Philippines Water Heater Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Philippines water heater market size was valued at USD 136.90 Million in 2024. The industry is expected to grow at a CAGR of 4.30% during the forecast period of 2025-2034. The rising focus on energy efficiency, booming tourism sector, growing government support and solar power developments have resulted in the market to likely attain a valuation of USD 208.57 Million by 2034.

Philippines Water Heater Market Report Summary

Market Size 2024

• USD
• 136.90

Market Size 2034

• USD
• 208.57
• CAGR 2025-2034
• 4.30%

CAGR 2025-2034 - Market by Product

• Electric
• 4.9%

CAGR 2025-2034 - Market by Technology

• Tankless
• 4.7%

Philippines Water Heater Market Growth

The surging efforts on adopting green alternatives to traditional water heating for reducing energy consumption will boost the Philippines water heater market expansion. The rising initiatives to amplify renewable energy options for homes in the country is driving the demand for solar, geothermal, wind, and hydropower solutions. In March 2025, The Philippines’ Department of Energy highlighted the guidelines for GEA-4, the fourth green energy auction for backing the addition of 9,378 MW of renewable energy capacity in the country. The rising sales of heaters on online platforms along with the growing partnerships between leading product brands and real-estate developers will influence the regional industry.

Key Trends and Recent Developments

The Philippines water heater market share is expected to grow with the surging government support, growing infrastructure development, innovations in solar and strong adoption of smart technologies.

April 2025

Panasonic partnered with Rockford Marketing Corporation (RMC) and global consumer electronics firm BluPrint for introducing its new stainless steel storage water heater as a groundbreaking addition to its Philippine product line. The heater deploys state-of-the-art Japanese technology as well as comprehensive safety features for reducing energy consumption and ensuring durability.

February 2025

Singapore-based consultant Orissa International launched a distributor search and business matching project in the Philippines for a major provider of water heating solutions worldwide. The client was looking at identifying partners capable of leveraging their existing channels for product promotion and expansion of distribution networks.

September 2023

World’s leading and largest home appliance provider Midea launched Smart Wi-Fi Storage Water Heaters, its latest breakthrough in water heater solutions redefining convenience, energy efficiency, safety, and durability. The new product was introduced with an aim to meet the real needs of consumers via tailored solutions.

September 2022

Well-known global water heating provider Rheem launched its enhanced demand response Professional Prestige® Smart Electric Water Heater with LeakGuard™ for offering advanced electric solutions to homeowners to comply with new energy regulations.

Increased government intervention

The Philippines water heater market growth can be attributed to increasing support from government bodies to promote the use of renewable energy. In July 2024, the government of the Philippines started a competitive solicitation procedure for variable renewable energy (VRE) combined with energy storage. This initiative was driven by the growing importance of energy storage systems in line with their goal towards a resilient and sustainable energy future.

Infrastructure growth

The rise of infrastructural development projects due to the expanding population and rapid urbanization will drive the Philippines water heater industry. According to industry reports, the infrastructure spending in the country grew by 8.9% to PHP1. 545 trillion in 2024 from the PHP1. 419 trillion outturns in 2023. This growth is expected to increase the demand for more heating devices.

Solar innovations

The Philippines water heater market revenue will be driven by the rising enhancements in terms of installment, production and launches in solar energy solutions to offer improved performance. In July 2024, Filipino housing society Sitio Danao-Danao inaugurated its newest solar-powered potable water system. This landmark project received funding from the World Bank via the Department of Agriculture-Philippine Rural Development Project.

Deployment of smart technologies

The increasing adoption of smart technologies in heaters as they offer profitable energy savings will play a crucial role in the Philippines water heater market development. In August 2024, Huawei Philippines introduced its latest smart home energy solution to mark a significant milestone in its commitment of helping the country in achieving a sustainable and energy-efficient future.

Philippines Water Heater Market Trends

The growth of the Philippines water heater market can be attributed to the surge in the number of solar energy projects to meet the sustainability goals of the country. For instance, in March 2025, ACCIONA Energía commenced the construction of the Daanbantayan solar plant, which will begin operations by 2026, on the island of Cebu, Philippines. With an investment of €120 million, this project is expected to generate 280 GWh per year while covering the consumption of almost 300,000 people. The growing emphasis on amplifying the local production of water heaters is another important factor adding to significant market growth.

Philippines Water Heater Market Opportunities

The increasing number of health & wellness facilities, including spas and salons combined with the growth of tourism sector will play a key role in boosting the demand of the Philippines water heater market. According to industry reports, there were about 3261 spas in Philippines as of January 2025. The demand for solar water heaters is rising with the higher focus of tourism businesses on ensuring that guests have constant access to hot water to improve customer satisfaction and increase the likelihood of repeat business. The increasing developments in water-saving technologies combined with the higher push towards deploying durable and corrosion-free materials in the heaters will also uplift industry growth.

Philippines Water Heater Market Restraints

The Philippines water heater market development may be hampered by the rising concerns of high initial investments and incorrect thermostat settings. The spiking electricity bills will negatively impede the uptake of electric heaters. The issues of regular maintenance and repairs and the significant space occupied by tank-based models will also limit the regional product adoption to some extent.

Philippines Water Heater Industry Segmentation

The report titled “Philippines Water Heater Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Product

• Electric
• Solar
• Gas

Breakup by Technology

• Tankless
• Storage
• Hybrid

Breakup by Capacity

• Below 30 Liters
• 30 - 100 Liters
• 100 - 250 Liters
• 250 - 400 Liters
• Above 400 Liters

Breakup by Application

• Residential
• Commercial
• Industrial

Philippines Water Heater Market Share

Market Insights by Product

As per the Philippines water heater market analysis, the demand for electric water heaters will rise in the country due to their lower costs of installation. These heaters are considered good for the environment as they are extremely energy efficient while using renewable energy like solar energy as a power source.

Solar water heaters will garner immense popularity across the country for their efficiency of heating. The frequent power outages, increasing electricity costs, and the intensifying energy demand are making solar energy an attractive choice. According to industry reports, the solar installation in the Philippine was poised to reach 1700 Megawatts by December 2024.

The increasing preference for gas systems owing to their affordability and ability to heat the water much faster compared to their counterparts will push the Philippines water heater industry ahead. The rising instances of power outages will fuel the demand for these heaters as they can work without electricity.

CAGR 2025-2034 - Market by

• Product Type
• 4.9%

Market Insights by Technology

The increasing adoption of tankless water heaters is slated to grow in the Philippines due to their rising popularity as a modern solution for offering hot water without the requirement of a storage tank. As these heaters provide hot water on demand, their energy consumption is lesser, further increasing their uptake.

The Philippines water heater market share will expand with the growing need for storage heating solutions as they provide the benefits of durability and longevity. In June 2023, leading energy storage solution supplier Sungrow collaborated with renewable energy firm Super Energy to officially commission the largest solar-plus-storage project across Southeast Asia. Such initiatives will drive the product uptake.

The demand for hybrid water heaters will grow with their emerging popularity in Filipino households on account of their cost savings, energy efficiency, and environmental friendliness. The increasing interest in hybrid heating solutions due to their efficiency and reduction of energy consumption will boost the segment growth.

Market Insights by Capacity

The 30 - 100-liter capacity segment in the Philippines water heater market is expected to expand due to rising penetration in light commercial use and small-sized homes for providing enough hot water to cater to daily needs, such as bathing and washing. According to industry reports, the average household size across the Philippines stood at 4.1 people per household in 2022. 30 - 100-liter heaters are also favored as an economical choice as they deploy solar power for significantly reducing electricity consumption.

The demand for 100-250-liter water heaters will gain ground in the country as they offer cost savings, energy efficiency, and environmental advantages. These heaters have emerged as an excellent choice for regions with ample sunlight as they ensure an uninterrupted supply of hot water, adding to the Philippines water heater industry revenue.

The growth of larger families and the rise in the number of homes with higher usage of hot water will push the preference for 250 - 400-liter water heaters in the Philippines. The demand for 250-liter solar water heaters will especially witness a surge as they contribute to significant energy savings while positively impacting the environment.

Market Insights by Application

The robust expansion of the residential sector will greatly influence the Philippines water heater market value. Residential water heaters are increasingly penetrating in Filipino homes due to their surging usage in kitchen sinks and bathroom showers. The emerging preference for solar water heaters as they can directly use the sun's heat for providing hot water at homes while saving money on energy bills will boost the segment growth.

Commercial water heaters are gaining ground in the Philippines with the rising rate of urbanization. The growth of the hospitality sector and the surge in the number of hotels combined with the constant need for a hot water supply will add to the regional product demand. According to industry reports, the number of hotel keys across 18,818 accommodations constructed in the Philippines reached 335,592 in October 2024.

Meanwhile, the demand for industrial water heaters across the country will proliferate with rapid strides in the manufacturing of food & beverages, chemicals and pharmaceuticals. The growing inclination towards inline water heaters in industries as they offer clean water heating, water purification, and process water heating will drive the market growth.

Competitive Landscape

Leading players in the Philippines water heater market report are placing targeted efforts on strategies, such as partnerships, investments and capacity expansions to increase their global presence. They are also working on product launches to cater to a larger consumer base.

Panasonic Corporation

Founded in 1918 and headquartered in Osaka, Panasonic Holdings Corporation is a Japanese multinational electronics manufacturer. Panasonic offers a wide range of water heaters that are efficient, reliable and deliver the best hot water solutions for homes.

Amici Mercantile Inc.

Founded in 1976 and headquartered in Manila in the Philippines, Amici Mercantile is the only heating system firm with a PCAB License to ensure safety standards, and world class operations. The company has been consistently supplying quality water products in the Philippines.

Rheem Manufacturing Company (Singapore) Pte Ltd.

Founded in 2000 and headquartered in Singapore, Rheem Manufacturing Company is a well-known manufacturer of heating, cooling, water heating, pool & spa heating and commercial refrigeration products across the globe. The firm offers an extensive range of versatile, intuitive, and advanced solar water heaters,

Concepcion Midea Inc.

Founded in 2013 and headquartered in Muntinlupa in the Philippines, Concepcion Midea is a renowned appliance manufacturer. Midea's instant water heaters offer on-demand hot water with energy-efficient heating, advanced safety features and easy temperature control.

Other players in the Philippines water heater market report include Stiebel Eltron Phillipines, among others.