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Industry Trends
Electric Water Heater Market size valued at USD 23.6 billion in 2021 and is projected to grow at over 4.9% CAGR from 2022 to 2030. Global industry annual product installation is expected to cross 150 million units by 2030.
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The market growth is attributed to the rising product demand across the real estate sector with increasing urban migration. In addition, strict building norms promoting the use of star-rating heating systems will sway the industry outlook. The growing use of on-demand heating technologies will augment the business landscape.
| Report Coverage | Details |
|---|---|
| Base Year: | 2021 |
| Market Size in 2021: | 23.6 Billion (USD) |
| Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 4.9% |
| 2030 Value Projection: | 37.8 Billion (USD) |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 800 |
| Tables, Charts & Figures: | 1,692 |
| Segments covered: | Product, Capacity, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Robust investments in product design & innovation will catalyze the market demand
Increasing investments in research & development activities are propelling the market expansion. The industry has matured products and often pushes innovations & product launches along with technologies to enhance the customer experience and minimize the operating cost. Introducing new & advanced water heating products with extensive features including limited chances of dry firing, corrosion resistance, smart control, and monitoring will significantly fuel the demand for electric water heaters.
Increased focus on product design and aesthetics with ongoing rivalry will drive the market outlook. The industry is highly fragmented with the presence of numerous international & regional players introducing newer technologies & systems in the market. The rising inclination toward furnishing & home décor will stimulate the demand for modern & aesthetic designs. Additionally, the internal threat of substitution from the solar, gas, and hybrid models will spur the industry landscape.
Instant water heaters held 45% of the revenue share in 2021
The rising demand for instant water heaters owing to low standby heating losses, quick hot water delivery, and time management will foster the industry growth. Tankless systems consume less power compared to a conventional storage unit, thereby augmenting the demand for instant water heaters. In November 2021, A.O. Smith introduced a new electric water heater to its existing lineup as a zip digital tankless water heater that produces instantaneous hot water for residential applications. The rapid product adoption across residential & commercial spaces on account of its advanced operational benefits including extensive control features, compactness, and low heating or electricity cost will complement the industry expansion.
Availability of wide-ranging capacity systems will boost the market value
The increasing deployment of 30 – 100 liter systems across small businesses and the residential sector will positively influence business growth. In addition, below 30 liter water heater systems are widely deployed across kitchens & bathrooms to meet the daily hot water requirements throughout the day. Product assortment & new features coupled with flexible & competitive pricing will further increase the acceptance of this systems.
Surging urbanization along with ongoing migration to cities will encourage the usage of 100 – 250 liters water heaters. The units are extensively deployed across commercial facilities including restaurants, hotels, and care centers. The product availability in different capacity ranges to satisfy customer needs has positively accelerated the business dynamics.
Government & military accounted for more than 28% of the market share across commercial applications
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The commercial electric water heater market will witness strong growth on account of the increasing population growth and ongoing investments in infrastructural development. Prevailing smart city rollouts with a rapid expansion of zero-emission buildings will escalate the product demand.
The growing demand for hot water across government & military facilities to meet critical hot water requirements will stimulate the electric water heater market. Respective governments are actively spending on the development of hospitals and care centers that will bolster the water heater deployments. Moreover, the increased installation of instant heating technologies across offices coupled with ongoing technological advancements will propel the business landscape.
Improving electrification rates along with growing accessibility will drive the market growth
Growing electrification rates primarily across Asian and African nations will enhance the electric water heater market trends. As per the International Energy Outlook 2021, the EIA projected strong economic growth especially in Asian developing economies, thereby increasing energy consumption and augmenting product use. Furthermore, countries including Algeria, Morocco, Egypt, Tunisia, Libya, and Gabon have electrification rates reaching over 90% while over 15 nations still have access rates hovering below 25%. Ongoing investments to develop the grid infrastructure with improving economic growth will positively influence the business outlook.
Product innovation and usage of instant water heating technologies
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Asia Pacific, Europe, and Latin America led the global electric water heater market landscape with a collective revenue share exceeding 85% in 2021. Low-cost manufacturing capabilities along with ongoing infrastructure developments will foster the industry trends. Additionally, the rising demand for high-efficiency systems coupled with increasing refurbishment activities will fuel product adoption. However, these systems face strong competition from gas substitutes in North America and the Middle East due to the availability of low-cost natural gas supply, pipeline infrastructure, and easy accessibility.
In Latin America, Brazil dominated the market and accounted for 70% of the market share in 2021. The increasing acceptance of advanced instant water heating technologies with integrated features including in-built Wi-Fi, extensive communication options, leak detection systems, and AI-equipped smart designs will spur the product penetration.
Product differentiation and strategic growth ventures will favor the market forecast
Key players in the electric water heater market include A.O. Smith, Ariston Holding, Bosch Thermotechnology Corp., GE Appliances, Bradford White Corporation, Racold, Haier, Inc., Rinnai Corporation, State Industries, Whirlpool Corporation, Rheem Manufacturing Company, FERROLI, Hubbell Heaters, Vaillant Group, Havells India Ltd., Nihon Itomic, Viessmann, Watts, American Standard Water Heaters and Groupe Atlantic, among others. These leaders are focusing on product differentiation and strategic collaborations to establish a strong foothold in the industry.
The electric water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of Units and USD from 2018 to 2030 for the following segments:
Market, By Product
- Instant
- Storage
Market, By Capacity
- <30 Liters
- 30 - 100 Liters
- 100 - 250 Liters
- 250 - 400 Liters
- >400 Liters
Market, By Application
- Residential
- Commercial
- College/University
- Offices
- Government/Military
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- France
- Germany
- Italy
- Austria
- Spain
- Netherlands
- Denmark
- Finland
- Sweden
- Norway
- Eurasia
- Russia
- Belarus
- Armenia
- Kazakhstan
- Kyrgyzstan
- CIS
- Azerbaijan
- Moldova
- Tajikistan
- Turkmenistan
- Uzbekistan
- Asia Pacific
- China
- Australia
- India
- Japan
- South Korea
- Indonesia
- Malaysia
- Singapore
- Thailand
- New Zealand
- Philippines
- Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- Kuwait
- Oman
- Turkey
- South Africa
- Nigeria
- Egypt
- Israel
- Iraq
- Latin America
- Brazil
- Argentina
- Chile
- Mexico
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