The North America Residential Water Heater 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, and more), and By Geography (United States, Canada, and more).

Global Water Heater Market is estimated to bring in US$ 52.8 Billion in revenue along with a healthy CAGR towards the end of 2021. More details inside

This residential water heater market in the United States is dominated by three major players in AO Smith, Rheem, and Bradford White. In 2021, AO Smith and Rheem together accounted for more than 70 percent of residential water heater shipments in the United States.

Water Heater Market valuation is estimated to reach USD 42.88 Bn in 2025 and is anticipated to grow to USD 97.19 Bn in 2032 with steady growth CAGR of 12.4%.

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

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The electric water heater market share is expected to increase by USD 6.80 billion from 2021 to 2025, and the market’s growth momentum will accelerate at a CAGR of 5.56%.

This electric water heater market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by product (storage electric water heater and tankless electric water heater), end-user (residential and commercial), distribution channel (offline and online), and geography (APAC, North America, Europe, South America, and MEA). The electric water heater market report also offers information on several market vendors, including A. O. Smith Corp., Ariston Thermo Spa, ATC Electrical and Mechanical Ltd., Bajaj Electricals Ltd., Bandini Scaldabagni SpA, Bradford White Corp., Crompton Greaves Consumer Electricals Ltd., General Electric Co., Haier Smart Home Co. Ltd., and Rinnai Corp. among others.

What will the Electric Water Heater Market Size be in 2021?

Download the Free Report Sample to Unlock the Electric Water Heater Market Size for 2021 and Other Important Statistics

Electric Water Heater Market: Key Drivers and Trends

The technological innovations in design and higher efficiency are notably driving the electric water heater market growth, although factors such as high operational and installation cost of tankless electric water heaters may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the electric water heater industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

      One of the key factors driving growth in the electric water heater market is the technological innovations in design and higher efficiency.
      The increased sales of tankless electric water heaters in residential and commercial establishments influenced the vendors to launch products that meet the evolved design choices of customers.
      Vendors are incorporating technological advances in tankless electric water heaters, especially in terms of efficiency, such as incorporating new features for easy installation, operation, and maintenance.
      The rising competency among manufacturers in the global tankless electric water heater market will lead to increased innovation and product offerings.




      The government initiatives promoting energy-efficient water heating solutions is another major factor supporting the electric water heater market share growth.
      Various regional and national regulatory bodies have imposed new regulations on HVAC equipment in the wake of growing environmental awareness.
      The high energy consumption during the water heating process has encouraged many countries to frame stringent policies and directives to increase energy-efficiency standards.
      The stringent policies and directives are expected to increase the replacement demand for water heaters.
      The implementation of innovative energy-efficient water heaters will help end-users obtain a high ROI. 

This electric water heater market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Who are the Major Electric Water Heater Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

A. O. Smith Corp.
Ariston Thermo Spa
ATC Electrical and Mechanical Ltd.
Bajaj Electricals Ltd.
Bandini Scaldabagni SpA
Bradford White Corp.
Crompton Greaves Consumer Electricals Ltd.
General Electric Co.
Haier Smart Home Co. Ltd.
Rinnai Corp.

This statistical study of the electric water heater market encompasses successful business strategies deployed by the key vendors. The electric water heater market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The electric water heater market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Which are the Key Regions for Electric Water Heater Market?

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50% of the market’s growth will originate from APA

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

The North America Tankless Smart Water Heater Market size was USD 20.4 Mn in 2022 and is expected to reach USD 144.1 Mn in 2031, expanding at a CAGR of 24.2 % during 2023-2031. The market growth is attributed to the increasing preference for smart and advanced water heaters as these offer various services and applications.



A smart water heater uses water temperature measurements and pairs them with consumption data and preset options. A tankless smart water heater is a heating appliance that heats water using electricity or gas as an energy source. It is different from a traditional water heater, as it does not store and heat water while it flows through the heating unit for a short period of time. These heaters are also known as instantaneous water heaters or demand-type heaters and provide hot water only as it is needed.

A tankless water heater boils water instantly without using a hot water storage tank and aids in cost-cutting due to the lack of standby energy losses associated with hot water tanks. When the hot water faucet is turned on, the cold water starts flowing through a heat exchanger in the unit, where either an electric element or a natural gas burner heats the water which provides instant water heaters that supply hot water. Eliminating the waiting period for the tank to be filled with enough hot water. However, the capacity of the water heater limits the flow rate.

North America Tankless Smart Water Heater Market Dynamics

What drives North America Tankless Smart Water Heater Market

• Replacement of Traditional Water Heaters

Increasing the replacement of conventional water heaters with tankless smart water heaters can drive the tankless smart water heater market. Tankless smart water heaters are more energy efficient than conventional water heaters which are becoming more common in emerging markets. A tankless smart water heater provides continuous hot water when needed that aids in eliminating energy wastage and environmental impact and cutting down greenhouse emissions by over 40%.

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.

The Water Heater Market size was valued at USD 30.49 billion in 2023 and is projected to reach USD 42.05 billion by 2032, exhibiting a CAGR of 4.7 % during the forecasts period. This growth is primarily attributed to rising energy efficiency concerns, increasing demand for hot water in both residential and commercial sectors, and growing awareness about hygiene and sanitation. The water heater hums softly in the corner, a stalwart sentinel of comfort. Its weathered metallic exterior tells the story of years of faithful service and exudes the warmth it produces. Water trickles in, and it comes alive, awakened to carry out its purpose. Inside its belly, the coils touch cold water, spiriting it away into a stream of warmth. A quiet click and the heater's heart ignites, flames dancing beneath the tank. Soon, the steam rises, promising hot showers and cozy baths. In a world of chill, the water heater stands firm: a beacon of warmth in a cold expanse. Recent developments include: In December 2023, GM Modular, a leading provider of electronic solutions for contemporary lifestyles, unveiled its latest addition to the product lineup, the R1X storage water heater, during the Acetech Exhibition 2023 held in Delhi. Priced at USD 222.86, customers can conveniently purchase the new product through GM Modular's website, as well as at GM Modular outlets and popular e-commerce platforms like Amazon and Flipkart , In October 2023, Racold introduced a selection of high-end water heaters, debuting the Omins and Altro models. The Omnis range comprises the Omnis DG Wi-fi, offering voice control functionality and energy-saving features, and the Omnis DG, equipped with a digital display & silver ion technology aimed at inhibiting bacteria growth , In December 2023, Rheem introduced two additions to its Maximus series of super high-efficiency gas water heaters. Newly included in the lineup are the 75-gallon Maximus Heavy Duty featuring LeakSense technology, and the Maximus Plus models, offered in 40-gallon and 50-gallon sizes. With these latest additions, Rheem provides customers with a broader range of options in super high-efficiency condensing gas-fired tank water heaters .

The GCC Electric Water Heater Market report segments the industry into Product Type (Storage Tank Water Heaters, Tankless Water Heaters), Capacity (Small, Medium, Large), End Users (Commercial, Residential), Distribution Channel (Online, Offline), and Geography (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, Kuwait). Get five years of historical data and five-year forecasts.

Global Residential Water Heater Market was valued at USD 2.3 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.8% through 2029.

Pages	181
Market Size	2023: USD 2.3 Billion
Forecast Market Size	2029: USD 3.4 Billion
CAGR	2024-2029: 6.8%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Key Players	1. Rheem Manufacturing Company 2. A. O. Smith Corporation 3. Bradford White Corporation 4. Noritz Corporation 5. Rinnai Corporation 6. Ariston Holding N.V. 7. Navien, Inc. 8. Whirlpool Corporation 9. Robert Bosch GmbH 10. Spire Inc.

The U.S. water heater market was valued at USD 3.45 billion in 2023 and is expected to reach USD 5.08 billion by 2029, growing at a CAGR of 6.67%.

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 India electric water heater market size was valued at USD 308.00 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 575.00 Million by 2033, exhibiting a CAGR of 7.20% from 2025-2033. The market is driven by rising urbanization, higher disposable incomes, and the demand for modern home appliances. Harsh winters in northern regions and limited access to gas-based systems further enhance adoption. Additionally, the expansion of online retail platforms enhances product accessibility, driving India electric water heater market share.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 308.00 Million
Market Forecast in 2033	USD 575.00 Million
Market Growth Rate 2025-2033	7.20%

IMARC Group provides an analysis of the key trends in each segment of the India electric water heater market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, capacity, distribution channel and end user.

The GCC water heater market size reached USD 1,006.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,773.0 Million by 2033, exhibiting a growth rate (CAGR) of 6.18% during 2025-2033. The rising demand for energy-efficient appliances, rapid urbanization and infrastructure development, and shift toward sustainable technologies are among the key factors driving the market growth.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 1,006.0 Million
Market Forecast in 2033	USD 1,773.0 Million
Market Growth Rate 2025-2033	6.18%

IMARC Group provides an analysis of the key trends in each segment of the GCC water heater market report, along with forecasts at the regional and country levels from 2025-2033. Our report has categorized the market based on product type and end use.

The global tankless water heater market is projected to expand at 6.3% CAGR and reach US$ 7.38 Bn by the end of 2032, up from US$ 4 Bn in 2022.

The global tankless water heater market is calculated at US$ 4.9 billion for 2024, as per a new industry analysis published by Fact.MR. Worldwide sales of tankless water heaters are forecasted to rise at a CAGR of 4.9% and reach US$ 9.5 billion by the end of 2034.

Report Attributes	Details
Tankless Water Heater Market Size (2024E)	US$ 4.9 Billion
Forecasted Market Value (2034F)	US$ 9.5 Billion
Global Market Growth Rate (2024 to 2034)	4.9% CAGR
North America Market Value (2034F)	US$ 1.5 Billion
East Asia Market Value (2024E)	US$ 1.1 Billion
Sales of Electric Tankless Water Heaters (2034F)	US$ 7.3 Billion
Key Companies Profiled	A. O. Smith Rinnai Corporation Haier Smart Home Co Ltd. Rheem Manufacturing Company Bajaj Electricals Ltd. EcoSmart Green Energy Products, Inc. Atmor Noritz America Takagi StiebelEltron Inc. Navien Inc. Bradford White Corporation

Country-wise Insights

Attribute	China
Market Value (2024E)	US$ 500 Million
Growth Rate (2024 to 2034)	7.2% CAGR
Projected Value (2034F)	US$ 1.1 Billion

Attribute	United States
Market Value (2024E)	US$ 400 Million
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 900 Million

Category-wise Insights

Attribute	Electric Tankless Water Heaters
Market Value (2024E)	US$ 3.7 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 7.3 Billion

Attribute	Condensing Tankless Water Heaters
Market Value (2024E)	US$ 3.9 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 7.6 Billion

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 68.2 million units.

Global tankless water heaters market size is expected to reach USD 6.97 billion by 2030 at a CAGR of 8.5%, according to a new study by Polaris Market Research.