Vietnam Water Heater Market

Vietnam Water Heater Market Size and Share:

The Vietnam water heater market size was valued at USD 240.53 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 581.24 Million by 2033, exhibiting a CAGR of 9.40% during 2025-2033.  The market is driven by rapid urbanization, which is increasing the demand for water heaters in both residential and commercial sectors. Moreover, inflating disposable incomes, along with a rising focus on modern and energy-efficient appliances, are encouraging consumers to adopt advanced water heating systems. Additionally, the expanding hospitality and tourism industries, coupled with government initiatives promoting energy-efficient solutions, further augment the Vietnam water heater market share.

The market is significantly influenced by the growing disposable incomes of the middle class, which is enabling consumers to purchase water heaters. As per an industry report,  it is estimated that more than 50% of the Vietnam population will reside in urban areas by the year 2040, and it is expected to rise to 57.3% by 2050. The rapid urbanization, along with an increasing number of residential and commercial complexes, adds to the increasing demand for effective water heating systems. Also, continual technological advancements are leading to the development of energy-efficient and smart water heaters that attract consumers. This, in turn, enhances the market appeal. In addition to this, the implementation of government initiatives promoting energy-efficient appliances is propelling the uptake of water heaters, as consumers are motivated by subsidies and rebates.

Additionally, the growth of the hospitality and tourism industries is fueling market demand, as hotels and resorts need consistent water heating systems to serve their guests. According to industry reports, Vietnam saw 1.75 Million foreign visitors in December 2024, a 27.4% increase over December 2023. This surge in tourism has led to a higher demand for reliable water heating systems to meet the needs of tourists in various accommodations. Furthermore, with Vietnam's growing emphasis on infrastructure development, especially in rural regions, there is an increased requirement for water heaters. Apart from this, the awareness of health benefits associated with hot water usage, such as improved hygiene and sanitation, is another growth-inducing factor. Besides this, the changing lifestyle, with individuals looking for modern and automated living spaces, continues to drive the preference for sophisticated water heating solutions in the residential market.

Vietnam Water Heater Market Trends:

Growth in Solar Water Heater Adoption

Vietnam's growing focus on renewable power is reflected in the rising use of solar water heaters, fueled by increased awareness of energy efficiency and environmental factors. According to industry reports, solar and wind power installations in the country have expanded significantly, with solar capacity rising from 86 MW in 2018 to over 16.5 GW by the end of 2020 and wind power growing from 0.2 GW in 2018 to 4.6 GW in 2022. This shift towards renewable energy has spurred a preference for eco-friendly and energy-efficient water heating solutions that not only provide reliable hot water but also help reduce energy consumption, lower utility costs, and minimize carbon footprints. As a result, both residential and commercial sectors in urban and rural areas are increasingly opting for solar water heaters to achieve greater sustainability. With continued efforts from both the public and private sectors, the demand for solar water heaters is expected to keep rising.

Expanding Construction Activity

The growth of the construction industry is significantly impacting the Vietnam water heater market growth, driving demand for water heating solutions in residential, commercial, and industrial buildings. As per an industry report, in 2023, Vietnam's construction industry was valued at USD 95.8 Billion, growing by 5.4%. The sector is projected to grow at 7% annually from 2024 to 2027, supported by a USD 30 Billion national budget, making it one of Southeast Asia's fastest-growing markets. With a steady increase in urbanization and a growing middle-class population, the demand for modern housing and infrastructure is on the rise. Residential complexes, office buildings, and hotels need efficient water heating systems to meet their users' requirements. This increase in construction activity, especially in cities such as Hanoi and Ho Chi Minh City, is directly proportional to a greater demand for conventional as well as energy-saving water heating solutions. Also, since the construction activities are primarily concentrating on high-end developments, the need for sophisticated technologies, such as smart water heaters and energy-efficient systems, is increasing.

Increased Government Support through Policies and Incentives

The government of Vietnam has been implementing various policies and incentives to promote the use of renewable energy sources, including solar power, which in turn is enhancing the Vietnam water heater market outlook. As such, in 2025, Vietnam introduced Decree No. 58/2025/ND-CP, offering up to 12 years of fee exemptions for green energy projects, including wind and solar. Projects using 100% green hydrogen or ammonia can receive up to 50% fee reductions over 12 years. This has led to a growing interest in solar water heaters, which harness the abundant sunlight in the region to provide hot water, thereby reducing dependence on conventional energy sources. Furthermore, the government is providing financial benefits, including subsidies and tax credits, to both companies and individuals to install efficient systems. The policy structure also involves initiatives to inform consumers about the environmental and cost-saving benefits of using energy-efficient water heaters over conventional ones, enhancing market penetration. Ongoing government support will further drive the market for high-efficiency solar water heaters.

Vietnam Water Heater Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam water heater market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type and application.

Analysis by Product Type:

• Electric Water Heater
• Solar Water Heater
• Gas Water Heater
• Heat Pump Water Heater

Electric water heaters are a key segment in the market due to their ease of use and relatively low cost. Electric water heaters are widespread in urban regions as they are easy to install and work dependably. With urban growth and rising incomes, the demand for electric water heaters has grown considerably. Customers like electric models as they use less energy, have smart controls, and can warm water in less time without the need for external fuel. This segment will keep on expanding as the electricity infrastructure develops throughout the nation. These factors make electric water heaters a first preference for household as well as commercial usage.

Solar water heaters are gaining popularity in Vietnam as they are not only energy-efficient but also environmentally friendly. With Vietnam's tropical weather, solar energy is readily available, making solar water heaters a great solution for most consumers looking for sustainable options. Moreover, incentives by the government for renewable energy also positively impact this segment, prompting homeowners and companies to turn to solar heating systems. Increasing consciousness towards the environment and escalating energy prices are fueling the demand for solar water heaters. These factors position the solar water heater segment for remarkable growth in the future years.

Gas water heaters are also preferred in the market due to their high efficiency and quick response. These systems are widely used in residential and commercial applications, particularly where natural gas is easily accessible. Gas water heaters are popular for their capability to deliver constant hot water without the energy constraints that might affect electric models. However, they need proper installation and ventilation, which increases the initial setup cost. With the increasing demand for efficient and energy-saving water heating facilities, this segment maintains a strong market presence in Vietnam.

Analysis by Application:

• Residential
• Commercial/Industrial

The residential market segment is specifically significant as several households appreciate the convenience and comfort of water heaters. With the rise of disposable incomess and the development of the middle class, household demand for water heaters is on the increase, especially in cities. Electric, solar, and gas water heaters are preferred, offering households convenient and efficient ways of hot water. The shift towards modern living and the growing focus on energy-saving devices are driving industry growth. With various households opting for water heating systems, the residential sector will also be a major contributor to the expansion of the market.

Commercial and industrial sectors are major drivers for industry, with institutions and organizations requiring efficient hot water systems for various applications. Hotels, hospitals, and industries require high-capacity water heaters to ensure business efficiency along with hygiene standards. Commercial-grade water heaters with electricity, solar, and gas inputs are designed to withstand heavy usage. With Vietnam's economy continuing to improve, commercial and industrial applications of water heaters become more popular in the hospitality, healthcare, and manufacturing industries, leading to the demand. The sector will also see more investments as corporations seek power-efficient options for commercial-scale operations.

Regional Analysis:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Northern Vietnam, with the key cities being Hanoi, is a huge market for water heaters in the country. North Vietnam has relatively colder winters compared to the rest of the country, and individuals are therefore more likely to use water heaters, especially electric and gas water heaters. With rapid urbanization in the north, several households and businesses seek improved water heating appliances for convenience and comfort. Besides that, the rising construction sector and rising disposable incomes also drive the expanding market. Vietnam's northern demand for effective, long-lasting water heaters is in line with the general trend of adopting advanced and sustainable water heating technologies.

Central Vietnam, including Da Nang and Hue, has unique market conditions due to its tropical climate and geographically variable location. This region has both hot and humid climates, with relatively cooler weather in the hill areas, leading to demand for water heaters primarily for residential and commercial markets. Solar water heaters are gaining traction here due to the abundant sunlight in this area and rising environmental awareness. The growing tourism industry, especially along the coast, also raises the need for water heaters in resorts and hotels. With urbanization and rising disposable incomes, the Central Vietnam region is increasing the requirement for energy-efficient water heating systems.

Southern Vietnam, which includes Ho Chi Minh City, is the largest and most vibrant region in the country, contributing to a higher rate of acceptance of water heaters, both for household and business use. The high rate of urbanization in urban cities like Ho Chi Minh City, along with the rising standards of living, is generating demand for high-efficiency and sophisticated water heating units. Solar water heaters are particularly prevalent in the south due to the extensive sunshine. Moreover, the growing hospitality and commercial sectors are driving demand for high-capacity, large-scale water heaters.

Competitive Landscape:

The market is dominated by a variety of players selling both local and foreign products. The market has a combination of established players and new entrants, all competing for their share of the increasing demand for household and commercial water heating solutions. Major drivers of competition include product quality, efficiency, and price competitiveness. Customers increasingly value energy-saving capabilities and environment-friendly features, prompting businesses to innovate and bring in more efficient, technologically advanced water heaters. Distribution channels are another competitive area, with businesses employing conventional retail and digital channels to sell to a larger customer base. After-sales support and guarantee are the other segments where businesses differentiate themselves, as customers seek dependable and lasting solutions. According to the Vietnam water heater market forecast, as the middle class expands and urbanization increases, the market competitive environment will continue to be dynamic, with both price-sensitive and quality-seeking consumers influencing the evolution of the market.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam water heater market with detailed profiles of all major companies.

Latest News and Developments:

• May 2025: DeAir Joint Stock Company hosted a training session on Midea Heat Pump technology, focusing on its energy-saving benefits, with models like the 170-liter central water heater offering up to 82% energy savings. DeAir, now an official Midea distributor in Vietnam, highlights these pumps for their efficiency, durability, and environmental friendliness.
• March 2025: The Hope Foundation, in collaboration with Opella Vietnam, signed a sponsorship agreement to build 20 toilets and a bathroom with a water heating system for Bo Trach Boarding School in Quang Binh. The project, benefiting 7,500 students, aims to improve sanitation and hygiene, scheduled for completion in September 2025.
• August 2024: Viessmann unveiled the Vitowell Easy Series electric instant water heaters that provide consistently hot water with sophisticated temperature control and safety features like mechanical ELCB and scalding protection. Available in Classic, Premium, and Deluxe models, they offer durable designs, various temperature regulation options, and luxury shower accessories for maximum comfort.
• February 2023: Rheem Vietnam, a subsidiary of Rheem Australia, began construction of its third water heater factory in Binh Duong. The USD 46 Million investment aims to expand Rheem’s footprint in Asia, producing 348,000 water heaters annually, with a focus on sustainability and emission reduction.

Vietnam Water Heater Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam water heater market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam water heater market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam water heater industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.