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.
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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.
Water Heater Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2023 |
| Water Heater Market Size in 2023 |
USD 32.28 Billion |
| Forecast Period |
2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR |
5.3% |
| 2032 Value Projection |
USD 50.58 Billion |
| Historical Data for |
2019 to 2023 |
| No. of Pages |
1,900 |
| Tables, Charts & Figures |
4,324 |
| Segments covered |
Product, Capacity, Fuel, Application |
| Growth Drivers |
- North America & Latin America
- Growing demand for energy efficient water heaters
- Replacement of conventional water heating systems
- Europe
- Government mandates pertaining to energy efficiency
- Growing demand for replacement of existing water heaters
- Asia Pacific
- Increasing demand for water heating systems
- Rapid urbanization and government mandates pertaining to GHG emissions
- Middle East & Africa
- Advancing technology coupled with rising emission standards
|
| Pitfalls & Challenges |
|
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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
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Get ready for a surge in instant water heaters! By 2032, we're looking at over 104 million units hitting the market. Why the buzz? Instant heaters are energy-saving champs, easy to install, and take up less space than their big brothers, the storage tanks. They're also eco-friendly, making them the go-to choice for businesses looking to reduce their carbon footprint. Plus, instant heaters offer endless hot water without the wait. Perfect for those busy mornings when you need a hot shower, stat! While storage heaters are likely to grow steadily, instant heaters are stealing the spotlight. Their compact size and point-of-use convenience make them a favorite for restaurants, hotels, and other commercial spaces looking to save energy and meet the demands of today's eco-conscious customers.
In 2022, businesses started using a lot more water heaters. Over 4.5 million were sold! This was partly because the government wants businesses to use water heaters that are smart and energy-efficient. Even the military is using them now. Experts predict that the commercial water heater business in the USA will grow by about 9% every year for the next seven years. One reason is that the government is spending money to improve military buildings and other projects. Another reason is that we're building more businesses, like offices, hotels, and shopping malls, which all need water heaters. Even at home, people are buying more water heaters because they want ones that use less energy. By 2032, people are expected to spend over 36.5 billion dollars on home water heaters.
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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
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Market Insights, By Product
- Instant
- 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
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
- 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
