USD 23.50 Billion
Residential Water Heater Market Size, Share, Growth Analysis, By Product(Instant, storage), By Capacity(< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters), By Fuel(Natural Gas, LPG), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25E2106 |
Region:
Global |
Published Date: March, 2024
Pages:
223
|Tables:
90
|Figures:
73
Residential Water Heater Market Insights
Global Residential Water Heater Market size was valued at USD 23.50 Billion in 2022 and is poised to grow from USD 24.72 Billion in 2023 to USD 37.09 Billion by 2031, at a CAGR of 5.20% during the forecast period (2024-2031).
In recent years, the global market for residential water heaters has witnessed significant shifts in consumer preferences and technology adoption. Energy efficiency has become a paramount concern, leading to a growing demand for eco-friendly and high-efficiency water heating solutions.
Furthermore, the increasing trend toward smart homes and IoT integration has influenced the development of connected water heaters, allowing homeowners to have greater control and real-time monitoring of their water heating systems.
Manufacturers are also focusing on durability and longevity, offering products designed to withstand the rigors of daily use. As sustainability gains traction, the market has seen an influx of solar and heat pump-based water heaters, reflecting a broader commitment to reducing carbon footprints.
Additionally, regulatory standards and incentives have played a pivotal role in shaping the market landscape, with various regions implementing energy efficiency guidelines and rebate programs to incentivize the adoption of energy-efficient water heating solutions.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Storage
Fastest Growth
Storage
Growth Rate
5.20% CAGR
Global Residential Water Heater Market ($ Bn)
Country Share for APAC Region (%)
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Residential Water Heater Market Segmental Analysis
The global residential water heater market is segmented on the basis of product, capacity, fuel, and region. Based on product the market is segmented as instant and storage. On the basis of capacity the market is segmented as < 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters. Based on fuel, it is segregated into natural gas and LPG. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Product
Storage water heaters currently dominate the residential water heater market due to their long-standing popularity and widespread adoption. These heaters store and constantly heat a tank full of water, ensuring a readily available hot water supply. They are favored for their reliability and affordability, making them a common choice for households worldwide.
However, tankless or instantaneous water heaters are experiencing the fastest growth in the market. Their appeal lies in energy efficiency and space-saving design. Unlike storage heaters, tankless units heat water on-demand, minimizing standby heat loss and offering endless hot water. As eco-consciousness and urbanization rise, consumers are gravitating towards tankless options to reduce energy consumption and optimize space utilization in smaller living environments. Additionally, government incentives and rebates for energy-efficient appliances further drive the adoption of tankless water heaters, contributing to their rapid growth in the market.
Analysis by Capacity
The 30-100 liters capacity range is currently dominating the residential water heater market. This segment appeals to a broad spectrum of consumers, offering a versatile solution suitable for smaller households and apartments, which make up a significant portion of the residential market. Its popularity is driven by a balance between affordability, space efficiency, and sufficient hot water supply for everyday needs.
Moreover, the fastest-growing capacity range in the residential water heater market is the > 400 liters category. This growth can be attributed to the increasing demand for larger water heaters in homes with multiple bathrooms, high hot water consumption, and a desire for enhanced convenience. Additionally, advancements in technology and energy efficiency have made larger capacity units more appealing to environmentally-conscious consumers, further fueling their growth.
Global Residential Water Heater Market by Product
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Residential Water Heater Market Regional Insights
Asia Pacific dominates the global residential water heater market due to its massive population and rapid urbanization. The region's increasing middle-class population, coupled with rising living standards, has led to a substantial demand for residential water heaters. Additionally, the adoption of energy-efficient and eco-friendly heating solutions is on the rise, further fueling market growth.
However, North America is the fastest-growing region in the residential water heater market, primarily driven by a strong focus on energy efficiency and sustainability. Government incentives, such as tax credits and rebates for energy-efficient appliances, have encouraged homeowners to replace older, less efficient water heaters with advanced models. The demand for smart and connected water heaters is also surging, aligning with the region's tech-savvy consumer base and desire for energy conservation.
Global Residential Water Heater Market by Geography
- Largest
- Fastest
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Residential Water Heater Market Dynamics
Drivers
Energy Efficiency Initiatives
- A significant driver in the residential water heater market is the increasing emphasis on energy efficiency. Governments and environmental organizations worldwide are promoting energy-efficient appliances, including water heaters, as a means to reduce energy consumption and lower carbon emissions. This push for eco-friendly solutions encourages consumers to upgrade to energy-efficient water heaters, driving market growth.
Restraints
Fluctuating Raw Material Prices
- One key restraint faced by the residential water heater market is the fluctuation in raw material prices. Components like steel, copper, and various alloys are essential in manufacturing water heaters. Variations in the costs of these materials can impact production costs and pricing, potentially affecting consumer demand. Manufacturers must navigate these price fluctuations to maintain profitability and market competitiveness.
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Residential Water Heater Market Competitive Landscape
The competitive landscape in the global residential water heater market is characterized by intense rivalry among numerous industry players. These companies continually strive to differentiate their products through innovation, energy efficiency, and technology integration.
The market is marked by a mix of established manufacturers with extensive product portfolios and emerging players focusing on niche segments or innovative solutions. Strategic collaborations and partnerships are prevalent as companies seek to expand their market reach and leverage complementary expertise.
Customer-centric approaches, including after-sales services and warranty offerings, play a pivotal role in influencing consumer choices. This competitive environment fosters innovation and product diversification, ultimately benefiting consumers with a wider range of choices and advanced features in residential water heaters.
Top Player’s Company Profiles
- A. O. Smith India Water Products Pvt. Ltd. (India)
- Ariston Holding N.V. (UK)
- Bosch Thermotechnology Corp. (US)
- Bradford White Corporation (US)
- GE Appliances (US)
- Haier Inc. (China)
- Racold (India)
- Rheem Manufacturing Company (US)
- State Industries (US)
- Rinnai America Corporation (US)
- Ferroli S.p.A (Italy)
- Lennox International Inc. (US)
- Havells India Ltd. (India)
- Westinghouse Electric Corporation (US)
- American Standard Water Heaters (US)
- Vaillant (Germany)
- NORITZ Corporation (Japan)
Recent Developments
- On March 20 2023, Bradford White Water Heaters, an industry-leading American manufacturer of water heaters, boilers, and storage tanks, announces that its Infiniti® GS and GR tankless water heaters and select eF Series Ultra High Efficiency commercial tank gas water heaters have been certified by the Green Restaurant Association (GRA), the leading voice within the Green Restaurant movement, for use in GRA-certified restaurants.
- On February 21 2023, Rheem Manufacturing Company, a leading global manufacturer of water heating and HVACR products, introduced Rheem Maximus, a super high-efficiency gas water heater designed with a powerful, efficient burner.
- On January 4 2023, Bradford White Water Heaters, an industry-leading US manufacturer of water heaters, boilers, and storage tanks, introduced Bradford White Connect, an external adapter providing app-driven monitoring technology for the AeroTherm heat pump water heater (HPWH) series.
Residential Water Heater Key Market Trends
- Rise in Smart and Connected Water Heaters: Consumers are seeking greater convenience, energy efficiency, and remote control capabilities for their home appliances. As a result, manufacturers are integrating IoT technology into water heaters, allowing homeowners to monitor and control their devices through smartphones and smart home ecosystems. This trend not only enhances user experience but also contributes to energy savings and more efficient maintenance of water heating systems.
Residential Water Heater Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to global residential water heater market analysis, the market continues to evolve with a strong emphasis on energy efficiency, technological advancements, and sustainability. The market is driven by a growing awareness of environmental concerns and a shift towards eco-friendly heating solutions. Energy-efficient water heaters, including heat pump and solar-powered models, are gaining traction among consumers seeking to reduce energy consumption and lower their carbon footprint. Additionally, the adoption of smart and connected water heaters is on the rise, allowing homeowners to optimize energy usage and control their devices remotely. Regulatory standards and government incentives in various regions are further propelling market growth by encouraging the adoption of energy-efficient appliances. Looking ahead, the residential water heater market is poised for continued growth. The trend towards energy efficiency and sustainability is expected to remain a primary driver, with consumers and governments alike placing greater importance on eco-friendly heating solutions. Smart and connected water heaters will likely become more sophisticated, integrating seamlessly into smart home ecosystems and providing users with even more control and energy savings. Furthermore, as technology advances, we can anticipate the emergence of water heaters that are not only energy-efficient but also better equipped to handle water quality challenges, such as hard water and scale buildup. Collaboration between manufacturers and renewable energy companies may lead to innovative hybrid systems that harness renewable energy sources for heating water, further reducing carbon emissions. In summary, the residential water heater market is set to witness significant developments in energy efficiency, technology integration, and sustainability, making it an exciting and dynamic space in the coming years. Manufacturers that adapt to these trends and prioritize innovation will be well-positioned to thrive in this evolving market landscape.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 23.50 Billion |
| Market size value in 2031 | USD 37.09 Billion |
| Growth Rate | 5.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Residential Water Heater Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Residential Water Heater Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Residential Water Heater Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Residential Water Heater Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Residential Water Heater Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Residential Water Heater Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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