Water Heater Market Analysis

Water Heater Market Analysis

Water heater market size from the instant product segment is anticipated to reach over 104 million units by 2032. High energy savings, easy installation, low energy and water consumption, compact size, reduced carbon footprint, and other key features will boost the installation of instant water heaters. The product is an electrically powered unit that provides endless hot water without the requirement for storage tanks. The rising demand for point-of-use hot water in commercial establishments will further augment its delivery to meet the low-carbon heating needs of consumers. The storage water heater demand is predicted to see 4% growth in the coming years.
 

The commercial water heater application surpassed 4.5 million units in 2022. This growth is attributed to the supportive government mandates regarding smart and innovative water heating technology installation across commercial establishments including military facilities. Moreover, the U.S. commercial water heater industry is projected to grow at around 9% CAGR in the coming seven years. In recent years, the Department of Defense has approved funds to make long-term investments in military facilities and other projects. In addition, the establishment of commercial buildings including government offices, hotels, and shopping complexes will accelerate water heater production in the upcoming years. Residential water heater market is likely to surpass USD 36.5 billion by 2032 owing to increasing installations of energy efficient heating appliances.
 

Asia Pacific water heater market is poised to witness nearly USD 15.5 billion by 2032, owing to rapid urbanization and the growing consumer spending on advanced heating technologies. Multiple construction companies including Leighton Asia have also been selected for high-rise residential building construction projects. These factors, alongside the strategic collaborations among industry players to develop robust heater manufacturing bases, will amplify the sales of water heaters in the region. The market size of Saudi Arabia water heater is expected to observe around 6% growth rate during the forecast timeframe.