Press Release

Vietnam Water Heater Market to Record a Substantial CAGR of Around 9.27% During 2024-30

The Vietnam Water Heater Market is anticipated to grow at a CAGR of 9.27% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The rising demand for water heaters in Vietnam is primarily fueled by the increased need for hot water across the nation, a trend driven by rapid urbanization and a growing population. This has spurred a significant boost in construction activities, which in turn has heightened the demand for water heaters in both residential and commercial spaces. Additionally, economic expansion in Vietnam has led to an enlargement of the middle-class demographic, which further escalates the demand for such appliances.

This increase in disposable income among Vietnamese consumers is contributing to a rise in the purchase of electrical appliances, including water heaters, particularly in residential settings. This trend is facilitating the growth of the Water Heater Market in Vietnam. Moreover, the surge in tourism due to Vietnam's rich cultural heritage and supportive government policies is also impacting market dynamics. Cities like Hanoi and Ho Chi Minh City are not only known for their modern amenities and exciting nightlife but also for their culinary offerings, which attract international tourists. The increase in tourist arrivals in Vietnam has significantly boosted the need for hotels, resorts, and restaurants throughout the country. This rise in tourism infrastructure is driving up the demand for water heaters as these facilities strive to provide a steady supply of hot water to their guests. Consequently, this need is contributing to the growth of the Water Heater Market in Vietnam, further states the research report, “Vietnam Water Heater Market Analysis, 2024.”

Vietnam Water Heater Market Segmentation Analysis

Electric Water Heaters to Lead the Market

Based on the product type, the market is further bifurcated into electric, solar, gas, and others (oil, heat pump, hybrid, etc.). The electric water heater segment is expected to dominate the market in the coming years, driven by increasing consumer preference for sustainable and instant heating solutions. These heaters are favored for their ease of installation and operation, as they require no complex infrastructure or external fuel sources. This makes them a versatile option for both residential and commercial settings.

Additionally, Vietnam's reliable and widely accessible electric grid supports the widespread use of electric water heaters, enhancing their appeal. The affordability and ready availability of these units make them especially popular in urban areas, where alternatives like gas or oil heaters might be harder to implement or more costly. Moreover, ongoing technological improvements have resulted in more energy-efficient electric water heaters, attracting environmentally aware consumers and further boosting the segment’s growth in Vietnam.

Commercial Sector Holds the Largest Market Share

Commercial establishments rely heavily on a consistent hot water supply for numerous activities such as guest services, food preparation, sanitation, and heating, which in turn drives market growth. The rise in commercial construction projects such as shopping centers, schools, and entertainment venues also amplifies the need for water heaters. Furthermore, governmental efforts to enhance tourism, healthcare, and infrastructure are pivotal in stimulating demand within the commercial sector. Additionally, the commercial market's preference for water heaters that are both high in efficiency and equipped with advanced features, combined with businesses' willingness to invest in superior quality equipment for improved customer satisfaction, solidifies the commercial segment's significant share in the Vietnam Water Heater Market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Rheem Manufacturing Company, A. O. Smith Corporation, Electrolux Vietnam Co. Ltd., Ariston Thermo Group, Rinnai Vietnam Co., Ltd., Noritz Corporation, Ferroli S.P.A, Bosch Thermotechnology, Picenza Vietnam Production And Trading Company Ltd., Eemax Inc., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Market Shares)?
2. What are the market trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?