Global Water Heater Market Insights Forecasts to 2032

• The Water Heater Market Size was valued at USD 30.39 Billion in 2022.
• The Market is Growing at a CAGR of 4.37% from 2022 to 2032
• The Worldwide Water Heater Market is expected to reach USD 46.62 Billion by 2032
• Europe is expected to grow the fastest during the forecast period

The Global Water Heater Market Size is expected to reach USD 46.62 Billion by 2032, at a CAGR of 4.37% during the forecast period 2022 to 2032.

Water heaters consume a significant amount of energy in residential establishments. Product manufacturers are striving to develop cost-effective systems, such as tankless water heaters, in response to the implementation of strict legislative requirements. Tankless equivalents utilize a smaller footprint than traditional models and provide water heating instantly, reducing the consumption of energy. Water availability is one of the most vital resources for residential, commercial, and industrial applications. Before being used for a specific application, the water utilized for such functions is processed. The water heater is a piece of equipment that heats water and delivers it to users. Water heaters heat water to the desired temperature using electrical power, gas, petroleum, or photovoltaic power.

The electric water heater is a device, which utilizes electricity rather than gas to heat water that will be used throughout the residence. Electric water heaters can heat water in a tank or without a tank, and they can also heat water in a central location or at the point of use. Additionally, solar water heaters, also known as solar domestic hot water systems, can be an inexpensive way of producing hot water for residents. They are capable of being adapted to any climate, and the fuel that they use is sunlight.

Driving Factors

The global market is being driven mainly due to the rising demand for heated water from various residential applications such as cooking and housekeeping duties, which is expected to boost the market's expansion during the period of forecasting. The shift concerning energy-saving technologies is being driven by rising demand from consumers and government initiatives that are beneficial. The widespread adoption of energy-efficient products is being influenced by energy and environmental regulations more and more, which is anticipated to increase the popularity of cost-effective and smart water heating solutions in the future.               

Rising energy-efficiency concerns are driving up demand for electric water heaters. Electric heater customer demand is also being driven by an increase in the number of pre-plumbed unvented systems in new the building process. Additionally, in recent years, both the governmental and private industries have made investments in cutting-edge water heating technologies. Furthermore, the growing replacement of outdated water heating systems with contemporary models offering sophisticated management and control characteristics will create profitable growth opportunities for companies in the sector.

Demand for water heaters is being driven by increased commercial infrastructure development in various countries. Water heaters are used in the daily production activities of small and medium-sized businesses. Furthermore, companies are implementing highly efficient water heaters intending to improve electrical consumption and maximize efficiency.

Restraining Factors

Asymmetry of understanding among the general public, particularly in rural regions, is expected to stymie market expansion throughout the forecast. Furthermore, limited roof space, high installation costs for solar water heaters, along with expense constraints are expected to hamper the market growth. In addition, insufficient energy efficiency, durability, and thermal barrier insulation are among the factors impeding market growth in the near future.

Market Segmentation

By Power Insights

The electric segment is dominating the market with the largest revenue share over the forecast period.

On the basis of power, the global water heater market is segmented into electric, solar, gas, and others. Among these, the electric segment is dominating the market with the largest revenue share of 54.6% over the forecast period. This expansion can be attributed to increasing electric driving rates along with enhanced consumer accessibility, primarily in the Asia Pacific and African regions. During the forecast period, consumer interest in products is expected to be fueled by energy-efficiency improvements, increased sustainable development, and temperature control. The growing emphasis of many different manufacturers on developing novel, better-performing technologies, and systems is expected to boost the growth of the industry.

By Product Insights

The tankless segment accounted the largest market share over the forecast period.

On the basis of product, the global water heater market is segmented into tankless, storage, hybrid, and others. Among these, the tankless segment accounted the largest market share over the forecast period. This expansion is primarily driven by product benefits such as rapid hot water supply and reduced standby heating losses. Tankless products offer benefits such as improved temperature control, increased energy efficiency, and increased sustainable development. Increasing consumer acceptance across various business sectors due to improved performance advantages is expected to drive demand for such items over the forecast period. In addition, tankless products use less energy than water-storage heaters, which will increase their popularity in the coming years.

By Capacity Insights

The 30 - 100 litres segment is dominating the market with the largest revenue share over the forecast period.

On the basis of capacity, the global water heater market is segmented into less than 30 litres, 30 - 100 litres, 100 - 250 litres, 250 - 400 litres, and greater than 400 litres. Among these, the 30 - 100 liters segment is dominating the market with the largest revenue share of 27% over the forecast period. This is attributed to the widespread application across residential and commercial establishments such as financial institutions, the healthcare sector, government organizations, hotels, and commercial centers. The product's availability in a variety of capacities meets a variety of customer demands, which includes its application in restaurants, aquatic centers, and restrooms, as such, boosting the market growth.

By End-Use Insights

The residential segment accounted the largest revenue share of more than 49.3% over the forecast period.

On the basis of end-use, the global water heater market is segmented into residential, commercial, and industrial. Among these, residential is dominating the market with the largest revenue share of 49.3% over the forecast period. Rapid residential development of infrastructure, higher disposable incomes, growing gas pipeline networks, and rising electrification rate across several developing nations are expected to drive the popularity of water heaters in the residential market. The increasing demand for reliable, environmentally friendly, and low-cost water heating technologies especially in the commercial and residential fields, is expected to boost the market growth.

Regional Insights

Asia Pacific dominates the market with the largest market share over the forecast period.

Asia Pacific is dominating the market with more than 43.7% market share over the forecast period. Rising demand from emerging economies such as China, Japan, India, and South Korea is propelling the region's water heater marketplace further. Water heater demand in China and India is primarily driven by increased investment and creativity in the construction industry, as well as support for technological advancement and the introduction of mandatory reductions in carbon dioxide (CO2) regulations which will boost demand for water heaters throughout forecasting. Furthermore, the Asia Pacific region's demand for water heaters has been boosted by the growing supply of both electricity and gas in remote regions, as well as increased spending on infrastructure, rising interest in the construction sector, and growth in industrial production in South Asian and South East Asian markets.

Europe, on the contrary, is expected to grow the fastest during the forecast period. The demand for high-quality and dependable water heaters from various commercial operations and manufacturing end-users is driving the development of water heaters in this region. Furthermore, the demand for hot water to meet the required atmospheric conditions as a result of the region's extreme cold weather is projected to drive the market. Additionally, the EU directive on energy labeling has raised concern among consumers, which is expected to fuel the expansion of the water heater market over the forecast period.

List of Key Market Players

• A.O. Smith
• Lennox International Inc.
• Kenmore
• Robert Bosch LLC
• Havells India Ltd
• Ariston Thermo SpA
• Rheem Manufacturing Company
• FERROLI S.p.A
• Watlow Electric Manufacturing Co.
• Rinnai Corporation
• Runsun Energy Technology Co., Ltd
• Bradford White Corporation
• NORITZ Corporation
• Whirlpool Corporation
• Westinghouse Electric Corporation
• Bajaj Electricals Ltd
• Haier Inc.

Key Market Developments

• On March 2023, Bradford White Water Heaters, an industry-leading American manufacturer of water heaters, boilers, and storage tanks, announces that the Green Restaurant Association (GRA), the leading voice within the Green Restaurant movement, has certified its Infiniti® GS and GR tankless water heaters, as well as select eF Series® Ultra High-Efficiency commercial tank gas water heaters, for use in GRA-certified restaurants.

• On September 2022, A. O. Smith, a water heating and water treatment industry leader, announces the addition of the Voltex® AL (anti-leak) hybrid electric heat pump water heater to its residential product line. The Voltex AL model leads the water heating industry in efficiency, with the 66-gallon unit having the highest overall Uniform Energy Factor (UEF) of 4.02 and the 50-gallon unit having the highest UEF of 3.8. It's also available in an 80-gallon version.

• On September 2021, Rinnai America Corporation, a Rinnai Corporation subsidiary and the leading manufacturer of tankless water heaters in the United States, acquired Industrias Mass, S.A. de C.V., Mexico's leading manufacturer of commercial-use water heating systems. Rinnai America completed this acquisition as part of the Rinnai Group's Medium-Term Business Plan "New ERA 2025" strategy of "expansion of business scale."

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Water Heater Market based on the below-mentioned segments:

Water Heater Market, Power Analysis

• Electric
• Solar
• Gas
• Others

Water Heater Market, Product Analysis

• Tankless
• Storage
• Hybrid
• Others

Water Heater Market, Capacity Analysis

• Less than 30 Litres
• 30 - 100 Litres
• 100 - 250 Litres
• 250 - 400 Litres
• Greater than 400 Litres

Water Heater Market, End-Use Analysis

• Residential
• Commercial
• Industrial

Water Heater Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa.