Ever-increasing demand for energy-efficient water heating systems could stimulate the water heater market size over 2026. Rapid urbanization and surging adoption of sustainable heating solutions are some of the factors that may encourage water heater manufactures to up their production capabilities. Consumers nowadays are opting for eco-friendly products like solar water heaters to lower environmental degradation. Solar water heater comes as an ideal solution that can counter high electricity bill. These heaters utilize sunlight to warm up water, thereby, truly operating on zero carbon emissions.

Growing concerns over environmental degradation have also given rise to multiple stringent regulatory mandates and norms that promote the use of energy-efficient heating systems over traditional units. Such initiatives could massively enhance the demand for advanced and energy-efficient water heaters. A research report published by Global Market Insights, Inc., forecasts that the water heater market could observe an annual installation of more than 145 million units by the year 2026. 

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Rising customer spending in the real estate sector supported by mounting refurbishment activities of old building structures could stimulate the demand for modern water heaters. Additionally, increasing number of federal incentive programs for the funding of commercial infrastructure development like airports, educational institutions, and hospitals could enhance the business outlook over the forthcoming years. 

Slated below are some of the growth drivers favoring the global water heater industry landscape:

Proliferating demand for natural gas water heater -

Shifting preference towards water heaters that provide low operation cost, mass flow, and efficient heating capability could boost the deployment of natural gas water heaters. Easy access to crucial operational features such as ignition, gas flow and temperature control might enhance the business outlook for water heater manufacturers.

Rising demand from commercial establishments like hospitals, resorts, and hotels coupled with mounting popularity across remote off grid areas could enhance the adoption of natural gas heaters over the forthcoming years.

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Promising opportunities across Europe -

Europe is considered to be a prominent region for water heater companies owing to increasing imposition of stringent mandates and policies centered around lowering carbon emissions and promoting the use of sustainable products. The region has an abundant presence of gas resources which could prove beneficial for regional players over the forthcoming years. 

As per the European Commission, the labelling directives and eco-Design regulate the water level standards while facilitating technological advancements such as smart control heaters. Besides, the seasonal need for water heating due to extreme climatic conditions could broaden the perspective for water heater companies.

Immense application across commercial & residential spaces -

Electric water heaters are witnessing heavy demand from both residential and commercial establishments owing to its remarkable benefits like reduced energy consumption and cost savings. Escalating demand for energy efficient heating systems could influence industry players to develop novel and improved products with enhanced functionality. Citing an instance, Bajaj introduced the Flora Instant 3 Litre Vertical Water Heater that comes with a 3,000W copper heating element that delivers instant hot water while maintaining energy efficiency. The company claims that it is ideal for high-rise buildings.

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