USD 28.10 Billion
Water Heater Market Size, Share, Growth Analysis, By Product(Electric, Solar, and Gas), By Technology(Tankless, Storage, and Hybrid), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25E2052 |
Region:
Global |
Published Date: April, 2024
Pages:
223
|Tables:
63
|Figures:
75
Water Heater Market Insights
Water Heater Market size was valued at USD 29.36 Billion in 2023 and is poised to grow from USD 30.68 Billion in 2024 to USD 43.64 Billion by 2032, growing at a CAGR of 4.5% during the forecast period (2025-2032).
The market for water heaters is driven by the increasing need for hot water in households, hotels, hospitals, and other commercial establishments. The key driving factors for the water heater market are the growing population and urbanization, particularly in developing regions. As more people move to urban areas and live in modern homes, the demand for water heaters increases significantly. There are several restraining factors that impact the water heater market. One of the major challenges is the high energy consumption of conventional water heaters, leading to increased carbon emissions and environmental concerns. The water heater market presents significant opportunities for growth. The increasing demand for tankless or instant water heaters, which provide on-demand hot water and are more energy-efficient, is driving the market forward. Moreover, the rising awareness about energy conservation and the adoption of renewable energy sources are creating opportunities for the integration of solar water heaters and heat pump water heaters in residential and commercial buildings. The global water heater market serves the vital purpose of fulfilling the demand for hot water across various sectors. While factors like population growth and improving living standards drive the market, energy consumption, raw material costs, and counterfeit products pose challenges. However, the market offers opportunities for innovation in energy-efficient and environmentally friendly water heating solutions to meet the evolving needs of consumers.
US Water Heater Market is poised to grow at sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Electric
Fastest Growth
Electric
Growth Rate
4.5% CAGR
Global Water Heater Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Water Heater Market Segmental Analysis
The global water heater market is segmented on the basis of product, technology, and region. In terms of product, the market is segmented into electric, solar, and gas. By Technology, the market is segmented into Tankless, Storage, Hybrid. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Water heater Market Analysis by Product
In 2022, the electric segment emerged as the dominant player in the water heater market, capturing a significant revenue share of 51.2%. This dominance can be attributed to the increasing electrification rate in regions like Asia Pacific and Africa, where more customers have access to electricity. The demand for electric water heaters is driven by factors such as energy efficiency, environmental sustainability, and temperature control features.
The solar segment is expected to experience a promising growth rate, with a projected CAGR of 5.2% during the forecast period. This growth is fueled by the growing consumer preference for energy-efficient and eco-friendly water heating systems. Manufacturers in the industry are focusing on developing new systems and technologies that offer improved efficiency, which further contributes to the expansion of the market.
Water heater Market Analysis by Technology
In 2022, the storage segment emerged as the dominant force in the water heater market, capturing a significant share of 54.8% of the global revenue. This dominance can be attributed to the high energy conversion potential and low maintenance requirements of storage water heaters. These water heaters are commonly used in commercial and industrial applications, especially in colder regions, where there is a need for a constant supply of hot water. The reliability and efficiency of storage water heaters make them a preferred choice in these diverse environments.
The tankless segment is projected to witness a notable growth rate, with a forecasted CAGR of 4.9% from 2023 to 2030. Tankless water heaters offer several advantages, including rapid hot water supply and reduced standby heating losses. They are known for their energy efficiency, as they only heat water when needed, resulting in less energy wastage compared to storage water heaters. Tankless water heaters also provide more accurate temperature control, allowing users to have precise control over their hot water needs. The increasing focus on energy efficiency and environmental sustainability is driving the adoption of tankless water heaters, both in residential and commercial spaces.
Global Water Heater Market By Product
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Water Heater Market Regional Insights
The Asia Pacific accounted for the largest share in the market driven by the increasing population, rapid urbanization, and rising disposable incomes in countries such as China, India, and Southeast Asian nations. The region's high demand for water heaters can be attributed to factors such as the need for hot water in residential, commercial, and industrial applications, as well as the growing awareness of energy-efficient and technologically advanced water heating solutions.
The fastest-growing region in the water heater market is expected to be the Middle East and Africa. This region is witnessing rapid infrastructural development, including the construction of commercial buildings, hotels, and residential complexes, which creates a significant demand for water heaters. Additionally, the growing tourism industry in the Middle East and Africa further contributes to the increasing adoption of water heaters in the hospitality sector. The rising population, improving living standards, and government initiatives promoting the use of energy-efficient appliances also drive the market growth in this region.
Global Water Heater Market By Geography
- Largest
- Fastest
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Water Heater Market Dynamics
Water heater Market Drivers
Increasing Urbanization and Residential Construction
- Rapid urbanization and the growth of residential construction projects, particularly in developing regions, have been driving the demand for water heaters. The expanding middle-class population and improving living standards have resulted in higher consumer spending on home appliances, including water heaters.
Rising Awareness of Energy Efficiency and Environmental Sustainability
- Growing awareness about environmental issues and the need for energy-efficient solutions have propelled the demand for eco-friendly water heaters. Government initiatives and regulations promoting energy-efficient appliances have also encouraged consumers to choose water heaters with lower energy consumption, reducing their carbon footprint.
Water heater Market Restraints
High Initial Cost
- The initial cost of purchasing and installing certain types of water heaters, such as solar-powered and heat pump systems, can be higher compared to traditional storage tank water heaters. This cost factor may deter price-sensitive consumers from adopting more energy-efficient and environmentally friendly options.
Infrastructure Limitations
- In certain regions, particularly in rural areas or areas with limited access to electricity or gas supply, the lack of infrastructure can pose a challenge for the widespread adoption of water heaters. The absence of necessary infrastructure for installation and maintenance can hinder market growth.
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Water Heater Market Competitive Landscape
The global water heater market features a competitive landscape with several prominent players vying for market share. Key players in the industry are focused on product innovation, technological advancements, and strategic collaborations to maintain a competitive edge. companies are actively engaged in research and development activities to introduce energy-efficient and eco-friendly water heating solutions. They are also investing in advanced manufacturing techniques to enhance production capabilities and meet the growing demand for water heaters. Moreover, manufacturers are increasingly focusing on expanding their product portfolios to cater to diverse consumer needs and preferences.
Water heater Market Top Player’s Company Profiles
- Ariston Thermo Group (Italy)
- Rinnai Corporation (Japan)
- Noritz Corporation (Japan)
- Ferroli S.p.A. (Italy)
- Haier Electronics Group Co., Ltd. (China)
- Whirlpool Corporation (US)
- Bosch Thermotechnology (Germany)
- State Water Heaters (US)
- Navien, Inc. (South Korea)
- Reliance Water Heater Company (US)
- American Water Heaters (US)
- Eemax Inc. (US)
- Stiebel Eltron GmbH & Co. KG (Germany)
- Takagi Industrial Co., Ltd. (Japan)
- Noritz America Corporation (US)
- Viessmann Group (Germany)
- Heatrae Sadia (UK)
Water heater Market Recent Developments
-
During the Acetech Exhibition 2023 in Delhi, GM Modular, a prominent supplier of electronic solutions for modern lives, introduced the R1X storage water heater, the company's newest product. Customers may easily acquire the new product, which is priced at USD 222.86, in GM Modular stores, on the company website, and on well-known e-commerce sites like Amazon and Flipkart.
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Rheem unveiled two new models in its Maximus line of extremely high-efficiency gas water heaters in December 2023. The 75-gallon Maximus Heavy Duty with LeakSense technology and the 40- and 50-gallon Maximus Plus versions are new additions to the inventory. Rheem now offers clients a wider selection of extremely high-efficiency condensing gas-fired tank water heater solutions thanks to these most recent additions.
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Racold unveiled a line of premium water heaters in October 2023, with the Omins and Altro models making their premiere. Included in the Omnis line are the Omnis DG Wi-fi, which has voice control capabilities and energy-saving features, and the Omnis DG, which has a digital display and silver ion technology to prevent the formation of bacteria.
Water Heater Key Market Trends
- Increasing Emphasis on Hybrid Water Heaters: Hybrid water heaters, which combine different technologies such as heat pumps, electric heating elements, and gas burners, are gaining popularity. These hybrid systems offer flexibility, energy efficiency, and reliable hot water supply, catering to the diverse needs of consumers.
- Growing Demand for Tankless Water Heaters: Tankless water heaters, also known as on-demand water heaters, are witnessing rising demand due to their compact size, energy efficiency, and instantaneous hot water supply. The convenience and space-saving benefits offered by tankless water heaters make them a preferred choice for residential and commercial applications.
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 our global water heater market analysis, the increasing population, urbanization, and changing lifestyle patterns have led to a rise in the demand for water heaters. Additionally, advancements in technology have resulted in the development of more energy-efficient and eco-friendly water heating systems, which further contribute to market growth. The global water heater market is driven by factors such as increasing population, technological advancements, energy efficiency requirements, and changing consumer preferences. While facing challenges such as raw material price volatility and competition from alternative technologies, the market offers opportunities for growth through innovation, smart technology integration, and the adoption of renewable energy sources.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 28.10 Billion |
| Market size value in 2031 | USD 41.76 Billion |
| Growth Rate | 4.5% |
| 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 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 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 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 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 Water Heater Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the 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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