Electric Water Heater Market Analysis

Electric Water Heater Market Analysis

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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.