The Saudi Arabia water heater market is set to witness robust growth by 2030 on account of mounting demand for energy-efficient water heating systems. In addition, rapid urbanization, rising electricity prices, and government initiatives to promote the adoption of sustainable technologies are expected to provide impetus to the market over the forecast timeframe.
During the pandemic, people were forced to stay indoors in light of government-imposed lockdown restrictions to curb the spread of coronavirus. This boosted the demand for effective water heating systems for domestic usage, which has impelled product adoption in residential settings. These factors have positively influenced industry growth in recent years. Notably, major players in the sector are increasingly adopting profitable strategies and focusing on product innovation to gain a better business standing, enhancing the Saudi Arabia water heater market dynamics.
For instance, in June 2022, Ariston, a major provider of energy efficiency and water heating products, outlined its plans to leverage solar power to supplement energy for use in water heating solutions that are installed in Saudi Arabia. This project complements the firm’s sustainability initiatives and is supported by the NREP (National Renewable Energy Program), which is backed by Saudi King Salman. This move was intended to prompt the private sector to bolster investment in renewable energy initiatives in Saudi Arabia.
In another notable development, in December 2021, Rheem, a prominent producer of HVACR and water heating systems, announced that it would continue investing in the Middle East and GCC regions with new products, penetrating new segments and markets, while raising the industry standards in the context of sustainability, local manufacturing, and energy efficiency.
Rheem added that focusing on manufacturing locally improved its emphasis on sustainability and decreased transportation costs. The firm has been supplementing such measures by introducing products like its Renaissance Xcede, which has been specifically designed for the Middle East market.
For comprehensive assessment, the Saudi Arabia water heater market has been bifurcated in terms of capacity, fuel, application, and product. On the basis of capacity, the Saudi Arabia water heater industry has been further divided into <30 liters, 30 - 100 liters, 100 - 250 liters, 250 - 400 liters, and >400 liters.
Among these, the <30 liters sub-segment holds a sizable market share and is anticipated to grow at a CAGR of around 8% by the year 2030. Meanwhile, the Saudi Arabia water heater market size from the 250 - 400 liters sub-segment was valued at more than $115 million in 2021 and is expected to witness robust growth in the upcoming time period.