Global Storage Water Heater Market Size, Share, Growth Analysis, By Capacity(<30 Liters, 30 - 100 Liters), By Application(Residential, Commercial), By Energy Source(Electric, Gas) - Industry Forecast 2024-2031

Global storage water heater market size was valued at USD 18.9 billion in 2022 and is poised to grow from USD 19.85 billion in 2023 to USD 29.32 billion by 2031, growing at a CAGR of 5% in the forecast period (2024-2031).

The future growth of the storage water heater market is expected to be influenced significantly by evolving consumer preferences and an increasing emphasis on sustainability. As energy costs continue to rise worldwide, consumers are gravitating towards energy-efficient products like storage water heaters, which can effectively reduce energy consumption for water heating purposes. Stringent mandates aimed at reducing carbon footprints and heightened awareness regarding global warming are also anticipated to directly boost sales of storage water heaters in the foreseeable future. Moreover, the market is witnessing a surge in the availability of innovative storage water heaters equipped with advanced insulation and remote control features, contributing to market expansion on a global scale. The integration of technologies such as the Internet of Things (IoT) to enhance operational efficiency and adaptability to real-time data, including weather changes, presents a significant opportunity for market players to capitalize on in the coming years. However, challenges lie ahead, including the increasing costs of raw materials necessary for manufacturing storage water heaters. Additionally, design and technical issues associated with new models may potentially hinder the profitability of storage water heater companies over the forecast period. The ongoing trend towards renewable energy adoption is expected to further impact market growth in the future. To excel in the competitive global landscape, storage water heater suppliers must address these challenges and leverage key market trends. The demand for compact storage water heaters suitable for small living spaces is anticipated to create numerous opportunities for suppliers in the long term.

Top-down and bottom-up approaches were used to estimate and validate the size of the global storage water heater market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Storage Water Heater Market Segmental Analysis

The global storage water heater market is segmented based on capacity, application, energy source and region. By capacity, the market is segmented into <30 liters, 30 - 100 liters, 100 - 250 liters, 250 - 400 liters, and >400 liters. By application, the market is segmented into residential, commercial, college/university, offices, government/military, and others. By energy source, the market is segmented into electric and gas. By region, the market is segmented into North America, Europe, Latin America, Asia- Pacific, and Middle East and Africa.

Drivers of the Global Storage Water Heater Market

A key driver propelling the growth of the global storage water heater market is the rapid urbanization and infrastructure development across emerging economies. As urban populations swell and housing projects multiply, the demand for reliable and cost-effective water heating solutions escalates. Storage water heaters, with their relatively low initial costs and ease of installation, remain a popular choice, especially in regions where access to advanced heating technologies may be limited or where electricity or gas infrastructure is still developing.

Restraints in the Global Storage Water Heater Market

Despite their widespread use, one significant restraint in the global storage water heater market is the increasing demand for more energy-efficient and eco-friendly alternatives. As environmental concerns grow and regulations become stricter, traditional storage water heaters face scrutiny due to their relatively high energy consumption and greenhouse gas emissions. This prompts consumers and businesses alike to explore alternatives such as tankless water heaters or solar-powered systems, impacting the demand for conventional storage water heaters.

Market Trends of the Global Storage Water Heater Market

A prominent trend shaping the global storage water heater market is the integration of smart technologies and connectivity features into traditional water heating systems. Manufacturers are increasingly incorporating IoT (Internet of Things) capabilities, allowing users to remotely monitor and control their water heaters via smartphones or other devices. These smart functionalities offer benefits such as energy savings, predictive maintenance alerts, and customized heating schedules, catering to the growing demand for convenience, efficiency, and sustainability in residential and commercial settings.