Domestic Hot Water Storage Tank Market Size, Share, Growth, And Industry Analysis by Type (Mild steel, Stainless steel & Other) by Application (Homes, Apartments) and Regional Forecast to 2032

Updated On: 29 April 2024

DOMESTIC HOT WATER STORAGE TANK MARKET REPORT OVERVIEW

The global domestic hot water storage tank market size was USD 1058.1 million in 2019 and is expected to reach USD 1496 million by 2032, exhibiting a CAGR of 2.7% during the forecast period.

Domestic hot water storage tanks are essential components of residential water heating systems. These tanks store heated water generated by boilers, heat pumps, or solar panels, ensuring a constant supply of hot water for household needs. They come in various sizes and designs to accommodate different household requirements. Modern models often feature advanced insulation materials to minimize heat loss and improve energy efficiency. Additionally, some tanks incorporate smart technology for remote monitoring and control. From morning showers to dishwashing and laundry, these tanks play a crucial role in providing reliable hot water for everyday tasks, enhancing comfort and convenience in homes.

Several factors contribute to the growing domestic hot water storage tank market size, firstly the rising awareness of energy conservation prompts consumers to invest in energy-efficient appliances, including water heaters, to reduce utility bills and minimize environmental impact. Additionally, increasing urbanization and population growth drive the demand for residential housing, thereby boosting the need for water heating solutions. Moreover, advancements in technology result in more innovative and cost-effective storage tank options, attracting consumers looking to upgrade their existing systems. With a growing emphasis on comfort, convenience, and sustainability, the demand for domestic hot water storage tanks is expected to continue its upward trajectory.

COVID-19 Impact: Pandemic Impact: Slowdown in Construction Activities and Home Renovations

The COVID-19 pandemic has been unprecedented and staggering, with domestic hot water storage tank market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic significantly impacted the market in several ways. Initially, widespread lockdowns and economic uncertainties led to a slowdown in construction activities and home renovations, reducing the demand for new water heating systems. Supply chain disruptions also affected manufacturing and distribution, causing delays in product availability and increased costs. Additionally, consumer priorities shifted towards essential needs, with discretionary spending on home improvement projects being deferred. However, as lockdowns eased and people spent more time at home, there was a renewed focus on comfort and convenience, driving a gradual recovery in demand for domestic hot water storage tanks, especially those offering energy efficiency and cost savings.

LATEST TRENDS

"Increasing Adoption of Smart Technology in Domestic Hot Water Storage Tanks Prominent Trend"

One prominent trend in the domestic hot water storage tank industry is the increasing adoption of smart technology. Manufacturers are launching new products equipped with IoT (Internet of Things) capabilities, allowing users to remotely monitor and control their water heating systems via smartphones or tablets. These smart tanks offer features such as temperature adjustments, energy usage tracking, and predictive maintenance alerts, enhancing convenience and efficiency for consumers. Leading players in the market are investing heavily in research and development to innovate and introduce these advanced technologies. They are focusing on enhancing connectivity, improving user interfaces, and integrating AI algorithms to optimize performance and energy savings. Companies are also collaborating with smart home ecosystem providers to offer seamless integration with other home automation devices, catering to the evolving needs and preferences of consumers.

DOMESTIC HOT WATER STORAGE TANK MARKET SEGMENTATION

• By type

Depending on domestic hot water storage tank market given are types: Mild steel, Stainless steel & Other. The Mild steel type will capture the maximum market share through 2026.  

Mild steel tanks: These tanks are typically more affordable but may be susceptible to corrosion over time, especially in areas with hard water. They are commonly used in budget-friendly residential applications where longevity is not a primary concern.

Stainless steel tanks: Known for their durability and corrosion resistance, stainless steel tanks offer a longer lifespan and are ideal for areas with aggressive water conditions. They are favored for their hygienic properties and are often chosen for high-end residential and commercial installations.

Other tanks: This segment may include alternative materials such as glass-lined tanks or plastic tanks. Glass-lined tanks offer corrosion resistance and are suitable for moderate water conditions. Plastic tanks, made from materials like polyethylene, are lightweight and corrosion-resistant, making them ideal for certain residential and light commercial applications where portability and ease of installation are prioritized.

• By Application

The market is divided into Homes, Apartments based on application. The global domestic hot water storage tank market players in cover segment like Homes will dominate the market share during 2021-2026.

Homes: Domestic hot water storage tanks for homes cater to individual households, providing a reliable supply of hot water for daily activities such as bathing, cooking, and cleaning. These tanks come in various sizes to meet the specific needs of different household sizes and water usage patterns.

Apartments: In apartment buildings, centralized hot water systems serve multiple units. Hot water storage tanks for apartments are designed to accommodate the higher demand from multiple households while maximizing space efficiency. These tanks often feature larger capacities and may incorporate advanced technologies for efficient water distribution and energy management.

DRIVING FACTORS

"Increasing Focus on Energy Efficiency and Sustainability Key Driving Factor "

One driving factor behind the domestic hot water storage tank market growth is the increasing focus on energy efficiency and sustainability. As consumers become more environmentally conscious, they are seeking water heating solutions that minimize energy consumption and reduce carbon emissions. Energy-efficient storage tanks, such as those incorporating heat pump technology or solar thermal systems, are gaining popularity due to their ability to harness renewable energy sources and lower operating costs over time. Government incentives and regulations promoting energy-efficient appliances further stimulate market demand, as consumers are incentivized to invest in products that contribute to energy savings and environmental preservation.

Urbanization and Population Density Another Significant Factor

Another significant factor driving the growth of the market is the increasing urbanization and population density. As more people migrate to urban areas, the demand for residential housing, including apartments and condominiums, rises. This trend leads to a higher concentration of households in limited spaces, resulting in a greater need for centralized hot water systems equipped with storage tanks. Additionally, urban lifestyles often involve higher water consumption rates due to increased access to amenities and amenities, further driving the demand for reliable and efficient hot water solutions. As urbanization continues globally, the market for domestic hot water storage tanks is expected to expand accordingly.

RESTRAINING FACTORS

"Initial Investment Cost Associated with Upgrading or Installing New Systems Restraining Market Development"

One restraining factor affecting the market is the initial investment cost associated with upgrading or installing new systems. While energy-efficient models may offer long-term savings on utility bills, the upfront expenses can be prohibitive for some consumers, particularly in regions with lower disposable incomes. Additionally, economic uncertainties or tight household budgets may deter individuals from investing in new water heating solutions, especially if their current systems are still functional. Overcoming cost barriers through incentives, financing options, or innovative pricing strategies could help mitigate this restraint and stimulate market growth.

DOMESTIC HOT WATER STORAGE TANK MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

"Asia Pacific Expected to Maintain Market Dominance in Foreseeable Future Due To Increasing Disposable Incomes"

The leading region in the domestic hot water storage tank market share is Asia Pacific. With rapid urbanization, population growth, and increasing disposable incomes in countries like China, India, and Southeast Asian nations, the demand for residential housing and associated amenities is on the rise. This surge in construction activities, coupled with the growing awareness of energy efficiency, is driving the adoption of domestic hot water storage tanks in the region. Moreover, government initiatives promoting sustainable development and green building practices further support market growth. As a result, Asia Pacific is expected to continue dominating the market landscape in the foreseeable future.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The domestic hot water storage tank market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in cloth wardrobes, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Bosch Thermotechnology (Germany)
• Viessmann (Germany)
• Vaillant (Germany)
• WATTS (U.S.)
• Stiebel Eltron (Germany)
• Rheem (U.S.)
• Ait-Germany (Germany)
• GlenDimplex (Ireland)
• Reflex Winkelmann (Germany)
• Akvaterm (Finland)
• A.O.Smith (U.S.)
• Varem (Italy)
• CLAGE (Germany)
• WOLF (Germany)
• Bradford White (U.S.)
• Lochinvar (U.S.)

INDUSTRIAL DEVELOPMENT

July 2022: Rheem, a leading manufacturer of water heating solutions, announced the launch of their innovative hybrid electric water heater. This new product combines the efficiency of a heat pump with the reliability of traditional electric heating elements. With advanced features such as intelligent control systems and energy-saving modes, the hybrid electric water heater offers significant reductions in energy consumption and operating costs for residential and commercial users. This development reflects Rheem's commitment to providing sustainable and cost-effective water heating solutions in line with evolving consumer preferences and environmental regulations.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.