U.S. Water Heater Market - Focused Insights 2024-2029

U.S. Water Heater Market - Focused Insights 2024-2029

The U.S. water heater market is expected to grow at a CAGR of 6.67% from 2023-2029.

MARKET DRIVERS

Popularity Of Electric Water Heaters in Commercial Settings: Electric water heaters are becoming increasingly popular in commercial settings due to their environment-friendly attributes. Unlike gas water heaters, electric ones do not produce toxic fumes, reducing air pollution. In addition, their easy installation process makes them convenient for various commercial settings. Furthermore, using electric heaters contributes to decarbonization efforts, aligning with the growing focus on sustainable practices.

Technological Advances in Products: Advances such as energy-efficient features, multiple water temperature settings, and a space-saving design not only enhance the efficiency of water heaters but also cater to the diverse requirements of consumers. The popularity of horizontal water geysers in compact spaces, particularly urban apartments, significantly affected the water heater market. With the increasing trend toward smaller living spaces, consumers seek appliances that optimize available rooms and enhance their homes' overall aesthetics. For instance, A.O. Smith offers horizontal water heaters, HAS-X1, with key features such as longer shelf life, advanced PUF insulation, high energy efficiency, and power savings. The company expands its product portfolio and increases its consumer base in the market.

U.S. WATER HEATER MARKET HIGHLIGHTS

The gas & oil segment dominates, with the largest share of over 40% of the U.S. water heater market in 2023. The segmental growth is primarily due to their widespread availability, relatively low fuel cost, and quick heat recovery times. This exponential growth will continue due to the abundance of natural gas in the U.S. and the established infrastructure for oil distribution.

The instant category segment showcases significant growth, with the fastest-growing CAGR of 7.66% during the forecast period. The demand for instant water heaters in the U.S. has increased, driven by several factors, such as the growing emphasis on energy efficiency and sustainability. Instant or tankless water heaters are known for their energy-saving features compared to traditional tank water heaters. Consumers are increasingly seeking environmentally friendly options, and the energy efficiency of instant water heaters aligns with this trend.

The online distribution segment showcases the highest U.S. water heater market growth. The segment's growth is due to the ease and convenience of online shopping, an essential aspect of the value chain in the water heater market. Most companies have their websites, mobile applications, and third-party platforms. Through digitalization, organizations directly reach end-users. Online channels provide consumers with various products and services, allowing them to choose from any place at any time.

The residential segment holds the largest U.S. water heater market share. The demand for water heaters in this segment has been driven by various factors that enhance convenience, energy efficiency, and lifestyle. One significant factor is the growing awareness and adoption of green technologies.

Technological advances in the water heater market are expected to surge demand. Integrating smart home technologies allows controlling and monitoring water heaters remotely using mobile apps. Smart features, including energy usage tracking and remote control, enhance user convenience. Furthermore, tankless water heaters have increased in popularity due to their energy efficiency and space-saving design. Longer lifespans and reduced maintenance requirements associated with these technological improvements make consumers more inclined to invest in newer models.

REGIONAL ANALYSIS

The western region shows prominent growth, with the highest growing CAGR during the forecast period. The western region of the U.S. encompasses diverse landscapes, from arid deserts to mountainous terrain, influencing heating requirements and water heater preferences, thus helping in segmental growth. The West is known for innovating and adopting renewable energy technologies, creating opportunities for manufacturers and contractors to offer solar water heating, heat pump systems, and other sustainable solutions. Strong consumer awareness of environmental issues drives demand for energy-efficient water heaters.

VENDOR LANDSCAPE

The U.S. water heater market report contains exclusive data on 26 vendors. The U.S. Water Heater market's competitive scenario is intensifying, with global and domestic players offering diverse products. Regarding market share, a few major players are currently dominating the market. A.O. Smith, Bradford White Corps, General Electric, Rheem Manufacturing Company, and Rinnai dominate the market.

In 2023, Bradford White, one of the key vendors, launched Brute XTR commercial boilers and volume water heaters. These products feature key elements such as a low-pressure drop water tube heat exchanger, water connections, and a convenient touchscreen. By offering these products, the company aims to attract a wide range of consumers and gain a competitive advantage.

REPORT HIGHLIGHTS

SEGMENTATION & FORECAST

By Product

Gas & Oil

Electric

Heat Pumps

Solar

By Category

Storage

Instant

By Distribution Channel

Offline

Online

By End-User

Residential

Commercial

By Region

Midwest

Northeast

South

West

VENDORS LIST

Key Vendors

A.O. Smith

Bradford White Corporation

General Electric

Rinnai

Rheem Manufacturing Company

Other Prominent Vendors

Apricus Solar

Heliodyne Inc.

HTP Inc.

Hubbell Inc.

Intelli Inc.

Kingspan

Kenmore

Lennox International

Midea

Navien Inc.

Noritz American Corporation

SunMaxx Solar

RECO

Alternate Energy Technologies

Sioux Corporation

SunEarth Inc.

Stiebel Eltron Inc.

Viessmann Manufacturing Co.

Bock Water Heaters Inc.

BSH

Eccotemp

KEY QUESTIONS ANSWERED:

1. How big is the U.S. water heater market?

2. What is the growth rate of the U.S. water heater market?

3. What are the future drivers of the U.S. water heater market?

4. Which region is the fastest growing U.S. water heater market?

5. Who are the major players in the U.S. water heater market?"