2019 Water Heating Market ReviewMay 2020

By Aline Breslauer, Senior market analyst, BSRIA WMI

According to the latest analysis carried out by BSRIA, the market of traditional water heating units worldwide was valued at US$20.4bn (€18.2bn) in 2019
for a volume of sales close to 101 million units. Despite numbers of challenges faced by the industry, suppliers have managed to maintain their sales at the same level as in 2018.

Electric Water Heaters – both storage and instantaneous – remained the most common types of units sold across the globe and hold 64% of the market size in 2019. Electrically driven devices are cheap units to supply sanitary hot water on demand and good alternatives outside of the gas mains. Americas and Asia drove 84% of the global EWH market with sales to these regions estimated to amount to US$4.8bn in 2019.

Europe is another hot spot for electric water heaters – predominantly electric storage type. The sales in the region were estimated at almost US$1.5bn in 2019 (+1.5% by volume from 2018) with Russia, France and Italy topping the European market. While low-end products still drive a large share of the market, more advanced units with smart controls and remote management systems have started to appear on suppliers’ catalogues and on the shelves of wholesalers. The demand is reported to be limited for the time being, but the potential is likely to increase in the long run as the technology offers an innovative way to balance the supply and demand of electricity and to reduce energy bills at the same time.

                                        Regional Water Heating Market Key Facts, 2019, Value (US$ bn) & Volume Growth (%) from 2018

Source: BSRIA World Water Heating Study 2019

Another product that kept holding significant share in the global market for domestic water heating is the gas instantaneous unit. The total amount of units sold in 2019 was valued at over US$5.6bn. There is a substantial demand from China, which has been nurtured by the Clean Energy Policy implemented to reduce CO2 emissions and the country’s dependence of coal. Sales in China alone accounted for 70% of the global market.

As environmental concerns grow, the traditional water heating market faces rising competition from renewable technologies driven either by solar energy or by ambient air. Thanks to government support and marketing efforts by suppliers and utilities, public awareness is on the rise.

Looking in more details at the market for heat pump water heaters, BSRIA assessed the value of products sold worldwide at roughly US$403m, up 7.5% from 2018. The demand for these products is particularly high in Europe, where heat pumps supplying hot water are quickly gaining popularity. However, the sharpest growth recorded in 2019 was in the USA (+22.5%) as the regulation in new buildings become stricter in states like California.

Note to editors:

For further information, please contact:

• America sales enquiries: BSRIA USA: sales@bsria.com ¦ +1 312 753 6803, www.bsria.com/us
• China sales enquiries: BSRIA China: bsria@bsria.com.cn ¦ +86 10 6465 7707, www.bsria.com.cn
• All other sales enquiries: BSRIA UK: wmi@bsria.co.uk ¦ +44 (0) 1344 465 540, www.bsria.com/uk

Aline Breslauer Senior market analyst , BSRIA WMI

BSRIA Worldwide Market Intelligence

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