Electric Water Heater Market Size - By Product, By Application, By Capacity, Forecast, 2025 – 2034

Electric Water Heater Market Size

The global electric water heater market size was valued at USD 23.8 Billion in 2024 and is estimated to grow at a CAGR of 4.2% from 2025 to 2034. An electric water heater is an appliance that uses electrical energy to heat water for various household or commercial needs, such as bathing, cleaning, and cooking. They rely on electrical resistance elements to directly heat water.
 

Competitive pricing and a range of multi-capacity variants, combined with a consumer shift towards energy-efficient systems, are set to boost the industry growth. Shifting focus towards electrifying heating systems, alongside a rising integration of renewable energy sources, is anticipated to drive the product adoption. Stringent energy efficiency standards coupled with incentive programs encouraging consumers to transition from conventional, less efficient water heaters, will shape the industry's landscape.
 

Government mandates aimed at curbing carbon emissions, combined with rising investments in infrastructure development, are set to drive product adoption. Rising demand for high-capacity water heaters, driven by the ongoing refurbishment and modernization of existing buildings will drive the market growth. Many manufacturers are now providing product customization tailored to diverse commercial and industrial applications, contributing to the business momentum. Additionally, the ongoing push for zero-emission green building projects, alongside heightened awareness of smart appliances to mitigate carbon footprints, will further shape the industry's landscape.
 

Electric Water Heater Market Trends

Businesses are expanding into remote and underserved regions, and existing grid networks are rapidly expanding, both of which are enhancing the industry's landscape. The ongoing introduction of sustainable energy standards for buildings, combined with significant investments from major players in innovations aimed at boosting efficiency and energy savings, is poised to drive the market growth.
 

Electric Water Heater Market Analysis

Based on product, the market is segmented into instant and storage. The storage segment is projected to surpass USD 23 billion by 2034. Smart technological features, which lead to reduced energy consumption and lower utility bills, are driving the product demand. Increasing number of both multi-family and single-family apartments along with growing requirement for on- demand hot water particularly across institutes comprising hotels, restaurants, and hospitals will fuel the product potential.
 

Furthermore, the growing reliance on hot water for household activities ranging from cleaning and cooking to personal hygiene will boost the business landscape.
 

Based on application, the electric water heater market is segmented into residential and Commercial. The residential segment is set to expand at a CAGR of over 4% through 2034, owing to their potential to lower energy bills. Many residential customers are opting for Energy Star-certified electric water heaters, which ensure that the products meet or exceed federal energy efficiency standards. These models help homeowners save money on energy costs and may also qualify for rebates and incentives.
 

Furthermore, electric water heaters equipped with Wi-Fi connectivity and smart controls are becoming more popular, allow homeowners to monitor and control their water heaters remotely through mobile apps, stimulating the product demand. 
 

The U.S. electric water heater market is anticipated to reach USD 2 billion by 2034, on account of energy efficiency, environmental concerns, technological advancements, and regulatory changes. Growing consumer and regulatory push for energy-efficient appliances along with incorporation of smart features including Wi-Fi connectivity and remote controls will augment the industry landscape.
 

The U.S. government has increasingly enforced stricter energy efficiency standards for water heaters, which has spurred the adoption of more efficient electric models. Moreover, some homeowners are integrating electric water heaters with renewable energy sources like solar panels, which help further reduce energy costs, driving the business scenario.
 

Electric Water Heater Market Share

The electric water heater industry is highly competitive, with a diverse range of players offering various product types. It is increasingly shaped by technological advancements, consumer preferences for energy efficiency, and rising environmental concerns. The market is characterized by both established industry giants and smaller, specialized players, offering a broad range of electric water heating solutions for residential, commercial, and industrial applications. Companies are continuously investing in R&D to improve efficiency, reduce environmental impact, and enhance consumer convenience.
 

Electric Water Heater Market Companies

Eminent players operating in the electric water heater industry are:

• A. O. Smith
• Ariston Holding N.V.
• American Standard Water Heaters
• Bosch Thermotechnology Corp.
• Bradford White Corporation
• FERROLI
• GE Appliances
• Groupe Atlantic
• Haier
• Havells India
• Hubbell Heaters
• LINUO RITTER INTERNATIONAL
• Nihon Itomic Co., Ltd.
• Noritz Corporation
• Parker Boiler Company
• Racold
• Rheem Manufacturing Company
• Rinnai Corporation
• State Industries
• STIEBEL ELTRON
• Vaillant
• Viessmann
• Westinghouse Electric Corporation
• Whirlpool Corporation
• Watts
• Zenith Water Heaters
   

Electric Water Heater Industry News

• In January 2023, Bosch Thermotechnology Corp. unveiled its latest offerings: the Tronic 4000 C and Tronic 6100 C electric tankless water heaters. The compact Tronic 4000 C, sized at 8.5" x 13" and weighing a mere 4.4 lbs, is designed for convenient wall-mounting directly beneath the sink. These innovative products are engineered to conserve significant energy while optimizing space. Bosch not only broadened its product lineup but also bolstered its standing in the market.
   
• In September 2022, Rheem Manufacturing Company unveiled the Rheem Professional Prestige Smart electric water heater, equipped with demand response and LeakGuard features. This advanced water heater not only adheres to the latest energy regulations but also ensures a smooth integration with the electric grid. Rheem not only broadened its portfolio but also solidified its standing in the industry.
   

The electric water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue & volume in “USD Million & ‘000 Units” from 2021 to 2034, for the following segments:

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Market, By Product

• Instant
• Storage

Market, By Capacity

• Below 30 Liters
• 30 – 100 Liters
• 100 – 250 Liters
• 250 – 400 Liters
• > 400 Liters

Market, By Application

• Residential
• Commercial
  • College/University
  • Offices
  • Government/Military
  • Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Austria
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Oman
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Mexico