Water Heater Market Size - By Product (Instant, Storage), By Fuel (Electric, Gas), By Application (Residential, Commercial), By Capacity, & Forecast, 2024 – 2032

Water Heater Market Size - By Product (Instant, Storage), By Fuel (Electric, Gas), By Application (Residential, Commercial), By Capacity, & Forecast, 2024 – 2032

Water Heater Market Size

Water Heater Market size exceeded USD 32.28 billion in 2023 and is projected to exhibit more than 5.3% CAGR from 2024 to 2032, on account of the emphasis on energy-efficient heating system development.

To get key market trends

  Download Free Sample

Water heating accounts for a major share of energy use across residential establishments. With the introduction of strict regulatory mandates, manufacturers are working on the establishment of energy-efficient systems including tankless water heaters. Compared to conventional models, tankless counterparts take up less space and heat water instantaneously, minimizing energy consumption. Furthermore, favorable guidelines regarding the installation of efficient heating systems in the commercial sector have also been introduced. These factors, alongside the escalating smart city projects, will fuel water heater connections.

What are the growth opportunities in this market?

 Download Free Sample

In recent years, public and private sector investments in advanced water heating technologies have also been made. Additionally, the increasing replacement of aging water heaters with new designs offering advanced control and monitoring features will create lucrative growth opportunities for industry players. However, the product is associated with high operating costs. Moreover, the limitations of electric water heaters including susceptibility to power outages may create roadblocks to product development to some extent.

Water Heater Market Analysis

Learn more about the key segments shaping this market

 Download Free Sample

Water heater market size from the instant product segment is anticipated to reach over 104 million units by 2032. High energy savings, easy installation, low energy and water consumption, compact size, reduced carbon footprint, and other key features will boost the installation of instant water heaters. The product is an electrically powered unit that provides endless hot water without the requirement for storage tanks. The rising demand for point-of-use hot water in commercial establishments will further augment its delivery to meet the low-carbon heating needs of consumers. The storage water heater demand is predicted to see 4% growth in the coming years.

The commercial water heater application surpassed 4.5 million units in 2022. This growth is attributed to the supportive government mandates regarding smart and innovative water heating technology installation across commercial establishments including military facilities. Moreover, the U.S. commercial water heater industry is projected to grow at around 9% CAGR in the coming seven years. In recent years, the Department of Defense has approved funds to make long-term investments in military facilities and other projects. In addition, the establishment of commercial buildings including government offices, hotels, and shopping complexes will accelerate water heater production in the upcoming years. Residential water heater market is likely to surpass USD 36.5 billion by 2032 owing to increasing installations of energy efficient heating appliances.

Learn more about the key segments shaping this market

 Download Free Sample

Asia Pacific water heater market is poised to witness nearly USD 15.5 billion by 2032, owing to rapid urbanization and the growing consumer spending on advanced heating technologies. Multiple construction companies including Leighton Asia have also been selected for high-rise residential building construction projects. These factors, alongside the strategic collaborations among industry players to develop robust heater manufacturing bases, will amplify the sales of water heaters in the region. The market size of Saudi Arabia water heater is expected to observe around 6% growth rate during the forecast timeframe.

Water Heater Market Share

Key participants operating in the global water heater industry are

• Toshiba Lifestyle Products and Services Corporation
• Groupe Atlantic
• AERCO
• Thermex Corporation
• JOVEN Electric Co. Sdn.
• Jaquar India
• Panasonic Philippines
• Viessmann
• Vaillant Group International GmbH
• Rheem Manufacturing Company
• Racold
• GE Appliances
• Bradford White Corporation
• Bosch Thermotechnology
• Ariston Holding N.V., A. O. Smith
• and Havells India Ltd.

These firms are integrating strategies such as business expansions to increase their customer base in the industry.

For instance, in January 2023, Hindware Home Innovation, India, and its JV company, Group Atlantic, France started the operation of a water heater manufacturing plant in India. This Indo-French joint venture was intended to manufacture 600,000 units of heating appliances and water heaters, thereby strengthening its presence across the country.

Influence of global inflation on industry dynamics

Inflation rates are increasing rapidly, creating a profound impact on the construction sector globally. Construction companies witnessed a price surge in essential materials and skilled labor. The cost of several materials including steel and lumber critical to construction projects has also skyrocketed. These factors may limit the expansion of residential and commercial buildings and in turn, lead to limited installation of water heaters over the foreseeable future.

The water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD Million” from 2019 to 2032, for the following segments

Click here to Buy Section of this Report

Market Insights, By Product

• Instant
  • Electric
  • Gas
• Storage
  • Electric
  • <30 Liters
  • 30-100 Liters
  • 100-250 Liters
  • 250-400 Liters
  • >400 Liters
  • Gas
  • <30 Liters
  • 30-100 Liters
  • 100-250 Liters
  • 250-400 Liters
  • >400 Liters

Market Insights, By Capacity

• <30 Liters
• 30-100 Liters
• 100-250 Liters
• 250-400 Liters
• >400 Liters

Market Insights, By Fuel

• Electric
• Gas
  • Natural Gas
  • LPG

Market Insights, By Application

• Residential
• Commercial
  • College/University
  • Offices
  • Government/Military
  • Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Austria
  • Spain
  • Netherlands
  • Denmark’
  • Finland
  • Sweden
  • Norway
  • Portugal
  • Greece
• Eurasia
  • Russia
  • Belarus
  • Kazakhstan
  • Kyrgyzstan
  • Armenia
• CIS
  • Azerbaijan
  • Moldova
  • Tajikistan
  • Turkmenistan
  • Uzbekistan
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Singapore
  • Thailand
  • New Zealand
  • Philippines
  • Vietnam
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Bahrain
  • Oman
  • Turkey
  • South Africa
  • Nigeria
  • Algeria
  • Egypt
  • Israel
  • Cyprus
  • Lebanon
  • Iraq
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Mexico