Water Heater Market is estimated to be valued at USD 42.88 Bn in 2025 and is expected to reach USD 97.19 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of12.4% from 2025 to 2032.
A water heater or storage water heater is a domestic water heating appliance that uses a hot water storage tank to optimize heating capacity and 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 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.
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Artificial Intelligence (AI) is transforming water heaters by making them smarter, more efficient, and user-friendly. They can detect usage patterns, adjust temperatures automatically, and reduce power consumption during off-peak times. AI also enhances safety by monitoring for faults, overheating, or unusual activity, ensuring timely alerts or shutdowns. With remote control via mobile apps and personalized settings, AI enables a seamless and efficient bathing experience. Overall, AI brings intelligence, convenience, and energy efficiency to modern water heating solutions.
In January 2025, Symphony Ltd entered the water heating market with three geyser models featuring nine SKUs. These models include advanced PUROPOD Cartridge technology for hard water treatment and SmartBath technology, making the Symphony Spa range India’s first AI-powered water heater.
Storage Water Heater acquired the prominent share of 54.0% in 2025. Rising demand for energy-efficient and cost-effective water heating solutions drives the storage water heater market growth, particularly across residential and commercial sectors. Consumers adopt these systems due to rapid urbanization, higher disposable incomes, and increased awareness of sustainable living. Manufacturers enhance product appeal through technological advancements such as better insulation, smart controls, and hybrid models. Governments further boost adoption by offering incentives and enforcing regulations that favor low-energy appliances. In colder regions, households rely on storage heaters for consistent hot water access. For instance, in October 2024, Nyle Water Heating Systems unveiled the Pyroclast™ Commercial Integrated Heat Pump Water Heater, developed in partnership with Htec Packaged Systems and Controls. This innovative system uses advanced Phase Change Material (PCM) technology for thermal storage and significantly reduces installation time, complexity, and the potential for errors.
Consumers are driving the electric water heater market by seeking energy-efficient, low-maintenance, and easy-to-install solutions. Rapid urbanization, expanding residential construction, and growing awareness of eco-friendly appliances fuel this demand. Manufacturers boost product appeal through innovations like smart controls and compact designs that enhance convenience. Governments support adoption by offering incentives for electric and energy-saving kitchen appliances. As electricity access improves in developing regions, more households choose electric models over gas-based systems, favoring cleaner energy and reliable hot water solutions. For instance, in January 2025, Midea introduced its energy-efficient heat pump water heater, offering a smarter alternative to traditional systems. Unlike electric resistance heaters or gas-fired water systems—which generate heat and lead to high energy costs and carbon emissions—Midea’s heat pump transfers heat instead. This approach drastically reduces energy consumption and supports cleaner energy use.
Households are driving the residential water heater market by demanding reliable and energy-efficient hot water solutions. Rapid urbanization, expanding housing projects, and increased renovation work fuel market growth. Consumers prefer modern appliances that offer safety, convenience, and reduced energy use. Manufacturers boost appeal by incorporating smart features and compact designs. Governments promote adoption through incentives and energy-efficiency regulations. Additionally, rising environmental awareness and a strong preference for eco-friendly technologies are encouraging more homeowners to switch to advanced water heaters. For instance, in May 2025, Lennox, a leader in innovative HVACR climate solutions, has entered into a joint venture with Ariston Group, a global expert in sustainable climate and water comfort. Together, they will deliver a competitive range of residential water heaters to homeowners across the United States and Canada.
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North America dominates the overall market with an estimated share of 37.30% in 2025. Consumers in North America are driving the water heater market by demanding energy-efficient and environmentally friendly appliances. They are increasingly choosing smart and hybrid models that deliver improved performance and reduce energy costs. Governments support this shift by offering incentives and enforcing regulations that encourage the replacement of outdated units. Ongoing residential construction and renovation projects further boost market demand. Additionally, the region is actively embracing electric and heat pump technologies to promote sustainability, reduce energy consumption, and modernize home heating solutions. For instance, in January 2025, Samsung, based in South Korea, introduced new residential air-to-water heat pumps designed for heating and domestic hot water (DHW) in multi-unit homes, apartments, new constructions, and retrofits. The company aims to enter the North American market with this Air to Water Heat Pump, which offers a slim design, AI Home integration, and reliable performance.
Households across India, China, and Southeast Asia are driving demand for water heaters by investing in modern appliances as urban growth and residential construction accelerate. As infrastructure improves in urban and semi-urban areas, more families upgrade their homes with essential comforts. A growing middle class with higher disposable income is further boosting the water heater market share. Consumers are prioritizing convenience and energy-efficient technologies, choosing advanced water heaters to enhance daily living as their living standards continue to rise across rapidly developing regions. For instance, Voltas, India’s leading AC brand and a major player in the home appliances industry, has entered the water heater segment with the launch of Voltas Water Heaters.
Manufacturers are driving innovation by introducing features like digital temperature control, fast heating elements, and Wi-Fi-enabled smart water heaters. Space-conscious consumers, especially in crowded urban homes and apartments, prefer compact designs and instant heating technology. India’s government actively supports solar water heaters and energy-efficient appliances through subsidies and awareness campaigns. These efforts reduce reliance on conventional energy sources and speed up the transition to renewable and hybrid heating technologies. Urban consumers now focus on comfort, safety, and convenience, boosting demand for smart and instant water heaters. For instance, Morphy Richards, a well-known home and kitchen appliances brand, has launched its new range of instant water heaters called 'Quente' and introduced a 6-litre capacity model in its premium storage water heater line, 'Salvo'. This is further propelling the water heater market revenue.
China’s government actively promotes the adoption of solar water heaters and energy-efficient electric models by providing subsidies and enforcing regulations. These efforts help reduce carbon emissions and dependence on fossil fuels, speeding up the shift to greener water heating technologies. As incomes rise and environmental awareness grows, Chinese consumers increasingly demand premium, eco-friendly water heaters. Urban residents prioritize appliances that offer a combination of performance, convenience, and sustainability to enhance household comfort. For instance, in March 2025, Xiaomi introduced the Mijia Smart Crystal Dual Tank Electric Water Heater 60L P10 in China. The company claims the product features “crystal clear” tanks that minimize mineral build-up due to an upgraded tank lining material. Xiaomi also states the device achieves a 99.5% scale prevention rate, protecting the inner tank and pipes.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 42.88 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 12.4% | 2032 Value Projection: | USD 97.19 Bn |
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| Companies covered: |
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., Venus Home Appliances (P) Ltd., Havells. |
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The water heater market is increasingly driven by demand for energy-efficient and environmentally friendly technologies. Consumers and governments prioritize appliances that reduce energy consumption and carbon emissions. Heat pump, solar, and hybrid water heaters are gaining popularity for their ability to deliver sustainable hot water solutions. Manufacturers are focusing on improving insulation, using eco-friendly refrigerants, and integrating smart controls to optimize energy use. This trend supports global sustainability goals and responds to rising environmental awareness.
Smart water heaters equipped with Wi-Fi connectivity, remote control, and advanced sensors are transforming the market. These models allow users to monitor and manage water heating from mobile devices, enhancing convenience and energy management. Integration with smart home systems and voice assistants increases appeal among tech-savvy consumers. Real-time diagnostics and automated maintenance alerts improve product reliability. This trend reflects growing consumer demand for connected appliances that provide greater control and efficiency.
In March 2025, Xiaomi unveiled the Mijia Smart Crystal Dual Tank Electric Water Heater 60L P10 in China. Despite its 60L capacity, it can provide up to 840L of hot water continuously in about 168 minutes. Equipped with a 3,300W heating element, it heats water quickly within a 30–80°C range and offers hot water on demand.
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About Author
Ramprasad Bhute is a Senior Research Consultant with over 6 years of experience in market research and business consulting. He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.
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