The US water heater market is expected to grow significantly during the forecast period. Midwest & Northeast region contribute the major demand across the country.
The increasing trend towards smart water heaters that can easily be connected with the internet and accessed through web and mobile applications provides significant growth opportunities for vendors in the market.
Gas & oil water heaters hold the highest share in the market. However, heat pump and solar water heaters are expected to observe the highest growth rate at a CAGR of 7.38% & 6.42% during 2021-2026
The increasing number of residential construction projects in states such as Wisconsin, Indiana, Vermont, and California are projected to drive market growth during the forecast period
Residential sector is leading the US water heater market and is expected to grow at a CAGR of 4.44% from 2020-2026.
Water heater finds its application in multiple areas including households, healthcare, hospitality, education centers, and others.
The market consists of various vendors including A.O. Smith, Bradford White, Rheem Manufacturing Company, and others.
The COVID-19 pandemic negatively impacted the water heater market due to fall in the construction activities, which resulted in lower demand from all the end users. Moreover, increase in logistics costs and longer shipment times have resulted in unfuilled consumer demand.
Market Size & Forecast by Revenue | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by product type, category, distribution channel, and end-user
Competitive Landscape – 3 key vendors and 14 other vendors
The gas water heater segment is expected to witness significant growth during the forecast period due to the wider availability of natural gas in the US market and low operational costs. These water heaters require relatively lesser time to heat the water as compared to electric water heaters.
Instant water heaters are highly energy efficient as they do not require the holding of heat to keep the water warm. The rising consumer awareness with respect to saving energy costs is expected to accelerate the demand for these water heaters in the market. The instant water heater segment is expected to witness an incremental growth of $324.14 million during the forecast period.
In 2020, the offline sales segment accounted for a revenue share of 59.22%. Also, the offline segment dominated the market due to high customer preference to comprehend the functionalities and uses of the product before making the final purchase.
U.S. Water Heater Market by Product Type
Gas & Oil
U.S. Water Heater Market by Category
U.S. Water Heater Market by Distribution Channel
U.S. Water Heater Market by End-User
U.S. Water Heater Market – Dynamics
Technology usage is no longer restricted to any particular domain as it finds its applications across several industries. Similarly, the new age water heaters are increasingly leveraging several modern technologies, such as the Internet of Things (IoT), to enhance the convenience level of operating them and offer a better customer experience. Hence, the higher inclination toward technically advanced products among the US population is expected to provide significant growth opportunities to smart water heater vendors, which will drive the US water heater market. Smart water heaters allow energy savings and also promote easier control by consumers. For instance, water heaters regulate water temperature as per a user's requirement. Smart water heaters can easily be connected with the Internet and accessed through web and mobile applications, thereby allowing consumers to manage water heaters remotely.
Key Drivers and Trends fueling Market Growth:
Emergence of Hybrid Water Heaters
Growth in Commercial Sector
Rising Demand for Energy Efficiency
Expansion of Residential Sector
U.S. Water Heater Market – Geography
The midwest region in the US comprises states such as Indiana, Illinois, North Dakota, Wisconsin, and Minnesota. Since Illinois, Michigan, and Ohio are located in the Eastern US. Colder climates during winters and fluctuating temperatures during summers make water heaters a necessity in these states. In 2020, the Midwest US water heater market accounted for a revenue share of 32.59%, which is expected to witness exceptional growth due to the increasing use of water heaters across government institutions, shopping malls, and the residential sector. Investments worth over USD 2 billion were made in the healthcare sector, thereby capturing huge demand for water heaters from this segment. Technological advances and a growing inclination toward smart appliances that minimize carbon emissions are likely to support the growth of the regional water heater market.
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