Water Heater Market Size, Share, and Outlook, 2025 Report- By Product (Electric, Solar, Gas), By Technology (Tankless, Storage Tank, Hybrid), By Application (Residential, Commercial, Industrial), By Capacity (Below 30 Liters, 30 to 100 Liters, 100 to 250

Water Heater Market Outlook

Water Heater Market Size is forecast to reach $49 Billion in 2032 from $34.9 Billion in 2025, at an optimistic growth rate of 4.9% from 2025 to 2032. The robust Water Heater Market growth presents potential growth opportunities for companies across the industry value chain.

The comprehensive market research report presents 12-year historic and forecast data on Water Heater Market segments across 22 countries from 2021 to 2032. Key segments in the report include By Product (Electric, Solar, Gas), By Technology (Tankless, Storage Tank, Hybrid), By Application (Residential, Commercial, Industrial), By Capacity (Below 30 Liters, 30 to 100 Liters, 100 to 250 Liters, 250 to 400 Liters, Above 400 Liters). Over 70 tables and charts showcase findings from our latest survey report on Water Heater Markets.

Water Heater Market Insights, 2025: Water Heater Market: Key Drivers and Opportunities

The water heater market is experiencing growth, driven by the increasing demand for energy-efficient heating systems for both residential and commercial applications. As energy costs rise and environmental concerns grow, consumers and businesses are increasingly adopting energy-efficient water heaters that use advanced technologies like heat pump systems, solar-powered heating, and tankless water heaters. The residential sector continues to be a major driver, as homeowners seek reliable, cost-effective, and eco-friendly solutions for heating water. Smart water heaters, which integrate with home automation systems and allow for remote control, have become a growing trend, enhancing user convenience and energy savings. Moreover, the green building movement and government incentives for energy-efficient appliances are contributing to market growth. In industrial applications, water heaters are essential for process heating and commercial laundry operations, driving demand for high-capacity and industrial-grade water heaters. Additionally, opportunities exist in the replacement market, as older, less efficient water heaters are replaced by newer models that meet the latest energy standards. The development of renewable energy-powered water heating systems, such as solar water heaters, presents a growing market opportunity for environmentally conscious consumers and businesses. Manufacturers focusing on high-efficiency models that offer long-term cost savings and align with environmental sustainability will continue to find success in this expanding market.

Five Trends that will define global Water Heater Market in 2025 and Beyond

A closer look at the multi-million global market for Water Heater Market identifies rapidly shifting consumer preferences across categories. By focusing on growth and resilience, leading Water Heater Companies are prioritizing their investments across categories, markets, and geographies. The report analyses the most important market trends shaping the new landscape to support better decisions for the long and short-term future.

What are the biggest opportunities for growth in the Water Heater Industry?

The Water Heater Market sector demonstrated remarkable resilience over the past year across developed and developing economies. Further, the market presents significant opportunities to leverage the existing momentum towards actions by 2032. On the other hand, recent macroeconomic developments including rising inflation and supply chain disruptions are putting pressure on companies. The chapter assists users to identify growth avenues and address business challenges to make informed commercial decisions with unique insights, data forecasts, and in-depth market analyses.

Water Heater Market Segment Insights

The Water Heater Industry presents strong offers across categories. The analytical report offers forecasts of Water Heater Industry performance across segments and countries. Key segments in the industry include- By Product (Electric, Solar, Gas), By Technology (Tankless, Storage Tank, Hybrid), By Application (Residential, Commercial, Industrial), By Capacity (Below 30 Liters, 30 to 100 Liters, 100 to 250 Liters, 250 to 400 Liters, Above 400 Liters). The largest types, applications, and sales channels, fastest growing segments, and the key factors driving each of the categories are included in the report.

Forecasts of each segment across five regions are provided from 2021 through 2032 for Asia Pacific, North America, Europe, South America, Middle East, and African regions. In addition, Water Heater Market size outlook is provided for 22 countries across these regions.

Water Heater Industry Value Chain

The chapter identifies potential companies and their operations across the global Water Heater Industry ecosystem. It assists decision-makers in evaluating global Water Heater Market fundamentals, market dynamics, and disruptive trends across the value chain segments.

Scenario Analysis and Forecasts

Strategic decision-making in the Water Heater Industry is multi-faceted with the increased need for planning across scenarios. The report provides forecasts across three case scenarios- low growth, reference case, and high growth cases.

Asia Pacific Water Heater Market Analysis- A Promising Growth Arena for Business Expansion

As companies increasingly expand across promising Asia Pacific markets with a combined population of over 4.5 billion, the medium-to-long-term future remains robust. The presence of the fastest-growing economies such as China, India, Thailand, Indonesia, and Vietnam coupled with strengthening middle-class populations and rising disposable incomes drive the market. In particular, China and India are witnessing rapid shifts in consumer purchasing behavior. China is recovering steadily with optimistic forecasts for 2025. Further, Japanese and South Korean markets remain stable with most companies focusing on new product launches and diversification of sales channels.

The State of Europe Water Heater Industry 2025- Focus on Accelerating Competitiveness

As companies opt for an integrated agenda for competitiveness, the year 2025 presents optimistic scenarios for companies across the ecosystem. With signs of economic recovery across markets, companies are increasing their investments. Europe is one of the largest markets for Water Heater Market with demand from both Western Europe and Eastern European regions increasing over the medium to long-term future. Increasing omnichannel shopping amidst robust consumer demand for value purchases shapes the market outlook. The report analyses the key Water Heater Market drivers and opportunities across Germany, France, the United Kingdom, Spain, Italy, Russia, and other Europe.

The US Water Heater Market Insights- Executives are most excited about opportunities for the US Water Heater Industry.

Easing inflation coupled with strengthening consumer sentiment is encouraging aggressive actions from the US Water Heater Companies. Market players consistently focusing on innovation and pursuing new ways to create value are set to excel in 2025. In addition, the Canadian and Mexican markets offer lucrative growth pockets for manufacturers and vendors. Focus on private-brand offerings and promotions, diversified sales channels, expansion into niche segments, adoption of advanced technologies, and sustainability are widely observed across the North American Water Heater Market.

Latin American Water Heater Market outlook rebounds in line with economic growth.

Underlying demand remains higher among urban consumers with an optimistic economic outlook across Brazil, Argentina, Chile, and other South and Central American countries. Increased consumer spending has been reported since H2-2024 and the prospects remain strong for 2025. Aggressive ecosystem moves to create new sources of income are widely observed across markets in the region. Marketing activities focused on customer insights, operations, and support functions are quickly gaining business growth in the region.

Middle East and Africa Water Heater Markets- New Opportunities for Companies Harnessing Diversity

Rapid growth in burgeoning urban locations coupled with a young and fast-growing population base is attracting new investments in the Middle East and African Water Heater Markets. Designing expansion and marketing strategies to cater to the local consumer base supports the market prospects. In addition to Nigeria, Algeria, South Africa, and other markets, steady growth markets in Ethiopia, Rwanda, Ghana, Tanzania, the Democratic Republic of Congo, and others present significant prospects for companies. On the other hand, Middle Eastern Water Heater Markets including the UAE, Saudi Arabia, Qatar, and Oman continue to offer lucrative pockets of growth.

Competitive Landscape- How Water Heater Companies outcompete in 2025 and Beyond?

The ability to respond quickly to evolving consumer preferences and adapt businesses to niche consumer segments remains a key growth factor. The report identifies the leading companies in the industry and provides their revenue for 2024. The market shares of each company are also included in the report. Further, business profiles, SWOT analysis, and financial analysis of each company are provided in detail. Key companies analyzed in the report include A.O. Smith, Ariston Thermo SpA, Bajaj Electricals Ltd, Bradford White Corp, FERROLI S.p.A, Haier Inc, Havells India Ltd, Kenmore, Lennox International Inc, NORITZ Corp, Rheem Manufacturing Company, Rinnai Corp, Robert Bosch LLC, Westinghouse Electric Corp, Whirlpool Corp.

Water Heater Market Scope and Segmentation

By Product

Electric

Solar

Gas

By Technology

Tankless

Storage Tank

Hybrid

By Application

Residential

Commercial

Industrial

By Capacity

Below 30 Liters

30 to 100 Liters

100 to 250 Liters

250 to 400 Liters

Above 400 Liters

Countries Included-

North America- US, Canada, Mexico

Europe- Germany, France, UK, Spain, Italy, Benelux, Turkey, Russia, Rest of Europe

Asia Pacific- China, India, Japan, South Korea, South East Asia, Australia, Rest of APAC

South and Central America- Brazil, Argentina, Chile, Rest of SCA

Middle East and Africa- Saudi Arabia, the UAE, Israel, South Africa, Algeria, Nigeria, Rest of Middle East, Rest of Africa

Companies Included in the Water Heater Market Research-

A.O. Smith

Ariston Thermo SpA

Bajaj Electricals Ltd

Bradford White Corp

FERROLI S.p.A

Haier Inc

Havells India Ltd

Kenmore

Lennox International Inc

NORITZ Corp

Rheem Manufacturing Company

Rinnai Corp

Robert Bosch LLC

Westinghouse Electric Corp

Whirlpool Corp

Reasons to Buy the report

• Make informed decisions through long and short-term forecasts across 22 countries and segments.
• Evaluate market fundamentals, dynamics, and disrupting trends set to shape 2025 and beyond.
• Gain a clear understanding of the competitive landscape, with product portfolio and growth strategies.
• Get an integrated understanding of the entire market ecosystem and companies.
• Stay ahead of the competition through plans for growth in a changing environment for your geographic expansion.
• Assess the impact of advanced technologies and identify growth opportunities based on actionable data and insights.
• Get free Excel spreadsheet and PPT versions along with the report PDF.