Published Date: Mar 2020 | Report ID: GMI680 | Authors: Ankit Gupta, Abhishek Chopra



Report Format: PDF | Pages: 595 | Base Year: 2019

Industry Trends

Electric Water Heater Market size surpassed USD 16 billion in 2019, with annual installation predicted to reach 109 million units by 2026. Growing urban migration and surging demand across the real estate sector will drive the market growth. Further, strict building standards promoting the adoption of star rating heating systems will complement the market revenue.



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Electric Water Heater Market Report Coverage Report Coverage Details Base Year: 2019 Market Size in 2019: 16.08 Billion (USD) Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026 Forecast Period 2020 to 2026 CAGR: 3.2% 2026 Value Projection: 109.49 Million (Units) Pages: 595 Tables, Charts & Figures: 1233 Geographies covered (54): U.S., Canada, UK, France, Germany, Italy, Austria, Spain, Netherland, Denmark, Finland, Sweden, Norway, Russia, Belarus, Armenia, Kazakhstan, Kyrgyzstan, Azerbaijan, Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, China, Australia, India, Japan, South Korea, Indonesia, Malaysia, Singapore, Thailand, New Zealand, Philippines, Saudi Arabia, UAE, Qatar, Kuwait, Bahrain , Oman, Turkey, South Africa, Nigeria, Algeria, Egypt, Israel, Cyprus, Lebanon ,Iraq, Brazil, Argentina, Chile, Mexico Segments covered: Product (Instant ,Storage), Capacity (< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters), Application (Residential, Commercial [College/University, Office, Government/Military]) Companies covered (24): A.O. Smith, Bosch Thermotechnology, Ariston Thermo, Racold, General Electric Appliances, Bradford White, Haier Electronics, Rheem Manufacturing, Rinnai Corporation, State Water Heaters, Whirlpool Corporation, Ferroli, Hubbell, Vaillant Group, Havells India, Nihon Itomic, Viessmann Group, Watts Water Technologies, Stiebel Eltron, Westinghouse Electric Corporation, American Standard Water Heaters, Zenith Water Heater, Linuo Ritter International, Groupe Atlantic. Growth Drivers: North America & Latin America:

Growing demand for energy efficient water heaters



Replacement of conventional water heating technology

Europe

Government mandates pertaining to energy efficiency



Growing demand for replacement of existing water heaters

Asia Pacific & MEA

Rapid urbanization and advancing product customization



Increasing demand for energy efficient systems



Growing electrification rate Pitfalls & Challenges: High installation cost

Availability of counterparts

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Robust investments in product design and innovation will catalyze the electric water heater market growth

Increasing investments in research and development activities are fueling the market demand. The industry has reached its maturity and requires thrust through new product launches and technologies to improve the customer experience and minimize the operating cost. Introduction of advanced water heating models with extensive features including the corrosion resistance, limited chances of dry firing, water filtration, monitoring and remote control will significantly boost the market share.



Increased focus toward the product design and aesthetics along with ongoing rivalry will fuel the market growth. The industry is highly fragmented with presence of numerous international and regional players, introducing newer technologies and systems in the market. Growing inclination toward home décor and furnishing have stimulated the demand for modern colorful designs matching the installation space. In addition, internal threat of substitution from gas, solar and other hybrid models will further result in product enhancement.



Instant water heaters accounted for over 30% revenue share in 2019

Increasing demand for instant water heaters owing to low standby heating losses, quick hot water delivery and time management will drive the market size. The tankless systems consume less power in comparison to a conventional storage unit.



Furthermore, growing deployment across commercial spaces on account of advanced operational benefits including low heating or electricity cost, extensive control features will complement the market landscape. In 2019, the Rinnai Corporation introduced new features in its smart home platform and integrated Samsung SmartThings with its instant water heater portfolio.



Availability of wide-ranging capacity systems will foster the market demand

Growing deployment of below 100 liters system across residential and small businesses will complement the electric water heater market growth. The below 30 liters system are extensively deployed across bathrooms and kitchens to meet the instant hot water requirements throughout the day. Flexible and competitive pricing coupled with product assortment and new features will further encourage the product adoption.



Ongoing migration to cities along with surging urbanization rates will facilitate the adoption of 100-250 liters water heaters. The units are widely deployed across commercial facilitates including hotels, restaurants and care centers. Product availability in multiple capacity ranges is fulfilling different customer requirements that have significantly accelerated the market growth. For instance, the restaurant and resorts require large capacity systems for use across kitchens, saunas, swimming pools and washrooms.



Government & military accounted for over 25% revenue share of commercial applications

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Commercial electric water heater market size will witness strong demand through 2026 on account of surging population growth and ongoing investments toward infrastructural development. Prevailing smart city roll outs along with rapid expansion of zero emission buildings will boost the market demand.



For instance, the Indian government have proposed the initiation of five new smart city projects in 2020. Strict mandates toward adoption of energy efficient heating technologies across new properties will positively enhance the business outlook.



Growing demand for hot water across government and military facilities to meet the critical hot water requirements will stimulate the market share. The respective governments are actively spending toward the development of hospitals and care center that will considerably escalate the water heater deployments. In addition, increased installation of instant heating technologies across offices coupled with ongoing technological advancements will drive the market landscape.



Improving electrification rate along with growing accessibility at consumer end will drive the business growth

Growing electrification rate primarily across Asian and African nations will enhance the market trends. As per the IEA, over three quarters of half a billion people have gained access to electricity across Asia between 2011 - 2018. In addition, the countries including Algeria, Morocco, Egypt, Tunisia, Libya and Gabon have electrification rates reaching over 90%, while over 15 nations still have access rates hovering below 25%. Ongoing investments to develop the grid infrastructure along with improving economic growth will positively enhance the industry outlook.



Product innovation and adoption of instant water heating technologies will drive the Latin American market value

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Latin America, Europe and Asia Pacific will dictate the global electric water heater market growth with a collective revenue share exceeding 75% in 2019. Ongoing infrastructure development along with low cost manufacturing capabilities will drive the market size.



Furthermore, rising refurbishment activities coupled with increasing demand for high efficiency heating systems will encourage the product adoption. However, the systems are facing strong competition from its gas substitutes in North America and Middle East on account of easy accessibility and availability of low-cost natural gas supply and pipeline infrastructure.



For Latin America, Brazil will dominate the market share accounting for more than 70% in 2019. Increasing adoption of advanced instant water heating technologies with integrated features including inbuilt Wi-Fi, extensive communication option, leak detection systems and AI equipped smart designs will stimulate the product penetration.



Product differentiation and strategic growth ventures will favor the global market forecast

Key players in the market include A.O. Smith, Bosch Thermotechnology, Ariston Thermo, Racold, General Electric Appliances, Bradford White, Haier Electronics, Rheem Manufacturing, Rinnai Corporation, State Water Heaters, Whirlpool Corporation, Ferroli, Hubbell, Vaillant Group, Havells India, Nihon Itomic, Viessmann Group, Watts Water Technologies, Stiebel Eltron, Westinghouse Electric Corporation, American Standard Water Heaters, Zenith Water Heater, Linuo Ritter International, Groupe Atlantic.



The electric water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of Units and USD from 2015 to 2026 , for the following segments:

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 College/University Offices Government/Military Others



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

North America U.S. Canada

Europe UK France Germany Italy Austria Spain Netherland Denmark Finland Sweden Norway

Eurasia Russia Belarus Armenia Kazakhstan Kyrgyzstan

CIS Azerbaijan Moldova Tajikistan Turkmenistan Ukraine Uzbekistan

Asia Pacific China Australia India Japan South Korea Indonesia Malaysia Singapore Thailand New Zealand Philippines

Middle East & Africa Saudi Arabia UAE Qatar Kuwait Bahrain Oman Turkey South Africa Nigeria Algeria Egypt Israel Cyprus Lebanon Iraq

Latin America Brazil Argentina Chile Mexico



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