Austin, Aug. 07, 2025 (GLOBE NEWSWIRE) -- The global water heater market was valued at USD 30.65 billion in 2024 and is projected to reach USD 44.10 billion by 2032, expanding at a compound annual growth rate (CAGR) of 4.70% from 2025 to 2032.
The increase in consumer demand for warm water usage, the emergence of the middle-class population and infrastructure development (especially in emerging economies), and government regulatory incentives promoting the use of green building technologies will further drive the industry expansion. In addition to this, smart water heaters and remote-control systems are replacing traditional water heaters with the much-improved IoT-enabled devices, creating an altogether smarter and more efficient experience.
Water heaters have to an extent become a necessity in homes, establishments, and industries, focusing on energy usage and carbon footprint lower stand. Faced with an ever-more eco-conscious end user, manufacturers are investing in increasingly more advanced insulation, as well as solar water heating technologies and tankless solutions.
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The U.S. water heater market size was valued at USD 7.72 billion in 2024 and is expected to reach USD 7.08 billion by 2032, growing at a CAGR of 5.68% over the forecast period of 2025-2032. This dominance stems from widespread residential installation, the renovation of aging infrastructure, and rising smart home penetration.
Key Companies:
- A.O. Smith
- Robert Bosch LLC
- Ariston Thermo SpA
- Rheem Manufacturing Company
- Rinnai Corporation
- Bradford White Corporation
- NORITZ Corporation
- Whirlpool Corporation
- Westinghouse Electric Corporation
- Bajaj Electricals Ltd.
Water Heater Market Report Scope:
| Report Attributes | Details |
| Market Size in 2024 | USD 30.65 Billion |
| Market Size by 2032 | USD 44.10 Billion |
| CAGR | CAGR of 4.70% From 2025 to 2032 |
| Base Year | 2024 |
| Forecast Period | 2025-2032 |
| Historical Data | 2021-2023 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Product (Electric, Solar, Gas) • By Technology (Tankless, Storage Tank, Hybrid) • By Application (Residential, Commercial, Industrial) • By Capacity (Below 30 Liters, 30 - 100 Liters, 100 - 250 Liters, 250 - 400 Liters, Above 400 Liters) |
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By Product
The electric segment was the leading category in terms of global water heater market revenue, with an approximately 51% market share, and that trend will continue through 2024. This dominance is driven by the access to electricity, the convenience of installation, and the lower up-front cost compared with gas or solar-based systems. Electric Water Heaters.
By Technology
The storage tank segment was the contributed the largest revenue share for water heater market in 2024. The reason behind their supremacy in the field is that storage tank water heaters have always been the popular choice for decades, mainly due to how reliable and convenient they are. This makes these systems perfect for a house with a large family, and you need hot water on demand. They are also relatively cheap and easy to maintain, which has made them very common in households where unlimited hot water is especially important.
By Application
In 2024, the residential segment accounted for a major share of the global water heater market revenue as it reflects the changing face of consumer demand due to booming urbanization and a rapidly growing population, along with rising average household income, especially in developing economies. In many parts of the world, households are adding a water heater in order to fulfill their daily requirements for bathing, cleaning, and cooking, which makes these systems an essential appliance in every household.
By Capacity
The 30–100 liters segment held a significant revenue share in the global water heater market for 2024, as these water heaters are mainly preferred for medium-sized households and small commercial applications. This space is perfect when compared to tankless water heaters for homes that are never sure of the hot water supply, it uses storage capacity, which makes it highly in demand among many families, and also perfectly good as a residential water heating.
Regional Analysis
The sales revenue of the Water Heater Market in Asia-Pacific was valued the most, with the largest share of 35.49% coming from this region, in the year 2024. Growth of this region in hot water demand is largely attributed to its huge population base, rapid urbanization, and increasing per capita or disposable incomes that are significantly fuelling the demand for hot water solutions across residential as well as commercial sectors. In addition to it, rise in the prosperous population along with growth in the construction sector and government initiatives to promote energy conservation has led to an increase in the demand for advanced water heaters for the purpose of water heating requirements in the Asia-Pacific region.
Recent Developments
- June 2025: A.O. Smith Corporation launched the H2Science A-Series, a new line of hybrid electric heat pump water heaters featuring advanced Wi-Fi connectivity that enables real-time measurement and energy optimization.
- December 2024: Racold (India) increased its production capacity at a plant for solar water heaters in Maharashtra to cater to the growing rural and urban demand, with an increase in production based mainly on the Indian Ministry of New and Renewable Energy's subsidized program.
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Unique Selling Propositions (USPs) of the Water Heater Market
- Energy Efficiency Regulations Boosting Replacement Demand – Stricter global efficiency standards are pushing consumers to replace older units with high-efficiency water heaters.
- Strong Shift Toward Renewable Energy Systems – Rising investments in solar water heaters, supported by government subsidies, are transforming the market toward sustainable alternatives.
- Smart Water Heaters with IoT Integration – The integration of Wi-Fi and app-based controls allows consumers to monitor and optimize energy usage remotely, enhancing user convenience.
- Booming Residential Construction in Emerging Economies – New housing developments across Asia-Pacific and Africa are creating consistent demand for cost-effective water heating systems.
- Tankless & Hybrid Models Gaining Popularity – Growing awareness of space-saving and energy-saving benefits is accelerating the adoption of tankless and hybrid heaters in urban regions.
- Rise in Hot Water Demand from Healthcare and Hospitality Sectors – Hygiene standards in commercial sectors are increasing demand for consistent and reliable hot water systems.
- Global Electrification Trend Favoring Electric Water Heaters – The move toward cleaner energy and electrification across households is driving long-term demand for electric-powered heaters.
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