Hot Water Heaters Market

The global Hot Water Heaters Market is valued at USD 27.98 Billion in 2022 and is projected to reach a value of USD 37.70 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 4.35% between 2023 and 2030.

Premium Insights

The growth and evolution of the Hot Water Heaters market is propelled by various factors.Urbanization and population growth are leading to an increase in demand for both residential and commercial construction, resulting in a higher necessity for hot water heaters. Consumers are also seeking innovative and eco-friendly solutions, driving advancements in technology such as smart and energy-efficient features. Government initiatives promoting energy efficiency and environmental sustainability also contribute to the adoption of modern hot water heaters.

• Changing consumer lifestyles, a focus on home comfort, and the desire for convenience further stimulate market growth. Additionally, varying climates in different regions, including cold winters, sustain the demand for reliable hot water solutions
• Asia pacific generated more than 36.8% of revenue share in 2022
• North America is expected to grow at the quickest rate from 2023 to 2030
• Electric segment accounted for the largest market growth. It contributed over 51.8% of the total revenue share in 2022
• In 2022, the storage segment dominates the market with a substantial market share of 53.8%.
• The market is led by the 30-100 Litres segment, which holds a market share of 28.8% in 2022.
• The residential segment secures the largest market share of 52.2% in 2022.

Economic Insights

Economic indicators, like housing market trends, interest rates, and consumer spending, are crucial in determining the demand for hot water heaters. During periods of economic growth and increased construction, there is typically a higher demand for these appliances, particularly in residential settings. Conversely, economic downturns can affect consumer confidence and discretionary spending, potentially impacting the market. Moreover, economic and environmental considerations drive incentives and regulations related to energy efficiency, leading to technological advancements and influencing consumer preferences.

Top Market Trends

• Rising Demand for Energy-Efficient Water Heaters: There is a growing consciousness among consumers regarding the environmental consequences associated with their household appliances so, the demand for water heaters has rise.
• Growing Popularity of Tankless Water Heaters: Tankless water heaters are gaining more and more popularity in contrast to conventional tank-style water heaters due to their smaller size, lower energy consumption, and immediate provision of hot water. They are particularly suitable for scenarios where hot water is used infrequently, such as in apartments and condos.
• Adoption of Renewable Energy Source: Renewable energy sources such as solar thermal and heat pump water heaters are gaining increasing popularity due to their potential to substantially reduce greenhouse gas emissions and provide cost savings in energy usage.
• Smart Water Heater Technology: The efficiency and convenience of water heating can be enhanced through the emergence of smart water heater technology. These intelligent water heaters have the ability to connect to home automation systems, allowing them to learn user behaviors and enhance hot water usage efficiency.

Market Segmentation

Hot Water Heaters The global Hot Water Heaters market can be categorized into Product, Technology, Capacity, Application, Region. The Hot Water Heaters market can be categorized into Electric, Solar, Gas based on Product. The Hot Water Heaters market can be categorized into Tankless, Storage, Hybrid based on Technology. The Hot Water Heaters market can be categorized into Below 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, Above 400 Liters based on Capacity. The Hot Water Heaters market can be categorized into Residential, Commercial, Industrial based on Application. The Hot Water Heaters market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

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Based on Product

Electric holds the largest share

Electric heaters are leading the global Hot Water Heaters market because they outperform gas or propane alternatives in terms of energy efficiency, resulting in cost savings on energy bills. Furthermore, the installation of electric water heaters is simpler and more economical, resulting in lower expenses for labor. Safety is also a significant factor in their market dominance, as electric water heaters do not emit carbon monoxide, making them safer.

Based on Technology

Storage will account for largest market share

The largest share in the Hot Water Heaters market is expected to be held by the storage segment in 2022 because of their widespread usage and long-standing presence in the market contribute to their popularity as a familiar and trusted technology among consumers. Moreover, their large capacity makes them suitable for households with high hot water demands, providing a dependable solution.

Based on Capacity

30-100 Liters lead the market

30-100 liters capacity lead the market because this range is particularly well-suited for residential use as it can meet the hot water needs of typical households. Water heaters in this capacity range are often designed to be energy efficient, which aligns with consumer preferences for environmentally friendly and affordable options.

Based on Application

Residential accounts for largest market share

The residential application segment takes the lead in the Hot Water Heaters market, commanding the largest market share due to several key factors. The residential sector stands as the primary consumer base for hot water heaters, given the indispensable need for hot water in daily activities such as bathing, cooking, and cleaning.

Based on Region

Asia Pacific will lead the market

Asia Pacific is expected to dominate the Hot Water Heaters market due to various factors. Due to the fast population growth and urbanization in the area, construction activities have significantly expanded for residential and commercial purposes. Consequently, there is now a greater need for hot water heaters in both sectors. As living standards improve in many Asia Pacific countries, there is a greater focus on modern amenities, and hot water heaters play a crucial role in meeting these growing expectations.

Competitive Landscape

The Hot Water Heaters market is highly competitive, and established industry players use their wide distribution networks and strong brand recognition to maintain a strong position, while emerging players differentiate themselves by offering technologically advanced and environmentally friendly solutions. There is increased competition in the development of smart, connected water heaters that can be remotely monitored and controlled, in line with the growing trend of home automation.

The players in the global Hot Water Heaters market include Rheem Manufacturing Company, Rinnai Corporation, Bradford White Corporation, Lennox International Inc., FERROLI S.p.A, Kenmore, A.O. Smith, Robert Bosch LLC, Ariston Thermo SpA, NORITZ Corporation, Whirlpool Corporation, Westinghouse Electric Corporation, Bajaj Electricals Ltd, Haier Inc., Havells India Ltd among others.

Recent Market Developments

• 2022: two new water heater models named 'Campagno' and 'Caldia NG' were introduced by Bajaj Electricals, a renowned electrical appliance company. These models come equipped with safety features like a child safety mode, which enables users to set a temperature limit to prevent water burns, and an auto shut off technology that turns off the heater after 90 minutes of inactivity.
• 2022: To provide consumers with a user-friendly home appliance experience, Haier Smart Home has introduced two main platforms: the Three-Winged Bird Experience Cloud and Smart Home Brain. Additionally, they have launched four scenarios, namely smart kitchen, smart air supply, smart water supply, and whole-house intelligence, along with other digital technologies.

Segmentation of the Global Hot Water Heaters Market