Water heaters are emerging as technologically advanced and innovative products globally. Electric water heaters are currently one of the most popular water heaters among consumers globally. Though the global electric water heater market is moving towards maturity, continuous innovation on the part of manufacturers is driving the growth in the global electric water heater market. Water heating includes residential and commercial hot water systems. Energy efficient technologies in water heating include condensing gas water heaters, heat pump water heaters, gas and electric tank less systems, combination space/water heaters and solar water heaters. Water heating consumes 12 percent of residential energy and approximately 7 percent of commercial energy. Electric water heaters often exceed the consumption of energy for domestic activities such as cooking, refrigeration and lighting. Actual energy savings for water heaters depend on family size, heater location, and the size and placement of water pipes. Electric storage tank water heater is the most commonly used appliance for heating water. Generally, low income households prefer biofuel, coal and other sources of energy for heating water, but more wealthy household use electricity. Thus, middle-income homes are the highest consumers of electricity for heating water. However, culture and climatic condition of the particular region plays a crucial role to decide the type and size of electric water heaters used in households as well as in commercial establishments.