Water Heaters Global Market Report 2024

The water heaters market size has grown strongly in recent years. It will grow from $37.29 billion in 2023 to $40.94 billion in 2024 at a compound annual growth rate (CAGR) of 9.8%. The expansion observed in the historical period can be attributed to factors such as a rise in disposable income, substantial investments, the adoption of the Internet of Things (IoT), and the introduction of new products with advanced features.

The water heaters market size is expected to see strong growth in the next few years. It will grow to $58.09 billion in 2028 at a compound annual growth rate (CAGR) of 9.1%. The anticipated growth in the forecast period can be attributed to increased internet penetration, a rise in merger and acquisition activity, and a growing demand for instant heating units. Major trends in the forecast period include the offering of smart water heaters to enhance energy efficiency, a focus on advancing hybrid water heaters or systems to meet increasing demand and boost revenue, companies contributing to the development of technologies for improved performance and grid power load management by temperature detection, investments in energy-efficient technologies for water heaters to reduce overall energy consumption in the heating process, collaboration with government associations for renewable energy and decarbonization purposes, and players in the market appealing to technology investments and associations to bolster their market presence.

The water heaters market is anticipated to experience growth due to the impact of rapid urbanization during the forecast period. According to the World Economic Forum (WEF), urban populations in Northern American countries accounted for the highest share, with 83.6 percent of residents living in cities, and globally, 56.2 percent of the population was urban. The increase in urbanization, combined with rising disposable incomes and affordability among city residents, is expected to drive the demand for the water heaters 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 October 2021, A.O. Smith Corporation, a US-based manufacturer of residential and commercial water heaters and boilers, acquired Giant Factories, Inc. for $192 million in cash. This strategic acquisition aimed to strengthen A.O. Smith's leadership position as a global supplier of residential and commercial water heaters. Giant Factories, Inc., based in Canada, is a manufacturer of residential and commercial water heaters.

Major companies operating in the water heaters market report are 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 2023. 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 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 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 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.


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