Water Heater

Global Water Heater Market to Reach US$67.8 Billion by 2030

The global market for Water Heater estimated at US$53.5 Billion in the year 2024, is expected to reach US$67.8 Billion by 2030, growing at a CAGR of 4.0% over the analysis period 2024-2030. Solar, one of the segments analyzed in the report, is expected to record a 6.0% CAGR and reach US$19.5 Billion by the end of the analysis period. Growth in the Electric segment is estimated at 4.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.7 Billion While China is Forecast to Grow at 7.2% CAGR

The Water Heater market in the U.S. is estimated at US$13.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$16.0 Billion by the year 2030 trailing a CAGR of 7.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.0% and 3.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.0% CAGR.

Global Water Heater Market - Key Trends & Drivers Summarized

How Are Technological Advancements Redefining the Water Heater Market?

The water heater market is undergoing significant transformation as technological advancements and changing consumer preferences drive innovation. Water heaters, which are essential for providing hot water for residential, commercial, and industrial applications, are increasingly incorporating energy-efficient and smart technologies to meet evolving customer needs. Tankless water heaters, also known as on-demand water heaters, are gaining popularity due to their energy efficiency, compact design, and ability to provide a continuous supply of hot water without the need for a storage tank. Moreover, the integration of smart controls and connectivity features in water heaters, such as remote monitoring and energy usage optimization, is becoming a key differentiator in the market, catering to the growing demand for smart home appliances.

What Role Do Energy Efficiency and Sustainability Play in the Water Heater Market?

Energy efficiency and sustainability are becoming central themes in the water heater market as both consumers and regulatory bodies emphasize the need to reduce energy consumption and carbon footprints. The demand for high-efficiency water heaters, such as heat pump water heaters and solar water heaters, is rising as they offer substantial energy savings and environmental benefits compared to conventional models. Governments across the globe are introducing regulations and incentives to promote the adoption of energy-efficient appliances, further driving the market for advanced water heating solutions. For instance, ENERGY STAR-certified water heaters and those with smart grid capabilities are becoming increasingly popular, as they help consumers save on utility bills while contributing to environmental sustainability.

What Are the Challenges and Opportunities in the Water Heater Market?

Despite the strong growth prospects, the water heater market faces several challenges, including high initial costs for advanced models, limited consumer awareness about the benefits of energy-efficient water heaters, and infrastructure constraints in certain regions. However, these challenges also create opportunities for growth and innovation. The development of cost-effective, high-efficiency water heaters that cater to a wide range of consumer needs can help overcome some of these barriers. Additionally, the increasing adoption of smart home technologies presents an opportunity for manufacturers to offer connected water heaters with advanced features such as remote control, maintenance alerts, and integration with home automation systems. The rising focus on renewable energy sources, such as solar water heating, is also creating new growth avenues for the market.

What Is Driving the Growth of the Water Heater Market?

The growth in the Water Heater market is driven by several factors, including the rising demand for energy-efficient appliances, increasing adoption of smart home technologies, and supportive government regulations promoting sustainable energy use. The shift towards energy-efficient water heaters, such as tankless, heat pump, and solar models, is driven by both environmental concerns and the need for cost savings on energy bills. Technological advancements, such as smart controls, connectivity, and energy management features, are enhancing the functionality and appeal of water heaters, making them more attractive to modern consumers. The growing construction of new residential and commercial buildings, particularly in emerging markets, is also contributing to the expansion of the water heater market. Additionally, increasing consumer awareness of the benefits of energy-efficient and smart water heaters is driving market growth, as more people seek advanced solutions that offer convenience, savings, and sustainability.

SCOPE OF STUDY:

The report analyzes the Water Heater market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
End-Use (Residential, Commercial); Product Type (Solar, Electric, Gas and Propane Heaters, Geothermal Heaters)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• A. O. Smith Water Heaters
• A.O. Smith Corporation
• A-Avis Home Services Plumbing Heating & Air Conditioning, Inc.
• AC by J
• Alternate Energy Technologies, LLC
• American Water Heaters
• Aqua Source Inc.
• Aquasky Enterprise Corp.
• Arc Lighthouse Pte Ltd.
• Astec Industries, Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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