by The global water heater market offers a wide range of hot water heating equipment powered by electricity, gas or oil for residential and commercial applications. Water heaters play a critical role in delivering hot water for bathing, washing, cooking and more. Different types of water heaters available include tankless water heaters, tank water heaters or storage water heaters, hybrid water heaters and solar water heaters. Tankless water heaters provide instant hot water on demand without requiring storage tanks while tank water heaters store water and heat it for future use. Solar water heaters utilize sunlight to heat water at low costs and with minimal environmental impact.
The Global Water Heater Market is estimated to be valued at US$ 42.88 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2031.
Water heating needs continue to increase driven by rising housing construction, expanding population and busy modern lifestyles that demand constant access to hot water. Growing adoption of solar and other renewable energy sources for water heating is also contributing to market growth.
Key Takeaways
Key players operating in the water heater market are A. O. Smith Corporation, Zhongshan Inse Group Co, Ltd., Haier Electronics Group Co., Ltd., Himin Solar Co., Ltd., Ariston Thermo Group, Genrui, Bajaj Electricals Ltd., Rheem Manufacturing Company, Jiaxing Jinyi Solar Energy Technology Co, Ltd., Noritz Corporation, SIEMENS AG, Bradford White Corp., Venus Home Appliances (P) Ltd., Havells. Major players are focusing on expanding their product portfolio and global footprint to capitalize on the market potential.
The growing demand for hot water in residential and commercial establishments is driving significant growth of the global water heater market. Rapid urbanization and improving standards of living in developing nations are increasing installation of water heaters. Furthermore, government initiatives and policies promoting solar energy are further augmenting demand.
Geographical expansion into emerging markets and improving local manufacturing capabilities remain key strategies adopted by leading water heater companies. The African and Asian markets arewitnessing substantial investments to cater to the rising needs of these regions. Additionally, companies are enhancing their e-commerce presence and after-sales services to drive volumes.
Market Key Trends
Rising adoption of solar water heaters represents the global Water Heater Market Demand. The increasing integration of renewable energy solutions for power generation is promoting solar water heating. Solar water heaters provide numerous benefits such as lowered utility bills, reduced carbon footprint, and independence from grid outages. Additionally, supportive government incentives and subsidies in several countries are encouraging homeowners to install solar water heaters. Thus, greater incorporation of solar energy will be a defining driver for market revenues over the forecast period.
Porter’s Analysis
Threat of new entrants: The water heater market has low threat from new entrants due to high costs of R&D, manufacturing, marketing, and distribution. Established brands have strong brand recognition and customer loyalty.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and undifferentiated products. However, energy efficiency standards and certifications reduce bargaining power.
Bargaining power of suppliers: Major raw material suppliers like manufacturers of heating elements and thermostats have low bargaining power due to availability of substitute materials and parts.
Threat of new substitutes: Substitutes like boiler, heat exchanger have low threat due to non-availability of on-demand hot water and convenience of water heaters.
Competitive rivalry: The market has high competition due to presence of global and regional players. Players compete on brand reputation, product quality, and pricing.
Geographical Regions
North America accounts for the largest share in the global water heater market in terms of value due to severe winter climate and high residential and commercial construction.
Asia Pacific region is expected to grow at the fastest pace during the forecast period due to improving living standards, rising residential construction, and rapid industrialization in emerging countries like China and India. Increasing investments in utility infrastructure will also support market growth.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
