Water Heater Market

Water Heater Market Study by Storage Water Heaters, Tankless Water Heaters, and Hybrid Water Heaters from 2024 to 2024

Analysis of Water Heater Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Water Heater Market Outlook (2024 to 2034)

The global water heater market is estimated to be valued at US$ 36.1 billion in 2024 and is forecasted to reach US$ 92 billion by the end of 2034, expanding at a CAGR of 9.8% between 2024 and 2034.

A water heater, also known as a storage water heater, is a household appliance designed to heat water and store it in a tank for further use. These heaters can run on various fuels, including electricity, oil, propane, natural gas, and even solar energy. The choice of water heater depends on factors such as fuel availability, building type, fuel costs, household requirements, and safety considerations.

More consumers are showing a growing interest in energy-efficient water heaters as a means to lower utility costs and minimize environmental harm. As a result, there has been a rise in the popularity of tankless water heaters and heat pump water heaters, both of which offer higher efficiency compared to conventional tank-based models. Solar water heater sales are also on the rise globally due to their clean, renewable, and cost-effective nature, thus steadily increasing their water heater market share.

Key Market Growth Drivers :

  • Increasing demand for energy-efficient appliances has prompted a shift toward water heaters that can help reduce utility bills and environmental footprints.
  • Tankless water heaters and heat pump water heaters are being increasingly used due to their superior efficiency compared to conventional tank-based models.
  • Technological progress within the market has led to the introduction of smart water heaters that are capable of remote control via smartphone applications.
  • Government regulations and energy efficiency criteria play a significant role in increasing the global water heater market size.
  • Manufacturers are adhering to set efficiency standards, prompting the development of more effective water heating technologies.
Report Attributes Details
Water Heater Market Size (2024E) US$ 36.1 Billion
Forecasted Market Value (2034F) US$ 92 Billion
Global Market Growth Rate (2024 to 2034) 9.8% CAGR
North America Market Growth Rate (2024 to 2034) 10% CAGR
East Asia Market Value (2024E) US$ 8 Billion
Solar Water Heater Sales (2034F) US$ 9.8 Billion
Key Companies Profiled
  • A.O. Smith
  • Bosch
  • Haier
  • American Water Heaters
  • Ariston
  • GE Appliances
  • Whirlpool Corporation
  • Rinnai Corporation

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What’s Influencing Global Water Heater Sales?

“More Consumers Moving toward Energy-efficient and User-friendly Appliances”

Energy efficiency is becoming increasingly important worldwide as more consumers seek appliances that can help reduce energy costs and environmental impact, including residential water heaters. More people are also seeking reliability, durability, and ease of use, with demand for specific types of water heaters, such as tankless and solar-powered ones reflecting these changing preferences.

“Government Regulations and Advancements in Technology”

Government regulations are also playing a crucial role in shaping the market by enforcing energy efficiency standards and emissions reductions, which manufacturers need to adhere to remain competitive and access key markets. Advancements in technology, such as smart controls and more efficient heating elements, are driving innovation in water heater designs and attracting customers who are interested in features such as remote control and energy monitoring. Environmental awareness is driving consumers toward eco-friendly alternatives such as solar water heaters and heat pump systems that utilize renewable energy sources and reduce carbon emissions.

“Rapid Infrastructure Development Driving Water Heater Market Growth”

Economic factors such as rising disposable income levels, the expanding housing market, and increasing energy prices are influencing consumer decisions and pushing demand for water heaters. Regional differences in climate, energy infrastructure, and building codes impact the selection and installation of water heaters, with preferences varying based on factors such as climate and regulations.

What are the Constraints Adversely Affecting Water Heater Manufacturers?

“High Installation Cost Remains Key Challenge”

Some water heater types such as tankless and solar-powered models have higher initial costs compared to traditional tank-based heaters, dissuading certain consumers from opting for these energy-efficient choices. Installation complexity is a challenge with certain water heaters such as solar-powered or heat pump systems, as they may necessitate modifications to existing plumbing and electrical setups, leading to increased installation expenses and complexity.

“Limited Access to Renewable Sources of Energy”

The effectiveness of environment-friendly alternatives such as solar water heaters and heat pump systems may be constrained by factors such as geographic location, climate, and access to renewable energy sources. Tankless water heaters, while providing hot water on demand, may struggle to meet simultaneous hot water needs in larger households, resulting in intermittent supply issues. Solar water heaters are reliant on sunlight availability, which varies based on weather conditions and geographic location, potentially impacting their reliability and performance in some locations and climates.

“High Maintenance and Repair Costs of Water Heaters”

Maintenance and repair for advanced water heater technologies such as smart controls and heat pumps may require specialized services, leading to additional expenses for consumers. Manufacturers face challenges meeting stringent energy efficiency standards and regulatory requirements, potentially leading to increased production costs that are more often than not passed on to buyers.

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Country-wise Insights

Why is the United States a Key Market for Water Heater Suppliers?

“High Demand for Instant Water Heaters”

Attribute United States
Market Value (2024E) US$ 7.2 Billion
Growth Rate (2024 to 2034) 10% CAGR
Projected Value (2034F) US$ 18.8 Billion

North America stands as the primary market for water heaters, fueled by the ever-rising need for hot water across the residential and commercial sectors. Within North America, the United States has a huge water heater market, followed by Canada. There's a growing preference for energy-efficient and eco-friendly hot water options, with instantaneous water heaters gaining traction owing to their compactness and energy-saving capabilities.

What’s Leading to Rising Demand for Water Heaters in China?

“Rising Demand for Compact Storage Water Heaters”

Attribute China
Market Value (2024E) US$ 3.6 Billion
Growth Rate (2024 to 2034) 10.3% CAGR
Projected Value (2034F) US$ 9.5 Billion

China leads as the primary market for water heaters in East Asia, propelled by its extensive population and urban development trends. The country's swift economic expansion has heightened the requirement for both residential and commercial water heating solutions.

Rapid urbanization and the burgeoning construction of residential and commercial properties have driven a surge in the demand for water heaters. As urban migration intensifies and new infrastructure emerges, the necessity for water heating systems has escalated.

There is rising demand for compact home water storage units with efficient heating systems in China, particularly in densely populated cities characterized by high-rise buildings. Consequently, Chinese manufacturers are dedicating significant efforts to enhancing their product offerings by focusing on the development of boiler storage water heaters and hot water storage tanks.

Category-wise Insights

Why are Electric Water Heaters a Popular Choice among Consumers?

“Technological Advancements in Electric Water Heaters”

Attribute Electric Water Heaters
Market Value (2024E) US$ 25 Billion
Growth Rate (2024 to 2034) 9.9% CAGR
Projected Value (2034F) US$ 64.5 Billion

Electric water heaters, a popular choice in water heating systems, utilize electricity to heat water. Increasing government regulations aimed at promoting energy efficiency are driving the demand for electric water heaters. Manufacturers have been compelled to produce more efficient models to meet these standards, thus stimulating market growth for electric models.

Innovations in electric water heater technology, such as improved insulation, heat pump systems, and smart controls, have enhanced energy efficiency and user convenience.

Which Type of Water Heater Has Been Gaining Prominence of Late?

“Constantly Rising Demand for Storage Water Heaters”

Attribute Storage Water Heaters
Market Value (2024E) US$ 17.8 Billion
Growth Rate (2024 to 2034) 10% CAGR
Projected Value (2034F) US$ 46.3 Billion

The main catalyst driving demand growth for storage water heaters is the high need for hot water solutions in both residential and commercial settings, as hot water is crucial for everyday tasks such as bathing, cooking, and cleaning.

As per the latest water heater market trends, growth in population and rising urbanization are fueling demand for housing and infrastructure, leading to increased adoption of storage water heaters. Urban areas are exhibiting particularly high demand due to their higher population density and ongoing housing development projects.

There's a significant contribution to market expansion from the need to replace aging or faulty water heaters. As older units become less efficient or malfunction, consumers seek out new storage water heaters that offer improved energy efficiency and performance. Advancements in storage water heater technology, such as more effective heating elements and advanced controls, are propelling segment growth. Product innovations have resulted in higher energy efficiency, reduced standby heat loss, and overall improved performance of water heaters.

Know thy Competitors

Competitive landscape highlights only certain players
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Competitive Landscape

Key players in the water heater industry are A. O. Smith Corporation, Rheem Manufacturing Company, and Bradford White Corporation. They possess extensive distribution networks, a wide array of product offerings, and a longstanding presence, rendering them formidable market competitors. This market exhibits intense competition among various prominent companies, each vying for a higher market share through strategies such as pricing, energy efficiency, dependability, and excellent customer support.

Furthermore, alongside these global leaders, various regional players operate within specific geographic markets. These entities are concentrating on addressing the distinct requirements and preferences of consumers in their respective regions, leveraging local knowledge and distribution channels. Collaboration and partnerships are also key strategies that several market players are resorting to gain a competitive edge in the market.

  • In January 2023, Fujitsu General entered into a joint venture with FGAHP, a company specializing in heat pump and water solutions, to produce heat pump water heating systems called ATW in Europe.
  • In December 2022, Fujitsu General Limited partnered with Groupe Atlantic to establish a joint venture focused on manufacturing ATW heat pump water heating systems in Europe.

Key Segments of Water Heater Market Research

  • By Product Type :

    • Storage Water Heaters
    • Tankless Water Heaters
    • Hybrid Water Heaters
  • By Energy Source :

    • Electric Water Heaters
    • Solar Water Heaters
    • Gas Water Heaters
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa (MEA)

- FAQs -

Which type of water heater is most commonly used?

Storage water heaters are widely used with an estimated market share of 49.3% in 2024.

How big is the global water heater market?

The global water heater market is estimated to be valued at US$ 36.1 billion in 2024.

What is the top-performing water heater available in the market currently?

Tankless water heaters are forecasted to account for a market valuation of US$ 8.5 billion in 2024.

What is the sales forecast for water heaters for 2034?

The global market is forecasted to reach US$ 92 billion by the end of 2034.

How is the market for electric water heaters faring?

Electric water heaters are projected to account for a market share of 70.1% by 2034.

What is the lifespan of water heaters?

Water heaters typically last between 8 to 12 years depending on various factors.

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