Thailand’s water heater market is expected to decline by around 10% this year due to economic pressure, according to Stiebel Eltron Asia Co Ltd, a manufacturer of water heaters and water filters.
“This year is a very difficult time for the Thai economy,” said Roland Hoehn, chief executive of Stiebel Eltron Asia.
The company estimates the total market value for water heaters reached 3.3 billion baht in 2025.
High household debt and weaker spending power are causing many consumers to postpone purchases, he said.
In addition, war in the Middle East has contributed to rising energy prices such as electricity, while costs for materials such as copper have increased for the company.
There is also a glut in Thailand’s housing market, particularly in Bangkok and surrounding areas, said Mr Hoehn.
Despite these negative factors, the company aims to achieve 2% year-on-year revenue growth this year by launching new products, expanding sales in the home and condo renovation sector where there is demand for water heaters, and focusing on e-commerce channels, he noted.
Stiebel Eltron Asia targets sales revenue of 1.4 billion baht this year, with 77% from the domestic market, 21% from exports, and 2% from original equipment manufacturing.
Thailand is a key production hub and export base in Asia-Pacific, and the company is exploring new international markets.
The top three destinations for its locally manufactured products are Indonesia, Vietnam and the Philippines.
The company operates three factories in Thailand and its goods are highly regarded for their quality, said Mr Hoehn.
Regarding El Niño’s impact, he said weather patterns generally have less influence on the company’s performance compared with economic factors.
“In general, I worry more about the economy than the weather,” said Mr Hoehn.
The Thai Meteorological Department reported in August that developing El Niño conditions are expected to push temperatures above normal from September to November this year.