Growing Demand For Energy-Efficient Products Coupled With The Growing Number Of Investments For The Advancements In The Production Of Water Heaters Is Expected To Drive The Market Growth During The Forecast Period 2021-2026. Water Heater Market size is estimated at $28.5 billion in 2020, projected to grow at a CAGR of 4.8% during the forecast period 2021-2026.
The water heater works on the same principle as a heat pump, taking calories from the outside air and utilizing them to heat the water. It likewise uses finned coil heat exchangers. The water heater market will benefit from rising demand for energy efficient systems and geysers, as well as favorable regulatory restrictions on carbon emissions. The GCC countries' green growth goals, which include solar-powered heating solutions, will boost product demand. For example, in 2016, the United Arab Emirates contributed $3 million in the region to adopt green measures. In addition, the expanding variety of tactics used by key companies to extend their presence, such as partnership, acquisition, and collaboration, as well as innovation in water heating technology to acquire market traction, is expected to drive market expansion. For instance, in 2018, Bradford White Water Heaters, the manufacturer of the AeroTherm Series Heat Pump Water Heater, completed a deal to purchase production assets from GE Appliances heat pump water heater operations in order to fill customer orders for its 80 gallon AeroTherm Series products from its expanded inventory.
Due to increasing legislation and regulations implemented by federal governments of various nations related to energy efficiency of electrical appliances, the OEM Analysis category held the biggest market share in 2020. For instance, most storage-type water heaters should be larger in size to comply with tighter minimum energy performance standards, requiring them to have a larger storage tank and greater installation space, as per the National Appliance Energy Conservation Act regulation. The demand for water heaters is being driven by the expansion of commercial infrastructure in various countries. Water heaters are used by small to mid-sized businesses in their everyday operations. Companies are adopting highly effective water heaters in the meantime to reduce energy consumption and operating performance. Commercial water heaters must be upgraded owing to increased use. As a result, manufacturers are incorporating new innovations that can serve as a cue for commercial water heater upgrades. Tankless heaters & Electric Heaters are gaining popularity in the commercial sector, owing to their ability to supply a large amount of hot water for an extended period of time driving the Water Heater Industry. Furthermore, the government's initiatives to promote Solar Heater products in India, as well as increasing product technical advances and rapid urbanization, are expected to drive segment growth. Continuous infrastructure growth, combined with an increase in the deployment of energy efficient heating systems, would propel the segment forward. According to the IBEF, India would need over USD 777 billion in infrastructure investment by 2022. The industry will benefit from the ongoing rollout of smart cities with strict building efficiency codes and standards.
Owing to the significant development in international & domestic migration in the region, which has resulted in higher demand for housing, leading to increased residential building, North America holds the majority of the market in 2020. More than 9 million water heaters are sold in the United States per year, indicating that there is a strong demand for water heaters in North America, which accounts for a large portion of the industry. Tankless water heaters in the United States are small, dependable, and long-lasting equipment that outperform tank ones in terms of performance and energy efficiency. In these countries, demand for heating appliances is particularly strong due to the frigid weather conditions of the region. In July 2017, Rinnai America has announced that it has expanded its North American headquarters by constructing a new two-story headquarters building and opening a North America Innovation and Training Center accelerating water heater expansion across the region. Asia Pacific is predicted to be the fastest growing region during the forecast period 2021- 2026 owing towards economic growth in the region. Furthermore, strict government regulations in order to show the formulation of the product, the innovative technologies credited towards a pattern component in this region is further bolstering the growth of Water Heater market in China, Japan, India and others are set to avail new growth opportunity.
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Water Heater Market Growth Drivers:
- Favorable Government Initiatives
Solar-powered water heaters are becoming more popular as a result of government initiatives, which are likely to move the water heater market forward in the business. For example, India's government, through the Jawaharlal Nehru National Solar Mission, provides numerous incentives for the installation of roof-top solar-powered heaters (JNNSM). Similarly, the government pays an interest subsidy in addition to a 5% property tax rebate.
- Rise In Demand For Storage Heaters
The growing demand for storage heaters owing to easy installation and maintenance is a significant factor driving the Water Heater Market during the forecast period 2021-2026. By using hot water Storage Heater tanks, Storage Heater water heaters help to maximize heating ability. Storage Heater are less costly to install than other types of water heaters, and they are also simple to maintain and repair. However, since Storage Heater have been known to burst, vendors are focusing on offering standard water heater services. Furthermore, Storage Heater necessitate space for the tank; as a result, manufacturers are concentrating on reducing the size of Storage Heater to alleviate the space problem driving the Water Heater Industry.
In 2019, GE Appliances invested $60million to begin water heater manufacturing at its Camden, South California Plant for the growth of company’s sales.
The Major Players in this Market Include
The major companies in the Water Heater Market include A.O. Smith, Bosch, Rinnai, Ariston, Haier, Roto Rooter, Rooter Man, Fast Water Heater, Neighborly Company and American Residential Services.
- August 2020: A.O Smith launched MiniBot, a 3-litre instant water heater with modern technology. MiniBot's inner tank is filled with Blue Diamond glass, which provides superior corrosion resistance to traditional glass-lined items. It also protects against premature tank failure due to India's hard and polluted water, extending the life of the water heater.
- The growing demand of energy-efficient products to reduce carbon foot-print and enable energy savings for the customer is set to drive the water heater market in the upcoming years. Besides, this the growing number of investments by key players for product development is set to drive the market growth.
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