with a total sales volume of 1.038 million units, accounting for 89.9% of the total sales of imported brands and 18.9% of the total annual sales.

4. Sales of condensing furnaces and ordinary furnaces

In 2017, the annual sales volume of condensing gas heating water heaters (hereinafter referred to as condensing furnaces) was 381000 units, an increase of 166% compared to 2016 (143000 units), accounting for 6.9% of the total annual sales volume. Among them, the sales volume of domestic brand condensing furnaces was 236000 units, accounting for 61.9% of the total annual sales volume of condensing furnaces; The sales volume of imported brand condensing furnaces was 145000 units, accounting for 38.1% of the total annual output.

In 2017, the annual sales volume of non 

5. Sales channels and sales distribution

Under the influence of the 'coal to gas' project in the north, the sales volume of gas heating and hot water boilers used for the 'coal to gas' project in 2017 was 3.775 million units, accounting for 68.6% of the total annual sales volume. Compared with 2016 (sales volume of 400000 units for the 'coal to gas' project), it increased by 3.375 million units, an increase of 8 times. Among them, the sales volume of condensing furnaces was 182000 units, accounting for 4.8% of the total sales volume of the 'coal to gas' project; The sales volume of ordinary furnaces was 3.593 million units, accounting for 95.2% of the total sales volume of the 'coal to gas' project; Domestic brand sales amounted to 3.497 million units, accounting for 92.6% of the total sales of the 'coal to gas' project; The sales volume of imported brands was 278000 units, accounting for 7.4% of the total sales volume of the 'coal to gas' project.

In 2017, the total sales volume of the 'ordinary engineering+retail' market was 1.725 million units, accounting for 31.4% of the total sales volume, an increase of 25000 units or 1.5% compared to 2016 (1.7 million units), which was basically the same. Among them, the sales volume of condensing furnaces was 199000 units, accounting for 11.5% of the total sales volume in the 'ordinary engineering+retail' market; The sales volume of ordinary furnaces was 1.526 million units, accounting for 88.5% of the total sales volume in the 'ordinary engineering+retail' market; Domestic brand sales amounted to 849000 units, accounting for 49.2% of the total sales in the 'ordinary engineering+retail' market; The sales volume of imported brands was 876000 units, accounting for 50.8% of the total sales volume in the 'ordinary engineering+retail' market.

Note: Due to the actual construction process of the 'coal to gas' project, there are situations where some gas heating water heaters have been purchased but not installed, or pipeline projects have been completed but gas heating heaters have not been installed, resulting in a lack of statistical data on intermediate channels and local inventory; At the same time, this data statistics mainly adopts methods such as enterprise reporting, comparison of production and sales of complete machines and components, user surveys, market analysis, and customs data verification. The differences in statistical methods may result in certain discrepancies with the data released by government agencies. The data of gas heating and hot water boilers used in the 'coal to gas' project shall be subject to the data released by government departments.

6. Distribution of sales volume in sales regions

The total sales of gas heating water heaters in 2017 were distributed according to the seven major regions in China:

(1) The North China region sold 4.344 million units, accounting for 79.0% of the total annual sales. Among them, the sales of domestic brands reached 3.884 million units, accounting for 89.4% of the total sales in North China; The sales of imported brands were 460000 units, accounting for 10.6% of the total sales in North China.

(2) The Northeast region has 66000 units, accounting for 1.2% of the total annual sales. Among them, domestic brands sold 48000 units, accounting for 72.7% of the total sales in Northeast China; The sales volume of imported brands is 18000 units, accounting for 27.3% of the total sales volume in Northeast China.

(3) The northwest region sold 446000 units, accounting for 8.1% of the total annual sales. Among them, the sales of domestic brands were 332000 units, accounting for 74.4% of the total sales in the northwest region; The sales of imported brands were 114000 units, accounting for 25.6% of the total sales in the northwest region.

(4) The Southwest region sold 118000 units, accounting for 2.1% of the total annual sales. Among them, the sales of domestic brands were 31000 units, accounting for 26.3% of the total sales in the Southwest region; The sales of imported brands were 87000 units, accounting for 73.7% of the total sales in the Southwest region.

(5) The Central China region sold 170000 units, accounting for 3.1% of the total annual sales. Among them, the sales of domestic brands were 18000 units, accounting for 10.6% of the total sales in Central China; The sales of imported brands were 152000 units, accounting for 89.4% of the total sales in Central China.

(6) The East China region sold 340000 units, accounting for 6.2% of the total annual sales. Among them, the sales of domestic brands were 25000 units, accounting for 7.4% of the total sales in East China; The sales of imported brands were 315000 units, accounting for 92.6% of the total sales in East China.

(7) The South China region has 16000 units, accounting for 0.3% of the total annual sales. Among them, the sales volume of domestic brands is 8000 units, accounting for 50.0% of the total sales volume in South China; The sales volume of imported brands is 8000 units, accounting for 50.0% of the total sales volume in South China.

7. Export volume in 2017

The total export volume of gas heating water heaters in 2017 was 177000 units, an increase of 7000 units or 4.1% compared to 2016 (170000 units). Figure 2-6 shows the distribution of export volume of gas heating water heaters in the past 5 years. After the annual export volume of gas heating water heaters continued to decline in 2013, the total export volume began to rebound in 2016; Under the influence of the 'coal to gas' project in China in 2017, gas-fired heating water heaters mainly supplied the domestic market, and the export volume in 2017 was basically the same as that in 2016.

8. Changes in sales over the years

According to statistics, the sales volume of gas heating water heaters has sharply increased since 2009. In the Chinese domestic market, the sales volume in 2009 was 500000 units (imported with original equipment 130000 units). As of 2017, the national sales volume reached 5.5 million units (imported with original equipment 700000 units), an increase of more than 10 times, with an average annual growth rate of 41%, far exceeding the average speed of China's economic development.

3、 Summary and Prospect

We have been conducting statistical analysis on the production and sales of gas heating water heaters for 9 consecutive years. Since the start of statistical work, the total sales of gas heating water heaters have shown a steady growth trend overall. In 2017, under the influence of the 'coal to gas' project in the north, sales increased by 162%, and the market performance was extremely active.

2018 is the starting year for the in-depth implementation of the spirit of the 19th National Congress of the Communist Party of China, the 40th anniversary of reform and opening up, and a crucial year for achieving the goal of building a moderately prosperous society in all respects and implementing the 13th Five Year Plan. Doing a good job in ecological environment protection is of great significance. On February 2-3, 2018, the National Environmental Protection Work Conference pointed out that the comprehensive launch of the battle plan to win the blue sky defense war, the formulation and implementation of the three-year plan to win the blue sky defense war, the introduction of key regional air pollution prevention and control implementation plans, the steady promotion of clean heating in northern regions, and the accelerated elimination of coal-fired small boilers. In 2018, the Ministry of Environmental Protection will continue to promote clean heating projects in northern regions. The 'coal to gas' project will continue to bring certain market demand to the gas heating and hot water boiler industry, but at the same time, high attention should be paid to national policy trends.

With the increasing maturity of the heating market in the south, a large number of replacement markets have emerged in North China and Northwest China. The retail market represented by East China and Southwest China has developed rapidly. Driven by many favorable factors such as the strengthening of environmental protection policies and the expansion of gas usage, it is expected that the 'ordinary engineering+retail' market for gas heating wa