Water Heater Market Analysis and Global Forecast 2023-2033

Water Heater Market Overview

The Water Heater Market Size is expected to reach USD 29.65 Billion by 2033. The Water Heater industry size accounted for USD 54.74 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 7.56% from 2023 to 2033. The water heater market encompasses the production, distribution, and sale of devices designed to heat water for domestic, commercial, and industrial use. This market includes various types of water heaters such as tankless, storage, solar, and hybrid models, each catering to different energy sources and efficiency requirements. Factors driving market growth include rising demand for hot water in residential applications, technological advancements, increasing energy efficiency standards, and growing investments in renewable energy solutions.

Global Water Heater Market Synopsis

COVID-19 Impact Analysis

The Water Heater market experienced a positive impact due to the COVID-19 pandemic. Due to supply chain interruptions brought on by the COVID-19 pandemic, there may be a shortage of some products or less demand for water heaters. Spending by consumers and businesses has decreased significantly as a result of the travel restrictions and social distancing measures, and this trend is expected to persist for some time. The epidemic has altered end-user trends and tastes, prompting manufacturers, developers, and service providers to implement diverse tactics aimed at stabilizing their businesses.

Global Water Heater Market Dynamics

The major factors that have impacted the growth of Water Heater are as follows:

Drivers:

⮚      Smart Technologies

Integration of smart technologies such as IoT (Internet of Things) allows for remote control and monitoring of water heaters, improving user convenience and energy efficiency. Smart water heaters can adjust their operation based on usage patterns and energy tariffs..

Restraint:

• High Initial Costs

The installation of certain types of water heaters, particularly solar and tankless systems, often requires additional infrastructure and professional services, further increasing the overall cost.

Opportunity:

⮚      Technological Advancements and Energy Efficiency

Heat Pump Water Heaters: The market for heat pump water heaters is expanding rapidly due to their superior energy efficiency. These systems, which use electricity to transfer heat rather than generate it directly, are highly efficient and environmentally friendly. This segment is expected to grow significantly, driven by increasing residential and commercial demand and supportive regulations aimed at reducing carbon emissions​

Water Heater Market Segment Overview

By Type

Based on the Type, the market is segmented based on Electric water heater, Gas water heater, Solar water heater. 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.

By Application

Based on the Application, the market has been divided into Industrial, Commercial, residential. 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.

By Distribution channel

Based on Distribution channel, the market has been divided into Ecommerce , Hyper market/ Super market, Specialty stores and others The water heater market, segmented by distribution channel, includes e-commerce, hypermarkets/supermarkets, specialty stores, and others, with e-commerce showing significant growth due to increasing online shopping trends and convenience.

Global Water Heater Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Water Heater, followed by those in Asia-Pacific and Europe.

Water Heater North America Market

North America dominates the Water Heater market due to several factors. Because water heaters are so widely used in the commercial, residential, and industrial sectors, the North American market for them will dominate this one. The United States dominated the market in terms of revenue. The area’s dominance is primarily due to the growing need for contemporary systems to replace antiquated water heaters.

Water Heater Asia Pacific Market

The Asia-Pacific region has been witnessing remarkable growth in recent years. From 2023 to 2032, the water heater market in Asia-Pacific is anticipated to develop at the quickest compound annual growth rate (CAGR). Numerous factors, such as the growing accessibility of gas and electricity in rural areas, increased infrastructure investment, the building industry’s rapid development, and the industrial expansion of South and South East Asian countries, are driving the demand for water heaters in the Asia Pacific region.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Ariston, Thermo Group, BAJAJ ELECTRICAL LTD, Noritz Corporation, and Bradford white Corporation are some of the leading players in the global Water Heater Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Ariston
• Thermo Group
• BAJAJ ELECTRICAL LTD
• Noritz Corporation
• Bradford white Corporation
• Rinnai Corporation
• Rheem Manufacturing Company
• Ao Smith Corporations
• HTP
• Haier Electronics Group Co.

Key development:

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.

Scope of the Report

Global Water Heater Market, by Type

• Electric water heater
• Gas water heater
• Solar water heater

Global Water Heater Market, by Application

• Industrial
• Commercial
• Residential

Global Water Heater Market, by Distribution channel

• Ecommerce
• Hyper market/ Super market
• Specialty stores and others

Global Water Heater Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $41.25 Billion/strong>
CAGR	7.56% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application, Distribution channel
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Ariston, Thermo Group, BAJAJ ELECTRICAL LTD, Noritz Corporation, Bradford white Corporation, Rinnai Corporation, Rheem Manufacturing Company, Ao Smith Corporations, HTP, Haier Electronics Group Co
Key Market Opportunities	• Rising emission requirements and technological advancements Government regulations and rapid urbanization
Key Market Drivers	• Increasing demand for water heaters that use less electricity Government requirements for energy efficiency Increasing need to replace old conventional water heaters

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Water Heater Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Water Heater market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Water Heater market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Water Heater Market.