Global Water Heater Market Grows Steadily at a CAGR of 4.60%

Introduction

A heat transfer process called "water heating" raises the water temperature above its initial value. In the average home, hot water is used for space heating, cooking, cleaning, and bathing. Traditional water heaters, kettles, cauldrons, pots, and coppers heat water in the home. These metal containers do not continuously supply heated water at a set temperature.

Market Dynamics

Rising Requirements for Energy-Efficient Water Heating Systems and Technological Progress Drives the Global Market

Energy and environmental constraints are having a growing impact on energy-efficient appliances and building materials; many contractors, builders, and engineers that support and work on green projects now prioritize energy efficiency. Furthermore, green technology and sustainability are becoming more significant in the United States as various states and cities around the country enact legislative measures to reduce greenhouse gas emissions and energy use in buildings. More stringent building standards and regulations are predicted to raise demand for clever and energy-efficient water heating systems in the coming years.

Growing Activities Related to Residential and Commercial Construction Creates Tremendous Opportunities

Several developing countries' governments have significantly invested in public infrastructure, including hospitals, offices, and housing cooperatives. The rising appeal of single-family homes is one of the epidemic's primary trends. Before the epidemic, many Americans, especially the younger generations, had been relocating to denser urban areas in search of better job prospects and more enticing lifestyles.

However, these high-density metropolitan areas typically have fewer single-family homes because the most recent construction is geared toward multi-family, high-density homes. Due to the difficulties in upholding the necessary social distance rules, these trends have altered since the pandemic. The trend toward working and studying from home has increased the demand for additional living space.

Regional Analysis 

Asia-Pacific is the most significant global water heater market shareholder and is expected to grow at a CAGR of 4.90% during the forecast period. As emerging nations like China, India, and Vietnam seek to recover economically from the recent epidemic, it is projected that the demand for water heaters will rise dramatically over the forecast period. The market is expanding due to increased infrastructure spending, a robust housing market, and the economies of South Asian and South East Asian countries. The economic growth of countries like China and India and the rising accessibility of gas and electricity in semi-urban parts of China are expected to drive an increase in demand for water heaters throughout the projected period.

Europe is anticipated to increase at a CAGR of 4.30%, generating USD 10,984.41 million during the forecast period. Government infrastructure investments in the digital and transportation sectors will likely promote regional economic growth. Private investments, particularly in the construction industry, are expected to stimulate regional economic expansion. In addition, the necessity for hot water in Europe's cold climate zones is anticipated to fuel the demand for water heaters. Regulations like the Ecodesign Directive, which focused on the energy efficiency and NOx emissions of water heaters, boilers, and space heaters, have driven the market for heating equipment.

Key Highlights

• The global water heater market was valued at USD 27.15 billion in 2021. It is projected to reach USD 40.70 billion by 2030, growing at a CAGR of 4.60% during the forecast period (2022-2030).
• Based on product, the global water heater market is bifurcated into electric, gas, and solar. The electric segment is the highest contributor to the market and is expected to grow at a CAGR of 4.15% during the forecast period.
• Based on technology, the global water heater market is bifurcated into tankless, storage, and hybrid. The storage segment owns the highest market share and is expected to grow at a CAGR of 4.10% during the forecast period.
• Based on capacity, the global water heater market is bifurcated into below 30 liters, 30 - 100 liters, 100 - 250 liters, 250 - 400 liters, and above 400 liters. The 30 - 100 liters segment is the highest contributor to the market and is anticipated to grow at a CAGR of 3.90% over the projected period.
• Based on application, the global water heater market is bifurcated into residential, commercial, and industrial. The residential segment owns the highest market share and is expected to grow at a CAGR of 4.20% during the forecast period.
• Asia-Pacific is the most significant global water heater market shareholder and is expected to grow at a CAGR of 4.90% during the forecast period.

Competitive Players

1. A.O. Smith
2. Robert Bosch LLC
3. Ariston Thermo SpA
4. Rheem Manufacturing Company
5. Rinnai Corporation
6. Bradford White Corporation
7. NORITZ Corporation
8. Whirlpool Corporation
9. Westinghouse Electric Corporation
10. Bajaj Electricals Ltd.

Recent Developments

• February 2024 – At Chicago Athenaeum GOOD DESIGN Awards, A. O. Smith was honored for his Voltex AL Hybrid Electric Heat Pump Water Heater (HPWH) with awards from The Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design and Urban Studies for excellence in design.
• January 2024 - A business in India's Fast Moving Electrical Goods (FMEG) industry, Goldmedal Electricals, debuted the Iconiq and Iconiq Digi Storage Water Heaters amid the height of the country's winter.

Segmentation

1. By Product
   1. Electric
   2. Gas
   3. Solar
2. By Technology
   1. Tankless
   2. Storage
   3. Hybrid
3. By Capacity
   1. Below 30 liters
   2. 30 - 100 liters
   3. 100 - 250 liters
   4. 250 - 400 liters
   5. Above 400 liters
4. By Applications
   1. Residential
   2. Commercial
   3. Industrial