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
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.
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.
Source: Coherent Market Insights
Market Dynamics- Restraints
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.
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
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.
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.
Source: Coherent Market Insights
Market Trends
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.
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.
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
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:
Detailed Segmentation:
*Browse all the market data tables and figures on “Global Water Heater Market - forecast to 2027”.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients