WATER HEATER MARKET ANALYSIS

Market Challenges And Opportunities

Global Water Heater Market Drivers:

High growth construction and manufacturing industry is expected to drive growth of the global water heater market during the forecast period

Water heater has been extensively used in manufacturing as well as construction industries, owing to efficient distribution supply, ample raw material supply, and other factors. Both construction and manufacturing industries have witnessed significant growth in the recent past, especially in developed countries. Moreover, the increasing development of the construction industry in emerging economies such as India and China is expected to boost the demand for water heaters during the forecast period. Furthermore, longer product life, easy reimbursement and replacement, and efficient aftermarket service are expected to drive the global water heater market growth during the forecast period. For instance, on May 16, 2022, GE Appliances, an U.S. home appliance manufacturer, established new water heaters rolling off the line at GE Appliances’ Camden, SC plant for the production of high-tech water heaters.

Growing urbanization across the world is expected to propel the global water heater market growth over the forecast period

Increasing urbanization worldwide has led to consumers buying household appliances. For instance, water heater appliances have gained significant traction in the market in terms of revenue contribution and product demand. Urbanization has led to an increase in the population of cities, increasing the construction of houses, apartments, and skyscrapers. With the expansion of urban areas, the demand for water heaters is increasing to meet the needs of the growing urban population. City dwellers require water heaters for bathing, washing and other household purposes, which is driving the market growth. For instance, on September 26, 2022, Rheem Manufacturing Company, a leading global manufacturer of water heating and heating, ventilation, and air conditioning (HVACR) products, unveiled the enhanced Rheem professional prestige smart electric water heater with leak guard and demand response. Providing homeowners with advanced electric solutions designed to comply with new energy regulations, Rheem now offers seamless connections to the electric grid.

Global Water Heater Market Opportunities:

Use of renewable energy instead of conventional fuel sources

Consumers are increasingly shifting towards renewable energy, owing to growing awareness regarding the benefits of renewable energy, cost-efficiency, and better results. Solar heaters are widely installed in residential as well as commercial buildings, in order to reduce electricity bills. Moreover, governments of various countries offer low-interest loans and subsidies for solar heater installation, which in turn, is expected to increase the adoption of solar water heaters in the near future. For instance, on August 2, 2022, Rheem Manufacturing Company, a leading global manufacturer of water heating and HVACR products, announced the launch of Rheem IKONIC a super high-efficiency condensing gas tankless water heater. This new product line elevates the industry standard for energy-efficient, environmentally friendly water heating products while offering homeowners smart control.

Advancement in existing technologies is expected to offer significant opportunities for market players

Although water heater has been widely used, manufacturers are focused on introducing novel technologies and features in their upcoming products. Manufacturers are focused on introducing water heaters with higher wattage for quicker heating of water, auto supply, pre-set time supply, manual control of water, larger storage tanks, energy-efficient design, etc. Consumers prefer energy-efficient water heaters and are shifting towards automated appliances. This, in turn, is expected to offer excellent growth opportunities for market players in the near future. For instance, on December 15, 2021, Noritz the premiere tankless water heater manufacturer for gas tankless water heaters and propane tankless water heaters, Noritz China launched a new series of residential gas water heaters with the O₃ water generation function in China.

Global Water Heater Market Restraints:

Constant struggle to meet quality and energy efficiency standards

Water heater manufacturers must ensure that their products meet quality and energy efficiency standards. According to Coherent Market Insights analysis, domestic hot water consumption is the second highest, accounting for about 20% of global residential HVAC energy consumption. In addition, insufficient energy efficiency, durability, and insulation are also factors impeding market growth in the near future.

Limited availability of specific fuels, low awareness among the populace, installation challenges, and cost limitations

Water heaters operate on a variety of energy sources, including electricity, natural gas, propane, and solar power. The availability and cost of these fuels may vary by geography and infrastructure. In some regions, the availability of certain fuels may be limited or expensive, which can affect hot water system choice and affordability. Water heater installation can be difficult, especially in older homes or buildings. The process of installation can be affected by the availability of space, access to adequate ventilation, and compatibility with existing plumbing systems. In addition, certain water heating systems, such as solar water heaters, may require particular installation considerations, such as suitable roof suitability and sun exposure.

Global Water Heater Market Drivers:

High growth construction and manufacturing industry is expected to drive growth of the global water heater market during the forecast period

Water heater has been extensively used in manufacturing as well as construction industries, owing to efficient distribution supply, ample raw material supply, and other factors. Both construction and manufacturing industries have witnessed significant growth in the recent past, especially in developed countries. Moreover, the increasing development of the construction industry in emerging economies such as India and China is expected to boost the demand for water heaters during the forecast period. Furthermore, longer product life, easy reimbursement and replacement, and efficient aftermarket service are expected to drive the global water heater market growth during the forecast period. For instance, on May 16, 2022, GE Appliances, an U.S. home appliance manufacturer, established new water heaters rolling off the line at GE Appliances’ Camden, SC plant for the production of high-tech water heaters.

Growing urbanization across the world is expected to propel the global water heater market growth over the forecast period

Increasing urbanization worldwide has led to consumers buying household appliances. For instance, water heater appliances have gained significant traction in the market in terms of revenue contribution and product demand. Urbanization has led to an increase in the population of cities, increasing the construction of houses, apartments, and skyscrapers. With the expansion of urban areas, the demand for water heaters is increasing to meet the needs of the growing urban population. City dwellers require water heaters for bathing, washing and other household purposes, which is driving the market growth. For instance, on September 26, 2022, Rheem Manufacturing Company, a leading global manufacturer of water heating and heating, ventilation, and air conditioning (HVACR) products, unveiled the enhanced Rheem professional prestige smart electric water heater with leak guard and demand response. Providing homeowners with advanced electric solutions designed to comply with new energy regulations, Rheem now offers seamless connections to the electric grid.