The global water heater market was valued at USD 27.36 billion in 2019 and is poised to grow at a CAGR of 4.0% over forecast period 2020 to 2027.
Increasing hot water demand from various residential applications, including bathing, washing, cleaning, and cooking, is anticipated to augment the market growth over the forecast period. Asia Pacific dominated the global market in terms of revenue in 2019, wherein China is projected as the leading economy for solar water heaters accounting for the majority share in the region owing to large potential to generate solar power. Initiatives such as changes in energy policy and increasing dependence on renewable sources to limit pollution are anticipated to further bolster the market growth. The U.S. dominated the North American market in terms of revenue in 2019. The dominance is majorly attributed to the rising demand for replacement of conventional water heaters with the advanced systems. Also, rapid urbanization coupled with ongoing investments in the infrastructure sector is expected to fuel market growth.
Electric led the water heaters market and accounted for 52% of the revenue share in 2020 owing to the rising electrification rate mainly across the Asia Pacific and African economies. The improving electrification rate coupled with increasing accessibility at the consumer end is likely to drive the demand for electric water heaters over the forecast period.
Solar water heaters are projected to witness a CAGR of 4.8% from 2020 to 2027 on account of the growing consumer demand for energy-efficient and eco-friendly water heating systems. Increasing the focus of various product manufacturers on developing new systems and technologies that function with more efficiency is likely to propel the market growth.
Stringent government regulations to curb greenhouse gas emissions coupled growing focus on controlling energy consumption owing to the rapid depletion of non-renewable resources is likely to have a positive impact on the demand for solar water heaters. Also, increasing ecological awareness in both developed and developing countries is further anticipated to complement the adoption of solar water heaters in the coming years.
Expansion of piped gas networks across various developing economies is projected to result in the widespread adoption of gas water heaters over the forecast period. Also, increasing focus on product innovation and differentiation is further expected to bolster the demand for the gas water heaters, thereby benefitting the overall market growth.
Storage led the market and accounted for a 55.4% share of the global revenue in 2020 owing to the high energy conversion potential and low maintenance requirement of the product. Moreover, product demand can be attributed to their increased installation in commercial and industrial applications in various cold regions across the globe.
Tankless water heaters are projected to witness an anticipated CAGR of 4.5% from 2020 to 2027 owing to various product features such as quick hot water delivery and low standby heating losses. Furthermore, the tankless water heaters consume less power than storage water heaters, which is expected to increase their adoption over the coming years.
Tankless water heaters offer benefits such as precise temperature control over a longer duration, energy efficiency, and improved environmental sustainability. Surging product deployment across various commercial spaces on account of the advanced operational benefits such as low electricity or heating cost, as well as the extensive control features, is anticipated to augment the demand for water heaters over the forecast period.
Hybrid water heaters are likely to witness increased demand owing to key product characteristics of providing cooling and heating facility from the single device. These water heaters use electricity to move heat from one place to another instead of directly generating electricity owing to which they can be more energy-efficient as compared to electric water heaters.
The 30 - 100 liters capacity water heater segment led the market and accounted for a 29.9% revenue share in 2020 owing to the high application suitability across residential as well as various commercial establishments including healthcare, banks, hotels, government institutions, and shopping complexes.
Surging urbanization, coupled with ongoing migration to urban areas, is likely to bolster the demand for 100 - 250-liter water heaters. The availability of the product in multiple capacities is addressing several customer needs, such as its usage in saunas, kitchens, washrooms, and swimming pools, which, in turn, is driving the market growth.
The water heater segment with the capacity below 30 liters is projected to expand at a CAGR of 3.9% over the forecast period on account of the increasing deployment of the low capacity heating systems majorly across residential establishments. Also, surging adoption of storage units is likely to increase the installation of below 30 liters water heaters in the forthcoming years.
The 250 - 400-liter capacity segment is anticipated to witness substantial growth over the forecast period majorly owing to the stringent industry regulations regarding the replacement of conventional heaters by these water heaters. This replacement is likely to reduce the standby heat losses as well as offer a cost-effective heating system across huge commercial applications.
The residential segment led the market and accounted for 55.5% of the global revenue share in 2020. Factors including rising disposable incomes, rapid residential infrastructural development, increasing electrification rate, and expanding piped gas network, most notably across various developing countries are anticipated to drive the demand for water heaters in the residential sector.
Increasing demand for dependable, eco-friendly, and affordable technologies for heating water, particularly in the industrial and residential sectors, is projected to propel the industry growth. Additional product features such as the capability to function at lower costs, up to 75% lower in summer, and 30% to 40% lower in winter are projected to augment the product demand over the forecast period.
The product demand in the commercial sector is expected to expand at a CAGR of 4.3% over the forecast period owing to increased government spending towards the development of healthcare centers, which in turn, will significantly augment the water heater installations. Furthermore, augmented deployment of tankless water heaters across commercial offices along with ongoing technological advancement is likely to fuel the market growth.
The commercial application segment consists of small and large commercial institutions, sports facilities, educational institutions, and healthcare facilities. Increasing demand for hot water across military and government facilities to address the critical requirements for hot water is expected to propel the product demand in the commercial sector over the forecast period.
Asia Pacific dominated the market and accounted for a 36.8% share of global revenue in 2020 and is anticipated to continue its dominance over the forecast period. Economic development across countries such as China and India, coupled with the increasing availability of gas and electricity across the rural areas, is expected to increase the demand for water heaters over the forecast period.
The European water heaters market is expected to witness a CAGR of 3.9% over the forecast period. This growth can be attributed to the surging demand for superior and reliable water heaters from various commercial and industrial end-users. Furthermore, the need for hot water to meet the required environmental conditions owing to extreme cold weather in the region is likely to fuel the product demand.
Rapid growth in domestic and international migration in the North America region has resulted in increased demand for housing, leading to increased residential construction. Furthermore, the well-established industrial infrastructure in the region is expected to bolster the demand for water heaters, thereby augmenting the regional market growth.
Brazil accounted for a substantial revenue share in the Central and South America market owing to increased adoption of tankless water heaters that cater features such as inbuilt Wi-Fi, leak detection systems, and extensive communication option. Also, owing to the recuperating construction sector in the country, investments in high-rise luxury apartment buildings are expected to increase, which, in turn, is likely to benefit market growth.
Some of the prominent players in the water heater market include:
Robert Bosch LLC
Ariston Thermo SpA
Rheem Manufacturing Company
Bradford White Corporation
Westinghouse Electric Corporation
Bajaj Electricals Ltd
Havells India Ltd
Lennox International Inc.
The Water heater market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Water heater market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Water heater market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Water heater market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Water heater market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Water heater capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Water heater by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Water heater market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Water heater market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Water heater market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Water heater industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Water heater 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 Water heater market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Water heater market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Water heater market. These factors have benefited the growth of the global market for Water heater. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Water heater. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
Below 30 Liters
30 - 100 Liters
100 - 250 Liters
250 - 400 Liters
Above 400 Liters
Central & South America
The Middle East & Africa
In this study, the years considered to estimate the market size of Water heater are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are: