The Global Electric Water Heater Market Size valued for USD 23.8 Billion in 2021 and is anticipated to reach USD 37.4 Billion by 2030 with a CAGR of 5.2% from 2022 to 2030.                                                                     

An electric water heater is an essential device that effectively raises the temperature of water. By converting electricity into heat power, it enables users to transform cold water into hot water. Electric water heaters come in container and tankless variants, finding application in commercial, industrial, residential, and various other sectors. The growing demand for hot water in industries and commercial settings is a key driver for the electric water heater market. In residential applications, water heaters are used for cooking, washing, and bathing purposes. The market is expected to witness significant growth in the coming years, propelled by increasing urbanization in developing regions, particularly in Asia-Pacific, and the rising preference for hot water among consumers.

Asia-Pacific has experienced a surge in electricity consumption in recent years, contributing to the growing adoption of electric water heaters. These devices are favored due to their user-friendly nature, cost-effectiveness compared to other heating equipment, low maintenance requirements, and ability to provide a continuous supply of hot water. As the number of appliances in various sectors continues to rise and disposable incomes increase, the electric water heater market is expected to expand further.

Electric Water Heater Market Dynamics

The electric water heater market is experiencing growth due to several factors, including the expansion of commercial sectors and infrastructure development in various countries. Small companies rely on water heaters for their daily production activities. To reduce power consumption, these companies are opting for highly efficient water heaters. Tankless water heaters, which do not require a storage tank, are gaining popularity due to their low power consumption.

Water heaters find applications in a wide range of settings, including medical facilities, hotels, restaurants, complexes, and shopping malls. The market is driven by the ease of installation and maintenance offered by electric water heaters. Storage water heaters, which utilize hot water storage tanks, contribute to increased heating capacity. They are available in different sizes to meet market demands and are easy to maintain and repair. Furthermore, storage water heaters offer the advantage of low installation costs.

Overall, the electric water heater market is benefiting from the growing demand in commercial sectors, the preference for energy-efficient solutions, and the ease of installation and maintenance provided by storage water heaters.

Electric water heater market share

The electric water heater market can be classified based on product, capacity, application, and geography. In terms of application, the market is divided into residential and commercial sectors. Currently, residential sectors hold the largest share of revenue, accounting for 53.4% in 2021. This dominance is expected to continue as the demand for reliable, affordable, and environmentally friendly water heating technologies grows in both industrial and residential sectors.

Electric water heaters offer cost advantages, operating at a lower cost during the summer, with savings of up to 70%. Even in winter, they remain relatively inexpensive, operating at around 30% to 40% lower cost compared to other heating methods. This affordability further fuels the market's growth.

Electric water heaters find applications in various industries, including construction, food & beverage, pharmaceutical, power, and agriculture. In the construction sector, water heaters are used for tasks such as producing steam, preventing frost, and heating water.

Overall, the electric water heater market is expanding due to the increasing demand for cost-effective and environmentally friendly water heating technologies. The residential sector currently holds a significant share, but the market is also driven by the usage of water heaters in commercial sectors and industries such as construction, food & beverage, pharmaceutical, power, and agriculture.

Global Electric Water Heater Market Geographical Competition

The Asia-Pacific region holds the largest share in the global water heater market, accounting for approximately 36% of the market revenue in recent years. This dominance can be attributed to factors such as the availability of gas resources and significant government investments in infrastructure development, which contribute to increased electricity demand across all sectors. These factors are expected to drive the growth of the water heater market in the coming years. Additionally, the region experiences growing disposable income, rapid urbanization, and increasing electrification, all of which further fuel the market's expansion.

China, in particular, is witnessing a surge in investment and development in the construction industry, creating a higher demand for water heaters. The Chinese government supports innovation, research, and the reduction of CO2 emissions, which also contribute to the growth of the water heater market in the country. Over the forecast period, the demand for water heaters in China is expected to continue increasing.

In Europe, the market for water heaters is projected to expand due to the rising demand from various industrial and commercial end users who seek good quality and reliable water heating solutions. Moreover, the countries in this region experience highly cold environmental conditions, leading to an increased demand for hot water. This further drives the market for water heaters in Europe.

Overall, the Asia Pacific region's dominance in the global water heater market is driven by factors such as rising gas availability, government investments in infrastructure, increasing electricity demand, growing disposable income, rapid urbanization, and electrification. China's investment in the construction industry and support for innovation also contribute to the market's growth. In Europe, the demand for high-quality water heaters and the need for hot water in cold environments propel the market forward.

Global Electric Water Heater Industry Segment Analysis

Market By Product

·        Instant

·        Storage

Market By Capacity

·        <30 Liters

·        30-100 Liters

·        100-250 Liters

·        250-400 Liters

·        >400 Liters

Market By Application

·        Residential

·        Commercial

o   College/University

o   Offices

o   Government/Military

o   Others

Electric Water Heater Market Leading Companies

The players profiled in the report are A.O. Smith, Ariston Thermo, Bradford White, Bosch Thermotechnology, Ferroli, General Electric Appliances, Haier Electronics, Havells India, Hubbell, Nihon Itomic, Racold, Rheem Manufacturing, Rinnai Corporation, State Water Heaters, Stiebel Eltron, Vaillant Group, Viessmann Group, Watts Water Technologies, Whirlpool Corporation, and others.

Electric Water Heater Market Regions