The global water heater market accrued USD 32.60 billion in 2017 and is expected to reach USD 48.52 billion by 2025, registering a CAGR of 5.1 percent from 2018 to 2025.
Increase in inclination toward energy-efficient products, the rise in the proliferation of hotels & hospitals, and improved infrastructure in rural areas drive the growth of the global water heater market. In addition, government policies to promote the use of solar water heaters supplement the market growth. However, the surge in prices of conventional energy sources and technical issues and high operational cost hamper the growth of the market. On the other hand, rapid urbanization and government initiatives to adopt renewable systems to reduce carbon emissions would create new opportunities in the market.
Instant water heater segment contributed more than half of the total market revenue in 2017 and is expected to remain dominant throughout the forecast period. This is due to its benefits such as cost-effectiveness, efficient utilization of energy, and increased demand for quicker hot water supply. The solar water heater segment is expected to grow at the highest CAGR of 6.8 percent from 2018 to 2025, owing to the availability of government subsidies and incentives for adopting sustainable systems, frequent power outages, economical aspects of using renewable energy sources. The report also analyzes gas and storage water heaters.
A residential segment to remain lucrative through 2025
Residential segment held the largest share in 2017, accounting for nearly half of the total market revenue. This segment is expected to register the highest CAGR of 5.8 percent from 2018 to 2025 due to surge in the housing sector and the introduction of advanced features such as a digital display, timers, power-off memory, heat pumps and condensing gas-fired systems among others. The report also analyzed commercial and industrial applications.
Specialty stores segment to retain lead through 2025
Specialty stores segment contributed more than one-third of the total market revenue in 2017 and is expected to maintain its lead by 2025. This is on account of the availability of a wide range of products under one roof, skilled personnel to assist in the purchase, and lack of trust in online shopping platforms for purchasing large appliances. However, e-commerce is expected to register the highest CAGR of 6.9 percent from 2018 to 2025, owing to the growing penetration of internet, availability of discounts and schemes, and changing shopping behavior among the populace. The report also analyzes supermarket/hypermarket and other distribution channels.
North America to maintain its lion’s share throughput forecast period
The water heater market in North America accounted for more than one-third of the global market revenue in 2017. It is expected to retain its dominance during the forecast period, owing to cold climatic conditions of the region, rise in demand for energy efficient systems, initiatives by the government to reduce carbon footprint, and a surge in focus on tourism and hospitality sectors. However, Asia-Pacific is expected to grow at the highest CAGR of 7.1 percent from 2018 to 2025, owing to the provision of government subsidy on solar-based systems, technological advancements in products, and increase in spending capacity in the region.
Frontrunners of the industry
The key players analyzed in the report include Ariston Thermo SPA, A. O. Smith Corporation, Bradford White Corporation, Bajaj Electricals Limited, Noritz Corp., Haier Electronics Group Co., Ltd., Rinnai Corporation, Rheem Manufacturing Company, Robert Bosch GmbH, and Venus Home Appliances Pvt. Ltd. Product launch has been the major strategy adopted by market players to gain a stronghold in the industry.―PR Newswire