Gas Water Heater Market Size - By Product (Instant, Storage), By Application (Residential, Commercial), By Capacity (Below 30 liters, 30 – 100 liters, 100 – 250 liters, 250 – 400 liters, > 400 liters), By Fuel (Natural Gas, LPG), & Forecast, 2025 – 2034

Gas Water Heater Market Size

The gas water heater market size was valued at USD 9.8 billion in 2024 and is estimated to grow at a CAGR of 6.7% from 2025 to 2034. A gas water heater provides hot water for residential or industrial purposes through natural gas or propane combustion. A gas water heater is ideally used for heating water for bathing, cooking, cleaning, and space heating in different homes, businesses, and other places.
 

Different stakeholders within the industry stand a chance of growing the business’s prospects by improving the product’s energy efficiency and by easy to use interfaces that come with the product for effortless access to temperature configurations and other diagnostics. Furthermore, the business and product growth are being enhanced by new technologies like Wi-Fi and remote control, which major investors in the sector are constantly scrambling to attain.

The convenience of having hot water whenever needed along with smart options and environmental factors is likely to accelerate the usage of gas water heaters in various settings. Incorporation of modern safety mechanisms like flame failure, overheat protection, and air quality sensors will improve product penetration. The replacement of older fixed, less efficient gas water heaters with modern energy-efficient fixtures by homeowners and businesses is expected to further propel the industry. Furthermore, more developing countries are starting to use gas water heating systems.
 

Gas Water Heater Market Trends

The increase in investments made by major players who aim to increase efficiency and save energy will result in the expansion of the market. Enhanced performance as well as the continual research and development efforts, alongside the rise in the availability of gas pipe networks, will contribute towards the progress of the industry. Additionally, the enforcement of government directives and policy promote the use of smart appliances while simultaneously expanding the use of incentives will shape the future direction of the industry. Further, with urbanization and the adoption of energy efficient technologies, product penetration is expected to improve.
 

Gas Water Heater Market Analysis

Based on the product, the Instant gas water segment is projected to reach more than USD 6 billion by 2034. Growing interest from consumers towards the adoption of energy efficient contemporary appliances to help lower utility costs together with competitive pricing and a variety of capacities will increase the business potential. Business activities will also be stimulated by the emerging smart city infrastructure projects that emphasize eco-friendly approaches and put restrictions on NOx emissions. Furthermore, these products are designed to provide a constant supply, particularly in regions with frequent power cuts, hence influencing market trends.
 

Based on application, the commercial sector is set to grow at a CAGR of over 7.5% through 2034. Prominent firms in the market are paying greater attention to innovative cooperation arrangements and product innovations aimed at growth in order to elaborate the business outlook. Further, the expansion of city gas distribution and pipeline projects, along with stringent efficiency standards regulations will grow the product demand. Increased awareness of the smart carbon-emitting appliances over Central Gas Distribution (CGD) projects expansion, which increase fuel availability, will also support the industry growth.
 

The U.S. gas water heater market is set to cross over USD 3 billion by 2034, on account of increasing environmental awareness and stringent government regulations. The implementation of higher energy-consuming criteria will stimulate the competition within the innovation and performance thresholds. The shifting focus on sustainability will further shift towards the production of gas water heaters manufactured from ecofriendly components with low emissions, while the integration of Wi-Fi connectivity, remote controls, and compatibility with home automation systems into water heaters will enhance the industry landscape. Besides, consumers are positively inclining towards gas water heaters that are more self-sustaining, cost effective in the long run, and environmentally friendly, thus affecting the business statistics.
 

Gas Water Heater Market Share

The competition is influenced by leading brands, technology, market needs, and regulation. Some manufacturers resort to competing on the pricing structure by offering both premium and budget products. Major producers are investing substantial resources toward research and development activities aimed at producing water heaters with greater energy efficiency and longer functional life. Further, stronger customer service, guarantees, and installation services can increase brand loyalty in the industry.
 

Gas Water Heater Market Companies

Eminent players operating in the gas water heater industry are:

• American Water Heater
• Ariston Thermo
• A. O. Smith
• BDR Thermea Group
• Bosch Thermotechnology Corp.
• Bradford White Corporation
• FERROLI S.p.A
• Hubbell Heaters
• Havells India Ltd.
• Haier Inc.
• Lennox International Inc.
• Noritz Corporation
• Parker Boiler Company
• Rheem Manufacturing Company
• Rinnai America Corporation
• State Industries
• Vaillant
• Westinghouse Electric Corporation
   

Gas Water Heater Industry News:

• In January 2024, AO Smith launched the Adapt Premium Condensing Gas Tankless Water Heaters equipped with X3 Scale Prevention Technology. They key features include an integrated recirculation pump, patented heat exchanger, enhanced installation flexibility and highly efficient performance. Further, the Adapt line offers two- and three-inch dual pipe venting, ½- and ¾-inch gas line options and universal indoor/outdoor installation to enhance the installation flexibility.
   
• In January 2022, GE Appliances unveiled RealMAX, marking its debut in the comprehensive atmospheric gas water heater series. Among these products are electric, tankless, point-of-use, and atmospheric gas water heaters with a variety of power ratings and capacities. These modern units have multiple outputs, easy installation, an LED indicator for power on, and are robust, which allows them to be used in residential and in some light commercial settings. The launch of these new products enhanced the company’s portfolio and its industrial presence.
   

This gas water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue & volume in “USD Million & ‘000 Units” from 2021 to 2034, for the following segments:

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Market, By Product

• Instant
• Storage

Market, By Capacity

• Below 30 Liters
• 30 – 100 Liters
• 100 – 250 Liters
• 250 – 400 Liters
• > 400 Liters

Market, By Application

• Residential
• Commercial
  • College/University
  • Offices
  • Government/Military
  • Others

Market, By Fuel

• Natural Gas
• LPG

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Austria
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Oman
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Mexico