Water Heater Market Size

Water Heater Market Size

Water Heater Market size exceeded USD 32.28 billion in 2023 and is projected to exhibit more than 5.3% CAGR from 2024 to 2032, on account of the emphasis on energy-efficient heating system development.

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Water heating accounts for a major share of energy use across residential establishments. With the introduction of strict regulatory mandates, manufacturers are working on the establishment of energy-efficient systems including tankless water heaters. Compared to conventional models, tankless counterparts take up less space and heat water instantaneously, minimizing energy consumption. Furthermore, favorable guidelines regarding the installation of efficient heating systems in the commercial sector have also been introduced. These factors, alongside the escalating smart city projects, will fuel water heater connections.

In recent years, public and private sector investments in advanced water heating technologies have also been made. Additionally, the increasing replacement of aging water heaters with new designs offering advanced control and monitoring features will create lucrative growth opportunities for industry players. However, the product is associated with high operating costs. Moreover, the limitations of electric water heaters including susceptibility to power outages may create roadblocks to product development to some extent.