Electric Water Heater Market Size By Application (Residential, Commercial), By Product (Storage, Non-storage), Industry Analysis Report, Regional Outlook (U.S., Canada, Denmark, UK, Germany, Netherlands, Sweden, Italy, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Chile, Saudi Arabia, UAE, South Africa), Application Potential, Price Trends, Competitive Market Share & Forecast, 2017 - 2024
Published Date: October 2017 | 230 Pages | Report ID: GMI680 Report Format: PDF
Electric Water Heater Market size surpassed USD 18 billion and shipments were over 75 million units in 2016.
U.S. electric water heater market, by application, 2016 & 2024 (Million Units)
increasing demand in various household tasks such as cooking, washing, bathing, and laundry, is likely to drive the electric water heater market demand over the forecast timeline. Growing demand from hospitality and healthcare sectors globally will fuel the revenue growth. Increased infrastructure spending and the replacement of old equipment in different application areas owing to the disposable income of the people are anticipated to boost the market size. Strong demand for office space, hotels, amusement parks, hospitals, and residential apartments will ensure continuous renovation in the residential and commercial construction. Increasing population in various regions results in the rising of residential housing construction. Commercial construction is also growing with increased consumer expenditure and governmental spending in retail space, office buildings, and in tourism.
The adoption of new technology and the development of diversified products are likely to help manufacturers to sustain in the industry. Infrastructure development in the rural areas is helping the growth of the market. Factors, such as temperature control, environmental sustainability, and energy efficiency, will also help in accelerating the growth.
The presence of alternative sources, such as solar power and hybrid powered devices can restrain the electric water heater market growth. The solar water heating system offers the least energy cost, which means it is more energy-efficient than all other methods. Solar water heaters are more environment-friendly. With all these advantages, solar water heating is gaining popularity in the commercial and residential space.
Electric Water Heater Market, By Product
Electric water heater market growth has escalated due to the shifting focus toward more energy-efficient systems and rising number of pre-plumbed unvented systems in new constructions. Moreover, the advent and growth of IoT in water heating industry over the past couple of years present lucrative growth opportunities. It has led to smart heating controls that manage both heating and hot water availability. The increase in consumer’s ability to purchase these innovative and smart water heaters has served as a catalyst for supporting the market demand.
Tankless electric water heaters provide hot water only when it is needed thereby minimizing standby energy losses. These appliances last longer and have lower energy and operating costs.
Electric Water Heater Market, By Application
The application potential for the electric water heater is high in commercial segment compared to the residential. Consumers in the commercial segment are increasingly adopting water heaters that assist in their production and for the staff present in the offices. Technological advancements result in energy efficiency and cost effectiveness of the product which will create the demand. With tighten regulations for energy saving, manufacturers adhering to these regulations may acquire a considerable market of potential commercial segment.
The residential market is saturated because the majority of the key industry participants provide residential heaters as part of their portfolio. The growth potential is low in the residential segment as the operating life of these heaters is long. Moreover, repairing & maintenance services further increase the life of domestic electric water heaters.
Electric Water Heater Market, By Region
The electric water heater market demand in the EU regions vary from one country to another. The adoption is mainly propelled by the energy efficiency and CO2 emission control regulations and increasing use of renewable energy. The regional industry is marked by the increasing demand for non-storage water heaters. Other factors include tax rebates on the use of renewable energy sources and penetration of solar-powered alternatives.
The presence of rapidly growing economies, huge market potential due to rising disposable income, and easy availability of the products through e-tailing websites are driving the Asia Pacific electric water heater industry. The adoption is also affected by the extent of electrification in the country and the continuous energy availability. The region possesses untapped growth potential owing to the increasing construction activities and huge population in the countries such as India and China.
Competitive Market Share
Companies such as A.O Smith, Ariston Thermo, Rheem Manufacturing Company, Bradford White Corporation, and Haier Electronics have a strong foothold in the industry owing to their extensive product offering and established distribution & sales channel covering majority of the regions, and continuous product development & business expansion strategies. These companies are focusing on creating brand loyalty among consumers through various loyalty programs, discounts, and other promotional activities. Consumer perception about these brands is primarily generating the revenue as the companies are focused on developing superior quality products and assist in resolving customer queries through extensive customer support.
Electric Water Heater Industry Background
Growing environmentally sustainable infrastructures are fueling the investments in the electric water heater market. The manufacturers are involved in building technologically advanced products, such as heaters, available with color changing displays, remote control facilities, customized operations, electricity bill savings, and energy-efficient products to reduce the environmental impact. After-sales services are also provided by the manufacturers for customer retention and for attracting a new customer base.
Smart water heaters give a finely grained view of hot water usage pattern, which enables users to cycle the heating element. The user can schedule the timing for turning on the water heater when it is needed and turning it off when not required. It can be turned on and off manually by using a smartphone app. It also sends messages/alerts when it finds out that water heater is not used for a while.
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