Philippines Water Heater Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Philippines Water Heater Market Growth

The surging efforts on adopting green alternatives to traditional water heating for reducing energy consumption will boost the Philippines water heater market expansion. The rising initiatives to amplify renewable energy options for homes in the country is driving the demand for solar, geothermal, wind, and hydropower solutions. In March 2025, The Philippines’ Department of Energy highlighted the guidelines for GEA-4, the fourth green energy auction for backing the addition of 9,378 MW of renewable energy capacity in the country. The rising sales of heaters on online platforms along with the growing partnerships between leading product brands and real-estate developers will influence the regional industry.

Key Trends and Recent Developments

Philippines Water Heater Market Trends

The growth of the Philippines water heater market can be attributed to the surge in the number of solar energy projects to meet the sustainability goals of the country. For instance, in March 2025, ACCIONA Energía commenced the construction of the Daanbantayan solar plant, which will begin operations by 2026, on the island of Cebu, Philippines. With an investment of €120 million, this project is expected to generate 280 GWh per year while covering the consumption of almost 300,000 people. The growing emphasis on amplifying the local production of water heaters is another important factor adding to significant market growth.

Philippines Water Heater Market Opportunities

The increasing number of health & wellness facilities, including spas and salons combined with the growth of tourism sector will play a key role in boosting the demand of the Philippines water heater market. According to industry reports, there were about 3261 spas in Philippines as of January 2025. The demand for solar water heaters is rising with the higher focus of tourism businesses on ensuring that guests have constant access to hot water to improve customer satisfaction and increase the likelihood of repeat business. The increasing developments in water-saving technologies combined with the higher push towards deploying durable and corrosion-free materials in the heaters will also uplift industry growth.

Philippines Water Heater Market Restraints

The Philippines water heater market development may be hampered by the rising concerns of high initial investments and incorrect thermostat settings. The spiking electricity bills will negatively impede the uptake of electric heaters. The issues of regular maintenance and repairs and the significant space occupied by tank-based models will also limit the regional product adoption to some extent.

Philippines Water Heater Industry Segmentation

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Philippines Water Heater Market Share

Market Insights by Product

As per the Philippines water heater market analysis, the demand for electric water heaters will rise in the country due to their lower costs of installation. These heaters are considered good for the environment as they are extremely energy efficient while using renewable energy like solar energy as a power source.

Solar water heaters will garner immense popularity across the country for their efficiency of heating. The frequent power outages, increasing electricity costs, and the intensifying energy demand are making solar energy an attractive choice. According to industry reports, the solar installation in the Philippine was poised to reach 1700 Megawatts by December 2024.

The increasing preference for gas systems owing to their affordability and ability to heat the water much faster compared to their counterparts will push the Philippines water heater industry ahead. The rising instances of power outages will fuel the demand for these heaters as they can work without electricity.

Market Insights by Technology

The increasing adoption of tankless water heaters is slated to grow in the Philippines due to their rising popularity as a modern solution for offering hot water without the requirement of a storage tank. As these heaters provide hot water on demand, their energy consumption is lesser, further increasing their uptake.

The Philippines water heater market share will expand with the growing need for storage heating solutions as they provide the benefits of durability and longevity. In June 2023, leading energy storage solution supplier Sungrow collaborated with renewable energy firm Super Energy to officially commission the largest solar-plus-storage project across Southeast Asia. Such initiatives will drive the product uptake.

The demand for hybrid water heaters will grow with their emerging popularity in Filipino households on account of their cost savings, energy efficiency, and environmental friendliness. The increasing interest in hybrid heating solutions due to their efficiency and reduction of energy consumption will boost the segment growth.

Market Insights by Capacity

The 30 – 100-liter capacity segment in the Philippines water heater market is expected to expand due to rising penetration in light commercial use and small-sized homes for providing enough hot water to cater to daily needs, such as bathing and washing. According to industry reports, the average household size across the Philippines stood at 4.1 people per household in 2022. 30 – 100-liter heaters are also favored as an economical choice as they deploy solar power for significantly reducing electricity consumption.

The demand for 100–250-liter water heaters will gain ground in the country as they offer cost savings, energy efficiency, and environmental advantages. These heaters have emerged as an excellent choice for regions with ample sunlight as they ensure an uninterrupted supply of hot water, adding to the Philippines water heater industry revenue.

The growth of larger families and the rise in the number of homes with higher usage of hot water will push the preference for 250 – 400-liter water heaters in the Philippines. The demand for 250-liter solar water heaters will especially witness a surge as they contribute to significant energy savings while positively impacting the environment.

Market Insights by Application

The robust expansion of the residential sector will greatly influence the Philippines water heater market value. Residential water heaters are increasingly penetrating in Filipino homes due to their surging usage in kitchen sinks and bathroom showers. The emerging preference for solar water heaters as they can directly use the sun's heat for providing hot water at homes while saving money on energy bills will boost the segment growth.

Commercial water heaters are gaining ground in the Philippines with the rising rate of urbanization. The growth of the hospitality sector and the surge in the number of hotels combined with the constant need for a hot water supply will add to the regional product demand. According to industry reports, the number of hotel keys across 18,818 accommodations constructed in the Philippines reached 335,592 in October 2024.

Meanwhile, the demand for industrial water heaters across the country will proliferate with rapid strides in the manufacturing of food & beverages, chemicals and pharmaceuticals. The growing inclination towards inline water heaters in industries as they offer clean water heating, water purification, and process water heating will drive the market growth.

Competitive Landscape

Other players in the Philippines water heater market report include Stiebel Eltron Phillipines, among others.