Saudi Arabia Electric Water Heater Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | Efficiency Rules and Mega-Projects Drive 6.59% CAGR
Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "Saudi Arabia Electric Water Heater - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Saudi Arabia Electric Water Heater Market to Reach USD 258.27 Billion by 2031
The Saudi Arabia electric water heater market was valued at USD 164.18 billion in 2025 and is projected to increase from USD 187.68 billion in 2026 to USD 258.27 billion by 2031. The market is expected to register a CAGR of 6.59% from 2026 to 2031, supported by stricter energy-efficiency standards, residential construction, hospitality development and growing demand for connected water heating systems.
Energy-Efficiency Standards Drive Product Replacement and Premiumization
Saudi Arabia's adoption of GSO 2770:2024 in October 2024 established minimum energy performance requirements for electric storage, instantaneous and heat pump water heaters. These standards are reshaping manufacturer portfolios and accelerating the replacement of products with high standby energy losses.
SASO's SABER platform links energy labels with import approval and market access, increasing the importance of verified performance claims while limiting the availability of non-compliant products. Further tightening of insulation and standby-loss requirements in 2026 is expected to increase demand for premium technologies, including Wi-Fi scheduling, demand-response readiness, advanced digital controls and heat pump systems engineered for Gulf climates.
Manufacturers are focusing on improved Coefficient of Performance levels, efficient refrigerants and intelligent controls that reduce unnecessary energy consumption. These developments support Saudi Vision 2030 energy-intensity objectives and provide consumers with clearer incentives to replace older equipment with efficient electric and heat pump water heaters.
Residential and Hospitality Development Expands Demand
Housing delivery under Vision 2030 and support provided through the Sakani program are creating opportunities for first-time installations in new urban communities. Major developments, including ROSHN's ALMANAR project in Makkah, are supporting multi-year procurement of SASO-compliant electric water heating systems suited to mainstream household requirements.
New Murabba in Riyadh is also influencing demand for smart-ready and grid-interactive systems that can connect with building-wide digital infrastructure. Across the hospitality sector, projects in Jeddah and the Red Sea region are incorporating centralized electric and heat pump systems designed to meet energy-efficiency, safety, temperature stability and hygiene requirements.
These residential and commercial developments are encouraging wider use of efficient products that comply with SASO and GSO standards while integrating with smart buildings, smart meters and future grid-management programs. Harmonization under GSO 2770:2024 may also help suppliers introduce high-efficiency electric and heat pump water heaters across Gulf markets more efficiently.
Electrical Upgrade Costs Limit Tankless Adoption
Tankless electric water heaters often require higher-capacity wiring and electrical panel upgrades, increasing installation costs compared with conventional storage systems. Three-phase electricity coverage also remains less developed in parts of the Northern and Southern regions than in major urban centers, limiting the use of multiple tankless units in large residential properties without additional utility work.
Developers of affordable housing must balance long-term energy savings against initial construction budgets. As a result, storage tank water heaters are likely to remain the preferred option in many projects because they are compatible with existing electrical infrastructure and generally avoid costly panel modifications. Wider time-of-use electricity programs, installation financing and incentives for off-peak heating could improve the long-term economics of tankless systems.
Storage Systems Retain Market Leadership
Storage tank water heaters accounted for 66.76% of market revenue in 2025. Their leading position reflects established installer familiarity, straightforward maintenance and lower upfront costs. In areas with hard water, tank-based products equipped with durable anodes and supported by scheduled descaling can also provide an extended operating life.
Tankless water heaters are forecast to grow at a CAGR of 7.18% through 2031 as energy regulations make standby losses more important in purchasing decisions. Space-saving, on-demand systems are particularly suitable for high-density developments, smart apartments and premium hospitality properties. Connected controls, scheduling functions and usage analytics are further improving their appeal.
Projects such as NEOM and Red Sea developments are supporting demand for grid-interactive electric systems capable of managing changing daily load patterns. Storage products are expected to continue serving mainstream applications, while tankless and hybrid configurations gain traction in premium new-build developments.
Medium-Capacity Units Dominate as Compact Products Gain Momentum
Medium-sized electric water heaters held a 45.73% market share in 2025, reflecting their suitability for common household sizes, multi-point water use and standard building specifications. These systems remain a preferred choice for first installations in large residential communities.
Small units below 30 liters are expected to record a CAGR of 6.68%, supported by expanding e-commerce availability, same-day delivery and demand for point-of-use systems in rental properties, smaller homes and secondary cities. Online platforms and major retailers are broadening compact product ranges and increasingly bundling units with installation services.
Large-capacity systems represent a smaller share of residential demand but remain essential for hotels, hospitals and multi-dwelling buildings. In these applications, heat pump arrays combined with insulated thermal storage can reduce reliance on conventional electric heating elements while maintaining reliable hot water delivery. Competition from gas, solar and hybrid systems will remain relevant in larger commercial installations, but stronger efficiency standards and smart-building integration are expected to sustain growth across the Saudi Arabia electric water heater market.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Enforced energy-efficiency and safety standards accelerate replacement and premiumization
4.2.2 Dominance of electric and storage formats across MEA aligns with KSA installation practices
4.2.3 Residential build-out and hospitality pipeline expand installed base and new demand
4.2.4 Residential segment leadership sustains baseline demand and replacement cycles
4.2.5 GSO 2770:2024 harmonization enables roll-out of high-efficiency electric/HPWH across GCC
4.2.6 Rapid online channel penetration extends reach to secondary cities and mid-market
4.3 Market Restraints
4.3.1 High upfront and electrical upgrade needs for tankless slow adoption
4.3.2 Competition from gas/solar/hybrid solutions in larger/commercial uses
4.3.3 Stricter SASO conformity/labeling adds cost and time-to-market
4.3.4 Hard-water scaling in several regions increases maintenance/TCO
4.4 Industry Value Chain Analysis
4.5 Porter's Five Forces
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Suppliers
4.5.3 Bargaining Power of Buyers
4.5.4 Threat of Substitutes
4.5.5 Competitive Rivalry
4.6 Insights into the Latest Trends and Innovations in the Market
4.7 Insights on Recent Developments (New Product Launches, Strategic Initiatives, Investments, Partnerships, JVs, Expansion, M&As, etc.) in the Market
5 Market Size & Growth Forecasts
5.1 By Product Type
5.1.1 Storage Tank Water Heaters
5.1.2 Tankless Water Heaters
5.2 By Capacity
5.2.1 Small
5.2.2 Medium
5.2.3 Large
5.3 By End Users
5.3.1 Commercial
5.3.2 Residential
5.4 By Distribution Channels
5.4.1 Online
5.4.2 Offline
5.5 By Geography
5.5.1 Central Region
5.5.2 Western Region
5.5.3 Eastern Region
5.5.4 Southern Region
5.5.5 Northern Region
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
6.4.1 Ariston Thermo
6.4.2 Rheem Manufacturing
6.4.3 A. O. Smith
6.4.4 Saudi Ceramics Company
6.4.5 Orbital Horizon (O-Horizon)
6.4.6 Bradford White
6.4.7 Bosch Thermotechnology
6.4.8 Stiebel Eltron
6.4.9 Jaquar
6.4.10 Reem Water Heater Factory
6.4.11 Everhot (Al Huraiz Industries)
6.4.12 Rinnai
6.4.13 TESY
6.4.14 Vaillant
6.4.15 Viessmann
6.4.16 Whirlpool
6.4.17 State Water Heaters
6.4.18 Midea Group
6.4.19 Lamah Co. Ltd.
7 Market Opportunities & Future Outlook
7.1 Smart connected storage heaters for multi-dwelling units (retrofittable with SASO-compliant controls)
7.2 Heat-pump electric water heaters for hotels/hospitals to meet efficiency targets in Western/Central regions
7.3 E-commerce-exclusive compact instant units targeting secondary cities and rental stock
For more information about this report visit https://www.researchandmarkets.com/r/fnl97h
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.