Electric Water Heater Market
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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 cooks water using electric energy for different purposes, such as bathing, cleaning, and even cooking. They utilize electrical resistance elements to heat water directly.
The industry is set to grow due to competitive pricing and a shift in demand towards energy efficient systems as well as the growing range of multi-capacity variants. Government policies encouraging reliance on renewable sources of energy is expected to rise the product adoption as well as the integration of these systems into existing structure. Growing stringency of energy efficiency standards and incentive programs designed to make consumers replace their old, basic, and inefficient water heaters with new ones, will stimulate the industry’s growth.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Electric Water Heater Market Size in 2024: | USD 23.8 Billion |
| Forecast Period: | 2025-2034 |
| Forecast Period 2023 - 2032 CAGR: | 4.2 |
| 2023 Value Projection: | USD 35.9 Billion |
| Historical Data for: | 2021 - 2024 |
| No of Pages: | 80 |
| Tables, Charts & Figures: | 20 |
| Segments Covered: | Product, Capacity, Application, and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Government initiatives to reduce carbon emissions together with the increasing investments in construction are expected to increase the adoption of the product. The expanding refurbishment and renovation of aged buildings is expected to increase the need for water heaters, which in turn will drive the market growth. Several of the suppliers are now actively engaging in product personalization for specific commercial and industrial uses, which is helping the business. Also, the growing quest for zero emission green building projects, on top of growing concern for smart appliances to lessen carbon emissions, will change the paradigm of the industry even more.
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.
Based on product, 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 electric water heater market landscape.
Based on application, the residential segment is set to grow 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 gadgets assist a household in reducing their energy consumption expenses and could receive discounts or rewards as well. Additionally, phone-controlled electric water heaters with wi-fi and smart controls are growing in popularity which enables users to turn on and off the heaters using their mobile which increases the product demand.
The U.S. electric water heater market is anticipated to reach over 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 government has been implementing more stringent energy consumption regulations on water heaters, which has led to the increasing use of more efficient electric models.
In addition, the incorporation of electric water heaters into renewable energy systems, such as solar panels, which some homeowners are adopting, makes the business environment more favorable by further lowering energy costs.
The competition in the market for electric water heaters is stiff due to the variety of types available. The market is influenced by technological innovation, the need for energy saving appliances, as well as concern for the environment. There are marked differences between major corporations in the industry and small niche companies, who custom serve the needs of various segments, domestic, business, and industrial, by offering different types of electric water heaters. There is significant investment from corporations in their R&D so as to enhance efficiency, reduce their carbon footprints and focus on consumer convenience as well.
Eminent players operating in the electric water heater industry are:
Market, By Product
Market, By Capacity
Market, By Application
The above information has been provided for the following regions and countries:
The key players in the industry include 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.
The residential segment is set to expand at a CAGR of over 4% through 2034, as many residential customers opt for Energy Star-certified electric water heaters to save on energy costs and qualify for rebates and incentives.
The U.S. market is anticipated to reach USD 2 billion by 2034, led by energy efficiency, environmental concerns, technological advancements, and regulatory changes.
The market size of electric water heater reached USD 23.8 billion in 2024 and is set to grow at a 4.2% CAGR from 2025 to 2034, driven by rapid urbanization and advancing product customization.