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PELLET-BURNING STOVES
   Development of the market
Agenda:
PAST THREE YEARS RECAP
TECHNOLOGY STATE OF THE ART UPDATE
EU MARKETS KEY FIGURES
MARKETS ANALYSIS AND FUTURE SCENARIOS
PAST THREE YEARS RECAP




PAST THREE YEARS RECAP
PAST THREE YEARS RECAP


                         2008’s PROPOSALS
1.   Pellet price observatory
2.   Pellet quality certification
3.   Organized distribution networks
4.   Energy product certification
5.   Regular maintenance
6.   Market monitoring
7.   Increase of awareness on efficiency
     and energy needs issues
8.   Support solutions for the integration
     of different energy sources
PAST THREE YEARS RECAP


HOW MANY EUROPES
ARE THERE?
                                                  NS 3035
                                                  NS 3065




                                               BImSchV




                   All other European        Art. 15/a B-VG
                   countries
TECHNOLOGY STATE OF THE ART UPDATE




TECHNOLOGY STATE OF THE ART UPDATE
TECHNOLOGY STATE OF THE ART UPDATE


ORDINARY PELLET STOVES       FLUE GAS




                   GLASS
                  CLEANING
                     AIR


                                        PELLET
               HEAT
                                        COMBUSTION AIR
TECHNOLOGY STATE OF THE ART UPDATE


SEALED STOVES             FLUE GAS




                                     PELLET
                HEAT
                                     GLASS CLEANING AIR
                                     COMBUSTION AIR
TECHNOLOGY STATE OF THE ART UPDATE


SEALED STOVES                   FLUE GAS

                GLASS CLEANING AIR
                   COMBUSTION AIR




                                           PELLET
                HEAT
TECHNOLOGY STATE OF THE ART UPDATE


AIR INLET CONTROL         FLUE GAS




                                     CONTROLLER




                                     PELLET
                HEAT

                                         GLASS CLEANING AIR
                                         COMBUSTION AIR
TECHNOLOGY STATE OF THE ART UPDATE


SELF SET UP             FLUE GAS




                                    CONTROLLER




                           PELLET



                                        GLASS CLEANING AIR
                                        COMBUSTION AIR
TECHNOLOGY STATE OF THE ART UPDATE


AIR DUCTING
TECHNOLOGY STATE OF THE ART UPDATE



High efficiency and low emissions*
EFFICIENCY OF PELLET STOVES ABOVE 95%
CO EMISSION BELOW 20 mg/Nm3
OGC 1 mg/Nm3
NOX BELOW 90 mg/Nm3
DUST BELOW 5 mG/Nm3
FLUE GAS TEMPERATURE 86°C (WARNING!!)


* Data is referred to a water heating pellet stove at nominal power, sealed with combustion control
TECHNOLOGY STATE OF THE ART UPDATE


WATER TANK INTEGRATION     FLUE GAS




                                           CONTROLLER




                    HEAT


                                      GLASS CLEANING AIR
                                      COMBUSTION AIR
TECHNOLOGY STATE OF THE ART UPDATE



Considerations
IT’S NO MORE TIME TO TALK ABOUT SINGLE APPLIANCES
EFFICIENCY IT’S TIME TO TALK ABOUT SYSTEMS:
   - Whole building efficiency
   - Whole system seasonal efficiency
   - Whole chain quality (from pellet quality to maintenance plans
   going through integration configurations and installations)
EU MARKETS KEY FIGURES




EU MARKETS KEY FIGURES
EU MARKETS KEY FIGURES



Annually sold Pellet Stoves in EU




        Source: European Pellet Council, 2011: This graph includes
        data from
        Austria, Belgium, Denmark, France, Finland, Germany, Ireland,
        Italy, Spain, Sweden and Switzerland
EU MARKETS KEY FIGURES



Annually sold Pellet Stoves: small markets




        Source: European Pellet Council, 2011
EU MARKETS KEY FIGURES



Annually sold Pellet Stoves: emerging markets




        Source: European Pellet Council, 2011
EU MARKETS KEY FIGURES



Annually sold Pellet Stoves in Italy




         Source: European Pellet Council, 2011
OTHER MARKETS



World wide emerging Markets
CHILE
JAPAN
CHINA
EASTERN EUROPE
MARKETS ANALYSIS AND FUTURE SCENARIOS




  MARKETS ANALYSIS
AND FUTURE SCENARIOS
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles


         PELLET STOVE PENETRATION

                    VS

          LOCAL PELLET PRODUCTION
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles

  PELLET STOVE
  PENETRATION
                   WEAK CORRELATION:
       VS          Germany, Austria, Scandinavian
                   Countries have low penetration
  LOCAL PELLET
                   but very high pellet availability
  PRODUCTION
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles


          PELLET STOVE PENETRATION

                    VS

       LOCAL PELLET STOVES PRODUCTION
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles

  PELLET STOVE
  PENETRATION
                   STRONG CORRELATION:
       VS          Italy as an example
  LOCAL PELLET
    STOVES
  PRODUCTION
MARKETS ANALYSIS AND FUTURE SCENARIOS



Other important variables
AFTER SALES SERVICE
(MARKET CANNOT GROW WITHOUT IT)

DISTRIBUTION CHANNELS
(SPECIALIZED DEALERS, DISTRIBUTORS, DIY)

AVERAGE PRICE (GETTING LOWER EVERY YEAR)
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles


         PELLET STOVE PENETRATION

                    VS

           WOOD BURNING ATTITUDE
MARKETS ANALYSIS AND FUTURE SCENARIOS



Relation between variabiles

  PELLET STOVE
  PENETRATION
                   INVERSE CORRELATION:
       VS          Germany, Austria, Northern European
                   Countries have long and strong wood
  WOOD BURNING     burning attitude and pellet stoves have
    ATTITUDE       slower growth speed
MARKETS ANALYSIS AND FUTURE SCENARIOS



Which is the difference between a pellet
stove and a wood log stove?
      PELLET STOVE                WOOD LOG STOVE
      QUICK AND EASY              ROMANTIC AND STILYSH

          NOISY                          SILENT

        AUTOMATIC                       MANUAL

        ECONOMIC                       EXPENSIVE
MARKETS ANALYSIS AND FUTURE SCENARIOS

                       HEAT PUMP

Which is the difference between a pellet
                     QUICK


stove and a woodQUITE SILENT
                   log stove?
                       AUTOMATIC
      PELLET STOVE                  WOOD LOG STOVE
                        EXPENSIVE
      QUICK AND EASY                ROMANTIC AND STILYSH

          NOISY                            SILENT

        AUTOMATIC                         MANUAL

        ECONOMIC                         EXPENSIVE
MARKETS ANALYSIS AND FUTURE SCENARIOS



Questions & Answers
ARE PELLET STOVES INCREASING THE OVERALL MARKET OR
REPLACING WOOD LOG STOVES/FIREPLACES?
A FEW YEARS AGO INCREASING NOW REPLACING.

ARE NEW BUILDINGS INSTALLING MAINLY PELLET STOVES OR
WOOD LOG STOVES/FIREPLACES?
MAYBE PELLET BOILERS OR WOOD LOG STOVES/FIREPLACES. THE
ASSUMPTION IS THAT NEW BUILDINGS ARE MAINLY MADE BY
HIGHER SPENDERS FAMILIES.

ARE EXISTING BUILDINGS INTEGRATING THEIR HEATING SYSTEMS
WITH PELLET STOVES OR WITH WOOD LOG STOVES/FIREPLACES?
PELLET STOVES!
MARKETS ANALYSIS AND FUTURE SCENARIOS



Questions & Answers
HOW STRONG IS THE MARKET RESPONSE TO NEWER
TECHNOLOGIES?
VERY WEAK, THE MARKET IS MAINLY PRICE DRIVEN.

WHAT MAKES PELLET STOVES MORE SUITABLE THAN WOOD LOG
STOVES/FIREPLACES?
EASY TO LOAD, FUEL IS EASY TO FIND, WORK UNATTENDED,
EMISSIONS.

WHAT COULD BOOST PELLET STOVES MARKET PENETRATION?
POLICIES FURTHER RESTRICTING FLUE GAS EMISSIONS.
MARKETS ANALYSIS AND FUTURE SCENARIOS



The real question
WHAT IS A PELLET STOVE?
MARKETS ANALYSIS AND FUTURE SCENARIOS



What is a pellet stove?
                                     •POWER OUTPUT
                                     •EFFICIENCY
1. IT’S A HEATING APPLIANCE          •SINGLE ROOM
                                      VS WHOLE HOUSE
                                     •COST PER kWh


                                     •DESIGN
2. IT’S PART OF THE ROOM’S           •MATERIALS
  FURNITURE                          •CLEANNESS
                                     •USABILITY



3. IT’S A TECHNOLOGICAL,             •INDIPENDENCE
                                     •EMISSIONS
   ECOLOGICAL AND                    •RECYCLABLE MATERIALS
   SUSTAINABLE CHOICE                •ELECTRICITY
                                     CONSUMPTION
MARKETS ANALYSIS AND FUTURE SCENARIOS



Questions & Answers
            HOW IS A PELLET STOVE GOING TO BE?




                        As McDonald’s is teaching us….




Singapore            India               Arabia                New Zeland          Israel


            Design is getting local, with a strong influence of regional flavors
Conclusions
PESSIMISTIC VIEW ON THE TECHNOLOGICAL SIDE: PRICE SENSITIVITY IS
VERY HIGH (RISK FOR PRODUCT TO BE CONSIDERED LIKE A COMMODITY)

DESIGN IS GETTING MORE IMPORTANT: LOCALIZED PRODUCTS ARE
NECESSARY TO BE MORE COMPETITIVE AND SATISFY THE DEMAND
(MANUFACTURERS ARE MAKING DIFFERENT PRODUCT RANGES FOR
DIFFERENT MARKETS TO LEVERAGE MORE ON THE FASHION ASPECT AND
RISE BARRIERS TO INTERNATIONAL COMPETITORS)

STILL GREAT POTENTIAL UNEXPRESSED IN MOST EUROPEAN COUNTRIES

DIFFERENT POLICIES IN EACH EUROPEAN COUNTRY FOR INSTALLATION
AND GRANTS ACCESS (POLICY BARRIERS)

QUALITY OF AIR POLICIES MAY BOOST MARKET DEVELOPMENT (ANTIBIOTIC
EFFECT)
Thank you for your attention

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Pellet-burning stoves: development of the market

  • 1. PELLET-BURNING STOVES Development of the market
  • 2. Agenda: PAST THREE YEARS RECAP TECHNOLOGY STATE OF THE ART UPDATE EU MARKETS KEY FIGURES MARKETS ANALYSIS AND FUTURE SCENARIOS
  • 3. PAST THREE YEARS RECAP PAST THREE YEARS RECAP
  • 4. PAST THREE YEARS RECAP 2008’s PROPOSALS 1. Pellet price observatory 2. Pellet quality certification 3. Organized distribution networks 4. Energy product certification 5. Regular maintenance 6. Market monitoring 7. Increase of awareness on efficiency and energy needs issues 8. Support solutions for the integration of different energy sources
  • 5. PAST THREE YEARS RECAP HOW MANY EUROPES ARE THERE? NS 3035 NS 3065 BImSchV All other European Art. 15/a B-VG countries
  • 6. TECHNOLOGY STATE OF THE ART UPDATE TECHNOLOGY STATE OF THE ART UPDATE
  • 7. TECHNOLOGY STATE OF THE ART UPDATE ORDINARY PELLET STOVES FLUE GAS GLASS CLEANING AIR PELLET HEAT COMBUSTION AIR
  • 8. TECHNOLOGY STATE OF THE ART UPDATE SEALED STOVES FLUE GAS PELLET HEAT GLASS CLEANING AIR COMBUSTION AIR
  • 9. TECHNOLOGY STATE OF THE ART UPDATE SEALED STOVES FLUE GAS GLASS CLEANING AIR COMBUSTION AIR PELLET HEAT
  • 10. TECHNOLOGY STATE OF THE ART UPDATE AIR INLET CONTROL FLUE GAS CONTROLLER PELLET HEAT GLASS CLEANING AIR COMBUSTION AIR
  • 11. TECHNOLOGY STATE OF THE ART UPDATE SELF SET UP FLUE GAS CONTROLLER PELLET GLASS CLEANING AIR COMBUSTION AIR
  • 12. TECHNOLOGY STATE OF THE ART UPDATE AIR DUCTING
  • 13. TECHNOLOGY STATE OF THE ART UPDATE High efficiency and low emissions* EFFICIENCY OF PELLET STOVES ABOVE 95% CO EMISSION BELOW 20 mg/Nm3 OGC 1 mg/Nm3 NOX BELOW 90 mg/Nm3 DUST BELOW 5 mG/Nm3 FLUE GAS TEMPERATURE 86°C (WARNING!!) * Data is referred to a water heating pellet stove at nominal power, sealed with combustion control
  • 14. TECHNOLOGY STATE OF THE ART UPDATE WATER TANK INTEGRATION FLUE GAS CONTROLLER HEAT GLASS CLEANING AIR COMBUSTION AIR
  • 15. TECHNOLOGY STATE OF THE ART UPDATE Considerations IT’S NO MORE TIME TO TALK ABOUT SINGLE APPLIANCES EFFICIENCY IT’S TIME TO TALK ABOUT SYSTEMS: - Whole building efficiency - Whole system seasonal efficiency - Whole chain quality (from pellet quality to maintenance plans going through integration configurations and installations)
  • 16. EU MARKETS KEY FIGURES EU MARKETS KEY FIGURES
  • 17. EU MARKETS KEY FIGURES Annually sold Pellet Stoves in EU Source: European Pellet Council, 2011: This graph includes data from Austria, Belgium, Denmark, France, Finland, Germany, Ireland, Italy, Spain, Sweden and Switzerland
  • 18. EU MARKETS KEY FIGURES Annually sold Pellet Stoves: small markets Source: European Pellet Council, 2011
  • 19. EU MARKETS KEY FIGURES Annually sold Pellet Stoves: emerging markets Source: European Pellet Council, 2011
  • 20. EU MARKETS KEY FIGURES Annually sold Pellet Stoves in Italy Source: European Pellet Council, 2011
  • 21. OTHER MARKETS World wide emerging Markets CHILE JAPAN CHINA EASTERN EUROPE
  • 22. MARKETS ANALYSIS AND FUTURE SCENARIOS MARKETS ANALYSIS AND FUTURE SCENARIOS
  • 23. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION VS LOCAL PELLET PRODUCTION
  • 24. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION WEAK CORRELATION: VS Germany, Austria, Scandinavian Countries have low penetration LOCAL PELLET but very high pellet availability PRODUCTION
  • 25. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION VS LOCAL PELLET STOVES PRODUCTION
  • 26. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION STRONG CORRELATION: VS Italy as an example LOCAL PELLET STOVES PRODUCTION
  • 27. MARKETS ANALYSIS AND FUTURE SCENARIOS Other important variables AFTER SALES SERVICE (MARKET CANNOT GROW WITHOUT IT) DISTRIBUTION CHANNELS (SPECIALIZED DEALERS, DISTRIBUTORS, DIY) AVERAGE PRICE (GETTING LOWER EVERY YEAR)
  • 28. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION VS WOOD BURNING ATTITUDE
  • 29. MARKETS ANALYSIS AND FUTURE SCENARIOS Relation between variabiles PELLET STOVE PENETRATION INVERSE CORRELATION: VS Germany, Austria, Northern European Countries have long and strong wood WOOD BURNING burning attitude and pellet stoves have ATTITUDE slower growth speed
  • 30. MARKETS ANALYSIS AND FUTURE SCENARIOS Which is the difference between a pellet stove and a wood log stove? PELLET STOVE WOOD LOG STOVE QUICK AND EASY ROMANTIC AND STILYSH NOISY SILENT AUTOMATIC MANUAL ECONOMIC EXPENSIVE
  • 31. MARKETS ANALYSIS AND FUTURE SCENARIOS HEAT PUMP Which is the difference between a pellet QUICK stove and a woodQUITE SILENT log stove? AUTOMATIC PELLET STOVE WOOD LOG STOVE EXPENSIVE QUICK AND EASY ROMANTIC AND STILYSH NOISY SILENT AUTOMATIC MANUAL ECONOMIC EXPENSIVE
  • 32. MARKETS ANALYSIS AND FUTURE SCENARIOS Questions & Answers ARE PELLET STOVES INCREASING THE OVERALL MARKET OR REPLACING WOOD LOG STOVES/FIREPLACES? A FEW YEARS AGO INCREASING NOW REPLACING. ARE NEW BUILDINGS INSTALLING MAINLY PELLET STOVES OR WOOD LOG STOVES/FIREPLACES? MAYBE PELLET BOILERS OR WOOD LOG STOVES/FIREPLACES. THE ASSUMPTION IS THAT NEW BUILDINGS ARE MAINLY MADE BY HIGHER SPENDERS FAMILIES. ARE EXISTING BUILDINGS INTEGRATING THEIR HEATING SYSTEMS WITH PELLET STOVES OR WITH WOOD LOG STOVES/FIREPLACES? PELLET STOVES!
  • 33. MARKETS ANALYSIS AND FUTURE SCENARIOS Questions & Answers HOW STRONG IS THE MARKET RESPONSE TO NEWER TECHNOLOGIES? VERY WEAK, THE MARKET IS MAINLY PRICE DRIVEN. WHAT MAKES PELLET STOVES MORE SUITABLE THAN WOOD LOG STOVES/FIREPLACES? EASY TO LOAD, FUEL IS EASY TO FIND, WORK UNATTENDED, EMISSIONS. WHAT COULD BOOST PELLET STOVES MARKET PENETRATION? POLICIES FURTHER RESTRICTING FLUE GAS EMISSIONS.
  • 34. MARKETS ANALYSIS AND FUTURE SCENARIOS The real question WHAT IS A PELLET STOVE?
  • 35. MARKETS ANALYSIS AND FUTURE SCENARIOS What is a pellet stove? •POWER OUTPUT •EFFICIENCY 1. IT’S A HEATING APPLIANCE •SINGLE ROOM VS WHOLE HOUSE •COST PER kWh •DESIGN 2. IT’S PART OF THE ROOM’S •MATERIALS FURNITURE •CLEANNESS •USABILITY 3. IT’S A TECHNOLOGICAL, •INDIPENDENCE •EMISSIONS ECOLOGICAL AND •RECYCLABLE MATERIALS SUSTAINABLE CHOICE •ELECTRICITY CONSUMPTION
  • 36. MARKETS ANALYSIS AND FUTURE SCENARIOS Questions & Answers HOW IS A PELLET STOVE GOING TO BE? As McDonald’s is teaching us…. Singapore India Arabia New Zeland Israel Design is getting local, with a strong influence of regional flavors
  • 37. Conclusions PESSIMISTIC VIEW ON THE TECHNOLOGICAL SIDE: PRICE SENSITIVITY IS VERY HIGH (RISK FOR PRODUCT TO BE CONSIDERED LIKE A COMMODITY) DESIGN IS GETTING MORE IMPORTANT: LOCALIZED PRODUCTS ARE NECESSARY TO BE MORE COMPETITIVE AND SATISFY THE DEMAND (MANUFACTURERS ARE MAKING DIFFERENT PRODUCT RANGES FOR DIFFERENT MARKETS TO LEVERAGE MORE ON THE FASHION ASPECT AND RISE BARRIERS TO INTERNATIONAL COMPETITORS) STILL GREAT POTENTIAL UNEXPRESSED IN MOST EUROPEAN COUNTRIES DIFFERENT POLICIES IN EACH EUROPEAN COUNTRY FOR INSTALLATION AND GRANTS ACCESS (POLICY BARRIERS) QUALITY OF AIR POLICIES MAY BOOST MARKET DEVELOPMENT (ANTIBIOTIC EFFECT)
  • 38. Thank you for your attention