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Water Heaters Market Research Report Information By Product (Electric, Solar and Gas), By Technology (Tankless, Storage and Hybrid), By Application (Residential, Commercial and Industrial), By Capacity (Below 30 Liters, 30 - 100 Liters, 100 - 250 Liters, 250 - 400 Liters and Above 400 Liters), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

ID: MRFR/E&P/10878-HCR | 128 Pages | Author: Anshula Mandaokar| April 2024

Water Heaters Market Overview:

Water Heaters Market Size was valued at USD 27.9 Billion in 2022. The water heaters market industry is projected to grow from USD 29.2 Billion in 2023 to USD 42.54 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.80% during the forecast period (2023 - 2032).  Urbanization and population increase, as well as the high need for energy-efficient water heaters and their popular uses, are the main market drivers propelling the water heater market's expansion.

Global Water Heaters Market Overview

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

Water Heaters Market Trends

  • 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.

Water Heaters Market Segment Insights:

Water Heaters Product Insights

The Water Heaters Market segmentation, based on product includes Electric, Solar and Gas. The electric segment dominated the market due to the increasing electrification rate and improved client accessibility, particularly in the countries of the Asia Pacific and Africa. Sustainability, energy efficiency, increased environmental and temperature control are predicted to be the main drivers of product demand during the projection period.

Water Heaters Technology Insights

The Water Heaters Market segmentation, based on technology, includes Tankless, Storage and Hybrid. The storage category generated the most income because the product has a strong potential for converting energy and requires less maintenance. Demand for the device is also being fueled by an increase in commercial and industrial applications being installed in various chilly areas all over the world.

Figure 1: Water Heaters Market by Technology, 2022 & 2032 (USD Billion)

Water Heaters Market by Technology, 2022 & 2032 (USD Billion)

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

Water Heaters Application Insights

The Water Heaters Market segmentation, based on application, includes Residential, Commercial and Industrial. The residential category generated the most income due to its widespread suitability for use in household and commercial settings, including banks, hospitals, hotels, and government organizations, hotels, and shopping centers.

Water Heaters Capacity Insights

The Water Heaters Market segmentation, based on capacity, includes Below 30 Liters, 30 - 100 Liters, 100 - 250 Liters, 250 - 400 Liters and Above 400 Liters. The 30-100 liters category generated the most income. The demand for water heaters in the residential sector is anticipated to increase due to the rapid expansion of residential infrastructure, rising disposable incomes, expanding piped gas networks, and increasing electrification rates across various emerging countries.

Water Heaters Regional Insights

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)

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 2023 to 2032. 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.

Water Heaters Key Market Players & Competitive Insights

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.

Key Companies in the water heaters market include

  • A. O. Smith

  • Robert Bosch LLC

  • Ariston Thermo SpA

  • Rheem Manufacturing Company

  • Rinnai Corporation

  • Bradford White Corporation

  • NORITZ Corporation

  • Whirlpool Corporation

  • Bajaj Electricals Ltd

  • Haier Inc.

  • Havells India Ltd

  • Lennox International Inc.


  • Kenmore

Water Heaters Industry Developments

March 2023: A brand-new series of tankless water heaters has been introduced by German water heater maker Stiebel Eltron. Models in the new line have a range of features, including as Wi-Fi connectivity, energy-saving settings, and an integrated safety valve.

February 2023: SunWater, an Australian producer of solar water heaters, was purchased by Rheem, an American manufacturer of water heaters. With the acquisition, Rheem will be able to increase the scope of its product line and get into the expanding solar water heater industry.

September 2022: The Voltex AL (anti-leak) hybrid electric heat pump water heater has been added to the residential product line by A. O. Smith, a leader in the water heating and water treatment industries. The 66-gallon unit of the Voltex AL model has the highest overall Uniform Energy Factor (UEF) of 4.02 and the 50-gallon unit has the highest UEF of 3.8, making it the most efficient water heater on the market. There is also an 80-gallon variant available.

Water Heaters Market Segmentation

Water Heaters Product Outlook (USD Billion, 2018-2032)

  • Electric

  • Solar

  • Gas

Water Heaters Technology Outlook (USD Billion, 2018-2032)

  • Tankless

  • Storage

  • Hybrid

Water Heaters Application Outlook (USD Billion, 2018-2032)

  • Residential

  • Commercial

  • Industrial

Water Heaters Capacity Outlook (USD Billion, 2018-2032)

  • Below 30 Liters

  • 30 - 100 Liters

  • 100 - 250 Liters

  • 250 - 400 Liters

  • Above 400 Liters

Water Heaters Regional Outlook (USD Billion, 2018-2032)

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Attribute/Metric Details
Market Size 2022 USD 27.9 Billion
Market Size 2023 USD 29.2 Billion
Market Size 2032 USD 42.54 Billion
Compound Annual Growth Rate (CAGR) 4.80% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Product, Technology, Application, Capacity, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled A.O. Smith; Ariston Thermo SpA; Bradford White Corporation; Robert Bosch LLC; Rheem Manufacturing Company; Rinnai Corporation; NORITZ Corporation; vWhirlpool Corporation, Bajaj Electricals Ltd; Haier Inc.; Lennox International Inc.; FERROLI S.p.A; Kenmore
Key Market Opportunities Rising emission requirements and technological advancements Government regulations and rapid urbanization
Key Market Dynamics Increasing demand for water heaters that use less electricity Government requirements for energy efficiency Increasing need to replace old conventional water heaters

Frequently Asked Questions (FAQ) :

The Water Heaters Market size was valued at USD 27.9 Billion in 2022.

The global market is projected to grow at a CAGR of 4.80% during the forecast period, 2023-2032.

North America had the largest share in the global market

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

The electric category dominated the market in 2022.

The storage category had the largest share in the global market.

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