Residential Water Heater Market Size By Product (Instant [Electric, Gas], Storage [Electric {< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters}, Gas {< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters}]), By Capacity (< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters), By Fuel (Natural gas, LPG), Industry Analysis Report, Regional Outlook, Application Potential, Covid-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Residential Water Heater Market size exceeded USD 18 billion in 2020 and an annual installation is set to surpass 160 million units by 2027. Growing customer focus toward the benefits of smart water heating appliances coupled with rising demand for hot water amongst the various single & multifamily apartments is anticipated to boost the product adoption.
 

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Introduction of stringent government regulations directed toward use of energy efficient equipment, rising consumer spending toward advanced technologies and substantial reduction in electricity bills accompanied will strengthen the residential water heater industry size. In addition, rising urban migration coupled with ongoing expansion of the high-rise buildings driven by various foreign investments is set to boost the product demand.
 

The outbreak of coronavirus, well-known as COVID-19 has impacted the global economy. The virus was initially recognized in December 2019 in China’s Hubei province and has subsequently resulted in a global public health threat. The virus has impacted more than 200 countries and has caused lockdowns in a few countries, thus, restricting business growth. However, the constant demand for new strategies to respond to the crisis including healthcare construction is set to positively impact the business landscape.
 

Technical advancements have encouraged the residential water heater market growth

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Rapid development of the real estate sector coupled with increasing investments toward research and development activities for product enhancements will propel the residential water heater market outlook. Shifting customer focus and growing consumer awareness toward new product development along with rising requirement for on demand heating will boost the business landscape. For instance, in 2020, the leading heater manufacturer, Bradford White showcased its new and advanced product range including water-space heating and water storage products.
 

Enhanced adoption of the instant heating units owing to low power consumption coupled with simple & compact designs is set to fuel the residential water heater market statistics. Introduction of smart innovative models, that have high energy efficiency and are cost effective will strengthen the business outlook. Moreover, Development of zero emission buildings coupled with ongoing construction of smart cities in the developing economies is anticipated to drive the business scenario.
 

Mounting demand for deployment of storage units will stimulate the industry growth

Availability of multi capacity ranges which can be used for a wide variety of applications along with constant supply of pressurized water will complement the storage-based residential water heater industry share. Easy maintenance & repair, aesthetically sound & simple designs along with low deployment costs are the major factors encouraging the product adoption. Growing investments toward the manufacturing, development, and design of smart heating equipment, increasing demand for space heating along with growing installation of central heating systems will strengthen the market share.
 

Increasing utilization of energy efficient systems will drive the water heating demand

Strict environment regulations targeted to limit the carbon footprint coupled with increasing focus toward adoption of clean fuels will augment the residential water heater market forecasts. The standards and policies which regulate the industry consist of Eco Design, Minimum Energy Performance Standards (MEPS), Energy Performance of Buildings, and Energy Efficiency Directive among others. Growing adoption of low emission heating units to adhere to the existing industry norms and mandates will enhance the business outlook. Changing business trends of the key industry players aiming at product differentiation and innovation for a wide product range to suit various customer and household requirements will further accelerate the product penetration.
 

Shifting customer Inclination toward clean energy and power optimization will boost the gas-based residential water heaters market forecasts

Gas-based residential water heater industry trend will sustain on account of numerous factors including development of the gas pipeline network, ability to provide hot water for longer duration along with its usability in wide applications. Installation of gas water heaters depends on requirement of space for setting up flues in building exterior and ventilation area for combustion. Though, high installation cost along with stringent government codes pertaining to the air quality, exhaust flues and combustion process limits the installation of gas water heaters in small or domestic applications. However, low cost of natural gas makes the equipment less expensive in comparison to its counterparts.
 

Latin America market is anticipated to witness substantial growth owing to growing adoption of advanced technologies

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North America, Asia Pacific and Latin America together dominate the overall residential water heater market by contributing more than 70% share in 2027. Water heaters are commonly installed in the households to be used for a variety of applications comprising of cleaning, cooking and personal hygiene among others. Growing customer spending on luxury appliances, rising urbanization, coupled with surging investments by the government and private industries for developing the building infrastructure specifically in the developing countries will stimulate the market share. Further, economic transformations owing to availability of electricity primarily in the remote and rural areas will complement the regional market growth.
 

In Latin America, Brazil accounted for over 68% of the overall market share in 2020. Instant water heaters have captured most of the share owing to quick hot water delivery, lower repair, and maintenance along with significant cost savings. Massive installation of instant heating units across various single & multi home apartments on account of growing requirement of on demand heating and product longevity will encourage the product adoption in the region.
 

Inorganic strategic growth ventures along with product innovations are some of the substantial initiatives taken by the industry participants to boost the market share

Product development and design coupled with introduction of smart products equipped with advance features comprising of remote monitoring, leakage detection, and Wi-fi are some of the key strategies adopted by the industry manufacturers. Joint ventures and mergers & acquisitions with leading technology providers will further bring in new growth prospects for the water heater industry. In January 2021, Bradford White signed a purchase agreement with Keltech, Inc., a manufacturer of tankless electric water heaters, thereby enhancing its overall product portfolio. The major industry players operating in the residential water heater market include Ferroli, Whirlpool Corporation, Bradford White, Bosch Thermotechnology, A.O Smith, Rheem Manufacturing, State water heaters, Ariston Thermo, Rinnai Corporation, General Electric Appliances, and Noritz Corporation, among others.
 

Residential water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” and “Units” from 2017 to 2027, for the following segments:

By Product

• Instant
  • Electric
  • Gas
• Storage
  • Electric
    • < 30 Liters
    • 30-100 Liters
    • 100-250 Liters
    • 250-400 Liters
    • > 400 Liters
  • Gas
    • < 30 Liters
    • 30-100 Liters
    • 100-250 Liters
    • 250-400 Liters
    • > 400 Liters

By Capacity

• < 30 Liters
• 30-100 Liters
• 100-250 Liters
• 250-400 Liters
• > 400 Liters

By Fuel

• Natural Gas
• LPG

The above information has been provided for the following regions and country:

• 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
  • Ukraine
  • Uzbekistan
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Singapore
  • Thailand
  • New Zealand
  • Philippines
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Bahrain
  • Oman
  • Turkey
  • South Africa
  • Nigeria
  • Algeria
  • Egypt
  • Israel
  • Cyprus
  • Lebanon
  • Iraq
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Mexico