Vietnam Water Heater Industry Share, Demand, and Future Forecast

Vietnam Water Heater Market Projected to Expand at 9.27% CAGR Through 2030

The Vietnam Water Heater Market size is estimated to grow at a CAGR of around 9.27% during the forecast period, i.e., 2024-30. The market growth imputes the surging demand for water heaters in Vietnam, driven by rising requirements for hot water in the country. Rapid urbanization, coupled with a burgeoning population, has led to a sharp increase in construction activities, fostering a growing need for water heaters in both residential and commercial sectors. Moreover, with the expansion of Vietnam's economy, there is a significant surge in the middle-class population, further creating the demand for water heaters in the country.

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Strategic Takeaways from the Report:

Market Sizing and Forecasting
Regulatory and Policy Influence
Competitive Trends and MA Activity
Innovation Drivers and Disruptive Technologies
Investment Hotspots and Emerging Niches
Geographical Dynamics and Trade Flows

Vietnam Water Heater Market Segment Overview Classification

This market is categorized to offer targeted insights across various operational and consumer-related verticals.

Segment List:

By Product Type

Electric- Market Size Forecast 2019-2030 (Thousand Units)
Solar- Market Size Forecast 2019-2030 (Thousand Units)
Gas- Market Size Forecast 2019-2030 (Thousand Units)
Others (Oil, Heat Pump, Hybrid, etc.) - Market Size Forecast 2019-2030 (Thousand Units)

Out of them all, the electric segment is anticipated to hold a major market share in the forecast period, owing to the rising consumer inclination towards sustainable and instant water heaters. Electric water heaters are widely preferred due to their ease of installation and operation, requiring minimal infrastructure and no external fuel source, making them suitable for a wide range of residential and commercial applications. Moreover, Vietnam's relatively stable and accessible electricity supply infrastructure makes electric water heaters a convenient and reliable choice for consumers across various regions. For Instance,

In 2023, the Electricity of Vietnam (EVN) informed that the electricity generation of the whole system was about 26.20 billion kWh, an increase of 7.1% from 2022.

Additionally, the affordability and availability of electric water heaters contribute to their widespread adoption, especially in urban areas where gas- or oil-based alternatives may be less accessible or more expensive to install. Furthermore, advancements in technology have led to the development of energy-efficient electric water heaters, appealing to environmentally conscious consumers and propelling the expansion of electric water heaters in the country.

By Storage Capacity

Below 30 Liters- Market Size Forecast 2019-2030 (Thousand Units)
31-50 Liters- Market Size Forecast 2019-2030 (Thousand Units)
51-150 Liters - Market Size Forecast 2019-2030 (Thousand Units)
151-250 Liters- Market Size Forecast 2019-2030 (Thousand Units)
251-400 Liters- Market Size Forecast 2019-2030 (Thousand Units)
Above 400 Liters- Market Size Forecast 2019-2030 (Thousand Units)

By Distribution Channel

Direct Sales- Market Size Forecast 2019-2030 (Thousand Units)
Supermarket/Hypermarket- Market Size Forecast 2019-2030 (Thousand Units)
Online- Market Size Forecast 2019-2030 (Thousand Units)
Others (Exclusive Stores, Wholesales, etc.)- Market Size Forecast 2019-2030 (Thousand Units)

By End User

Residential- Market Size Forecast 2019-2030 (Thousand Units)
Commercial- Market Size Forecast 2019-2030 (Thousand Units)
Industrial- Market Size Forecast 2019-2030 (Thousand Units)

Rapid urbanization and commercial development have led to a surge in demand for water heaters in hotels, restaurants, hospitals, office buildings, and other commercial establishments in Vietnam. These sectors require a reliable supply of hot water for various purposes, such as guest amenities, food preparation, sanitation, and heating, thus significantly contributing to market growth. Moreover, the increasing number of commercial construction projects, including shopping malls, educational institutions, and recreational facilities, further bolsters the demand for water heaters in the commercial segment. Additionally, government initiatives promoting tourism, healthcare, and infrastructure development also play a crucial role in driving demand from the commercial sector. For instance,

In 2023, the government of Vietnam launched the government’s Resolution No. 82/NQ-CP on tourism promotion and the National Assembly's (NA) visa policy to boost the tourism industry to recover and develop.

Furthermore, the preference for higher efficiency and advanced features in commercial-grade water heaters, coupled with the willingness of businesses to invest in quality equipment to enhance customer satisfaction, further consolidates the dominance of the commercial segment in the Vietnam Water Heater Market.

By Storage Type

Tankless- Market Size Forecast 2019-2030 (Thousand Units)
Storage Tank- Market Size Forecast 2019-2030 (Thousand Units)
Hybrid- Market Size Forecast 2019-2030 (Thousand Units)

By Region

North
South
Central.

These divisions help clarify demand patterns and expected shifts.

Market Opportunities

Burgeoning Establishments in the Manufacturing Sector to Offer Lucrative Opportunities – Vietnam's strategic geographical location and its position as a hub for manufacturing and trade in Southeast Asia are attracting foreign investments and fostering industrial development. The government's proactive policies, including tax incentives, streamlined regulations, and infrastructure investments, have further incentivized manufacturing companies to establish operations in the country. Industries such as electronics, garments and textiles, footwear, and automotive manufacturing are experiencing robust growth, driven by Vietnam's skilled and relatively low-cost labor force. For Instance,

In 2023, Hana Micron Vina Co., Ltd. inaugurated a semiconductor plant in Bac Giang province, the first of its kind in Northern Vietnam.

Additionally, the country's participation in free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA), has opened up new market opportunities for exporters, further stimulating manufacturing activities. With the surging manufacturing units in the country, there is a growing demand for reliable and efficient water-heating solutions to support production processes. Industrial water heaters play a crucial role in applications such as parts cleaning, equipment sterilization, and temperature control, ensuring optimal operational efficiency and product quality, surging their adoption, and propelling their market demand. Thus, the burgeoning investments and growth in the manufacturing sector are expected to create opportunities in the Vietnam Water Heater Market in the upcoming years.

Vietnam Water Heater Market Competitive Snapshot from 2024-2030

The report highlights established and emerging players in the global Vietnam Water Heater Market, evaluating their strengths, challenges, and potential for innovation.

Key Competitors Include:

Rheem Manufacturing Company
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.

Their activities include partnerships, product launches, and geographic expansions.

Vietnam Water Heater Industry Prime Challenge

High Costs Associated with the Maintenance of Water Heaters to Restrain Market Growth – The country's diverse geographical and climatic conditions lead to varying levels of wear and tear on water heater components, necessitating frequent repairs and replacements. Moreover, the quality of water sources varies across different regions, with hard water prevalent in many areas. The minerals present in hard water can cause scaling and corrosion within water heaters, requiring costly maintenance procedures to address these issues.

Moreover, inadequate water treatment infrastructure in certain regions may result in sediment buildup and bacterial growth, further increasing maintenance requirements. Additionally, the scarcity of skilled technicians and specialized equipment for repairing and servicing water heaters can drive up service costs. The middle-class population in the country might become skeptical about the adoption of water heaters owing to regular maintenance and high service costs restraining the adoption of water heaters. Furthermore, the lack of awareness among consumers about regular maintenance practices may exacerbate problems, leading to more significant repair expenses over time and impeding the adoption and growth of the Vietnam Water Heater Market.

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