The global smart connected residential water heaters market is expected to grow at a CAGR of 10.06 percent during the 2017–2021 period. The latest trend gaining momentum in the market is growing online retail of smart connected residential water heaters.
With the rising brand consciousness among end-consumers across the globe, the importance of renowned international retailers offering branded smart connected residential water heaters has proportionally increased. The entry of the global vendors in the market is expected to raise the online sales of smart connected residential water heaters through sales portals of pure-play e-retailers and manufacturers.
One of the major drivers for this market is increasing product premiumization. It is a market strategy adopted by market players, which invites end-consumers to buy more expensive products coupled with the value proposition. They make customers buy more expensive products by presenting a proposition with a higher value by cross-selling and upselling of the product.
Further, one of the major factors hindering the growth of this market is increasing cost of raw materials. The supply chain of a product plays a vital role in setting the price and cost strategy with suppliers, distributors, and end-consumers. The final pricing of the product is directly proportional to the total cost incurred in manufacturing a product.