GVR Report cover Water Heater Market Size, Share & Trends Report

Water Heater Market Size, Share & Trends Analysis Report By Product (Electric, Solar, Gas), By Technology, By Capacity, By Application (Residential, Commercial), By Region, And Segment Forecasts, 2020 - 2027

  • Report ID: GVR-4-68038-824-4
  • Number of Pages: 100
  • Format: Electronic (PDF)

Report Overview

The global water heater market size was valued at USD 27.36 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027. Increasing hot water demand from various residential applications, including bathing, washing, cleaning, and cooking, is anticipated to augment the market growth over the forecast period. Asia Pacific dominated the global market in terms of revenue in 2019, wherein China is projected as the leading economy for solar water heaters accounting for the majority share in the region owing to large potential to generate solar power. Initiatives such as changes in energy policy and increasing dependence on renewable sources to limit pollution are anticipated to further bolster the market growth. The U.S. dominated the North American market in terms of revenue in 2019. The dominance is majorly attributed to the rising demand for replacement of conventional water heaters with the advanced systems. Also, rapid urbanization coupled with ongoing investments in the infrastructure sector is expected to fuel market growth.

The U.S. water heater market size

Surging the adoption of a diversified array of water heaters in the commercial as well as the industrial sector is likely to drive the product demand. Rising hot water demand majorly from hospitals and hotels is anticipated to fuel the market growth. Furthermore, increasing usage of the product in various manufacturing industries such as food and beverage processing and chemical industries is likely to propel the demand for water heaters.

Robust investments focused on product development and innovation are anticipated to catalyze the demand for electric water heaters. Key manufacturers engage in launching new products and technologies that offer enhanced customer experience and reduce the operating cost. The introduction of products with features such as corrosion resistance, water filtration, remote control, and monitoring are likely to boost the market growth.

Favorable measure to enhance the air quality along with rising awareness regarding the adoption of renewable solutions is expected to augment the demand for solar water heaters. Furthermore, the surging focus of various market players towards product aesthetics and design, coupled with ongoing industry rivalry, is anticipated to fuel the market growth.

Product Insights

Electric led the water heaters market and accounted for 51.6% of the revenue share in 2019 owing to the rising electrification rate mainly across the Asia Pacific and African economies. The improving electrification rate coupled with increasing accessibility at the consumer end is likely to drive the demand for electric water heaters over the forecast period.

Solar water heaters are projected to witness a CAGR of 4.7% from 2020 to 2027 on account of the growing consumer demand for energy-efficient and eco-friendly water heating systems. Increasing the focus of various product manufacturers on developing new systems and technologies that function with more efficiency is likely to propel the market growth.

Stringent government regulations to curb greenhouse gas emissions coupled growing focus on controlling energy consumption owing to the rapid depletion of non-renewable resources is likely to have a positive impact on the demand for solar water heaters. Also, increasing ecological awareness in both developed and developing countries is further anticipated to complement the adoption of solar water heaters in the coming years.

Expansion of piped gas networks across various developing economies is projected to result in the widespread adoption of gas water heaters over the forecast period. Also, increasing focus on product innovation and differentiation is further expected to bolster the demand for the gas water heaters, thereby benefitting the overall market growth.

Technology Insights

Storage led the market and accounted for a 55.4% share of the global revenue in 2019 owing to the high energy conversion potential and low maintenance requirement of the product. Moreover, product demand can be attributed to their increased installation in commercial and industrial applications in various cold regions across the globe.

Tankless water heaters are projected to witness an anticipated CAGR of 4.3% from 2020 to 2027 owing to various product features such as quick hot water delivery and low standby heating losses. Furthermore, the tankless water heaters consume less power than storage water heaters, which is expected to increase their adoption over the coming years.

Tankless water heaters offer benefits such as precise temperature control over a longer duration, energy efficiency, and improved environmental sustainability. Surging product deployment across various commercial spaces on account of the advanced operational benefits such as low electricity or heating cost, as well as the extensive control features, is anticipated to augment the demand for water heaters over the forecast period.

Hybrid water heaters are likely to witness increased demand owing to key product characteristics of providing cooling and heating facility from the single device. These water heaters use electricity to move heat from one place to another instead of directly generating electricity owing to which they can be more energy-efficient as compared to electric water heaters.

Capacity Insights

The 30 - 100 liters capacity water heater segment led the market and accounted for a 29.7% revenue share in 2019 owing to the high application suitability across residential as well as various commercial establishments including healthcare, banks, hotels, government institutions, and shopping complexes.

Surging urbanization, coupled with ongoing migration to urban areas, is likely to bolster the demand for 100 - 250-liter water heaters. The availability of the product in multiple capacities is addressing several customer needs, such as its usage in saunas, kitchens, washrooms, and swimming pools, which, in turn, is driving the market growth.

The water heater segment with the capacity below 30 liters is projected to expand at a CAGR of 3.8% over the forecast period on account of the increasing deployment of the low capacity heating systems majorly across residential establishments. Also, surging adoption of storage units is likely to increase the installation of below 30 liters water heaters in the forthcoming years.

The 250 - 400-liter capacity segment is anticipated to witness substantial growth over the forecast period majorly owing to the stringent industry regulations regarding the replacement of conventional heaters by these water heaters. This replacement is likely to reduce the standby heat losses as well as offer a cost-effective heating system across huge commercial applications.

Application Insights

The residential segment led the market and accounted for 55.2% of the global revenue share in 2019. Factors including rising disposable incomes, rapid residential infrastructural development, increasing electrification rate, and expanding piped gas network, most notably across various developing countries are anticipated to drive the demand for water heaters in the residential sector.

Increasing demand for dependable, eco-friendly, and affordable technologies for heating water, particularly in the industrial and residential sectors, is projected to propel the industry growth. Additional product features such as the capability to function at lower costs, up to 75% lower in summer, and 30% to 40% lower in winter are projected to augment the product demand over the forecast period.

Global water heater market share

The product demand in the commercial sector is expected to expand at a CAGR of 4.1% over the forecast period owing to increased government spending towards the development of healthcare centers, which in turn, will significantly augment the water heater installations. Furthermore, augmented deployment of tankless water heaters across commercial offices along with ongoing technological advancement is likely to fuel the market growth.

The commercial application segment consists of small and large commercial institutions, sports facilities, educational institutions, and healthcare facilities. Increasing demand for hot water across military and government facilities to address the critical requirements for hot water is expected to propel the product demand in the commercial sector over the forecast period.

Regional Insights

Asia Pacific dominated the market and accounted for a 36.5% share of global revenue in 2019 and is anticipated to continue its dominance over the forecast period. Economic development across countries such as China and India, coupled with the increasing availability of gas and electricity across the rural areas, is expected to increase the demand for water heaters over the forecast period.

The European water heaters market is expected to witness a CAGR of 3.8% over the forecast period. This growth can be attributed to the surging demand for superior and reliable water heaters from various commercial and industrial end-users. Furthermore, the need for hot water to meet the required environmental conditions owing to extreme cold weather in the region is likely to fuel the product demand.

Rapid growth in domestic and international migration in the North America region has resulted in increased demand for housing, leading to increased residential construction. Furthermore, the well-established industrial infrastructure in the region is expected to bolster the demand for water heaters, thereby augmenting the regional market growth.

Brazil accounted for a substantial revenue share in the Central and South America market owing to increased adoption of tankless water heaters that cater features such as inbuilt Wi-Fi, leak detection systems, and extensive communication option. Also, owing to the recuperating construction sector in the country, investments in high-rise luxury apartment buildings are expected to increase, which, in turn, is likely to benefit market growth.

Key Companies & Market Share Insights

The global market is highly fragmented with the presence of several global as well as regional product manufacturers, introducing newer systems and technologies in the market. Various strategies usually adopted by the market participants usually include new product developments, product enhancements, and expansions to increase their market penetration, and cater to the changing technological requirements from the application industries. The key market players engage in forming technological partnerships to design and develop innovative product lines, thereby enhancing their customer base. Also, factors such as changing consumer preferences coupled with quality standards, and energy efficiency are expected to open new avenues for market participants in the coming years. Some of the prominent players in the water heater market include:

  • A.O. Smith

  • Robert Bosch LLC

  • Ariston Thermo SpA

  • Rheem Manufacturing Company

  • Rinnai Corporation

  • Bradford White Corporation

  • NORITZ Corporation

  • Whirlpool Corporation

  • Westinghouse Electric Corporation

  • Bajaj Electricals Ltd

  • Haier Inc.

  • Havells India Ltd

  • Lennox International Inc.


  • Kenmore

Water Heater Market Report Scope

Report Attribute


Market size value in 2020

USD 28.32 billion

Revenue forecast in 2027

USD 37.52 billion

Growth Rate

CAGR of 4.0% from 2020 to 2027

Base year for estimation


Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, technology, capacity, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; France; Italy; U.K.; China; India; Japan; Australia; Brazil; Argentina; UAE; Saudi Arabia

Key companies profiled

A.O. Smith; Robert Bosch LLC; Ariston Thermo SpA; Rheem Manufacturing Company; Rinnai Corporation; Bradford White Corporation; NORITZ Corporation; Whirlpool Corporation, Bajaj Electricals Ltd; Haier Inc.; Havells India Ltd; Lennox International Inc.; FERROLI S.p.A; Kenmore

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global water heater market report based on the product, technology, capacity, application, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Electric

    • Solar

    • Gas

  • Technology Outlook (Revenue, USD Million, 2016 - 2027)

    • Tankless

    • Storage

    • Hybrid

  • Capacity Outlook (Revenue, USD Million, 2016 - 2027)

    • Below 30 Liters

    • 30 - 100 Liters

    • 100 - 250 Liters

    • 250 - 400 Liters

    • Above 400 Liters

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Residential

    • Commercial

    • Industrial

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • The Middle East & Africa

      • UAE

      • Saudi Arabia

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