Water Heaters Global Market Report 2026

Water heaters are appliances specifically designed to heat and generally store hot water for various domestic purposes. They operate using different energy sources, including gas, electricity, oil, or solar energy. These appliances are essential for daily activities such as bathing and cooking, and they also benefit from technological advancements that enhance energy efficiency and minimize environmental impact.

The primary product types of water heaters include solar heaters, electric heaters, gas and propane heaters, and geothermal heaters. A geothermal water heater is a component within a larger geothermal heat pump system that contributes to providing heated and cooled air for residential spaces. In a geothermal heat pump system, a water and antifreeze mixture circulates through loops buried in the ground to facilitate heating and cooling. Water heaters are distributed through various channels such as supermarkets/hypermarkets, specialty stores, e-commerce, and other distribution channels. These water heaters are utilized by residential, commercial, and industrial end-users.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on steel, heating elements, electronics, and imported gas components have raised production and retail costs for water heaters, particularly affecting electric and gas based models across residential and commercial segments. Regions heavily dependent on imported parts, such as Asia Pacific and Latin America, face increased supply chain delays and price volatility. However, tariffs have also encouraged localization of manufacturing, stimulated innovation in renewable and energy efficient heater designs, and strengthened domestic production capabilities.

The water heaters market research report is one of a series of new reports from The Business Research Company that provides water heaters market statistics, including water heaters industry global market size, regional shares, competitors with a water heaters market share, detailed water heaters market segments, market trends and opportunities, and any further data you may need to thrive in the water heaters industry. This water heaters market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The water heaters market size has grown strongly in recent years. It will grow from $67.29 billion in 2025 to $72 billion in 2026 at a compound annual growth rate (CAGR) of 7.0%. The growth in the historic period can be attributed to increase in household hot water usage, early adoption of electric heaters, growing demand for residential comfort appliances, rise in construction and housing development, expansion of commercial hot water systems.

The water heaters market size is expected to see strong growth in the next few years. It will grow to $97.53 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to growing shift toward renewable heating technologies, rising adoption of smart connected heaters, increasing emphasis on energy savings and emission reduction, growth in e commerce distribution for appliances, expanding commercial and industrial heating demand. Major trends in the forecast period include rising demand for energy efficient water heating solutions, growing adoption of tankless and on demand heating systems, increasing use of smart water heaters with remote monitoring, expansion of solar and geothermal heating installations, growing preference for compact and space saving heater designs.

Rapid urbanization is anticipated to drive growth in the water heater market during the forecast period. For instance, in January 2024, the Independent Commission for Aid Impact (ICAI), a UK-based information and services platform, projected that by 2050, over two-thirds (around 67%) of the global population will reside in urban areas. Additionally, data published by the World Bank in April 2023 indicated that 56% of the world's population, or approximately 4.4 billion people, lived in urban areas in 2023, with this number expected to more than double by 2050. The increase in the urban population, along with rising disposable incomes and improved affordability among city residents, is set to drive demand for water heaters. Therefore, rapid urbanization is a significant factor fueling the growth of the water heater market.

Leading companies in the water heater market are incorporating advanced technologies, such as advanced thermocline technology, to enhance energy efficiency and provide faster, more consistent heating. Advanced Thermocline Technology is a heating innovation that optimizes temperature layering within the water tank, delivering more usable hot water efficiently while reducing energy waste. For example, in June 2025, V-Guard Industries Ltd., an India-based consumer goods manufacturer, launched the Luxecube water heater series, combining luxury design with smart functionality. The series features the patented Advanced Thermocline Technology, which maintains a sharper hot-water boundary for up to ~38% more usable hot water, IoT connectivity through the V-Guard Smart app (with voice-control support for Amazon Alexa and Google Home), ambient Luxe Glow Pro LED mood lighting, real-time energy monitoring, holiday mode, and safety features such as child-lock and self-diagnostics-designed for high-rise pressure (0.8 MPa) and premium durability (titanium-infused tank + Incoloy 800 heating element).

In January 2024, Carrier Global Corporation, a U.S.-based company specializing in the design and manufacture of HVAC systems, acquired Viessmann Climate Solutions for an undisclosed amount. This acquisition aims to enhance Carrier Global Corporation's portfolio of sustainable climate solutions in response to the growing focus on renewable energy and energy transition. Viessmann Climate Solutions is a Germany-based manufacturer known for its heating and refrigeration systems, which include water heaters.

Major companies operating in the water heaters market are A. O. Smith Corporation, RinnAI Corporation, Vaillant Group, Ariston Thermo Group, Rheem Manufacturing Company, Viessmann Group, Haier Smart Home Co., Ltd., Bradford White Corporation, Robert Bosch GmbH, Bajaj Electricals Ltd, Crompton Greaves Consumer Electricals Ltd., Havells India Ltd., Taian Haoli Solar Energy Technology Co., Ltd., AquaWorld Group Co., Ltd., Changzhou XNE Technology Co., Ltd., Guangdong PHNIX Eco-Energy Solution Ltd., Siemens AG, Stiebel Eltron International GmbH, Telford Copper & Stainless Cylinders, Hamworthy Heating, Sun Ray, PBS Power Equipment, s.r.o., Enerstena Group, Petrojet Trade s.r.o., Druzstevni zavody Drazice company, Noritz Corporation, General Electric (GE), ATMOR, Kyungdong Navien Co.,Ltd., Viesmann Group, Whirlpool Corporation, Apen Group, State Industries, American Water Heaters, EcoSmart US, ABRAVA-DASOL, Aquecedor Solar Transsen Ltda., Br Solar, IEM - Intercambio Eletro Mecanico Ltda., Dana Water Heaters and Coolers Factory LLC, Al Khatib Electrical Water Heater Factory, Pure Blue International LLC, Solar Ray, Genersys South Africa, GoSolar CC, ITS Solar, Kwikot (Pty) Ltd.

Asia-Pacific was the largest region in the water heaters market in 2025. Western Europe was the second-largest region in the global water heaters market share. The regions covered in the water heaters market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the water heaters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The water heaters market consists of sales of solar water heaters, electric water heaters, geothermal water heaters, and other water heaters. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Water Heaters Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses water heaters market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for water heaters ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The water heaters market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product Type: Solar Heaters; Electric Heaters; Gas and Propane Heaters; Geothermal Heaters
• 2) By Distribution channel: Supermarket/Hypermarket; Specialty Stores; E-Commerce; Other Distribution Channels
• 3) By End User: Residential; Commercial; Industrial
• Subsegments:
• 1) By Solar Heaters: Active Solar Water Heating Systems; Passive Solar Water Heating Systems; Solar Pool Heaters
• 2) By Electric Heaters: Tank Electric Water Heaters; Tankless Electric Water Heaters; Heat Pump Water Heaters
• 3) By Gas And Propane Heaters: Tank Gas Water Heaters; Tankless Gas Water Heaters; Condensing Gas Water Heaters
• 4) By Geothermal Heaters: Ground Source Heat Pumps; Water Source Heat Pumps; Direct Exchange Systems
• Companies Mentioned: A. O. Smith Corporation; Rinnai Corporation; Vaillant Group; Ariston Thermo Group; Rheem Manufacturing Company; Viessmann Group; Haier Smart Home Co., Ltd.; Bradford White Corporation; Robert Bosch GmbH; Bajaj Electricals Ltd; Crompton Greaves Consumer Electricals Ltd.; Havells India Ltd.; Taian Haoli Solar Energy Technology Co., Ltd.; AquaWorld Group Co., Ltd.; Changzhou XNE Technology Co., Ltd.; Guangdong PHNIX Eco-Energy Solution Ltd.; Siemens AG; Stiebel Eltron International GmbH; Telford Copper & Stainless Cylinders; Hamworthy Heating; Sun Ray; PBS Power Equipment, s.r.o.; Enerstena Group; Petrojet Trade s.r.o.; Druzstevni zavody Drazice company; Noritz Corporation; General Electric (GE); ATMOR; Kyungdong Navien Co.,Ltd.; Viesmann Group; Whirlpool Corporation; Apen Group; State Industries; American Water Heaters; EcoSmart US; ABRAVA-DASOL; Aquecedor Solar Transsen Ltda.; Br Solar; IEM - Intercambio Eletro Mecanico Ltda.; Dana Water Heaters and Coolers Factory LLC; Al Khatib Electrical Water Heater Factory; Pure Blue International LLC; Solar Ray; Genersys South Africa; GoSolar CC; ITS Solar; Kwikot (Pty) Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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