According to the new research report published by The Insight Partners, titled “Electric Water Heater Market - Global Analysis and Forecast to 2027”, the global electric water heater market was valued at US$ 14,078.4 Mn in 2018; it is expected to grow at a CAGR of 4.9% during the forecast period, to reach US$ 21,478.7 Mn by 2027.
The global electric water heater market is anticipated to exhibit impressive growth during the forecast period of 2019 to 2027. Water heating is a key consumer of energy in the homes, especially in cold climates. In various developing countries such as South Africa, where hot water is usually delivered by electric resistance storage tank water heaters such as geysers, water heating energy consumption exceeds refrigeration, lighting, and cooking to be the most consumptive single electric appliance in the household. Colder and richer countries tend to use large storage tank water heaters, and also are hugely dependent on natural gas to heat water.
Asia Pacific comprises of the Australia, China, India, Japan, South Korea, and rest of APAC. China followed by India accounted for the highest share in the region. According to the World Economic Forum (WEF), in the coming years, China would top the destination for tourists, and the country is set to overtake France as the leading destination by 2030. Thus, the tourism sector witnessed a surge in revenue of electric water heater due to a rise in the number of foreign arrivals, which leads to an increase in the number of commercial buildings such as hotels, which would further increase the demand for installation of electric water heater products.
According to the Urban Redevelopment Authority (URA), residential construction in the region is growing robustly. Besides, in other countries such as Malaysia, the government has made substantial progress in enhancing and modernized its infrastructures throughout the country. In addition, the residential construction sectors have a massive potential for growth during the forecasted period, which stimulates opportunities for electric water heater market players.
Electric water heater market is segmented on the basis of the product, and application. By product, the storage segment is estimated to dominate the market in 2018. A storage water heater contains an insulated storage tank, usually cylindrical, where the hot water is kept ready to be used. The water in the storage equipment is stored at a pre-set temperature, usually 60-80°C. The water is heated in the storage tank by one or more electric resistance elements. Storage water heaters are widely used owing to the economic advantages as well as their efficiency.