Residential Water Heater Market - Forecasts from 2023 to 2028

The residential water heater market is expected to grow at a CAGR of 5.8% from a market size of US$16.336 billion in 2021.

A residential water heater is a home appliance designed to provide a continuous supply of hot water for domestic use, and it is responsible for heating water to a desired temperature for activities such as bathing, cleaning, washing dishes, and doing laundry. The primary function of a residential water heater is to ensure that households have readily available hot water on demand. The different types of residential water heaters include tank water heaters, tankless water heaters, solar water heaters, and hybrid water heaters. The selection of a residential water heater depends on factors like household size, hot water usage patterns, energy efficiency, and budget considerations. The increasing hot water usage for bathing and cleaning purposes boosts the demand for residential water heaters, positively impacting their market growth.

The surge in hot water usage for bathing and cleaning activities is driving the residential water heaters market growth.

Hot water is considered an essential requirement for personal hygiene and cleanliness. Consequently, the demand for hot water for bathing and cleaning has steadily increased. Many people now view bathing as a therapeutic and rejuvenating experience, often involving hot water. This shift in consumer behavior has further amplified the demand for residential water heaters that can provide a consistent hot water supply at the desired temperature. Individuals are opting for hot water to ensure effective cleaning and disinfection of various surfaces, utensils, and fabrics due to growing awareness of hygiene and cleanliness. This has increased the need for reliable and efficient residential water heaters to cater to these demands. According to the Institute of Physics (IOP) Environmental Research Infrastructure and Sustainability report in 2022, water heating accounted for 7%-20% of total electricity consumption in the analyzed single-family residential homes, representing an average of 1-8 kWh d−1 of electricity consumption and 7-55 gallons (26-208 l) of hot water per day. According to the World Bank's forecast of China's urbanization rate in 2020, China's urbanization rate will be 80.0% in 2050, and at this time, the proportion of water used in the bathing part will reach near the peak. This demonstrates that residential water heaters will have a great demand in the future.

The Asia-Pacific region is expected to hold a significant market share throughout the forecast period.

The Asia-Pacific region is anticipated to dominate the market with a sizeable market share due to a rapidly growing population in China and India which has increased hot water consumption in bathing and cleaning activities. Also, the improved living standards and increased consumer spending are further acting as additional driving factors. The Union Budget, 2021-22 of India announced that Jal Jeevan Mission (Urban) should provide tap connections for 2.86 crore households to access safe water. This aligns with the rural water supply initiative the national government initiated in 2019. In 2019, Henan, a province in central China, intends to upgrade its air quality by converting 2 million homes from coal to gas or electricity-powered heaters. Such positive developments boost the growth of residential water heaters, thereby accelerating their regional market growth.

Market Developments:

• April 2023: Haier launched a Casarte Hybrid water heater” in China, which comes with a 16-liter water capacity, can operate either from gas or electric power input, and has three heating modes to suit the needs of users at any time
• December 2022: Havells introduced a storage water heater, Otto, with a blend of elegant design, advanced technology, convenience, and safety, and the Otto model comes in three variants, that is with 10 liters, 15 liters, and 25 liters water capacity.
• December 2022: A.O. Smith released a new energy-efficient water heater, ‘Elegance Prime,’ with Rust Resistant Integrated Diffuser (RRID) technology that can enhance hot water output and save energy costs.
• September 2022: Media launched a new water heater range, 20VDI, in India, designed to redefine the bathing experience by providing 9-minute faster heating with less energy consumption.

Market Segmentation:

By Type

• Tank Water Heater
• Tankless Water Heater
• Solar Water Heater
• Hybrid Water Heater
• Others

By Source

• Electricity
• Natural Gas
• Solar Energy
• Others

By Application

• Bathing
• Cleaning & Washing

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others