The Asia Pacific to witness increased demand for instant water heaters

Global instant water heater market is likely to showcase a major upheaval, as regulatory forces across the globe are working to enhance energy efficiency across various devices. As per the U.S. Department of Energy, water heating accounts for nearly 18% of the total home energy use in the country.

Instant water heaters are known to be highly — efficient as compared to conventional water heating solutions and have become a leading choice in most households, since they provide hot water without the delay associated with water heating tanks. It is considered that if a household consumes nearly 40 gallons of hot water or less, one can save nearly 35% more energy by deploying an instant water heater in the house.

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Moreover, witnessing the increase in the GHG emission rate, many countries across the globe are adopting strict rules towards the use of minimum energy-consuming devices. Such legislative rules are positively influencing growth of global instant water heater market share as many older and energy inefficient water heating devices are being replaced with technologically advanced ones.

In the year 2018, the U.K. net emissions of carbon dioxide were estimated at 364.1 million tons. Noticing the escalating increase in the emission levels, the government established policies that favored conserving the environment. In August 2020, the British government suggested a number of changes like providing energy labels that show the lifetime energy cost at various point of purchase, primarily to help the consumers to shop responsibly. The pledge is under the Government’s aim to reduce all the GHG emissions to net-zero by 2050.

Increasing developments in the commercial sector

Expansion in commercial infrastructure over the years on account of growing economic development, mainly across developing nations has amplified the need for instant water heaters. The emergence of smart cities globally, along with focus on zero-emission buildings has strengthened the business landscape.

The hospitality sector has witnessed enormous growth over the years due to the rise in disposable income among people to spend on advanced services. Reportedly, the U.S. travel and tourism industry generated more than USD 1.6 trillion in economic output in the year 2017. Instant water heaters are widely used across large hotels, malls, shopping complexes, and airports.

The COVID-19 outbreak has largely affected the healthcare industry with increased demand and use of various equipment that support medical services. Hot water is consistently use in healthcare services for cleaning, sanitizing and other purposes. This has subsequently affected the demand for instant water heaters.

Gradual relaxations announced by the authorities with regards to air travel and the re-opening of tourism spots with precautionary measures will support the heater deployment in hospitality post the coronavirus pandemic.

Robust urbanization in the Asia Pacific region

Rapid urbanization is also driving opportunities in water heater development, since space constraint is a major issue in most urban homes. Developing countries like China and India have emerged as the leading industry contributors over the years due to the economic improvement in over time. Indians, who had previously used traditional solar water heaters and immersion rods to heat water have turned to using electrical water heaters for safety and energy conversion purposes.

Growing dependence on the e-commerce industry in APAC due to the wide availability of the products at convenient prices has supported the sale of electrical devices online. The rising penetration of internet in countries like India has supported online purchases. Easy and wider distribution of electricity has also played an integral role in the overall growth of instant water heater market in the Asia Pacific region.

Keeping in mind the changing trends in instant water heater industry, the market players are constantly working towards increasing their customer base and geographical expanse. Some of the leading instant water heater companies include A.O. Smith, Rinnai Corporation, Bosch Thermotechnology, Vailant Group, and Nihon Itomic, who are involved in continuous research and development activities to bring newer and more efficient technologies to the market.

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