The North America Residential Water Heater Market Report is Segmented by Product Type (Storage Water Heaters, Non-Storage Tankless Water Heaters, Hybrid Heat-Pump Water Heaters), Energy Source (Electric, Gas, Solar, Others), Capacity (Small <30 Gal, Medium 30-55 Gal, Large >55 Gal), and Geography (United States, Canada, Mexico). The Market Forecasts are Provided in Terms of Value (USD).

The global water heater market is projected to reach USD 44.11 billion by 2032, the electric segment is the highest contributor to the market.
Report Scope:

Report Metric	Details
Market Size in 2021	USD 29.43 Billion
Market Size in 2024	USD 30.78 Billion
Market Size in 2032	USD 44.11 Billion
CAGR	4.6% (2024-2032)
Base Year for Estimation	2021
Historical Data	2018-2020
Forecast Period	2024-2032
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered	By Product,By Technology,By Capacity,By Applications,By Region.
Geographies Covered	North America, Europe, APAC, Middle East and Africa, LATAM,
Countries Covered	U.S., Canada, U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, China, Korea, Japan, India, Australia, Taiwan, South East Asia, UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Brazil, Mexico, Argentina, Chile, Colombia,

The Europe Residential Water Heater Market Report is Segmented by Energy Source (Electric, Gas, Solar, Others), Product Type (Instantaneous Water Heaters, Storage Water Heaters, Hybrid Water Heaters), Capacity (Small, Medium, Large Heater), Distribution Channel (Multi-Brand Stores, Exclusive Stores, and More), and Geography (Europe, United Kingdom, Germany, and More). The Market Forecasts are Provided in Terms of Value (USD).

The global water heater market is estimated to be valued at US$ 36.1 billion in 2024 and is forecasted to reach US$ 92 billion by the end of 2034, expanding at a CAGR of 9.8% between 2024 and 2034.

Report Attributes	Details
Water Heater Market Size (2024E)	US$ 36.1 Billion
Forecasted Market Value (2034F)	US$ 92 Billion
Global Market Growth Rate (2024 to 2034)	9.8% CAGR
North America Market Growth Rate (2024 to 2034)	10% CAGR
East Asia Market Value (2024E)	US$ 8 Billion
Solar Water Heater Sales (2034F)	US$ 9.8 Billion
Key Companies Profiled	A.O. Smith Bosch Haier American Water Heaters Ariston GE Appliances Whirlpool Corporation Rinnai Corporation

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 7.2 Billion
Growth Rate (2024 to 2034)	10% CAGR
Projected Value (2034F)	US$ 18.8 Billion

Attribute	China
Market Value (2024E)	US$ 3.6 Billion
Growth Rate (2024 to 2034)	10.3% CAGR
Projected Value (2034F)	US$ 9.5 Billion

Category-wise Insights

Attribute	Electric Water Heaters
Market Value (2024E)	US$ 25 Billion
Growth Rate (2024 to 2034)	9.9% CAGR
Projected Value (2034F)	US$ 64.5 Billion

Attribute	Storage Water Heaters
Market Value (2024E)	US$ 17.8 Billion
Growth Rate (2024 to 2034)	10% CAGR
Projected Value (2034F)	US$ 46.3 Billion

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Water Heater Market Size 2024-2028

The water heater market size is forecast to increase by USD 8.05 billion at a CAGR of 5.97% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and factors. One major trend is the increasing preference for tankless water heaters, which offer energy efficiency and continuous hot water supply. Another trend is the integration of water heaters into smart and connected kitchens, enabling remote control and monitoring capabilities. However, high installation and maintenance costs remain challenges for the market, particularly for larger commercial applications. Additionally, stringent regulations regarding energy efficiency and safety standards continue to shape the market landscape. Overall, the market is expected to grow steadily, driven by these trends and factors, as well as increasing demand for reliable and efficient hot water solutions.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market encompasses a range of innovative products and high-performance products, including electric product and solar water heating systems, tankless and storage water heater, and smart technology applications. These solutions are increasingly being adopted in residential establishments and smart city projects to reduce environmental impact and improve energy efficiency. Electric water and tankless water heaters are popular choices for their high energy savings and carbon footprint reduction. Solar products, such as solar water heating systems, further enhance the environmental benefits of these systems. In the context of residential applications, water heating systems play a crucial role in daily life, from cleaning and washing to cooking and patient hygiene. Hospitals also rely on water heating systems for essential services.

Further, green projects and smart city initiatives are driving the demand for water heating solutions that minimize carbon emissions and offer high-performance and innovative features. Aging water heaters, on the other hand, are being replaced with more energy-efficient and eco-friendly alternatives. Storage tanks and cleaning systems are essential components of water heating systems, ensuring consistent water temperature and maintaining system hygiene. Overall, the market is poised for growth as the world transitions towards more sustainable and energy-efficient solutions. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing demand for tankless water heaters is a key factor driving the growth of the market. In the market, there is a growing trend towards energy-efficient models, particularly in residential establishments and smart city projects. With aging water heaters leading to increased maintenance and utility costs, the shift toward electric water heaters is gaining momentum. These advanced heating solutions offer high energy savings, making them an attractive option for both residential and commercial consumers. The Department of Defense and military facilities, hotels, shopping complexes, and commercial buildings are all exploring environmentally friendly products to reduce their carbon footprint.

However, tankless water heaters, which use heavy burners to quickly heat water through a heat exchanger, have been found to be 22% more energy-efficient than gas-powered storage water heaters. As consumer spending on heating technologies continues to rise, companies are differentiating their products by launching energy-efficient electric water heaters, providing instant hot water with lower utility costs and reduced environmental impact. Thus, the demand for energy-efficient models is expected to boost the growth of the market during the forecast period.

Significant Market Trend

Smart and connected kitchens are the primary trends in the market growth. The market is witnessing a significant trend towards the adoption of smart water heating solutions. In residential establishments and smart city projects, advanced water heaters equipped with monitoring systems are gaining popularity. These systems enable end-users to maintain their water heaters effectively, removing allergens, harmful particles, and contaminants that can cause wear and tear. The integration of smart technologies, such as smart thermostats and sensors, into electric water heaters and storage water heaters results in high energy savings and a reduced carbon footprint.

Further, institutions like the Department of Defense and military facilities, as well as commercial buildings, hotels, shopping complexes, and other large establishments, are increasingly investing in environmentall

Smart Connected Residential Water Heater Market Outlook

The global smart connected residential water heater market size was valued at approximately USD 2.5 billion in 2023 and is projected to reach around USD 5.3 billion by 2032, growing at a CAGR of 8.5% during the forecast period. One of the primary growth factors driving this market is the increasing adoption of smart home technology, coupled with rising consumer awareness regarding energy efficiency and convenience.

One significant growth factor contributing to the expanding market is the surge in urbanization and the subsequent rise in residential construction activities. As more people move to urban areas, the demand for efficient and advanced home appliances like smart water heaters is expected to increase. These appliances not only offer convenience but also contribute to energy conservation, which is increasingly becoming a priority for modern homeowners. Furthermore, government initiatives promoting energy-efficient appliances are bolstering this demand.

Technological advancements in the Internet of Things (IoT) and smart home ecosystems are also playing a critical role in propelling market growth. Smart connected residential water heaters come equipped with features such as remote control, energy usage monitoring, and predictive maintenance, which significantly enhance user experience and operational efficiency. The integration of Wi-Fi, Bluetooth, and Zigbee technologies into these devices enables seamless connectivity and control through smartphones and home automation systems, making them an attractive option for tech-savvy consumers.

Another driving factor is the growing consumer awareness regarding the benefits of smart water heaters over conventional ones. These smart devices offer enhanced energy efficiency, which not only helps in reducing utility bills but also minimizes the environmental footprint. Additionally, features like scheduling, customized heating, and leak detection provide an added layer of safety and convenience, making them a preferred choice for modern households. The increasing penetration of high-speed internet and the proliferation of smart devices also contribute to the growing adoption of these advanced water heaters.

Grid-interactive Water Heaters are emerging as a transformative technology in the smart connected residential water heater market. These advanced water heaters are designed to interact with the electrical grid, enabling them to optimize energy consumption based on real-time grid demands. By doing so, they not only contribute to energy efficiency but also help in balancing the grid load, especially during peak demand periods. This capability is particularly beneficial in regions with high renewable energy penetration, where grid stability can be a challenge. Grid-interactive Water Heaters can store thermal energy during off-peak hours when electricity is cheaper and more abundant, thus providing cost savings to consumers and reducing the overall carbon footprint. As utilities and consumers alike seek sustainable energy solutions, the adoption of grid-interactive water heaters is expected to grow, offering a win-win scenario for both energy providers and users.

Regionally, the North American market is expected to dominate due to early adoption of smart home technologies and the presence of major market players. Europe is also anticipated to witness significant growth, driven by stringent energy efficiency regulations and increasing consumer inclination towards sustainable living. The Asia Pacific region, particularly countries like China and India, holds substantial growth potential due to rapid urbanization, rising disposable incomes, and growing awareness about energy-efficient appliances.

Product Type Analysis

The smart connected residential water heater market can be segmented by product type into electric, gas, and solar water heaters. Electric water heaters currently hold a significant share of the market due to their ease of installation and compatibility with smart technologies. These heaters are widely adopted in urban areas where electricity supply is stable, and the integration of smart features such as remote control and energy monitoring adds to their appeal. Moreover, advancements in electric heating elements and energy-efficient designs are further driving their adoption.

Gas water heaters, though less prevalent than electric heaters, are gaining traction in regions where natural

Commercial Water Heater Market was valued at USD 6.42 billion in 2024 and is expected to grow to USD 9.03 billion by 2030 with a CAGR of 5.90%

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Market Size	2024: USD 6.42 Billion
Forecast Market Size	2030: USD 9.03 Billion
CAGR	2025-2030: 5.90%
Fastest Growing Segment	Online
Largest Market	North America
Key Players	1. A.O. Smith Corporation 2. Bosch Thermotechnik GmbH 3. Daikin Industries Ltd. 4. Ingersoll Rand Inc. 5. Midea Group 6. Mitsubishi Electric Corporation 7. NIBE Energy Systems Limited 8. RHEEM Manufacturing Company 9. Valliant Group 10. Viessmann Group

The Report Covers Global Solar Water Heater Companies and the Market is segmented by Thermal Collector Type (Glazed (Evacuated Tube and Flat Plate) and Unglazed), End User (Residential and Commercial and Industrial), and Geography (North America, Asia-Pacific, Europe, South America, and Middle East and Africa). The Market Size and Forecasts Are Provided in Terms of revenue (USD Billion) for all the above segments.

The global retail volume of the water heater market has remained relatively consistent from 2015 to 2019 and is anticipated to moderately increase from 2019 to 2024. In 2021, the global water heater market is forecast to produce a retail volume of **** million units.

Russia Residential Water Heaters Market is segmented By Product Type(Storage Water Heaters, Non-Storage Water Heaters and Hybrid Water Heaters), By Energy Source Type(Electric, Gas, Solar and Others), By Capacity(Small Water Heater, Medium Water Heater and Large Water Heater) and By Distribution Channel (Multi-Branded Stores, Exclusive Stores, Online Stores and Other Distribution Channels).

Global Storage Water Heater Market size valued at US$ 19.27 Billion in 2023, set to reach US$ 33.83 Billion by 2032 at a CAGR of about 5.8% from 2024 to 2032.

The Residential Water Heaters Market report segments the industry into By Product Type (Storage Water Heaters, Non-Storage Water Heaters, Hybrid Water Heaters), By Energy Source (Electric, Gas, Solar, Others), By Capacity (Small Water Heater, Medium Water Heater, Large Water Heater), By Distribution Channel (Multi-Branded Stores, Exclusive Stores, Online Stores, and more), and By Geography.

The Water Heater Manufacturing industry is relatively small in terms of participation. Most of these companies have at least some manufacturing capacity outside the United States. The industry is heavily affected by these few companies' off- and on-shoring decisions. Low interest rates early in the period boosted home improvement investments and surged housing starts, greatly benefiting the industry. Water Heater Manufacturing industry revenue has been expanding at a CAGR of 1.6% over the past five years and is expected to total $3.1 billion in 2024 when revenue will jump by an estimated 0.2%. The majority of water heaters are purchased for residential customers. Rising per capita disposable income enables homeowners to better afford home improvements. Hot water is considered necessary and heaters require replacement once every 10 years; water heaters are a largely non-discretionary expense. Industry profit has also increased over the past five years with greater demand from residential and commercial markets. The industry will continue growing over the next five years. A steady increase in residential construction activity and strong recovery in nonresidential construction will boost demand for new water heaters. Still, the small footprint of the industry and the large average size of its facilities give it the potential for large unexpected swings related to factory openings or relocations. This will be particularly true as the United States moves toward greater trade protectionism and manufacturers strive to locate their operations around tariff barriers. Water Heater Manufacturing industry revenue is expected to expand at a CAGR of 1.3% to $3.3 billion over the five years to 2029.

Discover the booming electric water heater market! This comprehensive analysis reveals a CAGR of 5.56%, driven by energy efficiency demands and smart home tech adoption. Explore market size, key players, regional trends, and future projections for 2025-2033. Learn about top companies like A.O. Smith and Ariston Thermo.

Vietnam Water Heater Market size is estimated to grow at a CAGR of around 9.27% during the forecast period 2024-30, the burgeoning establishments in the manufacturing sector are the growth opportunities driving the Water Heater Market in Vietnam through 2030.

Tankless Water Heater Market was valued at USD 3.78 billion in 2024 and is expected to grow to USD 6.11 billion by 2030 with a CAGR of 8.38%.

Pages	181
Market Size	2024: USD 3.78 Billion
Forecast Market Size	2030: USD 6.11 Billion
CAGR	2025-2030: 8.38%
Fastest Growing Segment	Online
Largest Market	North America
Key Players	1. Ariston Holding N.V. 2. A.O. Smith 3. Bosch Thermotechnology Corp 4. Bradford White Corporation 5. GE Appliances 6. Rheem Manufacturing Company 7. Whirlpool Corporation 8. Rinnai Corporation 9. Ferroli S.p.A 10. Havells India Limited

Tankless Water Heater Market Outlook

As per our latest research, the global tankless water heater market size reached USD 7.8 billion in 2024, demonstrating robust momentum driven by the increasing demand for energy-efficient appliances and a shift toward sustainable home solutions. The market is projected to grow at a CAGR of 8.2% from 2025 to 2033, reaching a forecasted value of USD 15.3 billion by 2033. This growth is fueled by technological advancements, heightened consumer awareness regarding energy savings, and supportive regulatory frameworks that encourage the adoption of eco-friendly water heating systems.

One of the primary growth factors for the tankless water heater market is the increasing global emphasis on energy efficiency and carbon footprint reduction. Traditional water heaters, which rely on storing and continuously heating water, are being phased out in favor of tankless systems that heat water on demand, significantly reducing energy consumption. This shift is not only driven by consumer preferences but also by government regulations and incentives promoting the use of energy-efficient appliances. The adoption of tankless water heaters helps households and businesses lower their utility bills, making them a cost-effective solution in the long term. Additionally, the rising cost of energy and the push for green building certifications have made tankless systems an attractive choice for new construction and retrofit projects alike.

Another significant driver is the rapid pace of technological innovation within the tankless water heater industry. Manufacturers are investing heavily in research and development to enhance product performance, durability, and user experience. Advanced features such as Wi-Fi connectivity, smart thermostats, and self-diagnostic capabilities have elevated the convenience and functionality of tankless water heaters. These innovations cater to the growing demand for smart home integration and remote monitoring, further boosting market adoption. Moreover, improvements in heat exchanger technology and materials have increased the lifespan and reliability of tankless units, reducing maintenance requirements and total cost of ownership for end users.

The expansion of the construction industry, particularly in emerging economies, also plays a crucial role in the market’s growth trajectory. Rapid urbanization, rising disposable incomes, and a surge in residential and commercial infrastructure development have created a substantial demand for modern water heating solutions. In regions such as Asia Pacific and Latin America, the proliferation of new housing projects and commercial spaces has accelerated the uptake of tankless water heaters. Additionally, the trend toward smaller living spaces, such as apartments and condominiums, favors tankless systems due to their compact design and space-saving benefits. This market dynamic is further amplified by the increasing penetration of e-commerce platforms, making tankless water heaters more accessible to a broader consumer base.

Regionally, Asia Pacific leads the market, accounting for a significant share of global demand, followed by North America and Europe. The Asia Pacific region is experiencing rapid urbanization and infrastructure development, particularly in countries like China, Japan, and India, where the adoption of energy-efficient appliances is gaining momentum. North America’s market is characterized by early adoption of innovative technologies and strong regulatory support, while Europe benefits from stringent energy efficiency directives and a mature construction sector. Latin America and the Middle East & Africa are emerging as promising markets, driven by rising awareness and increasing investments in residential and commercial construction.

Product Type Analysis

The product type segment of the tankless water heater market is bifurcated into electric tankless water heaters and gas tankless water heaters. Electric tankless water heaters have gained substanti

Global Solar Water Heater Market size worth at USD 5.55 Billion in 2023 and projected to USD 8.99 Billion by 2032, with a CAGR of around 5.5% between 2024-2032.

Water Heater Market size was valued at USD 24,034.93 Million in 2025 and is projected to reach USD 33,469.04 Million by 2032, growing at a CAGR of 4.84% from 2025 to 2032.The Global Water Heater Market has experienced significant growth and increasing prominence in recent years, driven by energy efficiency and sustainability and rapid urbanization, and infrastructure expansion. The increasing focus on energy efficiency and sustainability, as rising energy costs and stringent government regulations push both consumers and businesses toward adopting advanced water heating technologies, is a key factor driving the market growth. Manufacturers are responding with innovations such as smart controls, higher efficiency ratings, and eco-friendly designs. Moreover, rapid urbanization and infrastructure expansion is creating sustained demand for water heaters across residential, commercial, and industrial sectors.

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Instant Water Heater Market Size 2025-2029

The instant water heater market size is forecast to increase by USD 1.89 billion at a CAGR of 5.1% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the expansion of the hospitality sector and the increasing preference for electric water heaters due to their energy efficiency and convenience. The global hospitality industry's expansion, particularly in developing economies, is fueling the demand for instant water heaters, as these systems enable hotels and resorts to offer their guests a continuous supply of hot water. Furthermore, the market is witnessing significant growth due to the integration of advanced technologies such as smart home systems, filtration, and purification in compact water heaters. Tankless water heaters, with their smart controls and programmable settings, are becoming the preferred choice for energy-conscious consumers. The HVAC industry is also embracing instant water heaters as part of a comprehensive energy strategy. Limited space is another factor driving the growth of the market. 
These challenges may hinder market growth, particularly in regions with limited infrastructure and resources. To capitalize on market opportunities and navigate these challenges effectively, companies must focus on innovation, cost reduction, and improving after-sales services. By addressing these issues, market players can differentiate themselves from competitors and tap into the significant potential of the market.

What will be the Size of the Instant Water Heater Market during the forecast period?

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The market encompasses a range of solutions designed to provide hot water on-demand for various applications, including commercial and industrial buildings. Gas storage and condensing technology are prominent in this sector, offering energy-efficient solutions that align with comprehensive energy strategies. The market is witnessing significant growth due to the increasing adoption of smart homes and networked ecosystems, where instant water heaters contribute to overall system efficiency. Hybrid water heaters, which combine multiple heating technologies, offer configurable solutions that cater to diverse requirements.
The environmental agenda is driving demand for eco-friendly, low-emission solutions, with instant water heaters becoming an integral part of the HVAC industry. Power plants and industrial units also leverage instant water heaters for their high-performance capabilities. Overall, the market is poised for continued expansion, offering innovative, energy-efficient, and cost-effective hot water solutions.

How is this Instant Water Heater Industry segmented?

The instant water heater industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userCommercialResidentialProduct TypeSingle-PointMulti-PointDistribution ChannelOfflineOnlineGeographyEuropeFranceGermanyItalyThe NetherlandsUKNorth AmericaUSCanadaAPACChinaIndiaJapanSouth AmericaMiddle East and Africa

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. Instant water heaters are increasingly adopted in commercial facilities due to the high demand for continuous hot water supply. The hospitality industry's growing preference for energy-efficient heating solutions, technological advancements in instant water heaters, and expanding government initiatives are key market drivers. However, the commercial segment faces challenges such as high installation costs, market competition, and stringent regulatory standards. Despite these obstacles, the market will continue expanding due to the increasing adoption of IoT technology, the promotion of energy-efficient commercial buildings, and the introduction of smart and connected devices. Instant water heaters offer energy savings through the elimination of standby losses and the ability to heat water on-demand.

Energy efficiency is a significant concern for commercial buildings, with many implementing comprehensive energy strategies that include renewable energy solutions, such as solar panels and hybrid water heaters. Energy source flexibility, configurable solutions, and personalization are essential features for commercial users. Instant water heaters come in various designs, including compact and visually attractive options, and offer intelligent algorithms and smart controls for optimized energy usage. The market is expected to grow due to the increasing focus on eco-friendly appliances and energy-efficient heating options. The market's expansion is further driven by the integration of renewable energy sources, networking capabilities, and voice-activated assistants, as well as the growing popularity of