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Water Heater Market size worth $50 Bn by 2032

  • Published Date: March 24, 2023

Water Heater Market size is set to surpass USD 50 billion by 2032, according to a new research report by Global Market Insights Inc.

The report indicates that rapid urbanization and the continuous construction of human-built environments will drive the rate of water heater connections across residential and commercial buildings. In Asia, building material demand is set to rise as the continent hosts a majority of megacities. With the increasing disposable income and industrialization, the living standard has also improved, augmenting the installation of advanced household appliances including water heaters. Likewise, the introduction of strict government regulations to mitigate energy use and bills across buildings will foster industry trends.

Gas water heaters will gain traction in large households due to low operating costs and energy efficiency

Water heater market size from the gas fuel segment is anticipated to reach over 79 million units by 2032, given the energy efficiency, quick water heating, and low operating costs compared to electric water heaters. Considering the high operating and recovery speeds, gas heaters are also suitable for large households, contributing to product usage. However, while gas has long been considered cleaner than electricity, strict rules have been enacted to ban natural gas usage. These restrictions may hinder product consumption to some extent in the upcoming years.

Urbanization and population growth to spur water heater adoption in residential buildings

Residential water heater market is slated to register over 4% CAGR from 2023 to 2032, driven by the population surge. Since the available space to address the demand of home buyers remains limited, developers are emphasizing high-rise apartment projects in both luxury and affordable segments. Moreover, the development of satellite townships will also boost the construction of low-rise flats, the report claims. These factors, alongside increasing urban migration, will escalate water heater replacement and installation for domestic uses.

Browse key industry insights spread across 1900 pages with 4284 market data tables & 40 figures & charts from the report, “Water Heater Market Size - By Product (Instant, Storage), By Fuel (Electric, Gas), By Application (Residential, Commercial), By Capacity, & Forecast, 2023 – 2032”, in detail along with the table of contents:

Commercial building space expansion stimulates the use of water heaters in North America

North American water heater market valued at more than USD 3 billion in 2022 owing to the introduction of federal government initiatives to encourage the use of efficient heating technologies and the expansion of commercial building spaces. Government agencies including the EIA have revealed that the commercial building floor space is expected to increase in the U.S. These factors, along with the development of advanced heating systems, will add impetus to water heater development in the region.

Product portfolio expansion strategies to strengthen industry outlook

Key participants operating in the global water heater industry are Thermann, Heatrae Sadia, A. O. Smith, GE Appliances, Viessmann, AERCO, ORBITAL HORIZON, Thermex Corporation, JOVEN Electric Co. Sdn., Jaquar India, Panasonic Philippines, Vaillant Group International GmbH, Rinnai Corporation, Rheem Manufacturing Company, Racold, Havells India Ltd., and Bosch Thermotechnology. These firms are integrating strategies such as product portfolio expansion and partnerships to gain a competitive advantage over rivals in the industry.

For instance, in May 2022, GE Appliances unveiled an advanced technology-equipped water heater manufacturing facility in South Carolina. This facility was established to manufacture high-quality water heaters and other products with robotic material handling and processing and cutting-edge machines. This initiative allowed the company to reinforce its position across the industry.

Authors: Ankit Gupta, Srishti Agarwal

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