Dublin, July 09, 2024 (GLOBE NEWSWIRE) — The “Global Water Heater Market – Outlook & Forecast 2024-2029” report has been added to ResearchAndMarkets.com’s offering.
The Global Water Heater Market was valued at USD 20.93 Billion in 2023, and is expected to reach USD 33.37 Billion by 2029, rising at a CAGR of 8.08%.
The global water heater market is characterized by several key factors that influence the dynamics within the industry. Moreover, various types of water heaters are available in the market, including tankless, storage tanks, heat pumps, and solar water heaters, each catering to different consumer needs and preferences. Further, there has been a growing emphasis on energy efficiency and sustainability, leading to increased demand for eco-friendly water heating solutions. This trend has propelled companies to innovate and develop more energy-efficient models, incorporating heat pumps and solar panels to reduce carbon footprint and energy consumption.
Grid-interactive water heaters (GIWHs) are revolutionizing the water heater industry by offering more than just hot water. Equipped with two-way grid communication abilities, GIWHs enable load shifting, making demand for hot water follow renewable energy supply. This flexibility ensures efficient use of zero-carbon electricity and supports grid stability by smoothing out demand peaks and valleys. The water heater market transforms as virtual power plants (VPPs) incorporate GIWHs into their portfolios. These aggregated GIWHs act as a fleet of batteries, absorbing excess energy from the grid to power end uses later in the day.
The market for advanced water heating systems is experiencing a significant surge in demand as consumers increasingly seek more efficient and environmentally friendly alternatives to conventional water heaters. This shift is driven by several factors, including growing awareness of energy conservation, stricter regulations on energy efficiency, and the desire for long-term cost savings. Advanced water heating technologies such as heat pump water heaters, solar water heaters, and tankless water heaters offer compelling benefits over traditional systems.
The demand for water heaters in North America is increasing, primarily driven by a growing emphasis on energy efficiency and the need for replacements. Canada is one of the fastest-growing regions during the forecast period, while the U.S. dominates in revenue share, fueled by technological advancements and the presence of numerous manufacturers. Furthermore, APAC held the largest global water heater market share, accounting for a global revenue share of over 34% in 2023.
Across the APAC, increasing disposable incomes and a shift towards sustainability are key drivers. China and India emerged as major contributors to water heater revenue, spurred by rapid urbanization and government subsidies. Population growth, economic expansion, and regulatory factors in Europe propel the water heater industry growth. Latin America is experiencing a surge in demand, particularly due to tourism and hotel construction, with Argentina emerging as the fastest-growing nation thanks to robust economic growth. Lastly, residential construction and infrastructure development are significant drivers of water heater demand in the Middle East and Africa.
The water heater industry is vast and diverse, with various options available to consumers depending on their needs and preferences. While traditional electric or gas water heaters are widely used in residential and commercial settings, alternative options such as wood-fired water heaters, immersion rods, and boilers in industries like food and beverage offer different advantages and cater to specific requirements. Wood-fired water heaters have been utilized for centuries, particularly in rural areas where access to electricity or gas may be limited or expensive. These heaters burn wood to heat water, providing a cost-effective and environmentally friendly solution.
SEGMENTATION INSIGHTS
INSIGHTS BY PRODUCT
The global water heater market by product is segmented into electric, gas & oil, heat pumps, and solar. In 2023, the electric segment emerged as the leading revenue generator in the product segment. This dominance is projected to continue, with a forecasted CAGR of over 8.38%. The key drivers fueling demand within this segment include fluctuating energy prices, stringent government regulations, and the regular replacement cycle for electric equipment. These factors collectively highlight the sustained growth trajectory of the electric segment, reflecting its pivotal role in the market landscape.
Furthermore, the solar water heater segment exhibited the fastest growth in the water heater market during the forecast period. The demand for solar water heaters increases due to Environmental Awareness, government subsidies, energy efficiency regulations, and urbanization. The heightened environmental awareness has led consumers and businesses to seek sustainable alternatives to traditional energy sources. Solar water heaters are a clean and renewable energy solution that perfectly aligns with this trend, driving their adoption. Secondly, government subsidies and incentives aimed at promoting renewable energy adoption have played a pivotal role in bolstering the market for solar water heaters.
INSIGHTS BY CATEGORY
The global water heater market by category is segmented into storage and instant. In 2023, the storage segment accounted for the highest share and exhibited a CAGR of more than 7.70% during the forecast period. The demand for storage water heaters is driven by several factors, such as population growth and urbanization, which play a significant role. As urban areas expand and populations increase, the demand for residential and commercial water heating solutions rises accordingly. With their ability to provide hot water on demand, storage water heaters meet the needs of households, businesses, and institutions in densely populated areas. Moreover, lifestyle preferences and comfort standards influence the demand for storage water heaters.
INSIGHTS BY END-USER
The global water heater market by end-user is segmented into residential and commercial. The residential segment has the highest share of the market. Several factors, including changes in housing trends, economic development, and housing permits, drive the demand for water heaters within the residential segment. With rising incomes, more households can afford modern amenities like water heaters, driving demand.
Trends such as increased preference for larger homes, multiple bathrooms, or spa-like amenities in bathrooms can lead to greater demand for water heaters capable of meeting higher hot water demands. In colder regions, water heaters may have a higher demand as residents require more hot water for space heating or for maintaining comfortable living conditions during cold weather.
INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel segment held the highest global water heater market share in 2023. This growth is attributed to several demand-driving factors. Local marketing initiatives like targeted advertising campaigns and community engagement have raised awareness and captured consumers’ attention.
Additionally, robust after-sales support services have contributed to customer satisfaction and loyalty, further bolstering offline sales. Moreover, potential buyers can physically inspect the product, assess its quality, and receive personalized assistance from sales representatives. This hands-on experience often instills consumer confidence, leading to higher conversion rates.
Recent Vendor Activities in the Global Water Heater Market
- In 2023, Eccotemp introduced the SH22 Smart Home Tankless Water Heater Series, pioneering voice command functionality via Alexa & Google, revolutionizing water heating. With the Eccotemp Smart App, users can customize settings, monitor energy usage, and receive maintenance alerts, optimizing efficiency and convenience. The series offers versatile performance, with on-demand hot water for up to three bathrooms, flexible fuel options, and indoor/outdoor installation capabilities. Safety is ensured with CSA certification and a robust warranty feature. Through this, the company increases its product portfolio, driving business growth in the water heater industry.
- In 2021, A.O. Smith acquired Giant, a Canadian water heater manufacturer, to expand their international presence and increase their profitability in the market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 347 |
| Forecast Period | 2023 – 2029 |
| Estimated Market Value (USD) in 2023 | $20.93 Billion |
| Forecasted Market Value (USD) by 2029 | $33.37 Billion |
| Compound Annual Growth Rate | 8.0% |
| Regions Covered | Global |
Market Opportunities & Trends
- Rising Popularity of Tankless Water Heaters
- Growing Demand for Smart Water Heaters
- Increased Demand for Hybrid Water Heaters
- Rise of Grid-Interactive Water Heaters
Market Growth Enablers
- Technological Advances in Products
- Increasing Construction Activities
- Government Subsidies on Water Heaters
- Rising Demand for Replacement of Conventional Water Heaters with Advanced Systems
Market Restraints
- Variation in Gas and Other Fuel Prices
- High Installation Costs
- Alternatives to Water Heaters
Industry Overview
- Building Codes
- Post-Pandemic Water Heater Market
- Regulatory Compliance
- US Department of Energy
- International Electrotechnical Commission (IEC)
- American National Standards Institute (ANSI)
Premium Insights
- Opportunity Pockets
- Market Maturity Indicator
- Regional Insights
- Market Definition
- Report Overview
- Opportunities & Challenges Analysis
- Segment Analysis
- Regional Analysis
- Competitive Landscape
Key Company Profiles
Strong Competitors
- Ariston Thermo
- Bradford White Corporation
- Rheem Manufacturing Company
- Rinnai Corporation
Other Prominent Vendors
- Apricus Solar
- Alternate Energy Technologies
- Bock Water Heaters
- Bromic Plumbing & Gas
- Bajaj Electricals
- BSH Home Appliances
- Crompton Greaves Consumer Electricals Limited
- Eccotemp
- Efficient Technology Sales
- Electrolux
- FERROLI S.p.A
- GROUPE ATLANTIC
- Guangdong Vanward New Electric
- Heliodyne
- Hubbell Water Heaters
- Havells India
- Himin Solar
- Intellihot
- Jaquar India
- Jiaxing Jinyi Solar Energy Technology
- Kingspan
- Kenmore
- Lennox International
- MACRO
- Navien Inc.
- Noritz America Corporation
- Linuo Ritter International
- Lorenzetti S.A.
- Orient Electric
- Robert Bosh
- RECO
- Sioux Corporation
- SunMaxx Solar
- SunEarth
- SANDEN International
- Sakura
- Stiebel Eltron
- TekSupply
- Viessmann Manufacturing Company
- VENUS HOME APPLIANCES
- V-GUARD INDUSTRIES
- Watts Water Technologies
- Westinghouse Electric Company
- Whirlpool
- Wagner Solar
- Zytech Solar
For more information about this report visit https://www.researchandmarkets.com/r/12mkko
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- Global Water Heater Market
