Market Insight- Global Water Heater Market 2017-2027

Market Overview

A water heater or storage water heater is a domestic water heating appliance that uses hot water storage tank to optimize heating capacity provide prompt hot water whenever needed. Conventional storage water heaters use a variety of fuels namely electricity, oil, propane, natural gas, and oil. However, unconventional heaters use solar energy to provide hot water. Solar water heater has been adopted widely around the world since it clean, renewable, and cost-efficient. The selection of a proper water solar depends upon several factors such as availability of fuels, type of building that it is being installed, fuel cost, requirements of household, and user safety. Water heaters are used for residential as well as commercial purposes.

The global water heater market is estimated to account for US$ 47,764.8 Mn in terms of value in 2019 and is expected to grow at a CAGR of 4.9% during the forecast period.

Market Dynamics- Drivers

  1. High growth construction and manufacturing industry is expected to drive growth of the global water heater market during the forecast period

Water heater has been extensively used in manufacturing as well as construction industries, owing to efficient distribution supply, ample raw material supply, and other factors. Both aforementioned industries have witnessed significant growth in the recent past, especially in developed countries. Moreover, increasing development of construction industry in emerging economies such as India and China is expected to boost the demand for water heaters during the forecast period. Furthermore, longer product life, easy reimbursement and replacement, and efficient aftermarket service are expected to drive the global water heater market growth during the forecast period.

  1. Growing urbanization across the world is expected to propel the global water heater market growth over the forecast period

Increasing urbanization worldwide has led to consumer buying household appliances. For instance, water heater appliances have gained significant traction in market in terms of revenue contribution and product demand. According to Coherent Market Insights’ analysis, in 2018, around 54% of the world’s total population inhabited urban areas. According to the same source, majority of population from North America, Latin America, Europe, and the Caribbean region resided in urban population. Furthermore, African urban population is expected to reach around 1.2 billion between 2010 and 2050. Governments of African countries are launching programs to promote the use of solar water heaters, in order to reduce the consumption of electricity. This, in turn, is expected to boost the market growth over the forecast period.

Europe region dominated the global water heater market in 2018, accounting for 37.6% share in terms of value, followed by Asia Pacific and North America, respectively.

Water Heater  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Constant struggle to meet quality and energy efficiency standards is expected to restrain growth of the global water heater market during the forecast period

Water heater manufacturers need to ensure that their product complies with quality and energy efficiency standards. According to Coherent Market Insights’ analysis, Energy consumed for water heating is second highest in households, accounting for around 20% of energy consumed globally under HVAC in the residential sector. Furthermore, inadequate energy efficiency, durability, and thermal insulation are other factors hindering the market growth in the near future. According to the National Appliance Energy Conservation Act (NAECA) 2015, 30-gallon capacity electric water heater needs to be pass 0.95 energy factor (EF) rating in the U.S.

  1. Availability of specific fuel, low awareness among populace, installation challenges, and cost limitations are expected to hinder the global water heater market growth over the forecast period

Lack of awareness among populace, especially in rural areas is expected to hamper the market growth over the forecast period. Moreover, roof space availability, high cost related to solar water heaters installation, and cost-constraints are expected to hinder the market growth in the near future. According to NACEA regulations in the U.S., storage-type water heaters must comply with energy efficiency standards coupled with size specifications. Furthermore, storage-type water heaters need large space for installation, typically in closets or multi-family housing in North America and Europe. This, in turn, is expected to hinder the adoption and thereby restrict the market growth over the forecast period.

Market Opportunities

  1. Use of renewable energy instead of conventional fuel source is expected to pose lucrative growth opportunities

Consumers are increasingly shifting towards renewable energy, owing to growing awareness regarding benefits of renewable energy, cost-efficiency, and better results. Solar heaters are widely installed in residential as well as commercial building, in order to reduce electricity bills. Moreover, governments of various countries offer low interest loans and subsidies for solar heater installation, which in turn, is expected to increase adoption of solar water heaters in the near future.

  1. Advancement in existing technologies is expected to offer significant opportunity for market players

Although water heater has been widely used, manufacturers are focused on introducing novel technologies and features in their upcoming products. Manufacturers are focused on introducing water heaters with higher wattage for quicker heating of water, auto supply, pre-set time supply, manual control of water, larger storage tanks, energy-efficient design, etc. Consumers prefer energy-efficient water heaters and are shifting towards automated appliances. This, in turn, is expected to offer excellent growth opportunities for market players in the near future.

Water Heater  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Development of hybrid solutions is a major trend in the market

Key companies in the market are focused on introducing hybrid water heater solutions, in order to cater to constant consumer demand energy efficiency and high performance. For instance, Rheem Manufacturing has developed a hybrid water heater that enables savings of over US$ 4,000 during the total lifespan of product. Other specifications of this product includes Wi-Fi connectivity enabling user control and temperature customization, system monitoring while at home and away. Development of hybrid water heater solutions has offered ease of use to consumers with some models offering vacation mode, which enables them to power down or switches off heaters when they are away from home.

  1. Replacement of old tanks is another major trend in the market

In the U.S. commercial and residential sectors, replacement of old storage tanks has gained significant traction in the recent past. This is owing to increasing demand for advanced systems due to improving living standards. For instance, replacement of electric water heaters accounts for around 80% value of the total replacement market, followed by gas water heater replacement.

Electric Heaters segment of global water heater market is expected to be the largest during the forecast period and is expected to grow at a CAGR of 5.6% during the forecast period.

Water Heater  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players operating in the global water heater market are A. O. Smith Corporation, Zhongshan Inse Group Co, Ltd., Haier Electronics Group Co., Ltd., Himin Solar Co., Ltd., Ariston Thermo Group, Genrui, Bajaj Electricals Ltd., Rheem Manufacturing Company, Jiaxing Jinyi Solar Energy Technology Co, Ltd., Noritz Corporation, SIEMENS AG, Bradford White Corp., and Venus Home Appliances (P) Ltd.

Key Developments

  1. Key players in the market are focused on product launches, in order to enhance product portfolio. For instance, in January 2019, Rheem Manufacturing Company showcased its sustainable air and water innovations in 2019 AHR EXPO.
  2. Major companies in the market are involved in mergers and acquisitions, in order to enhance their market presence. For instance, in January 2019, Noritz Corporation, a Japan-based tankless water heater maker, acquired PB Heat, a manufacturer of cast iron and stainless steel boilers.

A water heater or storage water heater is a domestic water heating appliance that uses hot water storage tank to optimize heating capacity provide prompt hot water whenever needed. Different type of fuel is used for water heating including natural gas, fuel gas, electricity, and solar energy. The solar water heater is one of the fastest growing segment in the global water heater market. Consumers are increasingly shifting towards renewable energy, owing to growing awareness regarding benefits of renewable energy, cost-efficiency, and better results. Solar heaters are widely installed in residential as well as commercial building, in order to reduce electricity bills. Moreover, governments of various countries offer low interest loans and subsidies for solar heater installation, which in turn, is expected to increase adoption of solar water heaters in the near future.

Increasing development of construction industry in emerging economies such as India and China is expected to boost the demand for water heaters during the forecast period. Furthermore, longer product life, easy reimbursement and replacement, and efficient aftermarket service are expected to drive the global water heater market growth during the forecast period.

Market Taxonomy

This report segments the global Water Heater Market on the basis of product type, storage type, end use and region. On the basis of product type, the market is segmented into solar heaters, electric heaters, Gas and Propane Heaters, and geothermal heaters. On the basis of storage type, the market is segmented into storage heater (tank type), tankless heater, and hybrid (heat pump) heaters. On the basis of end use, the market is segmented into residential and commercial. For a comprehensive understanding of market dynamics, the market is analyzed across key geographical regions, namely, North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Each of these regions is analyzed on the basis of market findings across major countries in these regions, for a macro-level understanding of the market.

Key features of the study:

  • This report provides an in-depth analysis of the global Water Heater Market with market size (Thousand Units & US$ Million) and CAGR (%) over the forecast period: 2019 – 2027, considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by leading players
  • It profiles leading players in the global Water Heater Market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments, and strategies
  • Key companies covered as part of this study include A. O. Smith Corporation, Zhongshan Inse Group Co, Ltd., Haier Electronics Group Co., Ltd., Himin Solar Co., Ltd., Ariston Thermo Group, Genrui, Bajaj Electricals Ltd., Rheem Manufacturing Company, Jiaxing Jinyi Solar Energy Technology Co, Ltd., Noritz Corporation, SIEMENS AG, Bradford White Corp., and Venus Home Appliances (P) Ltd. among others.
  • Insights from this report will allow marketers and management authorities of companies to make informed decisions with respect to future product launches, technology upgrades, market expansion, and marketing tactics
  • Various strategy matrices used in analyzing the global Water Heater Market would provide stakeholders vital inputs to make strategic decisions accordingly

Detailed Segmentation:

  • Global Water Heater Market, By Product Type:
    • Direct TPMS
    • Indirect TPMS
  • Global Water Heater Market, By Vehicle Type:
    • Passenger Car
    • LCV
    • HCV
  • Global Water Heater Market, By Sales Channel:
    • OEM
    • Aftermarket
  • Global Water Heater Market, By Region:
    • North America
      • By Country
        • U.S.
        • Canada
      • By Segmentation
        • By Product Type:
          • Direct TPMS
          • Indirect TPMS
        • By Vehicle Type:
          • Passenger Car
          • LCV
          • HCV
        • By Sales Channel:
          • OEM
          • Aftermarket
    • Europe
      • By Country
        • Germany
        • Italy
        • U.K.
        • France
        • Spain
        • Russia
        • Rest of Europe
        • By Product Type:
          • Direct TPMS
          • Indirect TPMS
        • By Vehicle Type:
          • Passenger Car
          • LCV
          • HCV
        • By Sales Channel:
          • OEM
          • Aftermarket
    • Asia Pacific
      • By Country
        • China
        • Japan
        • Australia
        • India
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
      • By Segmentation
        • By Product Type:
          • Direct TPMS
          • Indirect TPMS
        • By Vehicle Type:
          • Passenger Car
          • LCV
          • HCV
        • By Sales Channel:
          • OEM
          • Aftermarket
    • Latin America
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
      • By Segmentation
        • By Product Type:
          • Direct TPMS
          • Indirect TPMS
        • By Vehicle Type:
          • Passenger Car
          • LCV
          • HCV
        • By Sales Channel:
          • OEM
          • Aftermarket
    • Middle East and Africa
      • By Country
        • GCC Countries
        • Israel
        • South Africa
        • Rest of Middle East and Africa
      • By Segmentation
        • By Product Type:
          • Direct TPMS
          • Indirect TPMS
        • By Vehicle Type:
          • Passenger Car
          • LCV
          • HCV
        • By Sales Channel:
          • OEM
          • Aftermarket
  • Company Profiles
    • A. O. Smith Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Zhongshan Inse Group Co, Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Haier Electronics Group Co., Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Himin Solar Co., Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Ariston Thermo Group
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Genrui
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Bajaj Electricals Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Rheem Manufacturing Company
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Jiaxing Jinyi Solar Energy Technology Co, Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Noritz Corporation
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • SIEMENS AG
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Bradford White Corp.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates
    • Venus Home Appliances (P) Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Recent Developments/Updates

*Browse all the market data tables and figures on “Global Water Heater Market - forecast to 2027”.

Table of Content

  1. Research Objective and assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet By Product Type
      • Market Snippet By Storage Type
      • Market Snippet By End Use
      • Market Snippet By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Approvals/Launch
  4. Global Water Heater Market, By Product Type, 2017 - 2027 (Thousand Units & US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Solar Heaters
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Electric Heaters
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Gas And Propane Heaters
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Geothermal Heaters
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
  5. Global Water Heater Market, By Storage Type, 2017 - 2027 (Thousand Units & US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Storage Heater (Tank Type)
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Tankless Heater
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Hybrid (Heat Pump) Heaters
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
  6. Global Water Heater Market, By End Use, 2017 - 2027 (Thousand Units & US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Residential
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
    • Commercial
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (Thousand Units & US$ Million)
  7. Global Water Heater Market, By Regions, 2017 - 2027 (Thousand Units & US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America           
      • Introduction
        • Market size and Forecast, 2019 - 2027 (Thousand Units & US$ Million)
      • By Segment
        • Market Size and Forecast, By Product Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By Storage Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By End Use, 2019 - 2027 (Thousand Units & US$ Million)
      • By Country
        • U.S.
        • Canada
    • Europe
      • Introduction
        • Market size and Forecast, 2019 - 2027 (Thousand Units & US$ Million)
      • By Segment
        • Market Size and Forecast, By Product Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By Storage Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By End Use, 2019 - 2027 (Thousand Units & US$ Million)
      • By Country
        • Germany
        • Italy
        • U.K.
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Introduction
        • Market size and Forecast, 2019 - 2027 (Thousand Units & US$ Million)
      • By Segment
        • Market Size and Forecast, By Product Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By Storage Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By End Use, 2019 - 2027 (Thousand Units & US$ Million)
      • By Country
        • China
        • Japan
        • Australia
        • India
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Introduction
        • Market size and Forecast, 2019 - 2027 (Thousand Units & US$ Million)
      • By Segment
        • Market Size and Forecast, By Product Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By Storage Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By End Use, 2019 - 2027 (Thousand Units & US$ Million)
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East and Africa
      • Introduction
        • Market size and Forecast, 2019 - 2027 (Thousand Units & US$ Million)
      • By Segment
        • Market Size and Forecast, By Product Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By Storage Type, 2019 - 2027 (Thousand Units & US$ Million)
        • Market Size and Forecast, By End Use, 2019 - 2027 (Thousand Units & US$ Million)
      • By Country
        • GCC Countries
        • Israel
        • South Africa
        • Rest of Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • A. O. Smith Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Zhongshan Inse Group Co, Ltd.
      • Haier Electronics Group Co., Ltd.
      • Himin Solar Co., Ltd.
      • Ariston Thermo Group
      • Genrui
      • Bajaj Electricals Ltd.
      • Rheem Manufacturing Company
      • Jiaxing Jinyi Solar Energy Technology Co, Ltd.
      • Noritz Corporation
      • SIEMENS AG
      • Bradford White Corp.
      • Venus Home Appliances (P) Ltd.
    • Analyst Views
  9. Section
    • Available Customizations
    • References
    • Research Methodology
    • About us and Sales Contact

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