Electric Water Heater Market Opportunities - 2030
The global electric water heater market size was valued at $23.2 billion in 2020, and is expected to reach $40.1 billion by 2030, registering a CAGR of 5.6% from 2021 to 2030. Electric water heater is the equipment which converts electricity into heat power with the use of heating elements which increases the temperature of water by means of conduction process. Electric water heaters are used in both tank and tankless product types and detailed overview on these segments is given in the market study. The market provides detailed information on utilization of electric water heaters in residential, commercial and industrial applications.
The growth of the global electric water heater market is driven by rise in demand for hot water from various application in residential, commercial and industrial sectors. However, implementation of stringent government regulations toward highly efficient heating equipment and rapid growth of solar water heating industry are the key factors hampering the growth of the electric water heater market. On the contrary, rapid transition from conventional water heating equipment such as boilers, burners and others to electric water heater installations is anticipated to provide lucrative growth opportunities for the key players manufacture highly efficient electric water heaters to maintain the position in the market during the forecast period.
The electric water heater market is segmented into product type, capacity, end user and region. Depending on product type, the market is bifurcated into tank and tankless. On the basis of capacity, it is categorized into less than 100 liters, 100 to 400 liters, and more than 400 liters. The end users covered in the study include residential, commercial and industrial. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Other players operating in the value chain of the global electric water heater market are Whirlpool Corporation, Rinnai Corporation, Ferroli S.p.A., Vaillant Group, Viessman Group, Westinghouse Electric Corporation, Stiebel Eltron, Inc., Zenith Water Heater, and others.
The key players are adopting numerous strategies such as product launch, agreement, partnership, acquisition, and business expansion, to stay competitive in the electric water heater market.
For instance, in January 2021, Bradford White Corporation acquired Keltech line of tankless electric water heaters. This acquisition is expected to enhance the sales network of company, enhanced product offering, and also increase the new customer base.
In addition, in May 2020, Rheem Manufacturing launched new ProTerra hybrid electric water heater. This product launched strengthened the product portfolio of the company in electric water heater industry.
The electric water heater market is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Electric water heater market, by product type
On the basis of product type, the tankless segment registered highest CAGR of about 5.9% during the forecast period. This is owing to increase in demand for instant water heating applications from residential and commercial consumers. In addition, tankless water heaters offer various advantages such as constant supply of hot water, high efficiency, lower operating & energy cost, and others which in turn is expected to drive the growth of the market from 2021 to 2030.
By Product Type
Tank segment is projected as the most lucrative segment.
Electric water heater market, by capacity
On the basis of capacity, the less than 100 liters segment dominated the global market in 2020, in terms of share, owing to rise in demand for electric water heater with less than 100 liters capacity from residential and commercial applications such as apartments, restaurants, commercial complexes, theatres, and government institutions. In addition, rapid growth of residential construction sector and increase in investment towards smart city infrastructure is further projected to drive the market growth in the coming years.
By Capacity
Less than 100 Liters is projected as the most lucrative segment.
Electric water heater market, by end user
On the basis of end user, the residential segment garnered the highest market share in 2020. This is attributed to rise in demand for electric water heater from residential application areas such as cooking, bathing, cleaning, and others. In addition, rapid urbanization and increase in disposable income is expected to propel the demand for electric water heaters from residential segment during the analyzed time frame.
By End User
Residential is projected as the most lucrative segment.
Electric water heater market, by region
Asia-Pacific garnered the highest share in the electric water heater market in 2020, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, electric water heater is gaining importance in owing to the increase in electrification rate, growing disposable income in Asian economies, and rapid urbanization which, in turn, is expected to augment the growth of the market during the forecast period.
By Region
Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdowns imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries, which decreased the demand for electric water heater from these consumers. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the market is expected to recover by the first quarter of 2021 as COVID-19 vaccination has started in various economies across the globe, which is expected to improve the global economy.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current electric water heater market trends and future estimations of the global market from 2021 to 2030 to determine the prevailing opportunities.
- A comprehensive electric water heater market analysis of the factors that drive and restrict the electric water heater market growth is provided.
- Estimations and electric water heater market forecast are based on factors impacting the market growth, in terms of value.
- Profiles of leading players operating in the market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable electric water heater market growth.
Electric Water Heater Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By CAPACITY |
|
 By END USER |
|
 By Region |
|
 Key Market Players | BRADFORD WHITE CORPORATION, .BOSCH THERMOTECHNOLOGY, HAIER ELECTRONICS GROUP CO., LTD, ARISTON THERMO SPA, RHEEM MANUFACTURING CO., RACOLD, HAVELLS INDIA LTD., GENERAL ELECTRIC, .A.O. SMITH AB, BAJAJ ELECTRICALS |
Analyst Review
Rapid growth of the electric heating equipment industry and rise in demand for environment-friendly heating systems are the key factors attributed to the leading position of Asia-Pacific in the global electric water heater market. The Asia-Pacific region is further expected to provide lucrative opportunities to leading electric water heater manufacturers, owing to its huge potential to set up manufacturing plants and surge in demand for electric water heater from the region.
Increase in demand for water heating applications from residential sectors is the key factor driving the growth of the global electric water heater market during the forecast period. However, high cost associated with electricity consumption by electric water heater and increase in use of solar powered water heaters is anticipated to hamper the growth of the market. On the contrary, increase in government investments in the residential construction industry and technological advancements in electric water heaters are projected to provide remunerative opportunities for the key players to maintain the pace in the electric water heater market in the coming years.
Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the market during the forecast period, followed by North America, Europe, and LAMEA. Asia-Pacific accounted for 32.6% of the total global electric water heater market share in 2020, and is expected to maintain its dominance during the forecast period.
Rise in demand for electrical water heating products from residential, commercial, and industrial applications is the key factor driving the electric water heater market growth during the forecast period.
Technological advancements in the electric water heater are expected to be the key trend in the electric water heater market.
Residential sector is expected to drive the adoption of Electric water heater.
The report sample for global Electric water heater Market report can be obtained on demand from the website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
Segments covered in the electric water heater market report are product type, capacity, end user and region.
The top ten market players are selected based on two key attributes - competitive strength and market positioning.
The outbreak of COVID-19 has negatively impacted various industries and countries across the globe in the year 2020. Owing to the lockdown imposed, globally, decrease has been witnessed in the growth rate of the industries such as construction & building, transportation, oil & gas, automotive, and energy sectors but rise in vaccination and step by step unlocking of operations across the globe will fuel the market growth in 2021.
Top players in the electric water heater market are Ariston Thermo S.P.A., A.O. Smith, Bosch Thermotechnology, General Electric, Bradford White Corporation, Rheem Manufacturing Co., Havells India Ltd., Haier Electronics Group Co., Ltd., Bajaj Electricals, and Racold.
In terms of revenue, the market size of electric water heater market is anticipated to reach $40.1 billion by 2030, growing at CAGR of 5.6% from 2021 to 2030.
Tankless electric water heater are projected to increase the demand for Electric water heater Market.
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