The water heater market will warm up in the long run
In 2018, the overall growth of the domestic water heater industry slowed down, creating a new low in sales, and also ushered in a low consolidation period. By the industry view, the water heater market, as a supporting industrial chain of the real estate, will always be affected by the fluctuation of the real estate market. Actually, nothing else than the severe regulation and control on the real estate industry in 2018 that caused a low tide in the water heater market.
In 2019, the water heater market remained a slowdown, while the year-round development was not optimistic. According to forecast data from AVC, the sales volume of electric and gas water heaters in 2019 will be 31 billion yuan and 32.1 billion yuan respectively, with a year-on-year decline of 6.8% and 6.3%.
According to the forecast, the performance of the water heater market in 2019 will be unsatisfactory. However, it also shows that the market will turn better after a long time. The data of AVC also shows that by 2021, the sales volume of electric and gas water heaters will reach 31.3 billion yuan and 32.9 billion yuan respectively, up 0.5% and 1.3% year-on-year. In the next 2-3 years, the market will stop falling and recover to stable development.
So why the industry insiders are so confident in the long-term development of the market? Some experts believe that now the water heater market is affected by the regulation and control of the real estate market, which led the overall market to go down. However, in the long run, the real estate market is expected to recover, and bring more opportunities to the water heater market. In fact, the younger consumer groups and the increasing disposable income will help, so that the upgraded products that highlight comfortable, healthy, green and energy-saving will be more popular.
It is a good time now for the water heater market to precipitate and rectify itself. Since 2018, many unbranded water heaters have withdrawn the market. In the future, companies that do not pay attention to the brand, product quality and service will be eliminated, while the truly competitive ones will gain more living space and bring more excellent products to users.
At the current stage, consumers value the products itself, brands, services, etc. than the price, which is in line with the general development trend of the water heater market. For this reason, the manufacturers that focus on products and services will also gain an edge in the future.
According to the experts, today's consumers pay more attention to health, and the water heater manufacturers also keep innovating in this regard, such as using copper materials for sterilization, bacteriostasis, anti-corrosion, both of which indicates the upgrading trend of water heaters. In the future, the heaters which related to health will become the hot ones, being popular among the consumers.