Based on estimations, the global water heater market was valued at around USD 32.3 billion in 2025 and is expected to reach approximately USD 48.16 billion by 2033, growing at a CAGR of 5.12% between 2025 and 2033. This can be attributed to various important factors such as greater demand for energy-efficient heating systems, rapid urbanization, and increased residential and commercial construction activities.
The concept of a water heater market typically represents the worldwide industry involved in manufacturing and selling various types of equipment used in heating water for residential, commercial, and industrial applications. Different systems have been used, ranging from electric, gas, solar, tankless, and heat pump to storage water heaters. Technologies involved include those designed for heating hot water for daily activities such as bathing, cleaning, cooking, and industrial functions.
The water heater market has grown significantly over the years with increased urbanization, improvement in lifestyles, and demands for energy-efficient appliances. It has gained popularity globally because hot water is viewed to be essential in modern households and other commercial facilities such as hotels, hospitals, and restaurants. Growing awareness of sustainability has increased the adoption of smart and energy-saving models, including solar-powered and tankless water heaters. Other factors that keep the industry running include technological advancement, government incentives on energy efficiency, and growing construction activities. With expanding populations and increased modernization, the water heater market remains one of the vital, ever-evolving global sectors.
Founded: 1874
A. O. Smith Corp (AO Smith) is a water technology company. The company's primary activities involve the manufacturing and marketing of water heaters, boilers, tanks, and water treatment products. The company’s product portfolio includes gas and electric powered tankless boilers and solar based water tankers; tankless rack systems, packaged systems, and storage tanks; condensing boilers and water system tanks, swimming pool and spa heaters and related products and parts, expansion tanks and water heater parts and accessories. AO Smith also provides in-home air purification products. AO Smith markets its products under the A. O. Smith, Lochinvar, Aquasana and State brands. The company serves residential and commercial customers in Canada, China, the US, India, Mexico, the Netherlands, the UK, France, the UAE, Hong Kong and Vietnam.
Founded: 1920
Rinnai Corp (Rinnai) develops, manufactures and markets heating products. The company's portfolio of products includes conventional thermal energy appliances comprising kitchen appliances such as cooking stoves and rice cookers, hot-water units such as bath boilers and air-conditioning. The company offers heating units comprising infrared heaters and gas fan heaters, and non-conventional products comprising clothes dryers and dishwashers. The company's products find application in the bathroom, kitchen, hot-water units, dressing rooms, heaters and commercial use. Through its subsidiaries, the company manufactures and sells heating appliances in the Americas, Europe, the Middle East, Asia, Africa and Oceania.
Founded: 1911
Whirlpool Corp (Whirlpool) designs, manufactures, and supplies home and kitchen appliances. Its product portfolio comprises laundry appliances; refrigerators and freezers; cooking appliances; dishwashers; mixers; washing machines; air conditioners and heating and cooling products; water filters; and other portable household appliances. The company markets its products under the brands including Whirlpool, Gladiator, Speed Queen, Roper, Ignis, Privileg, Ariston, Indesit, Bauknecht, Amana, Maytag, KitchenAid, Jenn-Air, Yummly and Everydropwater. Whirlpool merchandizes to retail and chain stores, distributors, and other manufacturers. The company has presence in major countries across the world.
Founded: 1938
Bajaj Electricals Ltd. manufactures electrical equipment. The company's product portfolio includes mixer grinders, ovens, electric cookers, food processors, fans, lighting, water purifiers, water heaters, room coolers and heaters, uninterrupted power supply (UPS) and inverters for home, gas stoves, irons, room heaters, non-electric kitchen appliances, and induction cookers. BEL provides various luminaires, LED lamps, and accessories that help in serving the requirements of commercial spaces, industrial premises, street and road lighting, and cityscape projects. The company distributes its products through distributors, retail outlets, authorized dealers, and exclusive showrooms. The company has business presence/operations in India and other countries.
Founded: 1984
Haier Group (Haier) manufactures, markets and sells home appliances and consumer electronic products. Its product portfolio includes refrigerators, air conditioners, washing machines, water heaters, TVs, electric appliances within the kitchen category, commercial freezers, digital items, home appliances, commercial air conditioners, and computers. The group markets its products under various brands such as Haier, Casarte, Leader, Candy, SAN YI NIAO, AQUA, Fisher & Paykel, and GE appliances. In addition, the company operates the COSMOPlat industrial Internet platform, which also hosts the health industry ecosystem known as Incaier. The group has geographic operations across Asia-Pacific, the Americas, Europe, the Middle East, and Africa.
The concept of a water heater market typically represents the worldwide industry involved in manufacturing and selling various types of equipment used in heating water for residential, commercial, and industrial applications. Different systems have been used, ranging from electric, gas, solar, tankless, and heat pump to storage water heaters. Technologies involved include those designed for heating hot water for daily activities such as bathing, cleaning, cooking, and industrial functions.
The water heater market has grown significantly over the years with increased urbanization, improvement in lifestyles, and demands for energy-efficient appliances. It has gained popularity globally because hot water is viewed to be essential in modern households and other commercial facilities such as hotels, hospitals, and restaurants. Growing awareness of sustainability has increased the adoption of smart and energy-saving models, including solar-powered and tankless water heaters. Other factors that keep the industry running include technological advancement, government incentives on energy efficiency, and growing construction activities. With expanding populations and increased modernization, the water heater market remains one of the vital, ever-evolving global sectors.
Top Manufacturers
A.O. Smith
Headquarters: United States of AmericaFounded: 1874
A. O. Smith Corp (AO Smith) is a water technology company. The company's primary activities involve the manufacturing and marketing of water heaters, boilers, tanks, and water treatment products. The company’s product portfolio includes gas and electric powered tankless boilers and solar based water tankers; tankless rack systems, packaged systems, and storage tanks; condensing boilers and water system tanks, swimming pool and spa heaters and related products and parts, expansion tanks and water heater parts and accessories. AO Smith also provides in-home air purification products. AO Smith markets its products under the A. O. Smith, Lochinvar, Aquasana and State brands. The company serves residential and commercial customers in Canada, China, the US, India, Mexico, the Netherlands, the UK, France, the UAE, Hong Kong and Vietnam.
Rinnai Corporation
Headquarters: JapanFounded: 1920
Rinnai Corp (Rinnai) develops, manufactures and markets heating products. The company's portfolio of products includes conventional thermal energy appliances comprising kitchen appliances such as cooking stoves and rice cookers, hot-water units such as bath boilers and air-conditioning. The company offers heating units comprising infrared heaters and gas fan heaters, and non-conventional products comprising clothes dryers and dishwashers. The company's products find application in the bathroom, kitchen, hot-water units, dressing rooms, heaters and commercial use. Through its subsidiaries, the company manufactures and sells heating appliances in the Americas, Europe, the Middle East, Asia, Africa and Oceania.
Whirlpool Corporation
Headquarters: United States of AmericaFounded: 1911
Whirlpool Corp (Whirlpool) designs, manufactures, and supplies home and kitchen appliances. Its product portfolio comprises laundry appliances; refrigerators and freezers; cooking appliances; dishwashers; mixers; washing machines; air conditioners and heating and cooling products; water filters; and other portable household appliances. The company markets its products under the brands including Whirlpool, Gladiator, Speed Queen, Roper, Ignis, Privileg, Ariston, Indesit, Bauknecht, Amana, Maytag, KitchenAid, Jenn-Air, Yummly and Everydropwater. Whirlpool merchandizes to retail and chain stores, distributors, and other manufacturers. The company has presence in major countries across the world.
Bajaj Electricals Ltd
Headquarters: IndiaFounded: 1938
Bajaj Electricals Ltd. manufactures electrical equipment. The company's product portfolio includes mixer grinders, ovens, electric cookers, food processors, fans, lighting, water purifiers, water heaters, room coolers and heaters, uninterrupted power supply (UPS) and inverters for home, gas stoves, irons, room heaters, non-electric kitchen appliances, and induction cookers. BEL provides various luminaires, LED lamps, and accessories that help in serving the requirements of commercial spaces, industrial premises, street and road lighting, and cityscape projects. The company distributes its products through distributors, retail outlets, authorized dealers, and exclusive showrooms. The company has business presence/operations in India and other countries.
Haier Inc.
Headquarters: ChinaFounded: 1984
Haier Group (Haier) manufactures, markets and sells home appliances and consumer electronic products. Its product portfolio includes refrigerators, air conditioners, washing machines, water heaters, TVs, electric appliances within the kitchen category, commercial freezers, digital items, home appliances, commercial air conditioners, and computers. The group markets its products under various brands such as Haier, Casarte, Leader, Candy, SAN YI NIAO, AQUA, Fisher & Paykel, and GE appliances. In addition, the company operates the COSMOPlat industrial Internet platform, which also hosts the health industry ecosystem known as Incaier. The group has geographic operations across Asia-Pacific, the Americas, Europe, the Middle East, and Africa.
Product Launches in the Water Heater Market
Havells India Ltd
Dec 2022, Havells India, the leading Fast-Moving Electrical Goods company, announced the launch of its 'Unconventionally Beautiful' range of Otto and Orizzonte. The water heater range, with aesthetics of a modern-day bathroom in mind, brings together an amalgamation of elegant design, advanced technology, convenience, and safety.Lennox International Inc.
June 2025, Lennox International-the North Texas-based climate control company known for its HVAC and refrigeration systems-is diving into the water heater market via a joint venture with Italy-based Ariston Group. The expansion is the latest in a string of announcements by the company in recent months. Lennox was added to the S&P 500 in late 2024, a move recognizing its years of continued growth and market performance. Earlier this year, it opened a 1.2 million-square-foot regional distribution center near DFW Airport and added “showcase space” at its Richardson headquarters for the latest residential and commercial products.SWOT Analysis of the Company
Kenmore
The key strong points that Kenmore has in the water heater market include long-standing brand reputation, product availability, and consumer trust. As a widely recognized household brand, Kenmore benefits from decades of presence within the home appliance sector, further helping to cement customer confidence and purchasing decisions. The company offers a wide range of water heaters, including electric, gas, tankless, and hybrid models, enabling them to meet various household needs and budgets. Kenmore also focuses on ease of operation, cost-effective performance, and durability to make its products appealing to both homeowners and property managers. Wide retail distribution through large consumer outlets heightens visibility and availability, underpinning solid market penetration. In addition, Kenmore's embracing of energy-efficient technology and smart diagnostic features in its products meets the growing demand by consumers for sustainability and ease. Its large, established network for service and warranty further reinforces reliability and makes Kenmore a trusted choice within the competitive water heater market.Thermex Corporation
Thermex Corporation exhibits a number of key factors that contribute to the company's success in the water heater market. These include worldwide manufacturing, innovative product design, and a focus on technology in heating. The broad line of water heating solutions includes compact storage heaters, instant systems, industrial-grade heaters, and smart-controlled models. Thermex is about engineering and energy efficiency, with features such as corrosion-resistant tanks, advanced insulation, and smart temperature control. Given its international manufacturing and supply chain network, competitive pricing and reliable global distribution can be achieved. Other strengths include a strong presence in emerging and developed markets where demand for efficient heating systems remains high. The brand focuses on modern aesthetics and provides a facility for product customization, thus meeting the needs of both residential and commercial users who look for functional yet stylish solutions. In this way, it enhances Thermex's position as a versatile and competitive player throughout the world in the water heater industry.Recent Development in the Water Heater Market
Electrolux AB
July 2024, Electrolux Group has signed an agreement to divest its water heater business in South Africa under the Kwikot brand for an enterprise value of ZAR 2.4bn (approx. SEK 1.4bn) to Haier Smart Home. The divestment includes the Kwikot brand and the production facilities for water heaters (geysers) located in Johannesburg, and is part of the previously communicated work to sharpen the Group's strategic focus by divesting non-core assets. The sale is expected to be completed during the fourth quarter of 2024 and is subject to regulatory approvals.Panasonic Corporation
February 2025 -The Heating & Ventilation A/C Company of Panasonic Corporation (Panasonic) and A. O. Smith Corporation, a manufacturer and distributor of residential and commercial water heaters and a leading company in the US water heating market, signed a strategic collaboration agreement in September 2024 to develop, produce, and supply natural refrigerant (CO2) heat pump water heaters and air-to-water (A2W) heat pumps for the US market. This partnership will accelerate the launch of a highly efficient product lineup using the heat pump technology in the US residential and commercial water heater and space heater markets, where energy savings will become increasingly essential in the future. The upcoming water heaters and A2W will be featured at the booth of A. O. Smith and others during AHR Expo 2025, one of the largest international exhibitions for the HVACR industry, which is held from February 10 to 12, 2025 in Orlando, Florida, the US.Sustainability Goal
Rheem Manufacturing Company Rheem Manufacturing Company infuses its water heater business with the practice of sustainability through a concentration on carbon reduction, energy-efficient product innovation, and responsible manufacturing. The company's "A Greater Degree of Good" sustainability program promises to offer high-efficiency water heaters, including heat pump, hybrid, and tankless technologies, designed to cut down energy use and greenhouse gas emissions. Rheem commits to audacious sustainability targets through its endeavors to lower product CO₂ emissions throughout the lifecycle of products and minimize waste from manufacturing operations. The company also invests in recyclable materials, reduced packaging, and long-lasting product designs to decrease environmental impact. Rheem supports education initiatives aimed at training installers and homeowners on energy-smart usage. By embedding environmental responsibility alongside product performance, Rheem positions itself as a leader in sustainable water heating.Vaillant Group
Vaillant Group puts a strong emphasis on sustainability with its continuous development of energy-efficient heating systems and integration into the technology of HEMS. It is committed to lowering environmental impact by developing smart, renewable-compatible systems - such as heat pumps, hybrid boilers, and solar thermal solutions - that are connected with digital platforms for optimized household energy use. Vaillant strives for carbon neutrality in its operations and further eco-design product lines in accordance with circular economy principles. The digital energy management platforms it develops enable users to monitor their energy consumption, automate heating schedules, and minimize overall energy waste. It also advocates for sustainable building standards and works with policymakers toward acceleration in the low-carbon transition of residential heating. Focusing on innovation, responsible sourcing, and long-term environmental objectives, Vaillant Group keeps moving forward with smart and sustainable home energy solutions.Market Segmentation
Water Heater Market
- Historical Trends
- Forecast Analysis
Market Share Analysis - Water Heater Market
Overview
- Company History and Mission
- Business Model and Operations
Workforce
Key Persons
- Executive Leadership
- Operational Management
- Division Leaders
- Board Composition
Recent Development & Strategies
- Mergers & Acquisitions
- Partnerships
- Investments
Sustainability Analysis
- Renewable Energy Adoption
- Energy-Efficient Infrastructure
- Use of Sustainable Packaging Materials
- Water Usage and Conservation Strategies
- Waste Management and Circular Economy Initiatives
Product Analysis
- Product Profile
- Quality Standards
- Product Pipeline
- Product Benchmarking
Strategic Assessment: SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Revenue Analysis
The above information will be available for all the following companies:
- A.O. Smith
- Rinnai Corporation
- Whirlpool Corporation
- Bajaj Electricals Ltd
- Haier Inc.
- Havells India Ltd
- Lennox International Inc.
- Kenmore
- Thermex Corporation
- Electrolux AB
- Panasonic Corporation
- Rheem Manufacturing Company
- Vaillant Group
- Bosch Thermotechnology
- Glen Dimplex Group
- Midea Group
- Arcelik A.S.
- Ferroli S.p.A.
- Stiebel Eltron GmbH & Co. KG
- Sanden Corporation
Table of Contents
1. Water Heater Market
3. A.O. Smith
The above information will be provided for all the following companies:
Companies Mentioned
- A.O. Smith
- Rinnai Corporation
- Whirlpool Corporation
- Bajaj Electricals Ltd
- Haier Inc.
- Havells India Ltd
- Lennox International Inc.
- Kenmore
- Thermex Corporation
- Electrolux AB
- Panasonic Corporation
- Rheem Manufacturing Company
- Vaillant Group
- Bosch Thermotechnology
- Glen Dimplex Group
- Midea Group
- Arcelik A.S.
- Ferroli S.p.A.
- Stiebel Eltron GmbH & Co. KG
- Sanden Corporation
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | December 2025 |
| Forecast Period | 2025 - 2033 |
| Estimated Market Value ( USD | $ 32.3 Billion |
| Forecasted Market Value ( USD | $ 48.16 Billion |
| Compound Annual Growth Rate | 5.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
