Global Water Heater Market revenue will surpass USD 30 billion by 2024, as reported in the latest study by Global Market Insights, Inc. Increasing demand for replacement of conventional water heating systems along with recent developments in the efficient heating technologies will stimulate the global market. Improvement in living standards as a result of rising per capita income will increase the affordability and accessibility of these products. For instance, according to Bureau of labor statistics, in U.S., the annual rate of change of personal income from 2006-2016 was 3.4 percent and is anticipated to reach to 4.3 percent by 2026.
Stringent government regulations to limit carbon emissions along with the increasing penetration of advanced water heating technologies will drive the global market. Growing consumer inclination toward the adoption of energy efficient systems owing to their operational benefits will stimulate the product demand. As per the Eco design Directive 2009/125/EC, all the energy-related products across EU member states should be mandated with ecological requirements. This directive currently covers over 40 product groups and aims at reducing energy use and mitigates the environmental impact under its scope.
US market was valued over USD 2 billion in 2017. Increasing adoption of natural gas owing to limited carbon footprint when compared to coal and other fossil fuels will stimulate the industry growth. In addition, augmented supply together with reduced consumer prices has encouraged natural gas consumption that will fuel the product demand. For instance, according to U.S. Energy Information Association, in 2018, the overall natural gas consumption in the lower 48 states increased up to 11 percent and the total supply raised up to 10 percent when compared with 2017.
Solar water heater market will grow on account of increasing adoption across residential & commercial establishments owing to government subsidies and incentives toward renewable energy systems. Favorable regulatory policies and initiatives to reduce the dependency on fossil-fuels along with increasing GHG emissions are the vital parameters which will positively impact the product demand. For instance, as per the International Energy Agency, in Cyprus, more than 90 percent of the overall households are equipped with solar water heaters.
Increasing infrastructure development coupled with an upsurge in urbanization rate across the emerging economies will positively influence the market. In addition, growing focus toward the implementation of green growth strategies along with expansion of residential establishments will complement the product adoption. According to UN’ Department of Economic and Social Affairs, in 2018, around 55 percent of the global population dwelled in urban settlements and it is anticipated to increase up to 68 percent by 2050.
Growing product adoption primarily across residential and small-commercial establishments owing to their cost-effectiveness and energy efficiency will drive the market. For instance, in 2018, the European Commission’s, Parliament and Council signed an agreement which includes binding energy efficiency target of over 32.5 percent by 2030.
Commercial water heater market will witness an extensive growth on account of the development of facilities and services across healthcare, hotels, shopping complexes and office buildings. In addition, shifting trends from oil and gas-based economies to hospitality & tourism sector will augment the product demand. For instance, the mainland Chinese’ investment towards hotel real estate sector grew by a compound annual growth rate of 130 percent from 2012 to 2016.
Notable industry players across the global market includes Chromagen, A.O Smith, Himin Solar Energy, Sun Tank, V Guard Industries, Alternate Energy Technologies, Racold, Viessmann, Bosch, Rheem manufacturing, Linuo Ritter, Bradford White and Wagner Solar.— Digital Journal