Storage Water Heater Market : Global Industry Analysis and Forecast 2023-2029

The Storage Water Heater Market was valued at USD 19.1 billion in 2022, and total revenue is expected to grow at a CAGR of 4.8% between 2023 and 2029, reaching nearly USD 26.52 billion.
Storage Water Heater Market Overview
Storage water heaters or tank water heaters are large-volume water heaters that store and heat water in a tank. It is often used in homes and businesses as it provides hot water that can be used for bathing, cooking, and washing. The cylindrical vessel of storage water heater holds hot water that is always available for use. It uses several energy sources such as gas, electricity, oil, and solar. In North America and Europe, gas-powered storage water heaters are predominant. In fact, the costs of solar-powered storage water heaters are lower compared to the traditional storage water heaters and the trend is likely to continue.

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In recent years, the storage water heater market has grown significantly. Some of the key factors operating market growth are rising demand for hot water in the residential and commercial sectors, rapid urbanization, and rising disposable income. Furthermore, technological advancements such as energy-efficient models and smart features have aided market growth.

Storage Water Heater Market is highly competitive and fragmented. Some of the major key players of Saudi Ceramics, Viessmann Group, A.O. Smith, General Electric Appliances, Whirlpool Corporation, Havells India Limited, State Water Heaters, Nihon Itomic, Bosch Thermotechnology, Racold, Jaquar Group, Rheem Manufacturing Company, Ariston thermo, Linuo Ritter International, Ferroli, Groupe Atlantic, Rinnai Corporation, Hubbell Inc., Bradford White Corporation, Vaillant Group, and Haier Group Corporation and others. These companies are spending a lot of money on Research and Development (R & D) to create storage water heater so that they can meet needs of customers. All of these major players are actively working to develop new products and distribution channel to meet increasing demand for storage water heater.
Storage Water Heater Market Scope and Research Methodology
The report highlights the competitive market view, segment analysis based on the Capacity, End-User, and Region. First, the market overview describes the market trends, key market drivers, market restraints, opportunities, and challenges for the Storage Water Heater Market.

The Market is segmented by the capacity such as less than 100 litters, 100-400 litters and more than 400 litters. It is also segmented by End-User such as Industrial, Commercial Residential. The market size and trends for the Storage Water Heater Market were analysed by using both primary and secondary data. Top down approach is used to estimate market size of the Storage Water Heater Market.

Market projections were based on historical data, present sector developments, and future market opportunities and challenges. The SWOT analysis of the major market players, which included their strengths, weaknesses, opportunities, and threats, was also included in the research to provide a thorough knowledge of the market dynamics. By employing the PESTLE analysis, the operating environment of an organization can be assessed. Porter's analysis were used to identify crucial factors that directly affect market profitability.
Storage Water Heater Market Dynamics
Rising demand for hot water

The rising demand for hot water is a major key driver of the storage water heater market’s expansion Population growth, urbanization, and the expansion of commercial and residential buildings are driving this demand. As hot water is used by consumers for purposes such as bathing, cooking and cleaning, hot water storage tanks, which are an integral part of daily life, fulfil this requirement well due to the capacity they provide continuous heating and ease therefore water.

Additionally, advancements in energy-efficient technologies and the incorporation of smart features in storage water heaters have increased their popularity, as they provide both convenience and energy savings, driving market growth.

Growing awareness of energy efficiency

Growing energy-efficiency awareness is expected to drive up demand for storage water heaters. Consumers are looking for appliances with higher efficiency ratings as they become more conscious of environmental sustainability and energy savings. The storage water heaters have developed in such a manner that their advanced insulation materials and improved heating elements minimize heat loss and reduce energy consumption. In addition, including features like programmable timers and thermostatic controls enables users minimize their energy consumption, making storage water heaters appealing choice for a viable green and cost effective hot water solution. This increased awareness of energy efficiency aligns with the broader trend toward environmentally responsible living driving the demand for storage water heaters.

Market Trends

Smart technology integration

Smart Technology Integration is a major trend in the market for storage water heaters. It involves the integration of smart technologies and connectivity features in storage water heaters to make them “smart” appliances. With Smart Technology Integration, consumers can control their water heaters remotely via smartphone apps or integrate them into their home automation systems. This allows them to adjust their temperature settings, set up schedules, and monitor their water usage from anywhere. Storage water heaters often come with features like leak detection and predictive maintenance alerts, as well as energy saving modes. This not only improves user convenience and control, but also optimizes water heating processes, resulting in lower energy costs and a positive impact on the environment. Smart Technology Integration is set to remain a key trend in the market as consumers continue to demand connected homes and energy efficient appliances.

Hybrid Water Heater

The Hybrid Water Heater trend describes the growth of the storage water heater market, which denotes the integration of thermal technologies with renewable energy sources such as heat pumps into water heating systems. In comparison with electric or gas-powered conventional heaters, these hybrid heaters are much more energy-efficient as they efficiently extract heat from the air or ground and transfer it to heated water. This trend is propelled by increased concern over saving energy and preserving the environment given that hybrid water heaters both help to save energy and reduce gas emission towards lower greenhouse gas emissions. Due to this reason, they are popular with consumers searching to save costs and environment friendly, water heating solutions.

Market Opportunities

Smart Water heaters provides an opportunity for storage water heater manufacturers to meet the growing demand for energy-efficiency and convenience. Smart water heater features such as remote control and scheduling, as well as the ability to monitor hot water usage are appealing to techno-savvy customers who want more control over their water systems. By incorporating smart technology into storage water heater products, manufacturers are able to improve energy efficiency, reduce operational costs and manage water heaters remotely. This provides an opportunity to stay ahead in rapidly changing market and meet the needs of consumers who are looking for innovative, connected home solutions.

The rising awareness of renewable energy sources and the increasing focus on reducing carbon footprints present an opportunity for solar water heaters. Integrating solar panels with storage water heaters allows for eco-friendly water heating solutions, thereby expanding the market scope.

The storage water heater market has vast untapped potential in emerging economies, where the penetration of hot water systems is relatively low. The increasing urbanization, improving living standards, and rising disposable incomes in these regions create favorable conditions for market growth.

Market Challenges

Ensuring compliance with energy efficiency regulations and standards is a major challenge for storage water heater manufacturers, as it requires significant R&D investments. Research and development are needed to create energy efficient storage water heater solutions that meet these requirements without sacrificing performance or cost.

There are increasing environmental pressures and greenhouse gas regulations that require storage water heaters to reduce their carbon footprint. Finding environmentally friendly refrigerants for your heat pump water heater and sustainable tank construction is a challenge.

Consumers may not be aware of the advantages of energy-saving storage water heater systems or the range of options available on the market. It can be difficult to educate consumers on these systems and their associated long-term savings.

Consumers frequently prioritize the initial cost of water heaters, which make it difficult for manufacturers to market high-priced, energy-efficient models. It is critical to persuade consumers of long-term cost saving associated with energy-efficient models.
Storage Water Heater Market Segmentation
On the basis of capacity, Storage water heater market is segmented as less than 100 litters, 100-400 litters and more than 400 litters.

The 100-400 litters segment held the largest share of storage water heater. This category includes water heaters with capacities ranging from 100 to 400 litters. It is the most widely used storage water heater in both residential and commercial settings. Additionally the 100-400 litters segment frequently includes a variety of energy-efficient models, which aligns with the growing emphasis on environment friendly appliances, contributing to its market dominance. Storage water heaters under 100 gallons are most commonly used in small apartment buildings and other spaces with limited space. Storage heaters over 400 gallons are most widely used in industrial settings and large commercial properties.

By End-User

On the basis of end-user storage water heater market is segmented into Residential, Commercial and Industrial segment. Among these residential segment dominates the market with largest market share of 55% and expected to maintain its dominance in storage water heater market. The residential sector has a large and consistently growing customer base, due to population growth and urbanization. Technological advances and the availability of energy efficient smart water storage systems are making these appliances popular with homeowners who are looking for cost-effective and environmentally friendly solutions is very interested. Additionally, government incentives and rebates for energy-efficient appliances frequently target residential consumers, boosting the segment's growth even further.
Regional Insights
Asia Pacific is thе largеst rеgion in thе world with a markеt sharе of morе than 50% in 2022. It includеs countriеs such as China and India, as wеll as Japan and South Korеa, as wеll as countriеs in Southеast Asia. Many countriеs in thе rеgion havе a high population dеnsity and arе in thе procеss of urbanization. This mеans that thеrе is a hugе dеmand for еlеctric watеr hеatеr for rеsidеntial usе. In addition, thеrе is also a growing dеmand for commеrcial еlеctric watеr hеatеr and еlеctric watеr hеatеr for industrial usе duе to thе rapid industrialization in thе rеgion. As a result, there is a growing middlе class in thе rеgion and a highеr standard of living.
Storage Water Heater Market, by Region in (%)


The size of the storage water heater market in China is expected to grow as manufacturing industries expand and cheap labour becomes available. China is a major player in the heating sector, with significant untapped potential, making it a highly profitable market for businesses. The implementation of new technologies such as advanced communication and control, as well as smart home integration features, will also benefit the industry environment.

In 2021, the European storage water heater (SWH) market size exceeded USD 3 billion due to the ongoing commercialization of the product, as well as an increase in infrastructure investments. Furthermore, the implementation of regulatory policies designed to reduce the presence of low efficiency and environmental-polluting appliances, as well as the development of stringent government codes and standards for the efficiency of electrical products, will further contribute to the market. For example, the Environmental Impact Assessment (EIAs) for storage water heaters in the European Union (EU) has mandatory ecological requirements. Currently, the EIAs cover more than 40 products and are designed to reduce the environmental footprint of appliances within its scope.

The demand for superior and dependable water heaters from various commercial and industrial end-users is driving the growth of water heaters in the European region. Furthermore, the need for hot water to meet the required environmental conditions due to the region's extreme cold weather is likely to fuel product demand.
Competitive Analysis
The market for storage water heaters is highly competitive, with the leading manufacturers concentrating on product innovation, technological progress, and strategic alliances to increase their market presence. Furthermore, the competitive environment is further affected by pricing, distribution channels, brand recognition, and customer loyalty.

Major key players are Saudi Ceramics, Viessmann Group, A.O. Smith, General Electric Appliances, Whirlpool Corporation, Havells India Limited, State Water Heaters, Nihon Itomic, Bosch Thermotechnology, Racold, Jaquar Group, Rheem Manufacturing Company, Ariston thermo, Linuo Ritter International, Ferroli, Groupe Atlantic, Rinnai Corporation, Hubbell Inc., Bradford White Corporation, Vaillant Group, and Haier Group Corporation and others. These companies are investing in R&D to create new and creative storage water heater solutions. For instance, some manufacturers are creating smart storage water heater solutions that can be operated remotely via a smartphone application. Others are creating solar storage water heater solutions which use solar power to heat the water. The leading companies in the storage heater market are spending money on advertising and sales to get their products in front of consumers and business. They are doing this through advertising, PR, and direct selling.

Some of the key storage water heater market followers are GE, Whirlpool, Kenmore, Maytag, Frigidaire, LG, Samsung, Midea, and Hisense. These companies are active in the market but has a lowe markt sare than the major players in the market. These market followers usually compete on price and have a more limited product range than the major players. Storage water heater market followers play an important role in the market because they provide more options to consumers and businesses. They also compete with each other on price, which helps to maintain market prices.
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Global Storage Water Heater Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 19.1 Bn.


Forecast Period 2023 to 2029 CAGR:
4.8%
Market Size in 2029:
US $ 26.52 Bn.


 Segments Covered:
by Capacity
less than 100 litters
100-400 litters
More than 400 litters


by End User
Industrial
Commercial
Residential



Storage Water Heater Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key Players
1. Saudi Ceramics
2. Viessmann Group
3. A.O. Smith
4. General Electric Appliances
5. Whirlpool Corporation
6. Havells India Limited
7. State Water Heaters
8. Nihon Itomic
9. Bosch Thermotechnology
10. Racold
11. Jaquar Group
12. Rheem Manufacturing Company
13. Ariston thermo
14. Linuo Ritter International
15. Ferroli
16. Groupe Atlantic
17. Rinnai Corporation
18. Hubbell Inc.
19. Bradford White Corporation
20. Vaillant Group
21. Haier Group Corporation

Frequently Asked Questions:

1. Which region has the largest share in Global Storage Water Heater Market?
Ans: Asia-Pacific and European region region held the highest share in 2022.

2. What is the growth rate of Global Storage Water Heater Market?
Ans: The Global Storage Water Heater Market is growing at a CAGR of 4.8% during forecasting period 2023-2029.

3. What is scope of the Global Storage Water Heater Market report?
Ans: Global Storage Water Heater Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Storage Water Heater Market?
Ans: The important key players in the Global Storage Water Heater Market are – Saudi Ceramics, Viessmann Group, A.O. Smith, General Electric Appliances, Whirlpool Corporation, Havells India Limited, State Water Heaters, Nihon Itomic, Bosch Thermotechnology, Racold, Jaquar Group, Rheem Manufacturing Company, Ariston thermo, Linuo Ritter International, Ferroli, Groupe Atlantic, Rinnai Corporation, Hubbell Inc., Bradford White Corporation, Vaillant Group, Haier Group Corporation.

5. What is the study period of this Market?
Ans: The Global Storage Water Heater Market is studied from 2022 to 2029.