Water Heaters Market

High growth in the manufacturing and construction industry is driving the market growth

Water heaters are widely utilized in the industrial and construction industries because of effective distribution, a plentiful supply of raw materials, and other characteristics. Recently, especially in industrialized nations, both the manufacturing and construction industries have seen tremendous expansion. Additionally, it is anticipated that during the projected period, the construction industry would continue to grow in rising economies like China and India. Furthermore, it is anticipated that the expansion of the global water heater market will be fueled by longer product lives, simple reimbursement and replacement, and effective aftermarket services.

For instance, GE Appliances, a U.S. home appliance maker, started producing high-tech water heaters at its Camden, South Carolina, facility on May 16, 2022.

Consumer purchases of home appliances are a result of global urbanization. For instance, the market has seen a large increase in the demand for and revenue contribution from water heater appliances. The population of cities has increased as a result of urbanization, which has also increased the building of homes, apartments, and skyscrapers. Urban areas are growing, which is driving up demand for water heaters to suit the needs of the expanding urban population.

The market is expanding because urban residents need water heaters for bathing, washing, and other domestic tasks. For instance, on September 26, 2022, the improved Rheem Professional Prestige Smart Electric Water Heater with Leak Guard and Demand Response was presented by Rheem Manufacturing Company, a renowned global manufacturer of water heating and heating, ventilation, and air conditioning (HVAC) equipment. Rheem now offers smooth connections to the electric grid while still offering homeowners cutting-edge electric solutions created to abide by current energy requirements.

By utilizing hot water storage tanks, storage water heaters contribute to an increase in heating capacity. To suit consumer demand, storage heaters come in a range of sizes. Storage heaters are less expensive to install and have simpler maintenance and repair requirements than some types of water heaters. Vendors are concentrating on offering regular water heater services because storage heaters have a history of bursting. Additionally, storage heaters need room for the tank, thus manufacturers are concentrating on making storage heaters smaller in order to solve the space problem.

The usage of conventional storage heaters that burn fuels other than electricity, including fuel oil and natural gas, has also become more widespread recently.

Due to rising consumer awareness of renewable energy's advantages, cost-effectiveness, and superior outcomes, consumers are turning more and more toward it. Solar heaters are frequently installed in both residential and commercial structures to lower electricity costs. Additionally, a number of governments provide low-interest loans and incentives for the installation of solar heaters, which is anticipated to result in a rise in the use of solar water heaters in the near future. Thus, driving the water heaters market revenue.

The Global Water Heaters Market Industry is poised for substantial growth, with projections indicating a market size of 30.6 USD Billion in 2024 and an anticipated increase to 51.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 4.8% from 2025 to 2035. The market dynamics are influenced by various factors, including technological advancements, regulatory support, and evolving consumer preferences. As the industry adapts to these changes, it is likely to witness the emergence of innovative solutions that cater to the diverse needs of consumers globally.

The Global Water Heaters Market Industry experiences a notable surge in demand for energy-efficient solutions. As consumers become increasingly aware of energy consumption and its environmental impact, they seek water heaters that minimize energy use while maintaining performance. This trend is further supported by government initiatives promoting energy efficiency standards. For instance, energy-efficient water heaters can reduce energy bills by up to 30 percent, making them an attractive option for households. The market is projected to reach 30.6 USD Billion in 2024, reflecting a growing preference for sustainable technologies in the Global Water Heaters Market Industry.

Consumer awareness regarding water quality and safety is a driving force in the Global Water Heaters Market Industry. As concerns about waterborne diseases and contaminants rise, individuals are increasingly investing in water heaters that incorporate advanced filtration and purification technologies. These systems not only provide hot water but also ensure that it is safe for consumption. The demand for such products is likely to grow, particularly in regions where water quality is a significant concern. This trend underscores the importance of integrating safety features into water heating solutions, further propelling market growth.

Technological innovations play a pivotal role in shaping the Global Water Heaters Market Industry. The introduction of smart water heaters equipped with IoT capabilities allows for remote monitoring and control, enhancing user convenience and energy management. These advancements not only improve efficiency but also offer features such as leak detection and maintenance alerts. As consumers increasingly adopt smart home technologies, the demand for such advanced water heating solutions is likely to rise. This trend is expected to contribute to the market's growth, with projections indicating a market size of 51.3 USD Billion by 2035.

The Global Water Heaters Market Industry benefits from regulatory frameworks that encourage the integration of renewable energy sources into water heating systems. Governments worldwide are implementing policies that promote the use of solar water heaters and heat pump technologies, which utilize renewable energy to heat water. Such initiatives not only reduce reliance on fossil fuels but also align with global sustainability goals. As a result, the market is likely to witness a shift towards renewable energy-based water heating solutions, contributing to a projected CAGR of 4.8% from 2025 to 2035.

Urbanization significantly influences the Global Water Heaters Market Industry, as more individuals migrate to urban areas where modern amenities are essential. The expansion of residential and commercial infrastructure necessitates the installation of efficient water heating systems. Governments and private developers are investing in infrastructure projects that prioritize energy-efficient water heating solutions. This trend is evident in emerging economies, where urban centers are rapidly developing. As urban populations grow, the demand for reliable and efficient water heaters is expected to increase, driving market growth in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American water heaters market area will dominate this market because it is widely used in the commercial, residential, and industrial sectors. In terms of revenue, the US controlled the market. The increased demand for modern systems to replace outdated water heaters is mostly to blame for the area's supremacy. Furthermore, the industry's expansion is fueled by the existence of significant market players and their substantial investments in new technology.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Water Heaters Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe water heaters market accounts for the second-largest market share driven by a rise in the demand from a variety of commercial and industrial end users for superior and dependable water heaters. Furthermore, it is anticipated that product demand would rise due to the region's very cold weather and the ensuing requirement for hot water to sustain the required environmental conditions. Further, the German water heaters market held the largest market share, and the UK water heaters market was the fastest growing market in the European region

The Asia-Pacific Water Heaters Market is expected to grow at the fastest CAGR from 2025 to 2034. The Asia Pacific region's demand for water heaters is being driven by a number of reasons, including the expanding availability of gas and electricity in rural areas, increased infrastructure investment, rapid development in the building industry, and industrial expansion in South and South East Asian nations. Moreover, China’s water heaters market held the largest market share, and the Indian water heaters market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the water heaters market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, water heaters industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global water heaters industry to benefit clients and increase the market sector. In recent years, the water heaters industry has offered some of the most significant advantages to medicine. Major players in the water heaters market are attempting to increase market demand by investing in research and development operations includes A.O.

Smith; Rheem Manufacturing Company; Robert Bosch LLC; Ariston Thermo SpA; Rinnai Corporation; Whirlpool Corporation, Bradford White Corporation; NORITZ Corporation; Bajaj Electricals Ltd; Haier Inc.; Havells India Ltd; Lennox International Inc.; FERROLI S.p.A; and Kenmore.

A company that offers climate control systems is called Lennox International Inc (Lennox). The business creates, produces, and sells a wide variety of goods for the HVACR (heating, ventilation, air conditioning, and refrigeration) sectors. A wide range of heat pumps, furnaces, packaged heating and cooling systems, accessories to improve indoor air quality, comfort control products, air conditioners, installation and services for commercial heating and cooling equipment, replacement parts, and supplies make up its heating and cooling product line.

The largest producer and distributor of water heaters in North America is the American company A. O. Smith Corporation, which also produces boilers for both residential and commercial use. The Asian market is also served by it for goods for water treatment and purification. There are 27 locations for the business around the world, including five factories in North America and plants in Nanjing, China, Veldhoven, the Netherlands, and Bengaluru, India. In August 2020,  Modern 3-liter fast water heater MiniBot was introduced by A.O. Smith.

Blue Diamond glass, used to line MiniBot's inner tank, offers things coated with typical glass a higher level of corrosion resistance. Along with increasing the life of the water heater, it guards against premature tank failure brought on by India's hard, filthy water.