Global Water Heater Market – Industry Trends and Forecast to 2031

Global Water Heater Market, By Product (Instant and Storage), Capacity (Below 30 Liters, 30 - 100 Liters, 100 - 250 Liters, 250 - 400 Liters, and Above 400 Liters), Application (Residential, Commercial, and Industrial), Fuel (Natural gas and LPG), Product Type (Solar Heaters, Electric Heaters, Gas and Propane Heaters, and Geothermal Heaters), Storage Type (Storage Heater, Tankless Heater, and Hybrids Heater) – Industry Trends and Forecast to 2031.

Water Heater Market Analysis and Size

Water heater market advancements include energy-efficient designs utilizing heat pump technology for reduced electricity consumption. Smart integration allows remote control via mobile apps, enhancing user convenience and energy management. Growth is driven by increasing adoption in residential and commercial sectors, supported by innovations in tankless systems offering instant hot water.

The global water heater market size was valued at USD 29.26 billion in 2023 and is projected to reach USD 43.43 billion by 2031, with a CAGR of 5.06% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and consumer behaviour.

Report Scope and Market Segmentation

Market Definition

A water heater is a device used to heat water for domestic or commercial purposes. It typically consists of a tank or tankless unit that heats water using electricity, gas, or solar energy. Hot water is stored and dispensed as needed through faucets, showers, or appliances such as dishwashers and washing machines, providing convenience for daily activities requiring hot water.

Water Heater Market Dynamics

Drivers

• Rising Demand for Instantaneous Water Heating

The rising demand for instantaneous water heating systems is accelerating market growth. Consumers increasingly favor on-demand systems such as tankless water heaters, which provide immediate hot water without the need for storage tanks. These systems offer convenience, space savings, and energy efficiency, appealing to urban dwellers and environmentally conscious homeowners. For instance, sales of tankless water heaters in North America have surged due to their compact design and ability to deliver hot water on demand, meeting modern lifestyle demands effectively.

• Rising Industrial and Commercial Applications

The increasing demand for water heaters in industrial and commercial sectors, such as hospitality, healthcare, and manufacturing, is a significant driver for market growth. These industries require reliable and efficient water heating solutions to ensure operational continuity and compliance with regulatory standards. For instance, hotels and hospitals need consistent hot water supply for guest rooms and patient care, while manufacturing facilities rely on hot water for various processes, fostering robust demand and innovation in the water heater market.

Opportunities

• Supportive Government Incentives and Rebate Programs

Government incentives and rebate programs for energy-efficient water heaters create significant opportunities in the market by driving consumer adoption of high-efficiency models. For instance, in the U.S., the federal government offers tax credits up to USD300 for residential energy-efficient appliances, including water heaters meeting ENERGY STAR criteria. Such initiatives not only reduce upfront costs for consumers but also promote sustainable choices, fostering growth in the energy-efficient water heater segment.

• Growing Urbanization and Housing Development

Rapid urbanization and expanding housing projects globally are creating opportunities in the water heater market, especially for compact and efficient solutions suited to urban dwellings such as apartments and high-rises. For instance, tankless water heaters are increasingly favored in densely populated urban areas due to their space-saving design and on-demand heating capabilities. This trend underscores a growing market niche for innovative, space-efficient water heating technologies tailored to urban living environments.

Restraints/Challenges

• Fluctuating Raw Material Prices

Fluctuating raw material prices, including steel, copper, and plastics, are a significant challenge for the water heater market. These price fluctuations, influenced by global economic conditions and supply chain disruptions, directly impact production costs and pricing strategies. This instability complicates financial forecasting and can lead to inconsistent profit margins for manufacturers, thereby hindering market stability and growth.

• High Installation and Maintenance Costs

High installation and maintenance costs deter consumers from replacing or upgrading water heaters, particularly during economic uncertainty. This results in longer replacement cycles and slower market growth, hindering overall market expansion.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In December 2023, GM Modular launched the R1X storage water heater at Acetech Exhibition 2023 in Delhi. Priced at USD 222.86, it's available on GM Modular's website, outlets, and platforms such as Amazon and Flipkart
• In December 2023, Rheem expanded its Maximus series with two new models: the 75-gallon Maximus Heavy Duty featuring LeakSense technology, and the Maximus Plus in 40-gallon and 50-gallon sizes, enhancing options in super high-efficiency gas water heaters
• In October 2023, Racold introduced high-end water heaters including the Omnis DG Wi-fi with voice control and energy-saving features, and the Omnis DG with a digital display and silver ion technology to prevent bacteria growth
• In September 2022, A. O. Smith unveiled the Voltex AL hybrid electric heat pump water heater in residential variants: 66-gallon with a UEF of 4.02, and 50-gallon with a UEF of 3.8, known for being the market's most efficient water heater

Water Heater Market Scope

The market is segmented on the basis of product, capacity, application, fuel, product type, and storage type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product

• Instant
• Storage

 Capacity

• Below 30 Liters
• 30 - 100 Liters
• 100 - 250 Liters
• 250 - 400 Liters
• Above 400 Liters

 Application

• Residential
• Commercial
  • College/University
  •  Office
  •  Government/Military
• Industrial

 Fuel

• Natural gas
• LPG

 Product Type

• Solar Heaters
• Electric Heaters
• Gas and Propane Heaters
• Geothermal Heaters

 Storage Type

• Storage Heater
• Tankless Heater
• Hybrids Heater

Water Heater Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by product, capacity, application, fuel, product type, and storage type as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

North-America is expected to dominate the water heater market, driven by rising demand for energy-efficient systems and advancements aimed at reducing environmental impact. These factors are anticipated to spur increased adoption of water heaters across the region.

Asia-Pacific is expected to hold the largest growth rate in the water heater market due to the rapidly growing population and urbanization in the region. Increasing demand for hot water heater in residential, commercial, and industrial sectors is driving the market expansion, with innovations and energy-efficient solutions further boosting growth.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Water Heater Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• Rinnai America Corporation (Japan)
• Ariston Thermo USA LLC  (U.S.)
• Bradford White Corporation, USA  (U.S.)
• Noritz America  (U.S.)
• Ariston Holding N.V. (Italy)
• Rheem Manufacturing Company  (U.S.)
• BSH Home Appliances Group (Germany)
• GE Appliances  (U.S.)
• Alternate Energy Technologies  (U.S.)
• Chromagen (Australia)
• V-GUARD INDUSTRIES LTD (India)
• Bosch Thermotechnology Corp. (Germany)
• Linuo Ritter International Co., Ltd (China)
• Westinghouse Electric Corporation (U.S.)