The India water heater market size reached around USD 1.28 Billion in 2025. The market is projected to grow at a CAGR of 5.80% between 2026 and 2035 to reach nearly USD 2.25 Billion by 2035. The market growth can be attributed to the growth of e-commerce platforms and the rising number of home renovation/remodelling projects. As households become smaller, the demand for compact water heating units has soared, due to increasing temperature extremities in the West and Central India regions.
Base Year
Historical Period
Forecast Period
The Indian government is transitioning towards bolstering its renewable energy generation capabilities to reduce the risks posed by climate change. Hence, the demand for solar-powered water heaters is significantly increasing to align with the government’s renewable energy goals. Moreover, solar water heaters are cost-effective and significantly reduce electricity costs. As per industry reports, the initial cost of installation of a solar water heater can range from INR 20,000 to INR 50,000.
Consumers are increasingly preferring online channels to purchase water heaters as they provide easy access to different brands and product types, the convenience of home delivery, and detailed product information. The robust growth of the e-commerce sector is boosting the India water heater market revenue. As per the India Brand Equity Foundation, the India e-commerce sector is projected to reach USD 325 billion by 2030.
The integration of automation and smart sensors aimed at enhancing the safety and efficiency of water heaters by detecting temperature fluctuations and power usage is aiding the market. For instance, in September 2023, Midea announced the launch of the Smart Wi-Fi Storage Water Heaters, featuring remote control and intelligent scheduling
Compound Annual Growth Rate
5.8%
Value in USD Billion
2026-2035
*this image is indicative*
|
India Water Heater Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
1.28 |
|
Market Size 2035 |
USD Billion |
2.25 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
5.80% |
|
CAGR 2026-2035 - Market by Region |
West and Central India |
6.6% |
|
CAGR 2026-2035 - Market by Region |
East India |
6.2% |
|
CAGR 2026-2035 - Market by Product |
Solar |
7.3% |
|
CAGR 2026-2035 - Market by Technology |
Tankless |
6.7% |
|
2025 Market Share by Region |
North India |
31.2% |
The strengthening of government regulations surrounding the usage of quality materials in water heaters is expected to increase the demand for solar water heaters in India. As per the India water heater market analysis, India is one of the top 5 manufacturers of solar water heaters in the world, with an annual turnover of INR 700 crore. The state of Karnataka accounts for 42% of overall sales, due to the government’s mandate of installing these devices in all residential urban dwellings. Besides, the city of Bengaluru accounts for over 70% of overall solar heater sales in the state. Over the forecast period, the India water heater market expansion is expected to be driven by the shift towards renewable energy resources and technological advancements.
Thermosiphon systems are dominating single-family households in India since they are passive solar water heaters and rely on natural convection for water circulation through collectors and into the storage tank, making them easy and simple to use. The increasing commercial and residential demand for solar water heaters is reflected in the growth of glazed collector area to 1.3 GWth, thereby creating a favourable India water heater market outlook. Moreover, the increasing year-on-year sales of vacuum tube collectors (24%) and flat plate collectors (79%) are also expected to positively impact sales in the coming years.
Technological advancements; increasing demand for tankless water heaters; growth of the e-commerce sector; and rising adoption of heat pumps are the major factors driving the India water heater market growth.
Major geyser manufacturers are enhancing their product safety by using silver ion technology to prevent bacterial growth and ensure a clean and hot water supply. Besides, they are integrating auto-diagnosis and auto-power-off features in water heaters to help ensure their safe operation and reduce the risk of unforeseen accidents.
India’s urban households are increasingly adopting tankless water heaters, which offer quick, on-demand hot water without the need for large storage tanks. These heaters are energy-efficient, reducing electricity usage by heating water only as needed. Their compact, space-saving design is especially appealing in apartments and smaller homes, where storage space is limited. This is boosting the India water heater market revenue.
The proliferation of online distribution channels for water heaters has led to increased sales, as consumers’ access to branded, high-quality geysers available at affordable prices has surged. Besides, such channels provide a comparison of different brands, customer reviews, and detailed product descriptions, facilitating informed consumer decision-making.
In 2024, India’s household electricity consumption is expected to increase by 8% year-on-year. With the increasing government focus on optimising electricity consumption for the residential sector, heat pumps have been increasingly popular among the masses. They are energy-efficient and eco-friendly alternatives to conventional water heaters that also reduce carbon emissions while facilitating long-term savings.
Rising demand for instant water heaters
Instant water heaters are compact and energy-efficient units and provide hot water on demand. Rapid population growth and urbanisation have made them a favourable solution for small-size homes that prioritise efficiency and convenience. Rising concerns for reducing electricity bills and installing cost-effective appliances in bathrooms and kitchens are driving the India water heater market expansion.
Increasing demand for solar water heater from Telangana
Telangana has embedded the Energy Conservation Building Code into its building approval system, which has made it necessary for hospitals and hotels to use solar thermal to meet 20%-40% of their hot water requirements. This is facilitating the India water heater market development. During January-September 2024, the city of Hyderabad in Telangana witnessed a 34% year-on-year growth in sales of houses, amounting to INR 36,461 crore. Hence, the robust growth of the real estate sector is favourably shaping the India water heater market dynamics.
The EMR’s report titled “India Water Heater Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Product
Breakup by Technology
Breakup by Capacity
Breakup by Application
Breakup by Region
| CAGR 2026-2035 - Market by | Region |
| West and Central India | 6.6% |
| East India | 6.2% |
| North India | XX% |
| South India | XX% |
Based on region, the market is segmented into East India, West and Central India, North India, and South India. North India accounted for 31.2% of the India water heater market share due to increasing seasonal extremities in 2025. Over the forecast period of 2026-2035, the market for water heaters in West and Central India is expected to grow at a CAGR of 6.6%, aided by rapid technological advancements and rising adoption of heat pumps. The demand for water heaters in East India is expected to increase at a CAGR of 6.2% due to the increasing commercial applications of water heaters.
Based on technology, the market is divided into tankless, hybrid, and storage. The demand for tankless water heaters is expected to grow at a CAGR of 6.7% between 2026 and 2035 since they provide hot water on-demand in an energy-efficient manner while ensuring reduced water damage risk.
Major players are focusing on using recycled materials for designing water heaters to boost their appeal among eco-conscious consumers. Besides, they are integrating modern features such as Wi-Fi connection into water heaters to improve the bathing and washing experience for customers. This is accelerating the rate of India water heater market development.
Bajaj Electricals India Ltd. was founded in 1938 and is headquartered in Maharashtra, India. It is a part of the Bajaj Group, a multinational conglomerate worth USD 100 billion, and specialises in producing consumer goods and power distribution products.
Havells Group was founded in 1983 and is headquartered in Uttar Pradesh, India. It specialises in electrical appliances for household, industrial, and commercial applications and has a market presence in over 50 countries worldwide.
A. O. Smith Corporation was founded in 1874 and is headquartered in Wisconsin, United States. It specialises in offering water heating/treatment solutions to the residential and industrial sectors in over 60 countries worldwide.
V-Guard Industries Ltd. was founded in 1977 and is headquartered in Kochi, Kerala. It serves over 50 million customers globally through its extensive portfolio of products like water heaters, pumps, induction stoves, and other supplies.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the India water heater market report are Ariston Group India Private Limited, Crompton Greaves Consumer Electricals Ltd., CK Birla Group, Usha International Ltd., Ken Lifestyles Pvt. Ltd., and Jaquar Group, among others.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 1.28 Billion.
The market is projected to grow at a CAGR of 5.80% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 2.25 Billion by 2035.
The different regions considered in the market report include East India, West and Central India, North India, and South India.
The different water heater products in India are electric, solar, and gas.
The different water heater technologies in India are tankless, storage, and hybrid.
The different applications of water heaters in India are residential, commercial, and industrial.
Key players in the market are Bajaj Electricals India Ltd., Havells Group, A. O. Smith Corporation, Ariston Group India Private Limited, V-Guard Industries Ltd., Crompton Greaves Consumer Electricals Ltd., CK Birla Group, Usha International Ltd., Ken Lifestyles Pvt. Ltd., and Jaquar Group, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product |
|
| Breakup by Technology |
|
| Breakup by Capacity |
|
| Breakup by Application |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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