India water heater
market is expected to reach USD422.78 million by 2028, growing at a CAGR of 7.16%
during the forecast period. 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.
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.
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.
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.
Smaller Cities are Driving
the Market Growth
More than half of the
demand for water heaters comes from Tier II and Tier III cities, with the
highest demand for winter season being experienced in the cities such
as Lucknow, Agra, Coimbatore, Tiruchirappalli, Siliguri, Patna, and Delhi
NCR, which includes smaller towns like Ghaziabad, Meerut, and Sonipat. The
average selling price of a water heater has increased because of the recent
increase in demand. The region's demand for water heaters rises due to the cold
weather, and this pattern is anticipated to be seen in both the residential and
commercial sectors. This is one of the major factors affecting the India water
heater market.
Growing Shift towards
Solar Water Heater is Fueling the Market Growth
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.
Increasing Innovations
in Water Heater Market
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.