Water heating is considered as the top energy expense in the home. However, homeowners are looking for better water heaters to reduce their monthly bill. This is leading the manufacturers to develop innovative products that consume less energy. With consumers moving towards adopting tankless and high-efficiency water heater technology, the manufacturers of water heaters are focusing on redesigning their products to maintain their position in the global water heater market. Tankless water heaters offer space-saving benefits and are highly efficient. Meanwhile, governments in different countries are also encouraging the use of natural sources of energy, thereby driving the demand for solar water heaters. Energy efficient hybrid water heaters are also being developed on a large scale by manufacturers.
Smart water heaters are also gaining popularity in the global market for water heaters. Smart water heaters are equipped with controlling and communication systems that can be managed with the help of a mobile application. A consumer can schedule hot water usage time and turn the water heater on and off with an application. Some of these water heaters can also display energy used along with some other data. In order to offer better technology and innovative products, companies are also focusing on mergers and acquisitions. Manufacturers are increasingly investing in the research and development of energy-efficient and cost-effective water heater technology.
According to the report on the global water heater market by Persistence Market Research (PMR), the market is likely to witness steady growth during the forecast period 2017-2021. By the end of 2021, the global market for water heaters is projected to bring in more than US$ 50 Billion in revenue.
Electric Heaters to Gain Maximum Traction in the Near Future
On the basis of product type, electric heaters are expected to emerge as the highly preferred water heater in the global water heater market. Electric heaters are estimated to reach close to US$ 20 Billion in revenue by 2021 end. Based on storage type, storage heater is likely to witness significant growth during the forecast period. Towards the end of 2021, storage heaters are projected to reach nearly US$ 30 Billion in revenue. Meanwhile, tankless heater is also expected to remain lucrative during 2017-2021. By end use, compared to the residential sector, the commercial sector is likely to witness the highest growth. The commercial sector is estimated to surpass US$ 30 Billion in revenue by the end of 2021.
Europe Expected to Remain Dominant During the Forecast Period 2017-2021
Region wise, Europe is likely to emerge as one of the largest regions in the global market for water heaters. By the end of 2021, Europe is projected to exceed US$ 19.5 Billion in revenue. The EU has introduced policies for energy labeling across all the water heater technologies. The implementation of energy labels leads to energy efficiency performance of all the water heater technologies and offers the opportunity for cost saving. Water heaters in Europe are manufactured as per the energy labeling and eco-design requirements. Meanwhile, Asia Pacific is also expected to witness substantial growth during the forecast period. Manufacturers in Japan are likely to come up with innovative water heaters that are energy-efficient and cost-effective.―New Daily Herald