United States (USA) Water Heater Market Overview, 2028

United States (USA) Water Heater Market Overview, 2028

The United States population is expected to grow from 332 million in 2022. This increase in population will lead to increased demand for water heaters. As the population grows, the number of households also increases. More households mean more homes that require water heating systems. New residential constructions to accommodate the growing population will contribute to the demand for water heaters. Existing water heaters have a limited lifespan, typically around 10-15 years. As the population grows, the number of water heaters reaching the end of their useful life will increase. This will lead to a higher demand for replacements and upgrades, as homeowners replace old or inefficient units with newer, more energy-efficient models. Population growth often leads to increased urbanization, with more people moving to cities and metropolitan areas. In urban settings, the demand for hot water is higher due to higher population density and more extensive plumbing systems, which, in turn, drives the demand for water heaters. In densely populated areas, multi-unit dwellings like apartment complexes and condominiums are common. These buildings often have centralized water heating systems, which are more complex and require larger water heaters or multiple units to meet the hot water demand of multiple households. As the population grows in urban areas, so does the need for such multi-unit water heating solutions. The increased demand for water heaters drive innovation in the industry. Manufacturers develop new technologies and features to meet the evolving needs of a growing population, such as improved insulation, smart control systems, and better heat exchange mechanisms. The increased demand for water heaters can also have economic implications, including job creation in manufacturing, distribution, installation, and maintenance sectors. The water heater industry expands to meet the rising demand, leading to more employment opportunities.

According to the research report ""United States Water Heater Market Overview, 2028,"" published by Bonafide Research, the United States Water Heater market is anticipated to grow at more than 3.95% CAGR from 2023 to 2028. Water quality issues, such as hard water with high mineral content, can affect the lifespan and efficiency of water heaters. Consumers in areas with water quality challenges seek water heaters designed to address these issues, such as those with anti-scale features. Hybrid water heating systems that combine multiple energy sources, such as electricity and heat pump technology, are gaining popularity. These systems offer flexibility and energy savings, making them attractive to consumers looking to reduce operating costs. In regions prone to natural disasters, such as hurricanes or earthquakes, the need for reliable access to hot water is essential. This can lead to increased demand for advanced water heaters with backup power options or high-efficiency models that minimize energy consumption during emergencies. Climate conditions can play a role in water heater choices. In colder regions, there is a higher demand for water heaters with larger tanks or higher recovery rates to ensure an adequate supply of hot water during colder months. Household size and hot water usage patterns influence the size and capacity of water heaters chosen. Larger families or homes with higher hot water demands require larger units or multiple water heaters. The location of the water heater within a building can influence the type and size of the unit chosen. For example, point-of-use water heaters are selected for specific areas, such as kitchens or bathrooms, to minimize heat loss through long plumbing runs. In the U.S., the availability of various energy sources for water heating, including electricity, natural gas, propane, and renewable energy sources, contributes to a diverse market. Consumers often choose water heaters based on energy source availability and cost.

In the United States, electricity is readily available and reliable in most regions. This accessibility makes electric water heaters a convenient choice for many consumers. Electric water heaters are relatively easy to install compared to some other types, such as natural gas or propane heaters. They don't require gas lines or ventilation systems, making them suitable for a wide range of homes and businesses. Electric water heaters tend to have a lower upfront cost compared to some other types, such as heat pump or solar water heaters. This affordability appeals to budget-conscious consumers. Electric water heaters can be installed indoors, which is particularly advantageous in regions with extreme weather conditions. This indoor installation protects the unit from freezing temperatures. Electric water heaters can be installed indoors, which is particularly advantageous in regions with extreme weather conditions. This indoor installation protects the unit from freezing temperatures. In addition based on technology the market is divided into Tankless, Storage and hybrid. Tankless water heaters, also known as on-demand or instantaneous water heaters are renowned for their superior energy efficiency. Unlike traditional tank-style water heaters that continuously heat and store water, tankless units heat water only when needed. This on-demand heating reduces standby heat loss, resulting in substantial energy savings. Due to their energy efficiency, tankless water heaters can significantly reduce energy bills compared to traditional tank-style models. Consumers are increasingly drawn to tankless technology as a means to lower their utility expenses over the long term. Tankless units provide an endless supply of hot water, as they can heat water continuously as long as there is a demand. This is particularly beneficial for homes with high hot water usage or for commercial applications with varying demand levels. Tankless water heaters generally have a longer lifespan compared to tank-style heaters. They can last up to 20 years or more with proper maintenance, reducing replacement and disposal costs.

Water heaters in the 250-400 liters capacity range are ideally suited for larger households and commercial applications, such as hotels, restaurants, and healthcare facilities. The United States has a significant number of large households and a thriving hospitality industry, which drives the demand for water heaters in this capacity range. The hospitality industry, including hotels and resorts, often requires water heaters with high capacity to meet the needs of guests for bathing, laundry, and kitchen operations. As the hospitality industry continues to grow, the demand for larger water heaters in this capacity range increases. Manufacturers are continually improving the energy efficiency of larger water heaters to meet regulatory standards and consumer expectations. Energy-efficient models in the 250-400 liters capacity range appeal to both residential and commercial users looking to reduce operating costs. In addition based on application the market is divided into residential and commercial. The United States has a substantial number of residential households, making the residential segment a dominant force in the water heater market. A significant portion of these households relies on water heaters for daily hot water needs. The residential water heater market benefits from the continuous replacement and upgrade cycle. As older units reach the end of their lifespan or become inefficient, homeowners seek newer, more energy-efficient models, contributing to market growth. Consumers are increasingly aware of the importance of energy efficiency. Many homeowners choose to replace older, less efficient water heaters with modern, energy-efficient models to reduce energy consumption and lower utility bills.

Considered in this report:
• Geography: United States
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• United States Water Heater market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product
• Electric
• Solar
• Gas

By Technology
• Tankless
• Storage
• Hybrid

By Capacity
• Below 30 Litres
• 30-100 Litres
• 100-250 Litres
• 250-400 Litres
• Above 400 Litres

By Application
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Water Heater industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.