Electric Water Heater Market - Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Tank, Tankless), By Application (Residential, Commercial), By Distribution Channel (Offline, Online), By Region & Competition, 2020-2030F

Description

Global Electric Water Heater Market was valued at USD 30.01 billion in 2024 and is expected to grow to USD 41.31 billion by 2030 with a CAGR of 5.52% during the forecast period. The global electric water heater market is witnessing steady growth driven by increasing residential and commercial demand for reliable hot water solutions. Rising urbanization, improving living standards, and expanding construction activities are boosting adoption. Technological advancements, including smart controls, energy-efficient models, and rapid heating capabilities, are enhancing product appeal. Government initiatives promoting energy conservation and the shift toward sustainable appliances further support market expansion. Additionally, the replacement of traditional water heating systems with modern electric alternatives is accelerating growth. The market is also benefiting from the expansion of e-commerce, enabling wider product availability and improved consumer accessibility worldwide.

Market Overview
Forecast Period	2026-2030
Market Size 2024	USD 30.01 Billion
Market Size 2030	USD 41.31 Billion
CAGR 2025-2030	5.52%
Fastest Growing Segment	Online
Largest Market	North America

Key Market Drivers

Rising Urbanization and Increasing Residential Construction

The rapid pace of urbanization worldwide is significantly contributing to the growing demand for electric water heaters. As more people migrate to urban areas, the need for modern housing infrastructure equipped with essential utilities, including efficient hot water systems, continues to expand. According to the United Nations, 68% of the global population is projected to live in urban areas by 2050, up from 56% in 2023, intensifying the demand for residential amenities such as water heating solutions. Countries in Asia Pacific, such as China and India, are experiencing large-scale residential construction to accommodate growing urban populations. These new constructions often integrate electric water heaters as a standard feature, given their ease of installation, relatively compact design, and compatibility with urban electricity infrastructure.

Furthermore, in developed regions like North America and Europe, urban redevelopment and renovation projects are also creating opportunities for replacing outdated water heating systems with more efficient electric alternatives. This urbanization trend, coupled with rising household income levels, is encouraging consumers to invest in advanced appliances that offer greater convenience, reliability, and energy efficiency.

Key Market Challenges

High Electricity Consumption and Operating Costs

One of the most significant challenges for the electric water heater market is the relatively high electricity consumption associated with these appliances. While modern electric water heaters are increasingly energy-efficient, heating water still requires a substantial amount of energy, which can result in higher utility bills for consumers-especially in regions where electricity prices are high. In developing countries, where electricity costs represent a larger portion of household expenses, this can deter adoption. Even in developed nations, consumers may opt for alternative water heating methods, such as solar or gas-powered systems, to reduce operating costs. Additionally, prolonged use of electric water heaters in regions with low energy efficiency awareness can lead to increased power demand, putting pressure on local power grids. This challenge not only affects consumer affordability but also raises concerns about the environmental impact of electricity generation, especially in areas still reliant on fossil fuel-based power.

Key Market Trends

Rising Popularity of Tankless and Instant Water Heaters

Consumer demand is shifting toward compact, tankless, and instant electric water heaters that offer space-saving designs and on-demand hot water supply. Unlike traditional storage models, tankless systems heat water only when needed, eliminating standby energy loss and significantly improving efficiency. According to the U.S. Department of Energy, tankless water heaters can be 24%-34% more energy efficient than conventional storage water heaters for homes using 41 gallons or less of hot water daily. This makes them ideal for smaller urban apartments, offices, and commercial spaces where space is limited.

Moreover, instant water heaters have a longer lifespan, lower maintenance requirements, and can provide continuous hot water without the limitations of tank capacity. With urban living spaces becoming smaller and modern lifestyles demanding convenience, manufacturers are introducing sleek, wall-mounted designs with rapid heating capabilities. The growing adoption of tankless technology also reflects consumer preferences for appliances that combine energy savings with user-friendly features. In developed regions, this trend is accelerating as homeowners replace older storage units with modern, compact alternatives during renovations.

Key Market Players

A.O. Smith Corporation
Bosch Thermotechnik GmbH
General Electric Company
Haier Electronics Group Co., Ltd
Ariston Thermo S.p.A.
Mitsubishi Electric Corporation
Bradford White Corporation
RHEEM Manufacturing Company
Valliant Group
Viessmann Group

Report Scope:

In this report, the Global Electric Water Heater Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Electric Water Heater Market, By Type:

Tank
Tankless

Electric Water Heater Market, By Application:

Residential
Commercial

Electric Water Heater Market, By Distribution Channel:

Offline
Online

Electric Water Heater Market, By Region:

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia-Pacific
- China
- Japan
- India
- South Korea
- Indonesia
South America
- Argentina
- Colombia
- Brazil
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Electric Water Heater Market.

Available Customizations:

Global Electric Water Heater Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Introduction

1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered

2. Research Methodology

2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends

4. Voice of Customer

4.1. Brand Awareness
4.2. Factors Influence Purchase Decision

5. Global Electric Water Heater Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Type (Tank, Tankless)
- 5.2.2. By Application (Residential, Commercial)
- 5.2.3. By Distribution Channel (Offline, Online)
- 5.2.4. By Region
- 5.2.5. By Company (2024)
5.3. Market Map

6. North America Electric Water Heater Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Type
- 6.2.2. By Application
- 6.2.3. By Distribution Channel
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Electric Water Heater Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Type
    - 6.3.1.2.2. By Application
    - 6.3.1.2.3. By Distribution Channel
- 6.3.2. Canada Electric Water Heater Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Type
    - 6.3.2.2.2. By Application
    - 6.3.2.2.3. By Distribution Channel
- 6.3.3. Mexico Electric Water Heater Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Type
    - 6.3.3.2.2. By Application
    - 6.3.3.2.3. By Distribution Channel

7. Europe Electric Water Heater Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Type
- 7.2.2. By Application
- 7.2.3. By Distribution Channel
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. France Electric Water Heater Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Type
    - 7.3.1.2.2. By Application
    - 7.3.1.2.3. By Distribution Channel
- 7.3.2. Germany Electric Water Heater Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Type
    - 7.3.2.2.2. By Application
    - 7.3.2.2.3. By Distribution Channel
- 7.3.3. Spain Electric Water Heater Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Type
    - 7.3.3.2.2. By Application
    - 7.3.3.2.3. By Distribution Channel
- 7.3.4. Italy Electric Water Heater Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Type
    - 7.3.4.2.2. By Application
    - 7.3.4.2.3. By Distribution Channel
- 7.3.5. United Kingdom Electric Water Heater Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Type
    - 7.3.5.2.2. By Application
    - 7.3.5.2.3. By Distribution Channel

8. Asia-Pacific Electric Water Heater Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Type
- 8.2.2. By Application
- 8.2.3. By Distribution Channel
- 8.2.4. By Country
8.3. Asia-Pacific: Country Analysis
- 8.3.1. China Electric Water Heater Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Type
    - 8.3.1.2.2. By Application
    - 8.3.1.2.3. By Distribution Channel
- 8.3.2.Japan Electric Water Heater Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Type
    - 8.3.2.2.2. By Application
    - 8.3.2.2.3. By Distribution Channel
- 8.3.3. India Electric Water Heater Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Type
    - 8.3.3.2.2. By Application
    - 8.3.3.2.3. By Distribution Channel
- 8.3.4. South Korea Electric Water Heater Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Type
    - 8.3.4.2.2. By Application
    - 8.3.4.2.3. By Distribution Channel
- 8.3.5. Indonesia Electric Water Heater Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Type
    - 8.3.5.2.2. By Application
    - 8.3.5.2.3. By Distribution Channel

9. Middle East & Africa Electric Water Heater Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Type
- 9.2.2. By Application
- 9.2.3. By Distribution Channel
- 9.2.4. By Country
9.3. MEA: Country Analysis
- 9.3.1. South Africa Electric Water Heater Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Type
    - 9.3.1.2.2. By Application
    - 9.3.1.2.3. By Distribution Channel
- 9.3.2. Saudi Arabia Electric Water Heater Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Type
    - 9.3.2.2.2. By Application
    - 9.3.2.2.3. By Distribution Channel
- 9.3.3. UAE Electric Water Heater Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Type
    - 9.3.3.2.2. By Application
    - 9.3.3.2.3. By Distribution Channel
- 9.3.4. Turkey Electric Water Heater Market Outlook
  - 9.3.4.1. Market Size & Forecast
    - 9.3.4.1.1. By Value
  - 9.3.4.2. Market Share & Forecast
    - 9.3.4.2.1. By Type
    - 9.3.4.2.2. By Application
    - 9.3.4.2.3. By Distribution Channel

10. South America Electric Water Heater Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Type
- 10.2.2. By Application
- 10.2.3. By Distribution Channel
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Electric Water Heater Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Type
    - 10.3.1.2.2. By Application
    - 10.3.1.2.3. By Distribution Channel
- 10.3.2. Argentina Electric Water Heater Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Type
    - 10.3.2.2.2. By Application
    - 10.3.2.2.3. By Distribution Channel
- 10.3.3. Colombia Electric Water Heater Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Type
    - 10.3.3.2.2. By Application
    - 10.3.3.2.3. By Distribution Channel

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Disruptions: Conflicts, Pandemics and Trade Barriers

14. Porters Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Company Profiles
- 15.1.1. A.O. Smith Corporation
  - 15.1.1.1. Business Overview
  - 15.1.1.2. Company Snapshot
  - 15.1.1.3. Products & Services
  - 15.1.1.4. Financials (As Per Availability)
  - 15.1.1.5. Key Market Focus & Geographical Presence
  - 15.1.1.6. Recent Developments
  - 15.1.1.7. Key Management Personnel
- 15.1.2. Bosch Thermotechnik GmbH
- 15.1.3. General Electric Company
- 15.1.4. Haier Electronics Group Co., Ltd
- 15.1.5. Ariston Thermo S.p.A.
- 15.1.6. Mitsubishi Electric Corporation
- 15.1.7. Bradford White Corporation
- 15.1.8. RHEEM Manufacturing Company
- 15.1.9. Valliant Group
- 15.1.10. Viessmann Group