Electric Water Heater Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Electric Water Heater Market was valued at USD 30.01 Billion in 2024, and is expected to reach USD 41.31 Billion by 2030, rising at a CAGR of 5.52%. 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.

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North America and Europe, urban redevelopment and renovation projects are also creating opportunities for replacing outdated water heating systems with more efficient electric alternatives.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 present in the Global Electric Water Heater Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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