As per Intent Market Research, the Water Heater Market was valued at USD 32.5 billion in 2024-e and will surpass USD 47.4 billion by 2030; growing at a CAGR of 6.5% during 2025 - 2030.
The water heater market is evolving rapidly, driven by increasing demand for energy-efficient heating solutions across residential, commercial, and industrial sectors. As households and industries aim to reduce energy consumption and carbon emissions, innovative products such as tankless and solar water heaters are gaining traction. Advances in technology, coupled with the growing adoption of renewable energy sources, are reshaping the dynamics of the market.
Storage Water Heater Segment is Largest Owing to High Versatility
The storage water heater segment leads the market, offering unmatched versatility and reliability across diverse applications. These heaters are widely preferred due to their ability to store hot water for extended periods, making them suitable for residential and commercial settings.
Storage water heaters are available in a range of capacities, catering to the needs of both small households and large industrial facilities. With innovations such as enhanced insulation and energy-saving features, these heaters are becoming increasingly efficient. The continued demand for cost-effective and easily installed heating solutions is expected to sustain this segment's dominance.
Solar Energy Source Segment is Fastest Growing Owing to Sustainability Trends
The solar energy source segment is the fastest-growing category, driven by the global shift towards sustainable and eco-friendly energy solutions. Solar water heaters leverage renewable energy to provide efficient heating, significantly reducing electricity and gas consumption.
This segment is particularly popular in regions with abundant sunlight, where governments offer incentives and subsidies to promote solar adoption. With advancements in solar technology and increasing awareness about environmental conservation, the demand for solar water heaters is expected to grow exponentially.
30–100 Liters Capacity Segment is Largest Due to Versatile Applications
The 30–100 liters capacity segment dominates the market, owing to its versatility and suitability for residential and light commercial use. This capacity range strikes a balance between space efficiency and adequate water heating, meeting the needs of small to medium-sized households and businesses.
The growing urban population and the rise in apartment living have fueled the demand for water heaters in this capacity range. Manufacturers are enhancing product designs to incorporate compact sizes and energy-efficient features, further driving the adoption of 30–100-liter water heaters.
Residential End-Use Industry is Largest Due to Expanding Housing Sector
The residential end-use industry is the largest segment in the water heater market, supported by the expanding housing sector and rising living standards worldwide. Homeowners increasingly seek modern, energy-efficient water heating solutions that offer convenience and cost savings.
Innovations such as smart water heaters with remote monitoring capabilities have further boosted adoption in the residential sector. The rising trend of home renovations and the increasing number of single-family homes are key factors propelling this segment's growth.
Asia-Pacific Region Leads Owing to Growing Urbanization and Energy Demand
The Asia-Pacific region dominates the water heater market, driven by rapid urbanization, population growth, and rising disposable incomes. Countries like China and India are major contributors, with robust construction activities and government initiatives promoting energy-efficient appliances.
The increasing electrification in rural areas and the growing adoption of solar water heaters in the region further support market expansion. With the region's focus on sustainable development and the availability of affordable water heating solutions, Asia-Pacific is poised to maintain its leadership position.
Competitive Landscape
Leading players in the water heater market include A.O. Smith Corporation, Rheem Manufacturing Company, Bradford White Corporation, Ariston Thermo Group, and Bosch Thermotechnology. These companies are focused on developing innovative and energy-efficient products to meet the evolving needs of consumers.
The competitive landscape is characterized by investments in R&D, strategic partnerships, and the introduction of smart technologies. Companies are also expanding their global footprints to tap into emerging markets, ensuring sustained growth in a highly dynamic industry.
Recent Developments:
- A. O. Smith Corporation
- Rheem Manufacturing Company
- Ariston Thermo Group
- Bosch Thermotechnology
- Bradford White Corporation
- Whirlpool Corporation
- Rinnai Corporation
- Noritz Corporation
- Haier Electronics Group Co., Ltd.
- Midea Group
- Ferroli S.p.A
- Viessmann Group
- Bajaj Electricals Limited
- Stiebel Eltron GmbH & Co. KG
- State Water Heaters
List of Leading Companies:
- A. O. Smith launched a new line of energy-efficient electric water heaters with smart control features.
- Rheem announced the expansion of its solar water heater range for residential and commercial use.
- Ariston Thermo Group acquired a regional water heater manufacturer to strengthen its global market presence.
- Bosch Thermotechnology introduced a new IoT-enabled tankless water heater for industrial applications.
- Rinnai Corporation unveiled its latest eco-friendly gas water heater model, designed for reduced emissions.
Report Scope:
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Report Features |
Description |
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Market Size (2024-e) |
USD 32.5 Billion |
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Forecasted Value (2030) |
USD 47.4 Billion |
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CAGR (2025 – 2030) |
6.5% |
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Base Year for Estimation |
2024-e |
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Historic Year |
2023 |
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Forecast Period |
2025 – 2030 |
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Report Coverage |
Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments |
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Segments Covered |
Global Water Heater Market by Type (Storage Water Heater, Tankless Water Heater, Solar Water Heater), by Energy Source (Electric, Gas, Solar), by Capacity (Below 30 Liters, 30–100 Liters, Above 100 Liters), by End-Use Industry (Residential, Commercial, Industrial) |
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Regional Analysis |
North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa) |
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Major Companies |
A. O. Smith Corporation, Rheem Manufacturing Company, Ariston Thermo Group, Bosch Thermotechnology, Bradford White Corporation, Whirlpool Corporation, Noritz Corporation, Haier Electronics Group Co., Ltd., Midea Group, Ferroli S.p.A, Viessmann Group, Bajaj Electricals Limited, State Water Heaters |
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Customization Scope |
Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements |
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1. Introduction |
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1.1. Market Definition |
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1.2. Scope of the Study |
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1.3. Research Assumptions |
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1.4. Study Limitations |
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2. Research Methodology |
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2.1. Research Approach |
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2.1.1. Top-Down Method |
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2.1.2. Bottom-Up Method |
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2.1.3. Factor Impact Analysis |
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2.2. Insights & Data Collection Process |
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2.2.1. Secondary Research |
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2.2.2. Primary Research |
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2.3. Data Mining Process |
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2.3.1. Data Analysis |
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2.3.2. Data Validation and Revalidation |
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2.3.3. Data Triangulation |
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3. Executive Summary |
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3.1. Major Markets & Segments |
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3.2. Highest Growing Regions and Respective Countries |
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3.3. Impact of Growth Drivers & Inhibitors |
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3.4. Regulatory Overview by Country |
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4. Water Heater Market, by Type (Market Size & Forecast: USD Million, 2023 – 2030) |
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4.1. Storage Water Heater |
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4.2. Tankless Water Heater |
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4.3. Solar Water Heater |
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5. Water Heater Market, by Energy Source (Market Size & Forecast: USD Million, 2023 – 2030) |
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5.1. Electric |
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5.2. Gas |
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5.3. Solar |
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6. Water Heater Market, by Capacity (Market Size & Forecast: USD Million, 2023 – 2030) |
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6.1. Below 30 Liters |
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6.2. 30–100 Liters |
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6.3. Above 100 Liters |
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7. Water Heater Market, by End-Use Industry (Market Size & Forecast: USD Million, 2023 – 2030) |
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7.1. Residential |
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7.2. Commercial |
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7.3. Industrial |
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8. Regional Analysis (Market Size & Forecast: USD Million, 2023 – 2030) |
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8.1. Regional Overview |
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8.2. North America |
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8.2.1. Regional Trends & Growth Drivers |
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8.2.2. Barriers & Challenges |
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8.2.3. Opportunities |
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8.2.4. Factor Impact Analysis |
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8.2.5. Technology Trends |
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8.2.6. North America Water Heater Market, by Type |
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8.2.7. North America Water Heater Market, by Energy Source |
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8.2.8. North America Water Heater Market, by Capacity |
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8.2.9. North America Water Heater Market, by End-Use Industry |
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8.2.10. By Country |
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8.2.10.1. US |
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8.2.10.1.1. US Water Heater Market, by Type |
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8.2.10.1.2. US Water Heater Market, by Energy Source |
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8.2.10.1.3. US Water Heater Market, by Capacity |
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8.2.10.1.4. US Water Heater Market, by End-Use Industry |
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8.2.10.2. Canada |
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8.2.10.3. Mexico |
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*Similar segmentation will be provided for each region and country |
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8.3. Europe |
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8.4. Asia-Pacific |
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8.5. Latin America |
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8.6. Middle East & Africa |
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9. Competitive Landscape |
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9.1. Overview of the Key Players |
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9.2. Competitive Ecosystem |
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9.2.1. Level of Fragmentation |
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9.2.2. Market Consolidation |
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9.2.3. Product Innovation |
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9.3. Company Share Analysis |
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9.4. Company Benchmarking Matrix |
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9.4.1. Strategic Overview |
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9.4.2. Product Innovations |
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9.5. Start-up Ecosystem |
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9.6. Strategic Competitive Insights/ Customer Imperatives |
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9.7. ESG Matrix/ Sustainability Matrix |
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9.8. Manufacturing Network |
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9.8.1. Locations |
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9.8.2. Supply Chain and Logistics |
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9.8.3. Product Flexibility/Customization |
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9.8.4. Digital Transformation and Connectivity |
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9.8.5. Environmental and Regulatory Compliance |
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9.9. Technology Readiness Level Matrix |
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9.10. Technology Maturity Curve |
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9.11. Buying Criteria |
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10. Company Profiles |
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10.1. A. O. Smith Corporation |
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10.1.1. Company Overview |
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10.1.2. Company Financials |
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10.1.3. Product/Service Portfolio |
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10.1.4. Recent Developments |
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10.1.5. IMR Analysis |
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*Similar information will be provided for other companies |
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10.2. Rheem Manufacturing Company |
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10.3. Ariston Thermo Group |
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10.4. Bosch Thermotechnology |
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10.5. Bradford White Corporation |
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10.6. Whirlpool Corporation |
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10.7. Rinnai Corporation |
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10.8. Noritz Corporation |
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10.9. Haier Electronics Group Co., Ltd. |
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10.10. Midea Group |
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10.11. Ferroli S.p.A |
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10.12. Viessmann Group |
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10.13. Bajaj Electricals Limited |
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10.14. Stiebel Eltron GmbH & Co. KG |
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10.15. State Water Heaters |
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11. Appendix |
A comprehensive market research approach was employed to gather and analyze data on the Water Heater Market. In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the Water Heater Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.
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Secondary Research
Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.
Primary Research
Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the E-Waste Management ecosystem. The primary research objectives included:
- Validating findings and assumptions derived from secondary research
- Gathering qualitative and quantitative data on market trends, drivers, and challenges
- Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
- Assessing the supply-side landscape, including technological advancements and recent developments
Market Size Assessment
A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the Water Heater Market. These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:
- Identification of key industry players and relevant revenues through extensive secondary research
- Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
- Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources
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Data Triangulation
To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.
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