Italy Water Heater Market 2022-2028 2022-2028

Italy Water Heater Market 2022-2028 2022-2028

Italy Water Heater Market Size, Share, & Analysis by Energy Source (Gas Water Heaters, Electric Water Heaters, Hybrid Water Heaters, and Solar Water Heaters), by Water Supply (On-Demand or Tankless Water Heaters and Storage or Tank Water Heaters), and by End Users (Residential, Commercial, and Industrial) Forecast Period (2022-2028)

The Italy water heater market is anticipated to grow at a CAGR of 6.1% during the forecast period (2022–2028). The market value was $1.0 billion in 2021 and is estimated to reach $1.6 billion in 2028. Italy records a substantial amount of manufacturing and industrial production. Therefore, the energy requirement is quite high in Italy. Cooling and heating application require an ample amount of electricity in the market due to environmental conditions. Therefore, with the growing energy demand, Italy is emerging as a key region for the adoption of renewable energy sources. Italy recorded a positive electricity demand in 2021: +5.2% in the North, +6.4% in Central Italy, and +5.9% in the South and on the islands. The major factor propelling the market growth includes the rise in the introduction of government subsidy on energy-efficient water heaters and the growing adoption of water heaters in the industrial and commercial industry over boilers for the same purpose. For instance, in February 2022, the government of Italy approved around a $9 billion aid package for energy. The initiatives were introduced owing to the continuously rising electricity prices across the country.

Market Segment Outlook

Based on the energy source, the market is sub-segmented into gas, electricity, hybrid, and solar. Among these, the gas sub-segment held the largest market share of 51.5% accounting for around $531 million in 2021 and is estimated to reach $732 million in 2028. The segment is projected to grow at a CAGR of 4.7% during the forecast period (2022-2028). Several key players operating in the market are focusing on developing new and innovative water heaters, which is the major factor propelling the growth of the market. For instance, in August 2022, Rheem launched Rheem IKONIC, a super high efficiency condensing gas tankless water heater across the region of Europe and North America. This new product line elevates the industry standard for energy-efficient, environmentally friendly water heating products while offering homeowners smart control.

Based on the water supply, the market is sub-segmented into on-demand or tankless water heaters and storage or tank water heater. Among these, the storage or tank water heater sub-segment is estimated to hold the largest share of 75.8% in 2021, accounting for a market value of $782 million in 2021. The number is further estimated to reach $1.2 billion in 2028, growing at a CAGR of 6.5% during the forecast period (2022-2028). The segmental growth is driven by the growing development of green buildings along with the introduction of smart city programs. Further, multiple control options along with easy installations will encourage product deployment, in turn, bolstering the market growth.

Based on end users, the market is further sub-segmented into residential, commercial, and industrial. Among these, the residential sub-segment held the largest share of 68.1% in 2021, accounting for a market value of $703 million in 2021. This number is further estimated to reach $1.1 billion in 2028, growing at a CAGR of 6.6% during the forecast period (2022-2028). In Italy, the residential sector generates heat demand for space heating, sanitary application, and others while the commercial sector requires heating for inventory, supermarkets, shopping malls, and others. In the industrial sector, automotive production, manufacturing industry, energy generation facilities, and others contribute to the heat demand. Demand for heat pumps for water heating is expected to increase due to the growing application of water heating equipment in the commercial and industrial sectors. According to the Heat Roadmap Europe, Italy contributes a share of 11% in energy consumption for heating purposes across the sectors.

Key Players Outlook

Prominent players in the Italy water heater market include Siemens AG, A.O. Smith Corp., Rober Bosch GmbH, General Electric Co., Ferroli Ltd., and Ariston Thermo SpA, among others. These market players are adopting various strategies to sustain themselves in the competitive market. These companies are embarking on aggressive strategies such as partnerships and product launches in the water heater market to gain a leading position across the globe. For instance, in June 2022, an Italian manufacturer Sunerg developed an integrated photovoltaic water heater solution based on two resistances. The system relies on a maximum power point tracking (MPPT) controller and can work with a PV module with a power output of up to 450 W.