Electric Water Heaters Market to Grow to $29.32 Billion by 2022
Increasing residential and commercial projects worldwide are expected to drive market demand
SAN FRANCISCO — The global electric water heaters market is forecast to reach $29.32 billion by 2022, according to a new study by Grand View Research Inc. Global market demand is expected to reach 117.5 million units by 2022, growing at a compound annual growth rate (CAGR) of 6.9 percent over the forecast period. Increasing residential and commercial projects worldwide are expected to drive market demand over the forecast period. Rising disposable income and preference for tankless water heaters may further fuel the electric water heaters market.
Increasing government initiatives to improve rural infrastructure and uninterrupted electricity availability in these areas are expected to provide new opportunities for market growth. Growing awareness of automated temperature control, energy efficiency, and environmental sustainability are estimated to favor tankless water heater demand. Rising electricity prices, volatile raw material prices, and growing preference for solar water heaters may restrain market growth over the forecast period.
Storage water heaters are commonly used for residential applications. They have a capacity ranging from 2 gallons to 105 gallons with continuous hot water availability. They are also increasingly used in countries with limited or broken electricity supply as they can store hot water for future use. The market is gradually moving towards tankless electric water heaters; however, the storage segment is still expected to remain dominant over the forecast period.
Residential storage water heater tanks are highly insulated to minimize standby losses, which may be prominent owing to irregular and non-continuous use. Commercial water heaters can be glass lined, stainless steel lined, cement and hydrastine cement lined. Commercial developments such as restaurants, schools, hospitals, and hotels are expected to favor commercial segment demand over the forecast period. Commercial electric storage water heaters have a capacity of up to 5,000 gallons.
Rapid infrastructure development in China and India is expected to boost the Asia Pacific electric water heaters market. However, the increasing trend for use of solar water heaters may restrict market demand gradually over the next seven years. Storage technology is increasingly becoming popular in most large households, since pre-heated water can be used from tanks in case of power cuts.
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Publication date: 8/28/2015