Water Heating Market Size - By Product (Water Heater, Boiler), By Application (Residential, Commercial, Industrial), By Regional Outlook & Forecast, 2024 – 2032

Water Heating Market Size

Water Heating Market size in 2023 was valued at USD 121.4 billion and is estimated to grow at a rate of 7.5% from 2024 and 2032. Increasing concerns regarding energy efficiency will spur the adoption of advanced water heating technologies, further bolstered by regulatory reforms promoting the installation of environmentally friendly and energy-efficient heating units. For instance, in 2024, the U.S. government offers homeowners up to USD 3,200 in tax credits for eligible home improvements.
 

Water heating equipment refers to devices used to heat water for various purposes including domestic use, industrial processes, and commercial applications. These devices convert energy from various sources into heat to raise the temperature of the water. Each type of equipment has its advantages and is suitable for different applications based on factors like energy efficiency, installation cost, space availability, and specific hot water needs.
 

Water Heating Market Trends

Rising energy costs and growing environmental concerns are pushing businesses to invest in equipment that minimizes fuel consumption and lowers emissions, stimulating the business scenario. Ongoing technological advancements along with supportive government regulations, codes, and standards promoting safety & adoption across diverse applications is influencing the growth trajectory of the water heating industry. The increasing demand for clean energy solutions coupled with imperatives to mitigate carbon emissions will positively impact the industry landscape.
 

Water Heating Market Analysis

The market is set to reach over USD 60 billion by 2032. Rising construction expenditures and ongoing retrofitting of existing public establishments coupled with rising consumer spending will institute a favorable industry scenario. The ongoing development of low-emission alternatives in line with significant improvement in living standards will fuel the product penetration. In addition, growing consumer awareness and environmental considerations supported by regulatory reforms promoting the adoption of efficient & reliable heating units will propel the industry growth.
 

The residential water heating market size will witness growth rate of over 7.5% by 2032. Shifting focus toward energy efficiency along with surging adoption for high-efficiency models to reduce utility bills and minimize environmental impact will positively impact the business landscape. The growing preference for hybrid water heating systems that combine multiple technologies, providing versatility and resilience to fluctuating energy prices are influencing the industry outlook.
 

The Europe water heating market is set to surpass USD 100 billion by 2032. Favorable regulatory policies promoting the deployment of efficient electrical equipment coupled with a growing number of manufacturing facilities catering to the hot water requirements of is set to stimulate the industry demand. The strategic partnerships among major players, supported by extensive investments from both the private and public sectors, will further enhance the industry landscape.
 

Introduction of supportive regulations, strategies, mandates, and standards aimed at reducing climate pollution and promoting energy savings will escalate the U.S. Europe water heating market. Government initiatives that encourage the adoption of advanced space and water heating technologies, coupled with efforts to ensure energy conservation, are reshaping the industry landscape. The new standards mandated the integration of condensing technology into heating systems, aiming to enhance energy efficiency and facilitate cost savings for businesses which in turn will drive the product adoption.
 

Water Heating Market Share

Daikin Industries is one of the global leaders in air conditioning and climate control solutions and has a significant presence in the water heating equipment market. Renowned for their innovative technology and energy-efficient systems, the company offers a diverse range of water heaters designed to meet various residential and commercial needs. Their product line includes heat pump water heaters, which utilize renewable energy sources to provide sustainable and cost-effective hot water solutions.
 

Its water heating systems are known for their reliability, advanced features, and environmentally friendly operation, reflecting the company's commitment to quality and sustainability. With a strong emphasis on research and development, Daikin continues to advance the water heating industry by integrating cutting-edge technologies that enhance performance and user convenience.
 

Water Heating Market Companies

The key industry players include:

• A.O. Smith
• ALFA LAVAL
• Ariston Holding N.V.
• Bajaj Electricals
• BDR Thermea Group
• Bradford White Corporation
• Crompton
• DAIKIN INDUSTRIES, Ltd.
• Danfoss
• Emerson Electric Co.
• General Electric
• Group Atlantic
• Haier Inc.
• Haier Inc.
• Havells
• Honeywell International Inc.
• IHI Corporation
• Johnson Controls International
• Lennox International
• Mitsubishi Electric Corporation
• Noritz
• Panasonic Corporation
• Rheem Manufacturing Company
• Rinnai Corporation
• Robert Bosch GmbH
• Saudi Ceramic Company
• Siemens
• STIEBEL ELTRON GmbH & Co. KG
• Thermax Limited
• Vaillant Group
• Viessmann Group
   

Water Heating Industry News

• In January 2024, Bosch unveiled the IDS Heat Pump and GreenTronic Hybrid Electric Water Heater at the 2024 AHR Expo. The IDS Ultra offers high efficiency in heating, suitable for almost all North American climates. Anticipated for late 2024, it comes with a 10-year warranty and utility demand response compatibility. The GreenTronic 7000 T, launching in summer 2024, boasts 3-4 times the efficiency of traditional electric storage water heaters. With sleek design and demand response port, it's ideal for replacements and new installations.
   
• In May 2023, Daikin Applied has acquired Carroll Air Systems, a Florida-based HVAC specialist. The company aims to operate as a unified organization capable of installing heating and cooling equipment, as well as providing ongoing maintenance and support throughout the entire lifecycle of the systems ensuring efficient performance and customer satisfaction.
   
• The acquisition initially focuses on central and west Florida while the company aims to offer lifecycle solutions, encompassing design support, servicing, and the supply of parts to meet HVAC needs, including the growing demand for more sustainable systems. This strategic move towards being a lifecycle solutions provider signifies a shift from solely manufacturing equipment to delivering comprehensive services that address the entire lifespan of HVAC systems.
   

The water heating market research report includes in-depth coverage of the industry with estimates & forecast in terms of “000 Units” & “USD Million” from 2021 to 2032, for the following segments:

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Market, By Product

• Water Heater
• Boiler

Market, By Application

• Residential
• Commercial
• Industrial

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Portugal
  • Romania
  • Netherlands
  • Switzerland
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
• Latin America
  • Brazil
  • Argentina