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India Water Heater Market Outlook, 2027-28

India Water Heater Market Outlook, 2027-28

Bonafide Research 07-10-2022 74 Pages Figures : 15 Tables : 16
Region : Asia-Pacific Category : Consumer Goods & Services Appliances & Equipment

1. Bajaj Electricals Limited

2. CG Power and Industrial Solutions Limited

3. Havells India Limited

4. Kitchen Appliances India Limited

5. Usha International Limited

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The India water heater market is mainly driven by increasing demand from the residential sector, growing per capita income, rising GDP, the increase in sales through online channels, etc. Rising household demand owing to increasing disposable income of middle class population and growing hospitality sector are the major factors contributing to the growth of India water heater market. Household sector has majorly provided opportunity for growth in energy efficient electric water heater segment, i.e, 4 or 5 start rated water heaters. Further, solar water heater segment is anticipated to contribute towards the market in coming years owing to government policies to incentivise the use of renewable sources of energy. Tier I and Tier II cities customer base of companies are also growing after covid outbreak due rising adoption and focus on e-commerce platforms.

According to the report, “India Water Heater Market Outlook, 2027-28”, the market is anticipated to grow with more than 15% CAGR for 2022-2028. The water heater industry in India is becoming increasingly competitive as foreign companies such as A. O. Smith Corporation and Ariston Thermo Group compete against market leaders like V-Guard Industries Ltd., Bajaj Electricals Ltd., Crompton Greaves Consumer Electricals Limited, etc. The companies are concentrating on cutting-edge technologies and new designs, marketing campaigns, ads, discounting, etc., further assisting the market for water heaters in India, expanding rapidly.

Manufacturers of water heaters are continuously working on product innovation to expand their consumer base. For instance, in 2021, Bajaj Electricals introduced a new line of water heaters with cutting-edge features like "Child Safety mode" and "Auto Shut Off" technology to meet customer safety needs. The water heater's "Auto Shut Off" technology turns it off after 90 minutes of inactivity. These recently released versions are offered with various tank capacities and can be purchased from reputable brick-and-mortar stores and online retailers. Also, companies are launching campaigns to spread the awareness of water heaters and attract further consumer base. For instance, in 2021, Havells India announced a new advertising campaign for the Havells-exclusive Induction-Based Heat Transfer Technology-powered Magnatron Water Heater. Magnatron water heaters are equipped with induction-based heat transfer technology, which eliminates the need for a heating element. Such factors are expected to drive growth in the India water heaters market in the coming years.

However, the India water heater market is smaller as compared to other consumer durables as heaters have seasonal demand and high energy cost leading to low penetration of the product in the country. Due to high energy costs and the availability of handy and economical alternatives such as cooking stoves, fireplaces, and immersion rods, the penetration of water heaters has been modest. However, the popularity of water heaters is increasing due to government measures for the widespread availability of energy and rising disposable incomes.

Solar water heaters are replacing electric and gas water heaters in the water heater market since they are simple to install, eco-friendly, and energy-efficient product. The market for solar water heaters began to pick up steam with the help of government-funded subsidies, while sales of electric water heaters sharply decreased. India experiences strong sunshine all year long, which helps to drive the demand for solar water heaters, which are a renewable natural resource. Moreover, the dependency of water heater in the rural areas is expected to contribute to the increasing demand for solar water heater in the forecast period.

In India water heater market, the offline segment occupied the majority share of the market revenues accounting for higher market share of the market revenues in 2021 as the consumers have the option of comparing the different brands available at the store physically and choose the right product as per their requirement. However, the growing popularity of e-commerce websites among millennials is likely to drive a significant growth in the online distribution channel segment over the coming years.

Moreover, changing architectural designs of residential buildings, coupled with rapid urbanization in the country, is strengthening the market growth. In addition, there is a rise in the demand for premium home-ware products among the masses. In line with this, the burgeoning solar water heating industry in India is contributing to the growth of the market. Besides this, the rapid transition from conventional water heating equipment, such as boilers and burners, to electric water heaters is positively influencing the market. Apart from this, the rising awareness among the masses about the benefits of electric water heaters is offering lucrative growth opportunities to industry investors operating in the country. Additionally, the wide availability of electric water heaters through online and offline distribution channels is bolstering the growth of the market.

The increasing demand for electric water heaters during the winter season represents one of the key factors driving the market in India. Besides this, there is a rise in the utilization of these water heaters as they are convenient, user-friendly, and safe. This, coupled with the increasing adoption of tankless water heaters as they are cost-efficient, is propelling the growth of the market. In addition, the wide availability of electric water heaters through online and offline distribution channels, along with the burgeoning e-commerce industry, is positively influencing the market. Apart from this, the rising demand for electric water heaters in shopping malls, hotels, and restaurants in the country is contributing to the growth of the market.

Additionally, the increasing employment of instant water heaters for spontaneous water heating and low standby heat losses in various industries is offering a favourable market outlook. Moreover, rising application of electric water heaters in the residential sector to heat water for bathing, hand washing, cleaning kitchen utensils, and doing laundry are strengthening the growth of the market in India. Furthermore, key market players are extensively investing in research and development (R&D) activities to introduce enhanced electric water heaters with energy-efficient qualities, smart control, and corrosion resistance with minimum operational costs. They are also focusing on mergers and acquisitions (M&A) to enhance the production procedure and improve customer satisfaction, which is expected to bolster the growth of the market.

The main consumer for the electrical water heaters are working population. As the disposable income is increasing day by day and people are constantly searching for convenience, they are choosing devices and technologies making their life easier, without giving a though of expenses. The electric water heaters are one of the biggest energy consuming appliances all around the world. These are used both residentially and industrially for many purposes. The world is suffering from increased energy consumption problem, which might lead to energy depletion and crisis in near future.

Recent Developments:
• Bajaj Electricals, a well-known electrical appliance company has launches new water heater models called ‘Campagno’ and ‘Caldia NXG’ in November 2021, with safety features as child safety mode and auto shut off technology. The child safety mode allows the user to regulate the temperature to certain limit, avoiding the water burns, and auto shut off technology, shuts off the heater after 90 minutes of inaction.
• A.O. Smith has launched a compact, instant water heater with 3-liter capacity in 2020. The heating component used in this heater is covered with glass, protecting it from scale formations and helping it to work efficiently. The design of this heater is compact and modern, suitable for any type bathroom, giving it an elegant look.

Covid-19 Impacts:
Due to the COVID-19 outbreak, online sales of water heaters have surged. People are now more affected by digital technology and inspired to make online purchases due to the expanding technical improvement. As a result, customers are learning about, experimenting with, and adopting online shopping due to the convenience of selecting from a wide range of brands, savings, and safe delivery alternatives. To target the unexplored customer base, water heater manufacturers are shifting their focus to e-commerce operations.

Key Product Type
• Electric Water Heater
• Solar Water Heater
• Gas Water Heater

“India Water Heater Market Outlook, 2027-28” discusses the following aspects of water heaters in India:
How it will help solving your strategic decision making process??
The report gives an in-depth understanding of water heaters in India:
- India Water Heaters Market Outlook
- India Water Heater Market Size & Forecast (Value & Volume)
- India Water Heater Segmental Analysis: By Type, By Company, By Region, By End User, By Demand Generation
- India Electric Water Heater Market Size & Forecast (Value & Volume)
- India Organized Vs Unorganized Electric Water Heaters Market Size & Forecast
- India Electric Water Heater Segmental Analysis: By Company, By Region
- India Solar Water Heater Market Size & Forecast (Value & Volume)
- India Organized Vs Unorganized Solar Water Heaters Market Size & Forecast
- India Solar Water Heater Segmental Analysis: By Company, By Region
- India Gas Water Heater Market Size & Forecast (Value & Volume)
- Pricing Analysis of Water Heaters
- The key vendors in this market space
- Competitive Landscape & Strategic Recommendations

This report can be useful to Industry consultants, manufacturers and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

Report Methodology
The information contained in this report is based upon both primary and secondary research. Primary research included interviews with various channel partners of water heaters in India. Secondary research included an exhaustive search of relevant publications like company annual reports, financial reports and proprietary databases.



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