Global Market for Water Heater Equipment Estimated to Grow to Nearly $40 Billion by 2032

Market drivers include regulatory policies supporting sustainability, technological advances, and knowledgeable consumers

Oct 25, 2023

A new report from Guidehouse Insights explores the market for water heater equipment for buildings.

Depending on the region, country, energy source, and building segment, supplying hot water to a building can account for 10% to 20% of its total energy consumption. For instance, according to the Federation of European Heating, Ventilation, and Air Conditioning Associations, in Finland, domestic hot water consumes more than 11% of a building’s electricity. According to a new report from Guidehouse Insights, global water heater equipment revenue is expected to grow from $27.6 billion in 2023 to $39.6 billion in 2032, at a compound annual growth rate (CAGR) of 4.1%.

“Enhancing the efficiency and eco-friendliness of hot water technology is a primary factor in global decarbonization efforts,” says Wendy Davis, a principal research analyst with Guidehouse Insights. “Seizing emerging business opportunities and participating in them to improve water heater sustainability closely relates to company growth in related industries.”

Regulations that support sustainability in the water heater industry are a major market driver, as are technological advances and knowledgeable consumers who select high efficiency water heaters. On the other hand, market barriers include customers’ hesitation to choose a high efficiency water heater due to the steep initial cost, installers’ lack of expertise and sometimes lack of cooperation, and customer preference for conventional water heaters arising from a lack of awareness about high efficiency systems, according to the report.

The report, Sustainable and Advanced Water Heating Market, analyzes the global market for six water heater equipment types: gas storage, electric storage, gas tankless, electric tankless, heat pump, and solar. It examines key technology trends, the industry value chain, and estimates the water heater equipment market for residential and commercial applications from 2023 through 2032, segmented by five global regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. An executive summary of the report is available for free download on the Guidehouse Insights website


* The information contained in this press release concerning the report, Sustainable and Advanced Water Heating Market, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.