Water Heater Market - By Product (Instant, Storage), By Fuel (Electric, Gas), By Application (Residential, Commercial), By Capacity and Forecast, 2025 – 2034

Water Heater Market Size

The global water heater market was valued at USD 33.7 billion in 2024 and is estimated to grow at a CAGR of 5.6% from 2025 to 2034. A water heater is a device used to heat water for various domestic, commercial, or industrial purposes. It typically heats water to a desired temperature for use in activities like bathing, cooking, cleaning, space heating, and industrial processes. Water heaters work by using an energy source such as electricity, gas, oil, or renewable energy to heat the water and then store or deliver it as needed.
 

Introduction of stricter regulations regarding energy efficiency and environmental impact along with drivers include energy efficiency, technological innovation, and sustainability will drive the business scenario. Manufacturers that can innovate in smart technology, eco-friendly solutions, and competitive pricing will continue to lead the market growth.
 

Ongoing integration of smart technology into water heaters is gaining popularity, allowing consumers to control their water heating systems remotely via mobile apps, manage energy usage, and monitor performance. Manufacturers are continuously enhancing product designs with new features like faster heating, longer lifespans, and improved safety mechanisms. Companies invest in R&D to differentiate their offerings with cutting-edge technology such as smart features and hybrid systems.
 

Water Heater Market Trends

Urban expansion and increased consumer spending on advanced heating technologies are driving the product demand. Major construction firms, such as Leighton Asia, are undertaking high-rise residential building projects. Strategic partnerships among industry players to strengthen heater manufacturing will further boost the water heater sales in the area. Key features including technological advancements, energy efficiency, sustainability concerns, and price competition will augment the industry landscape.
 

Water Heater Market Analysis

Based on application the market is segmented into residential and commercial. Residential is projected to grow by more than USD 43.5 Billion by 2034. Increasing adoption in new residential construction, particularly in homes that prioritize space efficiency and energy savings is set to drive the market growth. Growing installed of instant units in smaller spaces that offer endless hot water, make them attractive to homeowners. The trend toward home improvement and DIY projects has increased demand for residential water heating solutions. As more people are renovating or building new homes, there is greater focus on selecting water heaters that align with modern energy codes, sustainability goals, and long-term cost savings, contributing to the business momentum.
 

Based on product, the Water Heater market is segmented into instant and storage. Instant is set to grow at a CAGR of over 4% till 2034 owing to their space saving advantages, longer lifespan and energy efficiency making them appealing to homeowners, particularly those who want to reduce energy waste. The adoption of tankless water heaters is especially notable in new construction projects, where the installation of these systems aligns with space optimization goals and energy efficiency standards. Moreover, smart home integration will continue to grow, as the consumers seek greater control over their home systems and want to optimize energy use, strengthening the product penetration.
 

The U.S. water heater market is anticipated to grow over USD 5 Billion by 2034 on account of increased adoption of green certifications, including ENERGY STAR ratings, with consumers willing to pay more upfront for long-term savings and a lower environmental impact. Federal and state incentives play a significant role in driving the adoption of energy-efficient water heaters. New efficiency standards from the U.S. Department of Energy (DOE) continue to push for the adoption of higher-efficiency products, motivating consumers to replace older, less efficient systems. In addition, hybrid models allow users to take advantage of both traditional and renewable energy sources, helping to maintain a consistent supply of hot water while reducing dependency on a single energy source, stimulating the industry landscape.
 

Water Heater Market Share

The market is made up of a mix of large multinational corporations, regional players, and smaller niche companies, each targeting different segments and consumer needs. These firms are adopting strategies like business expansions to broaden their customer base in the industry. Companies that can offer products that save consumers money on utility bills are becoming more competitive. Further, manufacturers that offer such sustainable solutions are gaining a competitive edge, especially in markets with stringent environmental regulations.
 

Water Heater Market Companies

Eminent players operating in the water heater industry are:

• AERCO
• A. O. Smith
• Ariston Holding N.V.
• Bosch Thermotechnology
• Bradford White Corporation
• GE Appliances
• Groupe Atlantic
• Heatrae Sadia
• Haier Inc.
• Havells India Ltd
• Jaquar India
• JOVEN Electric Co. Sdn.
• ORBITAL HORIZON
• Panasonic Philippines
• Racold
• Rheem Manufacturing Company
• Rinnai Corporation
• STIEBEL ELTRON
• State Industries
• Thermex Corporation
• Thermann
• Toshiba Lifestyle Products and Services Corporation
• Vaillant Group International
• Viessmann
   

Water Heater Industry News

• In October 2023, Racold launched its premium water heater lineup, unveiling the Omnis and Altro models. The Omnis series includes the Omnis DG Wi-Fi, which boasts voice control and energy-saving features, and the Omnis DG, featuring a digital display and silver ion technology designed to curb bacterial growth.
   
• In January 2023, Hindware Home Innovation, based in India, and its joint venture partner, Group Atlantic from France, inaugurated a water heater manufacturing facility in India. This collaboration aims to produce 600,000 heating appliances and water heaters, bolstering their footprint nationwide.
   

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

Market, By Fuel

• Electric
• Gas
  • Natural gas
  • LPG

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