Electric Water Heater Market Size & Share, by Product Type (With Tank, Tankless, Hybrid); Application; Capacity; Distribution Channel - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2026-2035

Electric Water Heater Market - Regional Analysis

APAC Market Insights

Asia Pacific is likely to hold a commendable share of 40.6% in the electric water heater market over the forecast duration. The region benefits from the presence of a large consumer base and the key market pioneers. The increasing electrification, coupled with the increasing disposable incomes, is prompting a profitable business environment in the region. In June 2025, Noritz Corporation announced that it is set to launch its natural refrigerant hybrid water heater, the HPHB R290, sequentially, which uses the eco-friendly refrigerant R290, achieving industry-leading energy efficiency, reducing CO₂ emissions, and utility costs through its smart control system. The system comes in a compact design that enhances installation flexibility, with models available in 145L and 70L capacities, making it suitable for different household needs. Furthermore, additional features include solar-powered hot water storage, disaster-prepared hot water functions, for a very efficient and safe operation, hence contributing to overall electric water heater market expansion.

China is continuing its growth trajectory as the global hub of innovation in the electric water heater market, efficiently backed by smart home integrations. Domestic manufacturers are developing energy-efficient water heaters that are suitable for a wide range of households in the country. In November 2024, the China Household Electrical Appliances Association announced that at the 24^th Conference, it unveiled updated technical roadmaps for water heaters along with other appliance categories. The conference was themed Intelligence, Low Carbon, Healthiness, and New Materials, highlighted the recent trends in consumer demand, regulatory changes, and market drivers. In this regard, it also mentioned that the water heater roadmap focuses on energy efficiency, smart-home integration, and technological upgrades to meet evolving household needs, and it aims to guide the industry’s development in alignment with China’s 15th Five-Year Plan, thereby preparing manufacturers for future innovations and sustainable growth.

India also has a strong scope to capitalize on the regional electric water heater market on account of rising urban housing and rising homeownership. Consumers in the country are preferring highly modernized products. Simultaneously, the government incentives and the expansion of distribution channels, which include online platforms, are supporting wider availability and penetration of electric water heater in both urban and semi-urban regions. In April 2024, GM Modular announced that it had entered the country’s market by launching its first storage water heater, the R1X, which is designed with a 15-litre capacity and combines elegant design, advanced technology, and safety features, including 99.5% heating efficiency, a rust-proof body, and a thermal cutout. Furthermore, firms such as GM are committed to developing innovative, convenient, and reliable home electrical solutions, thereby expanding their appliance portfolio in the country.

North America Market Insights

North America is readily progressing in the international electric water heater market, efficiently propelled by the steady adoption of energy-efficient and smart water heating solutions. The region’s leadership is also attributable to innovations such as heat pump water heaters and connected devices have increased consumer interest in eco-friendly and cost-saving products.  In May 2025, Ariston Group and Lennox announced that they formed a joint venture to introduce a range of residential water heaters in the U.S. and Canada by combining Ariston’s knowledge in water heating technology with Lennox’s strong brand presence and distribution network. In this context, the partnership aims to enhance innovation and electric water heater market reach, with Lennox-branded high-efficiency water heaters through Lennox stores, dealer networks, and distributors. In addition, Ariston will continue serving its existing customers under its own brands through its Ariston U.S. subsidiary, hence strengthening both companies’ foothold in North America.

In the U.S., the electric water heater market is positively influenced by growing awareness of energy conservation and rising demand for modern water heating technologies. On the other hand, federal and state-level incentives for energy-efficient appliances encourage increased adoption, whereas the domestic manufacturers are focused on smart connectivity and improved safety features. According to the article published by the U.S. Department of Energy in April 2024, it finalized new energy-efficiency standards for residential water heaters, which are projected to save around USD 7.6 billion annually on utility bills from the country’s households. It also notes that the updated rules prioritize heat pump technology, significantly improving efficiency for common-sized electric storage water heaters, with compliance required starting in 2029. Furthermore, within 30 years, these standards are expected to save around USD 124 billion in energy costs and reduce 332 million metric tons of CO₂ emissions.

Canada is witnessing a heightened demand in the electric water heater market owing to the colder climates and emphasis on factors as reliability and durability. In addition, regional regulations are promoting energy efficiency, whereas the gradual replacement of older water heaters is driving growth in both urban and rural areas. As per the article published by the country’s government, Natural Resources Canada announced in July 2022 that it is considering updating Canada’s energy efficiency regulations for household electric water heater to align with U.S. standards. It also stated that the initiative aims to improve energy performance, reduce greenhouse gas emissions, and encourage manufacturers to adopt more efficient product designs. Furthermore, the proposed amendments would apply to electric storage tank water heaters with a nominal capacity of at least 50 liters and an input rate below 12 kW, with new efficiency and testing standards expected to take effect for units manufactured on or after January 2025.

Europe Market Insights

Europe has captured the most prominent position in the global electric water heater market, facilitated by the larger consumer pool, emphasis on sustainability, and strict environmental regulations. Market growth in the region is also supported by initiatives that are promoting smart home technologies and integration with renewable energy sources. As per an article published by EHPA in May 2023, the hot water heat pumps also saw a 48.7% rise, whereas the water-to-water heat pumps experienced a slight decline, though geothermal systems remained steady and are increasingly used in commercial buildings. The report also underscored that the region currently has around 20 million connected heat pumps, heating about 16% of residential and commercial buildings. Furthermore, adoption in multi-family buildings is lower due to a variety of heating demands, highlighting the need for suitable heat pump solutions to boost their use.

Germany is efficiently growing in the regional electric water heater market, positively influenced by technologically advanced solutions that possess high energy efficiency with reliability. Domestic manufacturers are making heavy investments in innovative designs and connectivity features for environmentally conscious as well as tech-savvy consumers. Roth Werke, in November 2025, announced that it launched a patented hybrid domestic hot water station at ISH 2025, which is a combination of an 11 kW electric instantaneous water heater with a heat interface unit for decentralized, hygienic hot water supply. It also notes that the system delivers consistent temperatures, high tapping capacities by preventing limescale and corrosion. Furthermore, its smart controller allows precise, on-demand heating and, use of multiple outlets, hence denoting a positive market outlook.

The U.K. consumers and investors are showcasing growing interest in the electric water heater market to be utilized in both new constructions and retrofits. Also, the existence of supportive government policies, growing awareness of sustainable living, and a rise in smart home adoption are efficiently propelling market upliftment in the country.  In addition, both residential and commercial sectors are making investments in innovative technologies such as compact and tankless units to optimize space and energy usage, thereby encouraging more players to establish their footprint in the country. Also, manufacturers are responding with smart, connected products that integrate with home automation systems, which enhances user convenience. Furthermore, collaborative initiatives between companies and government bodies are supporting research, development, and deployment of high-efficiency water heating solutions across the country.