Dip Tubes Market – Global Industry Dynamics 2018-19, Trends and Forecast, 2020–2027

A dip tubes is a pipe that is generally made of plastic and is located inside a water heater tank. It is used to transport cold water to the bottom of the water heater tank and hot water to the top of the water heater tank. Rise in demand for water heaters across the world is boosting demand for dip tubes across the world. Among the various types of water heaters, electric water heaters are increasing in popularity. This is expected to drive demand for dip tubes across the world.

Driving Factors:

  • A dip tubes helps in the efficient working of a water heater. Globally, water heaters are estimated to constitute about one-fifth of the average household energy use. With a rise in energy costs and environmental concerns, demand for efficient water heaters is on the rise. Dip tubes increase the efficiency of water heaters. Therefore, good quality dip tubes are required to increase water heater efficiency. This is expected to boost demand for efficient water heaters across the world, which, in turn, is anticipated to propel demand for dip tubes.

  • Development of commercial infrastructure across the world is increasing demand for water heaters, which is subsequently driving demand for dip tubes across the world.

  • A major opportunity lies for dip tubes manufacturers in solar water heaters. Solar water heaters use unconventional energy sources to heat water. The heaters utilize lesser energy than conventional water heaters.

  • In developed regions such as North America and Europe, there is already an increase in the installation of solar water heaters, and the installations are expected to increase in the future. Thus, expansion in the solar water heater market in developed regions is estimated to present a significant opportunity for the growth of the dip tube market.

Market Segmentation:

  • The global dip tubes market can be segmented based on end-users, distribution channel, and region.

  • Based on end-use, the global dip tubes market can be classified into residential water heaters and commercial water heaters. The residential and commercial water heaters segments can be further sub-segmented into gas and electric water heater.

  • In terms of distribution channel, the global Dip Tubes market can be categorized into online channel and offline channel.

  • Based on region, the global dip tubes market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to be a prominent region of the dip tubes market during the forecast period. The U.S. is expected account for a dominant share of the market in North America from 2018 to 2026, followed by Canada. Europe constitutes a significant share of the global Dip Tubes market. Germany, the U.K., France, Italy, and Spain are major countries of the market in the region. Asia Pacific is anticipated to be a significant region of the dip tubes market across the world in the near future. China is expected to be a prominent country in the dip tubes market in Asia Pacific in the next few years. Japan, South Korea, and India are other major countries of the dip tubes market in the region. In India, there is an increase in the installation of solar water heaters. In 2014, as per the NITI Aayog, the government of India had a minimal share of 1.6% of the total heating capacity of solar water heaters installed across the world. The government of India provides incentives for the growth of the solar water heaters market in India, which is expected to drive demand for dip tubes across India. GCC is projected to account for a major share of the market in Middle East & Africa, followed by South Africa, in the near future. Brazil is likely dominate the Dip Tubes market in South America during the forecast period.

Competitive Landscape:

  • Major companies operating in the global Dip Tubes market are A. O. Smith Corporation, Apcom, Rheem Manufacturing Company, Reliance Water Heater Company, Sears, Sigma Polymers Engineering Company, Sapphire Fabrications, and GCE Group among others.

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