Electric Water Heater Market Size, Share, Growth Analysis, By Product(Tank and tankless), By End user(Residential and commercial), By Region - Industry Forecast 2024-2031

Electric Water Heater Market size was valued at USD 25.93 Billion in 2022 and is poised to grow from USD 27.38 Billion in 2023 to USD 42.34 Billion by 2031, at a CAGR of 5.60% during the forecast period (2024-2031).

The global electric water heater market is experiencing significant growth, driven by the increasing demand for energy-efficient and cost-effective water heating solutions in residential, commercial, and industrial sectors. Additionally, the rising awareness about environmental conservation and the adoption of sustainable technologies are propelling the market's expansion as electric water heaters are considered more eco-friendly and emit fewer greenhouse gases. Furthermore, government initiatives and regulations promoting energy-efficient appliances are fostering the adoption of electric water heaters. Incentives and rebates offered by various governments to encourage the installation of energy-efficient water heaters are bolstering market growth. The growing preference for smart and connected homes is also driving the demand for electric water heaters with IoT-enabled features, allowing users to control and monitor the device remotely through mobile applications.

However, the global electric water heater market also faces certain challenges. The primary challenge is the presence of alternative water heating options such as gas-based water heaters, storage water heaters, and tankless electric water heaters. The competition from these alternatives may impact the growth of the electric water heater market. Moreover, the high initial cost of electric water heaters compared to some traditional options may pose a barrier to adoption, particularly in price-sensitive markets. Additionally, the availability and reliability of electricity supply in some regions can influence the preference for electric water heaters. In areas with frequent power outages or unstable electricity grids, consumers may opt for alternative water heating solutions. Despite these challenges, the market's growth is expected to remain steady due to ongoing technological advancements, increasing urbanisation, and the rising demand for energy-efficient appliances. Manufacturers are continuously innovating to introduce advanced electric water heaters with improved energy efficiency, durability, and user-friendly features, further contributing to the expansion of the Global Electric Water Heater Market.

US Electric Water Heater Market is poised to grow at a sustainable CAGR for the next forecast year.