Game on, an in-depth analysis of the global sports equipment market suggest that the market is anticipated to cross USD 540 Billion by 2029, increasing from USD 372.15 Billion in 2023.
Consumer Goods & Services
The Water Heater Revolution: From antiquated tanks to space-saving, eco-friendly innovations - a thorough exploration of the water heating industry states that the market is anticipated to cross USD 45 Billion by 2028.
The water heater industry is a vital and dynamic sector that plays an indispensable role in modern living. As one of the cornerstones of household infrastructure, water heaters provide us with the comfort and convenience of hot water for various domestic needs, from bathing and cleaning to cooking and space heating. In recent years, this industry has experienced significant transformation, driven by advances in technology, energy efficiency regulations, and a growing emphasis on sustainability. From traditional tank-based heaters to tankless, heat pump, and solar-powered systems, the diversity of options available today reflects an industry that constantly adapts to meet the evolving needs and preferences of consumers. Moreover, as the world grapples with climate change and the need to reduce carbon emissions, the water heater industry is increasingly focused on developing eco-friendly solutions that minimize energy consumption and environmental impact. Beyond its fundamental role in providing hot water, the water heater industry is at the forefront of innovation and engineering excellence. Modern water heaters are equipped with sophisticated controls, energy-saving features, and smart technology that allow users to optimize their energy usage, save on utility bills, and reduce their carbon footprint. The industry's commitment to innovation is also reflected in the development of hybrid water heaters that combine multiple heating technologies, such as heat pumps and traditional heating elements, to provide an efficient and reliable source of hot water. Furthermore, the water heater industry is closely aligned with broader sustainability goals. Manufacturers are increasingly investing in research and development to create eco-friendly water heating solutions. This includes the integration of renewable energy sources like solar panels into water heating systems, as well as the utilization of advanced insulation materials to minimize heat loss. Energy efficiency standards and certifications have become paramount, not only meeting regulatory requirements but also meeting the demands of environmentally conscious consumers who seek to reduce their carbon footprint.
According to the research report, “Global Water Heater Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 45 Billion by 2028, increasing from USD 34.21 Billion in 2022. The market is expected to grow with 6.13% CAGR by 2023-28. The water heater market has undergone significant evolution over the years, driven by technological advancements, changing consumer preferences, energy efficiency regulations, and environmental concerns. However, tankless water heaters have gained popularity due to their on-demand hot water production and energy efficiency. They take up less space and reduce standby energy loss, making them an attractive option for many consumers. Increasing awareness of energy conservation and rising energy costs have led to the development of more energy-efficient water heaters. Manufacturers have improved the insulation of tanks, incorporated better heating elements, and introduced heat pump technology to reduce energy consumption. Hybrid water heaters combine technologies like heat pumps and traditional elements to optimize energy usage. These systems can extract heat from the air or ground, making them highly efficient and environmentally friendly. Solar-powered water heaters have gained traction as renewable energy solutions. They use solar collectors to heat water, reducing reliance on electricity or gas. In some regions, incentives and rebates encourage the adoption of solar water heaters. Water heaters equipped with smart technology and connectivity has become more prevalent. Users can remotely control and monitor their water heaters through mobile apps, allowing for better energy management and convenience. Emerging technologies like hydrogen fuel cell water heaters are being explored as potential clean energy solutions. These systems generate electricity as a by-product of heating water, offering an efficient and low-emission option. Advances in materials and manufacturing have extended the lifespan of water heaters. High-quality components and better corrosion protection contribute to fewer replacements and reduced waste.
North America is a mature water heater market with a high penetration rate of residential and commercial water heating systems. Gas water heaters have traditionally been popular in this region, but electric and tankless water heaters are gaining market share. Energy efficiency standards and environmental regulations drive the adoption of more efficient models, including tankless and heat pump water heaters. Rebate programs and incentives further promote the replacement of older, less efficient units. Europe is a diverse market with varying preferences in different countries. Gas water heaters are popular in some regions, while electric tankless and heat pump models dominate others. Stringent energy efficiency regulations, such as the EU Ecodesign Directive, push consumers toward more efficient models. Renewable energy integration, particularly in solar thermal systems, is encouraged in some European countries. Asia-Pacific is the largest and fastest-growing water heater market globally. Gas water heaters are widely used, but electric models are gaining ground. Tankless water heaters are also becoming more popular. Rapid urbanization, population growth, and improving living standards drive the demand for water heaters. In some regions, government subsidies and incentives promote the adoption of energy-efficient models. South America has a growing demand for water heaters. Gas and electric storage water heaters are common, while tankless models are emerging. Economic growth and rising middle-class populations are boosting demand. Incentives for energy-efficient appliances and the replacement of older, less efficient units are driving market growth. However, Middle East & Africa region has a mix of traditional and modern water heating solutions. Solar water heaters are increasingly popular due to abundant sunlight, and electric storage water heaters are common. Solar water heaters align with the region's renewable energy goals. Economic development and population growth drive demand for water heaters in urban and rural areas.
Based on the product type, electric water heaters are popular worldwide, offering a simple and reliable solution for heating water. They are commonly used in residential and commercial settings. Electric water heaters are easy to install, require minimal maintenance, and can be used in regions without access to natural gas. They are also available in various sizes and designs to meet different needs. Electric water heaters tend to have higher operating costs compared to gas water heaters, especially in regions with expensive electricity rates. Energy efficiency improvements are an ongoing focus in this segment. However, solar water heaters utilize energy from the sun to heat water, making them an eco-friendly and energy-efficient option. They are commonly used in regions with abundant sunlight. Solar water heaters reduce energy bills and have a lower environmental impact. They are particularly attractive in areas with strong sunlight and government incentives for renewable energy. The initial installation cost can be high, and the effectiveness of solar water heaters is highly dependent on local climate conditions. Backup heating systems may be required during periods of low sunlight. Gas water heaters use natural gas or propane as the primary energy source for heating water. They are prevalent in many regions, especially where natural gas infrastructure is well-developed. Gas water heaters are known for their quick recovery times and cost-effectiveness, as natural gas is often cheaper than electricity. Tankless gas water heaters, in particular, have gained popularity for their on-demand heating. Efficiency standards and emissions regulations have driven the need for more energy-efficient gas water heaters. Some regions may have limited access to natural gas, limiting the market for gas water heaters. Additionally, there is an increasing focus on energy efficiency and sustainability across all segments, with manufacturers continuously innovating to develop more efficient and environmentally friendly water heating solutions. As a result, the water heater market continues to evolve to meet the changing demands of consumers and the requirements of regulatory bodies.
Tankless water heaters, also known as on-demand or instantaneous water heaters, heat water only when it is needed, eliminating the need for a storage tank. They have gained popularity for their energy efficiency and space-saving design. Tankless water heaters are known for their energy efficiency, as they do not continuously heat and store water, reducing standby energy loss. They provide hot water on demand, ensuring a constant supply of hot water. Storage water heaters, also known as tank-type water heaters, store and continuously heat a specific volume of water in an insulated tank. They are a widely used and established technology. Storage water heaters are readily available, affordable, and simple to install. They can provide a large volume of hot water at once, making them suitable for households with high hot water demands. However, hybrid water heaters combine the features of both tankless and storage water heaters. They use a heat pump to efficiently heat water and typically have a small storage tank to provide hot water during peak demand. Hybrid water heaters are highly energy-efficient, as they extract heat from the air or ground to heat water. They offer the benefits of continuous hot water supply and reduced energy consumption. The initial cost of hybrid water heaters can be higher than traditional storage heaters. They may also require suitable installation conditions, such as adequate ventilation for heat pump operation. In recent years, there has been a growing emphasis on energy efficiency and sustainability, which has driven the adoption of tankless and hybrid water heaters in many regions. Manufacturers continue to innovate in these segments to meet the evolving needs of consumers and to comply with energy efficiency regulations.
Water heaters with a capacity below 30 liters are typically considered compact or point-of-use units. They are designed for smaller applications such as kitchen sinks, hand washbasins, or individual rooms where hot water demand is low. These smaller water heaters are commonly used in homes, offices, and commercial spaces where there is a need for hot water in specific areas, but not for large-scale consumption. Water heaters in the 30-100 liter capacity range are versatile and suitable for most household applications. They can provide enough hot water for bathing, kitchen use, and other general purposes. This capacity range is commonly found in residential settings, hotels, small businesses, and apartments where moderate hot water demand is typical. Water heaters with a capacity of 100-250 liters are considered medium-sized units and are capable of meeting the hot water needs of larger households and some commercial applications. These water heaters are often used in larger homes, multi-family dwellings, hotels, restaurants, and small to medium-sized commercial establishments. Water heaters in the 250-400 liter capacity range are larger and are suitable for properties with high hot water demand. They are often used in commercial and industrial applications. These water heaters can be found in large hotels, industrial facilities, restaurants, and other settings where a substantial volume of hot water is needed. Water heaters with a capacity above 400 liters are designed for high-demand commercial and industrial applications where a significant amount of hot water is required continuously. Such large water heaters are commonly used in industrial processes, large-scale manufacturing, hospitals, and facilities with extensive hot water needs.
Based on the application, residential water heaters are designed for use in homes and individual households. They are typically smaller in size and capacity compared to commercial water heaters. These water heaters are used for various domestic purposes, including providing hot water for bathing, kitchen use, laundry, and other daily activities in private residences, apartments, and condominiums. Factors such as population growth, urbanization, and improving living standards drive the demand for residential water heaters. Energy efficiency and eco-friendliness are increasingly important considerations for residential consumers. On the other hand, commercial water heaters are specifically designed for larger-scale applications and commercial settings, where higher hot water demand is common. Commercial water heaters are used in a wide range of settings, including hotels, restaurants, hospitals, schools, office buildings, manufacturing plants, and other commercial and industrial facilities. They provide hot water for sanitation, food service, space heating, and other commercial purposes. Factors influencing the commercial water heater market include the growth of the hospitality sector, healthcare industry, and commercial construction projects. Energy efficiency, reliability, and compliance with building codes and regulations are key considerations for commercial customers.
Increasing awareness of energy conservation and rising energy costs have driven demand for more energy-efficient water heaters. Manufacturers are developing models that meet or exceed energy efficiency standards, such as ENERGY STAR certification in the United States, and incorporating features like better insulation, improved heating elements, and heat pump technology to reduce energy consumption. Water heaters equipped with smart technology and connectivity are on the rise. Consumers can remotely control and monitor their water heaters through mobile apps, allowing for better energy management and convenience. Some models even have predictive maintenance features to prevent breakdowns. Advances in materials and manufacturing have extended the lifespan of water heaters. High-quality components and better corrosion protection contribute to fewer replacements and reduced waste. In regions where electricity is generated from renewable sources, there is a shift toward electric water heaters as part of broader efforts to electrify home energy systems. Heat recovery systems are gaining attention, especially in commercial and industrial applications. They capture waste heat from various processes and use it to preheat water, improving overall energy efficiency. Emerging markets, particularly in Asia-Pacific and Africa, are experiencing rapid urbanization and rising middle-class populations, driving increased demand for water heaters. Stricter energy efficiency standards and emissions regulations in various countries are pushing manufacturers to develop more eco-friendly and efficient water heaters. Research into advanced materials, such as improved insulation and heat exchangers, is leading to more efficient and durable water heater designs.
Recent Product Launches:
• Rheem Professional Prestige Smart Electric Water Heater with Leak Guard and Demand Response (January 2023): This water heater features a leak guard system that can automatically shut off the water supply in the event of a leak. It also has demand response capabilities, which can help homeowners save money on their energy bills.
• Bosch Thermo-technology Compress 7000 AW Heat Pump Water Heater (April 2023): This water heater uses a highly efficient heat pump compressor to provide hot water. It is also equipped with a number of smart features, such as voice control and remote monitoring.
• Rinnai V65i Tankless Water Heater (June 2023): This tankless water heater is designed to provide endless hot water on demand. It is also very energy efficient, with an Energy Factor (EF) of up to 0.96.
• Bradford White AeroTherm 65e Tankless Water Heater (July 2023): This tankless water heater is also designed to provide endless hot water on demand. It is equipped with a number of safety features, such as a temperature relief valve and a freeze protection system.
• A.O. Smith Voltex AL Hybrid Electric Heat Pump Water Heater (September 2022): This water heater uses a combination of heat pump and electric resistance heating to provide efficient and reliable hot water. It has a Uniform Energy Factor (UEF) of 4.02, which is the highest in the industry.
According to the research report, “Global Water Heater Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 45 Billion by 2028, increasing from USD 34.21 Billion in 2022. The market is expected to grow with 6.13% CAGR by 2023-28. The water heater market has undergone significant evolution over the years, driven by technological advancements, changing consumer preferences, energy efficiency regulations, and environmental concerns. However, tankless water heaters have gained popularity due to their on-demand hot water production and energy efficiency. They take up less space and reduce standby energy loss, making them an attractive option for many consumers. Increasing awareness of energy conservation and rising energy costs have led to the development of more energy-efficient water heaters. Manufacturers have improved the insulation of tanks, incorporated better heating elements, and introduced heat pump technology to reduce energy consumption. Hybrid water heaters combine technologies like heat pumps and traditional elements to optimize energy usage. These systems can extract heat from the air or ground, making them highly efficient and environmentally friendly. Solar-powered water heaters have gained traction as renewable energy solutions. They use solar collectors to heat water, reducing reliance on electricity or gas. In some regions, incentives and rebates encourage the adoption of solar water heaters. Water heaters equipped with smart technology and connectivity has become more prevalent. Users can remotely control and monitor their water heaters through mobile apps, allowing for better energy management and convenience. Emerging technologies like hydrogen fuel cell water heaters are being explored as potential clean energy solutions. These systems generate electricity as a by-product of heating water, offering an efficient and low-emission option. Advances in materials and manufacturing have extended the lifespan of water heaters. High-quality components and better corrosion protection contribute to fewer replacements and reduced waste.
North America is a mature water heater market with a high penetration rate of residential and commercial water heating systems. Gas water heaters have traditionally been popular in this region, but electric and tankless water heaters are gaining market share. Energy efficiency standards and environmental regulations drive the adoption of more efficient models, including tankless and heat pump water heaters. Rebate programs and incentives further promote the replacement of older, less efficient units. Europe is a diverse market with varying preferences in different countries. Gas water heaters are popular in some regions, while electric tankless and heat pump models dominate others. Stringent energy efficiency regulations, such as the EU Ecodesign Directive, push consumers toward more efficient models. Renewable energy integration, particularly in solar thermal systems, is encouraged in some European countries. Asia-Pacific is the largest and fastest-growing water heater market globally. Gas water heaters are widely used, but electric models are gaining ground. Tankless water heaters are also becoming more popular. Rapid urbanization, population growth, and improving living standards drive the demand for water heaters. In some regions, government subsidies and incentives promote the adoption of energy-efficient models. South America has a growing demand for water heaters. Gas and electric storage water heaters are common, while tankless models are emerging. Economic growth and rising middle-class populations are boosting demand. Incentives for energy-efficient appliances and the replacement of older, less efficient units are driving market growth. However, Middle East & Africa region has a mix of traditional and modern water heating solutions. Solar water heaters are increasingly popular due to abundant sunlight, and electric storage water heaters are common. Solar water heaters align with the region's renewable energy goals. Economic development and population growth drive demand for water heaters in urban and rural areas.
Based on the product type, electric water heaters are popular worldwide, offering a simple and reliable solution for heating water. They are commonly used in residential and commercial settings. Electric water heaters are easy to install, require minimal maintenance, and can be used in regions without access to natural gas. They are also available in various sizes and designs to meet different needs. Electric water heaters tend to have higher operating costs compared to gas water heaters, especially in regions with expensive electricity rates. Energy efficiency improvements are an ongoing focus in this segment. However, solar water heaters utilize energy from the sun to heat water, making them an eco-friendly and energy-efficient option. They are commonly used in regions with abundant sunlight. Solar water heaters reduce energy bills and have a lower environmental impact. They are particularly attractive in areas with strong sunlight and government incentives for renewable energy. The initial installation cost can be high, and the effectiveness of solar water heaters is highly dependent on local climate conditions. Backup heating systems may be required during periods of low sunlight. Gas water heaters use natural gas or propane as the primary energy source for heating water. They are prevalent in many regions, especially where natural gas infrastructure is well-developed. Gas water heaters are known for their quick recovery times and cost-effectiveness, as natural gas is often cheaper than electricity. Tankless gas water heaters, in particular, have gained popularity for their on-demand heating. Efficiency standards and emissions regulations have driven the need for more energy-efficient gas water heaters. Some regions may have limited access to natural gas, limiting the market for gas water heaters. Additionally, there is an increasing focus on energy efficiency and sustainability across all segments, with manufacturers continuously innovating to develop more efficient and environmentally friendly water heating solutions. As a result, the water heater market continues to evolve to meet the changing demands of consumers and the requirements of regulatory bodies.
Tankless water heaters, also known as on-demand or instantaneous water heaters, heat water only when it is needed, eliminating the need for a storage tank. They have gained popularity for their energy efficiency and space-saving design. Tankless water heaters are known for their energy efficiency, as they do not continuously heat and store water, reducing standby energy loss. They provide hot water on demand, ensuring a constant supply of hot water. Storage water heaters, also known as tank-type water heaters, store and continuously heat a specific volume of water in an insulated tank. They are a widely used and established technology. Storage water heaters are readily available, affordable, and simple to install. They can provide a large volume of hot water at once, making them suitable for households with high hot water demands. However, hybrid water heaters combine the features of both tankless and storage water heaters. They use a heat pump to efficiently heat water and typically have a small storage tank to provide hot water during peak demand. Hybrid water heaters are highly energy-efficient, as they extract heat from the air or ground to heat water. They offer the benefits of continuous hot water supply and reduced energy consumption. The initial cost of hybrid water heaters can be higher than traditional storage heaters. They may also require suitable installation conditions, such as adequate ventilation for heat pump operation. In recent years, there has been a growing emphasis on energy efficiency and sustainability, which has driven the adoption of tankless and hybrid water heaters in many regions. Manufacturers continue to innovate in these segments to meet the evolving needs of consumers and to comply with energy efficiency regulations.
Water heaters with a capacity below 30 liters are typically considered compact or point-of-use units. They are designed for smaller applications such as kitchen sinks, hand washbasins, or individual rooms where hot water demand is low. These smaller water heaters are commonly used in homes, offices, and commercial spaces where there is a need for hot water in specific areas, but not for large-scale consumption. Water heaters in the 30-100 liter capacity range are versatile and suitable for most household applications. They can provide enough hot water for bathing, kitchen use, and other general purposes. This capacity range is commonly found in residential settings, hotels, small businesses, and apartments where moderate hot water demand is typical. Water heaters with a capacity of 100-250 liters are considered medium-sized units and are capable of meeting the hot water needs of larger households and some commercial applications. These water heaters are often used in larger homes, multi-family dwellings, hotels, restaurants, and small to medium-sized commercial establishments. Water heaters in the 250-400 liter capacity range are larger and are suitable for properties with high hot water demand. They are often used in commercial and industrial applications. These water heaters can be found in large hotels, industrial facilities, restaurants, and other settings where a substantial volume of hot water is needed. Water heaters with a capacity above 400 liters are designed for high-demand commercial and industrial applications where a significant amount of hot water is required continuously. Such large water heaters are commonly used in industrial processes, large-scale manufacturing, hospitals, and facilities with extensive hot water needs.
Based on the application, residential water heaters are designed for use in homes and individual households. They are typically smaller in size and capacity compared to commercial water heaters. These water heaters are used for various domestic purposes, including providing hot water for bathing, kitchen use, laundry, and other daily activities in private residences, apartments, and condominiums. Factors such as population growth, urbanization, and improving living standards drive the demand for residential water heaters. Energy efficiency and eco-friendliness are increasingly important considerations for residential consumers. On the other hand, commercial water heaters are specifically designed for larger-scale applications and commercial settings, where higher hot water demand is common. Commercial water heaters are used in a wide range of settings, including hotels, restaurants, hospitals, schools, office buildings, manufacturing plants, and other commercial and industrial facilities. They provide hot water for sanitation, food service, space heating, and other commercial purposes. Factors influencing the commercial water heater market include the growth of the hospitality sector, healthcare industry, and commercial construction projects. Energy efficiency, reliability, and compliance with building codes and regulations are key considerations for commercial customers.
Increasing awareness of energy conservation and rising energy costs have driven demand for more energy-efficient water heaters. Manufacturers are developing models that meet or exceed energy efficiency standards, such as ENERGY STAR certification in the United States, and incorporating features like better insulation, improved heating elements, and heat pump technology to reduce energy consumption. Water heaters equipped with smart technology and connectivity are on the rise. Consumers can remotely control and monitor their water heaters through mobile apps, allowing for better energy management and convenience. Some models even have predictive maintenance features to prevent breakdowns. Advances in materials and manufacturing have extended the lifespan of water heaters. High-quality components and better corrosion protection contribute to fewer replacements and reduced waste. In regions where electricity is generated from renewable sources, there is a shift toward electric water heaters as part of broader efforts to electrify home energy systems. Heat recovery systems are gaining attention, especially in commercial and industrial applications. They capture waste heat from various processes and use it to preheat water, improving overall energy efficiency. Emerging markets, particularly in Asia-Pacific and Africa, are experiencing rapid urbanization and rising middle-class populations, driving increased demand for water heaters. Stricter energy efficiency standards and emissions regulations in various countries are pushing manufacturers to develop more eco-friendly and efficient water heaters. Research into advanced materials, such as improved insulation and heat exchangers, is leading to more efficient and durable water heater designs.
Recent Product Launches:
• Rheem Professional Prestige Smart Electric Water Heater with Leak Guard and Demand Response (January 2023): This water heater features a leak guard system that can automatically shut off the water supply in the event of a leak. It also has demand response capabilities, which can help homeowners save money on their energy bills.
• Bosch Thermo-technology Compress 7000 AW Heat Pump Water Heater (April 2023): This water heater uses a highly efficient heat pump compressor to provide hot water. It is also equipped with a number of smart features, such as voice control and remote monitoring.
• Rinnai V65i Tankless Water Heater (June 2023): This tankless water heater is designed to provide endless hot water on demand. It is also very energy efficient, with an Energy Factor (EF) of up to 0.96.
• Bradford White AeroTherm 65e Tankless Water Heater (July 2023): This tankless water heater is also designed to provide endless hot water on demand. It is equipped with a number of safety features, such as a temperature relief valve and a freeze protection system.
• A.O. Smith Voltex AL Hybrid Electric Heat Pump Water Heater (September 2022): This water heater uses a combination of heat pump and electric resistance heating to provide efficient and reliable hot water. It has a Uniform Energy Factor (UEF) of 4.02, which is the highest in the industry.
Related Press Releases
Quick Contacts
Trusted Partners
Latest Press Release
We are friendly and approachable, give us a call.