Vietnam is in the process of rapid urbanization with the rate determined by areas with urban functions increasing from 30.5% in 2010 to nearly 40% in 2020 and currently, the urbanization rate is about 42%. Besides, with the expanding middle class and increasing disposable income in the country, as a result, there are modern devices to support daily life such as air conditioners, washing machines, refrigerators, etc... have become more widely available.
In particular, the demand for water heaters in apartments, hotels, and offices is also increasing because this is considered essential equipment to improve comfort and hygiene. According to a recent study, Vietnam's water heater market size is predicted to reach a growth rate (CAGR) of 9.27% in the period 2024-2032.
With the growth rate of the water heater market increasing steadily in recent years, the water heater market in Vietnam has become a "delicious piece of cake" attracting many domestic and foreign investors to join the race. Competition is increasingly fierce.
Thanks to steady steps and early entry into the Vietnamese market, some big brands such as Ariston, Ferroli, Rossi,... have contributed to changing the habit of heating water to using water heaters, introducing new product lines, be it improvements in design or development of new technology to attract consumers with prices that are relatively suitable for each segment and greatly contribute to shaping the hot water dispenser market.
Some water heater products of brands in the Vietnamese market
Companies whose main products are water heaters
Ariston
Ariston has been the world's leading water heater brand for more than 90 years from Italy and has been present in Vietnam for more than 30 years. As a brand of the Ariston Group - the world's leading expert in the field of heating, Ariston currently has a rich product portfolio with models such as residential and industrial heat pumps, online water heaters, and water heaters direct, indirect, and solar water heaters.
Ariston's net revenue and profit after tax tend to grow quite stably in the 3-year period 2020-2022, with a growth rate of 20-40% per year. By 2022, Ariston has brought in nearly VND 2000 billion in revenue with a profit of more than VND 250 billion.
Ferroli
Ferroli Asean Co., Ltd., a member of Ferroli Group, is a 100% Italian-invested enterprise specializing in manufacturing thermal equipment including direct and indirect water heaters; solar water heaters, and heat pumps. By 2008, Ferroli Asean Co., Ltd. was officially established thanks to the Ferroli Group's strategy of restructuring investment items for the Chinese and Southeast Asian markets.
Although it has just entered the Vietnamese market, Ferroli has affirmed its position and is among the TOP largest manufacturers and suppliers of water heaters in Vietnam. In addition, Ferroli also exports water heater products to many countries in the region such as Korea, Taiwan, Thailand, and Indonesia.
About the business situation in the three years 2020-2022. Although there was a slight decrease in 2022 in both net revenue and profit after tax, in general, Ferroli still tended to develop stably, increasing by about 20% compared to 2020, reaching revenue of nearly VND 640 billion with a profit of nearly VND 80 billion.
Net revenue of some water heater products in the Vietnamese market
(Source: Vietdata)
Rheem
An American company with nearly 100 years in business, Rheem has been a pioneer in developing some of the most innovative innovations in water heating. With a diverse product range, Rheem meets most water heating needs throughout ASEAN. The brand has installed more than one million water heaters in the ASEAN region. Rheem's factory has been operating in Binh Duong since 2013, this is a milestone in expansion investment after this brand officially entered the Vietnamese retail market.
Rheem's net revenue tends to grow quite steadily each year. In 2022, the brand's net revenue achieved nearly VND 600 billion. However, contrary to the net revenue trend, the company's after-tax profit situation fluctuated strongly. After a sharp fall in profits in 2021, the profit situation showed positive signs in 2022, recording nearly VND 30 billion.
Atlantic
Atlantic water heater belongs to a famous French brand, founded in 1968. Atlantic is highly appreciated for its quality and top reputation in Europe. In addition to providing hot water system equipment, Atlantic also focuses on manufacturing heating equipment, and air conditioning fans.
The Atlantic brand has just appeared in the Vietnamese market but has gradually conquered consumer trust with reasonable prices and diverse product quality. Atlantic recorded strong revenue growth in 2021 but profits trended negative. Specifically, the brand's revenue increased by more than 50% in 2021 and remained almost unchanged in 2022, recording about VND 105 billion. Meanwhile, the brand's after-tax profit was not positive, recording negative profits for three years.
Profit after tax of some water heater products in the Vietnamese market
(Source: Vietdata)
The company has many different product lines
Rossi
Rossi is a water heater brand belonging to Tan A Dai Thanh Group. Established in 1993 and maintaining its position as the leading manufacturer and supplier of total water solutions in Vietnam, the group currently owns a system of many companies, branches,... an ecosystem of 9 product lines. Among them, stainless steel tanks, plastic tanks, solar water heaters, and Rossi water heaters are holding a high market share in the Vietnamese market.
During the period 2020-2022, Tan A Dai Thanh Group witnessed a strong growth trend in net revenue. In 2022, revenue rocketed 5 times compared to 2021, recording more than VND 3000 billion. Meanwhile, profit after tax increased 200 times in 2021 but then tended to decline in 2022, reaching only nearly VND 130 billion.
Panasonic
Panasonic is an international brand of Panasonic Corporation. This is Japan's largest electronics company. Panasonic has been present in Vietnam since the 1950s, then marked its official presence in Vietnam in 1971 with its first manufacturing factory with the goal of contributing to Vietnamese society through activities from research and development, production, distribution, and sale of many product lines such as kitchen appliances, TVs, air conditioners, health equipment,... and also many products about water heaters.
Kangaroo
KANGAROO Group was founded in 2003 by two businessmen. Throughout 20 years, focused business orientation has helped KANGAROO create many successes and become an industry-leading enterprise serving the health and life comfort through useful innovations from water purifiers and household goods, appliances, kitchen equipment, energy to other consumer electrical appliances, including water heaters serving bathroom amenities.
Electrolux
Electrolux is a global corporation of household and specialized appliances with about 20 product lines of lawnmowers - refrigerators and many other household electronic and refrigeration items: bathroom equipment, kitchen equipment, dialysis blood,... In 1993, Electrolux entered the Vietnamese market and set up a representative office in Hanoi. After more than 30 years of operation in Vietnam, Electrolux has hundreds of employees working in offices and customer care branches in the North, Central, and South.
AO Smith
Established in 1874, after nearly 140 years of operation and development, AO Smith has achieved steady progress and affirmed its position in the domestic market as well as in developing machine products. hot water and commercial and residential water treatment to neighboring countries. Following its successes in major markets in North America, India, and China, in 2012, AO Smith promoted trade in Vietnam and Southeast Asian markets.
Water heaters are becoming a popular choice in Vietnam for many users, mainly due to the convenience and benefits it brings. In a rapidly developing urban environment, water heaters help provide hot water right at home, conveniently meeting daily needs such as bathing and laundry.
Furthermore, advanced technologies such as tankless water heaters, and smart water heaters with remote control and energy-saving features. This further promotes the development of the water heater market in the future.
Source: Vietdata’s 2022 Water Heater Market Report