Technavio forecasts the global market for grid-interactive water heaters to grow by more than 21% by 2021.
Rising populations and industrialisation will increase energy demands. This will fuel the use of grid-interactive water heaters as consumers seek to improve their energy efficiency and reduce bills.
Global utilities are expected to increase their portfolios of renewable energy generation.
However, the fluctuating nature of renewable energy generation will pose challenges to reliability of grid networks.
Hence, consumers will be encouraged to use smart appliances such as grid-interactive water heaters and thermostats to be able to match energy consumption with real-time status or demands of the grid.
The continued evolution of smart grids will positively impact the market. Technavio forecasts the APAC and Gulf regions will have the highest demand of smart grids, this will positively impact the regions’ grid-interactive water heaters markets.
However, the Americas will continue dominating the market, primarily driven by the investments in the residential commercial sector.
The residential segment dominated the market in 2016.
Fast-paced industrialisation in developing countries will also impact this market positively. Owing to the growing middle-class population increasing disposable incomes, the residential segment is expected to drive the grid enabled water heater market during the forecast period.
The market is still in its early stages and has limited vendors.
Factors such as the high costs of grid-interactive water heaters and limited consumer awareness will challenge the market growth.
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