Residential Water Heater Market Size, Share, Opportunities, And Trends By Type (Tank Water Heater, Tankless Water Heater, Solar Water Heater, Hybrid Water Heater, Others), By Source (Electricity, Natural Gas, Solar Energy, Others), By Application (Bathing, Cleaning & Washing), And By Geography - Forecasts From 2023 To 2028

A residential water heater is a home appliance designed to provide a continuous supply of hot water for domestic use, and it is responsible for heating water to a desired temperature for activities such as bathing, cleaning, washing dishes, and doing laundry. The primary function of a residential water heater is to ensure that households have readily available hot water on demand. The different types of residential water heaters include tank water heaters, tankless water heaters, solar water heaters, and hybrid water heaters. The selection of a residential water heater depends on factors like household size, hot water usage patterns, energy efficiency, and budget considerations. The increasing hot water usage for bathing and cleaning purposes boosts the demand for residential water heaters, thereby positively impacting their market growth.

The surge in the usage of hot water for bathing and cleaning activities drive the residential water heaters market growth.

Hot water is considered an essential requirement for personal hygiene and cleanliness. Consequently, the demand for hot water for bathing and cleaning purposes has been steadily increasing. Many people now view bathing as a therapeutic and rejuvenating experience, which often involves the use of hot water. This shift in consumer behavior has further amplified the demand for residential water heaters that can provide a consistent supply of hot water at the desired temperature. Individuals are opting for hot water to ensure effective cleaning and disinfection of various surfaces, utensils, and fabrics due to growing awareness of hygiene and cleanliness. This has resulted in an increased need for reliable and efficient residential water heaters that can cater to these demands. According to the Institute of Physics (IOP) "Environmental Research Infrastructure and Sustainability" report in 2022, water heating accounted for 7%–20% of total electricity consumption in the analyzed single-family residential homes, representing an average of 1–8 kWh d−1 of electricity consumption and 7–55 gallons (26–208 l) of hot water per day. According to the World Bank's forecast of China's urbanization rate in 2020, China's urbanization rate will be 80.0% in 2050, and at this time, the proportion of water used in the bathing part will reach near the peak. This demonstrates that residential water heaters will have a great demand in the future.

During the forecast period, the Asia-Pacific region is expected to hold a significant market share.

The Asia-Pacific region is anticipated to dominate the market with a sizeable market share due to a rapidly growing population in China and India which has increased hot water consumption in bathing and cleaning activities. Also, the improved living standards and increased consumer spending are further acting as additional driving factors. The Union Budget 2021-22 of India announced Jal Jeevan Mission (Urban) to provide tap connections for 2.86 crore households to access safe water. This is in line with the rural water supply initiative that the national government initiated in 2019. In 2019, Henan, a province in central China, intends to upgrade its air quality by converting 2 million homes from coal to gas or electricity-powered heaters. Such positive developments boost the growth of residential water heaters, thereby accelerating their regional market growth.

Key Developments

• April 2023: Haier launched a "Casarte Hybrid water heater” in China which comes with a 16-liter water capacity, can operate either from gas or electric power input, and has three heating modes to suit the needs of users at any time
• December 2022: Havells introduced a storage water heater "Otto " with a blend of elegant design, advanced technology, convenience, and safety, and the Otto model comes in three variants, that is with 10 liters, 15 liters, and 25 liters water capacity.
• December 2022: A.O. Smith released a new energy-efficient water heater ‘Elegance Prime’ which has Rust Resistant Integrated Diffuser (RRID) technology, and can enhance hot water output and save energy costs.
• September 2022: Media launched a new water heater range "20VDI" in India which was designed to redefine the bathing experience by providing 9-minute faster heating with less energy consumption.

Segmentation

• By Type
  • Tank Water Heater
  • Tankless Water Heater
  • Solar Water Heater
  • Hybrid Water Heater
  • Others
• By Source
  • Electricity
  • Natural Gas
  • Solar Energy
  • Others
• By Application
  • Bathing
  • Cleaning & Washing
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other