PUBLISHER: The Business Research Company | PRODUCT CODE: 1674060
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674060
Water heaters are appliances specifically designed to heat and generally store hot water for various domestic purposes. They operate using different energy sources, including gas, electricity, oil, or solar energy. These appliances are essential for daily activities such as bathing and cooking, and they also benefit from technological advancements that enhance energy efficiency and minimize environmental impact.
The primary product types of water heaters include solar heaters, electric heaters, gas and propane heaters, and geothermal heaters. A geothermal water heater is a component within a larger geothermal heat pump system that contributes to providing heated and cooled air for residential spaces. In a geothermal heat pump system, a water and antifreeze mixture circulates through loops buried in the ground to facilitate heating and cooling. Water heaters are distributed through various channels such as supermarkets/hypermarkets, specialty stores, e-commerce, and other distribution channels. These water heaters are utilized by residential, commercial, and industrial end-users.
The water heaters market research report is one of a series of new reports from The Business Research Company that provides water heaters market statistics, including water heaters industry global market size, regional shares, competitors with a water heaters market share, detailed water heaters market segments, market trends and opportunities, and any further data you may need to thrive in the water heaters industry. This water heaters market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The water heaters market size has grown strongly in recent years. It will grow from $64.74 billion in 2024 to $70.48 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to rise in disposable income, high investments, adaption of the internet of things (IoT) and new product launches along with advanced features.
The water heaters market size is expected to see strong growth in the next few years. It will grow to $96.03 billion in 2029 at a compound annual growth rate (CAGR) of 8.0%. The growth in the forecast period can be attributed to increased internet penetration, a rise in merger and acquisition activity and growing demand for instant heating units. Major trends in the forecast period include offering smart water heaters to protect the energy and increase the efficiency of the water heater, focus on bringing more advancements in hybrid water heaters or systems, to meet the rising demand and to increase their revenue, companies should consider helping in the development of technologies for improving performance, to switch the power load on the grid, by detecting the temperature, invest in the introduction of energy efficient technologies in water heaters to reduce the overall consumption of energy during the water treatment heating process, consider government associations to maintain their renewable energy and for decarbonization purposes and players in the market should consider appealing to technology investments and associations to develop the market presence.
Rapid urbanization is anticipated to drive growth in the water heater market during the forecast period. For instance, in January 2024, the Independent Commission for Aid Impact (ICAI), a UK-based information and services platform, projected that by 2050, over two-thirds (around 67%) of the global population will reside in urban areas. Additionally, data published by the World Bank in April 2023 indicated that 56% of the world's population, or approximately 4.4 billion people, lived in urban areas in 2023, with this number expected to more than double by 2050. The increase in the urban population, along with rising disposable incomes and improved affordability among city residents, is set to drive demand for water heaters. Therefore, rapid urbanization is a significant factor fueling the growth of the water heater market.
The growing need to reduce energy consumption is set to drive the water heaters market in the foreseeable future. Energy conservation is crucial for addressing climate change, preserving natural resources, reducing energy costs, enhancing energy security, and minimizing environmental pollution to foster a sustainable future. Energy-efficient water heaters play a pivotal role in achieving these objectives by reducing energy consumption, cutting utility bills, lowering greenhouse gas emissions, and promoting cost savings and environmental sustainability. For example, in May 2023, the US Energy Information Administration reported a 5% increase in US residential electricity bills in 2022, reaching $137 a month. This increase was influenced by elevated electricity usage due to extreme temperature fluctuations and higher fuel expenses for power generation. Therefore, the increasing emphasis on reducing energy consumption is expected to drive the growth of the water heaters market.
Water heater manufacturers are responding to the demand for energy-efficient products to reduce carbon footprints and enable energy savings for consumers. The push for energy-efficient appliances is driven by stringent government regulations on electric home appliances and technological advancements. Currently, more than 80 countries have established standards and labels for energy-efficient appliances. In the USA, an Energy Star certified water heater is estimated to save $3500 over its lifetime.
Major companies in the water heater market are introducing advanced technologies, exemplified by products such as the Otto and Orizzonte range of storage water heaters, to gain a competitive edge. These products, such as those launched by Havells in December 2022, offer unique designs, space-saving features, and precise water control. For instance, the Otto water heater features an exclusive circular design with a customizable temperature setting knob and a color-shifting LED indicator, while the Orizzonte model is a compact AC-type digital water heater designed for limited ceiling heights, incorporating a digital temperature display, energy-saving mode, touch control panel, wireless remote controller, and timer mode for precise heating duration settings.
In January 2024, Carrier Global Corporation, a U.S.-based company specializing in the design and manufacture of HVAC systems, acquired Viessmann Climate Solutions for an undisclosed amount. This acquisition aims to enhance Carrier Global Corporation's portfolio of sustainable climate solutions in response to the growing focus on renewable energy and energy transition. Viessmann Climate Solutions is a Germany-based manufacturer known for its heating and refrigeration systems, which include water heaters.
Major companies operating in the water heaters market include A. O. Smith Corporation, Rinnai Corporation, Vaillant Group, Ariston Thermo Group, Rheem Manufacturing Company, Viessmann Group, Haier Smart Home Co., Ltd., Bradford White Corporation, Robert Bosch GmbH, Bajaj Electricals Ltd, Crompton Greaves Consumer Electricals Ltd., Havells India Ltd., Taian Haoli Solar Energy Technology Co., Ltd., AquaWorld Group Co., Ltd., Changzhou XNE Technology Co., Ltd., Guangdong PHNIX Eco-Energy Solution Ltd., Siemens AG, Stiebel Eltron International GmbH, Telford Copper & Stainless Cylinders, Hamworthy Heating, Sun Ray, PBS Power Equipment, s.r.o., Enerstena Group, Petrojet Trade s.r.o., Druzstevni zavody Drazice company, Noritz Corporation, General Electric (GE), ATMOR, Kyungdong Navien Co.,Ltd., Viesmann Group, Whirlpool Corporation, Alfa Laval, Carrier Corporation, Apen Group, State Industries, American Water Heaters, EcoSmart US, Goodman, ABRAVA- DASOL, Aquecedor Solar Transsen Ltda., Br Solar, IEM - Intercambio Eletro Mecanico Ltda., Dana Water Heaters and Coolers Factory LLC, Al Khatib Electrical Water Heater Factory, Pure Blue International LLC, Solar Ray, Genersys South Africa, GoSolar CC, ITS Solar, Kwikot (Pty) Ltd.
Asia-Pacific was the largest region in the water heaters market in 2024. Western Europe was the second-largest region in the global water heaters market share. The regions covered in the water heaters market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the water heaters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The water heaters market consists of sales of solar water heaters, electric water heaters, geothermal water heaters, and other water heaters. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Water Heaters Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on water heaters market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for water heaters ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The water heaters market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.