Emerging Standard of Living is Propelling the Global Water Heater Market

The global water heater market is projected to have a CAGR of around 5.7% during the forecast period (2024-2031). The market growth is driven by the increasing disposable income of the people along with improving the standard of living in emerging economies. Additionally, the increasing number of government subsidiaries regarding energy-efficient water heaters for domestic and industrial purposes is propelling the market. The growing application of water heaters in commercial sectors such as hotels, hospitals, and spas is further propelling the market. Moreover, the rising adoption of solar water heaters is bolstering the market during the forecast period.  However, the solar water heater has a comparatively high installation cost and requires more space for installing the solar panels which is restraining the market growth. Additionally, less penetration in developing and under-developed economies is challenging market expansion.

The global water heater market is segmented by energy source (gas, electricity, hybrid, and solar), by mode of water supply (on-demand or tank-less, and storage or tank water heater), by end-user (residential, commercial, and industrial), and geography (North America, Europe, Asia-Pacific, and Rest of the World). 

Market Dynamics

• The residential water heaters segment is anticipated to hold the largest market share during the forecast period. The segmental growth is mainly attributed to the increase in disposable income and rapid residential infrastructural development that increases the usage of water heaters.

• The increasing global population and increasing energy consumption are additionally contributing to the growth of the residential sector. Furthermore, the significant benefits of small smart water heating appliances and growing demand for hot water in small and mid-size families is propelling the segment growth. 

• North America is expected to have considerable growth owing to significant usage in the commercial, domestic, and industrial sectors. The replacement of conventional water heaters with advanced systems is further propelling the market growth. 

• Asia-Pacific held the major share owing to the increasing disposable income, the large potential to generate solar power, and the rising adoption of solar water heaters in the region. Additionally, supportive government initiatives for the adoption of solar water heaters in the region are further expanding the regional market. 

The major players in the global water heater market include A.O. Smith Corp., Ariston Thermo S.P.A., Bradford White Corp., General Electric Co., Bajaj Electricals Ltd., Noritz Corp., Haier Group, Havells India Ltd, Rheem Manufacturing Co., Vaillant Group, and Whirlpool Corp., Venus Home Appliances (P) Ltd. among others. The market players are actively adopting different growth strategies such as mergers & acquisitions, capacity expansion, and product innovation among others, contributing significantly to the market growth.  

Recent Development

• In January 2024, A. O. Smith launched its Adapt™ Premium Condensing Gas Tankless Water Heaters with X3® Scale Prevention Technology. The product features an integrated recirculation pump and patented heat exchanger; enhanced installation flexibility and highly efficient performance. It serves both residential and commercial markets. 

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