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), 2025 – 2034

Gas Water Heater Market Size

The global gas water heater market 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 is a device that heats water for domestic or commercial use by burning natural gas or propane as the fuel source. Gas water heaters serve a variety of purposes, including supplying hot water for bathing, cooking, cleaning, and space heating in homes, businesses, and other environments.
 

Ongoing initiatives by various entities to boost the energy efficiency of their products, coupled with user-friendly interfaces that simplify access to temperature settings and diagnostic data, are set to bolster the industry's prospects. Additionally, the regular rollout of cutting-edge solutions—such as Wi-Fi connectivity, remote monitoring, and voice control—by key industry players, underscores a pronounced focus on both business and product expansion.
 

On-demand hot water convenience, combined with smart features and environmental considerations, is set to boost the adoption of gas water heaters across diverse applications. The integration of advanced safety features, such as flame failure detection, overheat protection, and air quality sensors, will enhance product penetration. Homeowners and businesses are increasingly replacing their older, less efficient gas water heaters with newer, energy-efficient models, further fueling industry growth. Additionally, emerging markets are witnessing a surge in demand for gas water heating solutions.
 

Gas Water Heater Market Trends

Optimized performance coupled with ongoing research and development activities and increasing accessibility to gas pipeline networks, will drive industry growth. Heightened investments by key players in innovations aimed at boosting efficiency and energy savings are poised to expand the market size. Increasing rollout of incentives to boost smart appliance usage, coupled with stringent government mandates and policies, is set to shape the industry's landscape. Moreover, as urbanization surges and consumers increasingly lean towards energy-efficient technologies, is poised to enhance product penetration.
 

Gas Water Heater Market Analysis

Based on product, the instant segment is projected to surpass USD 6 billion by 2034. Increasing consumer focus to favor appliances that conserve energy and reduce utility bills coupled with competitive pricing and a range of capacities, will surge the business potential. Smart city construction projects, prioritizing environmental concerns and adhering to regulations for low NOx emissions, are set to energize business dynamics. Additionally, these products are tailored to ensure a consistent supply, especially in areas prone to power outages, further steering industry trends.
 

Based on application, the commercial segment is set to grow at a CAGR of over 7.5% through 2034. Major players in the market are increasingly focusing on strategic growth ventures and alliances, coupled with smart product innovations, to diversify their product portfolios, shaping the business outlook. Additionally, the widespread rollout of city gas distribution projects and pipeline networks, combined with stringent norms aimed at achieving high efficiency standards, is poised to boost the product demand. Growing Central Gas Distribution (CGD) projects, which enhance fuel availability coupled with rising awareness of smart appliances aimed at curbing the growing carbon footprint will complement the industry landscape.
 

The U.S. gas water heater market is likely to exceed USD 3 billion by 2034, on account of increasing environmental awareness and stringent government regulations. The introduction of stricter energy consumption standards drives competition in terms of innovation and performance. Shift toward water heaters with Wi-Fi connectivity, remote controls, and integration with home automation systems along with growing focus on sustainability, producing gas water heaters with environmentally friendly materials and low emissions will augment the industry landscape. In addition, consumers are increasingly seeking gas water heaters that offer long-term reliability, lower operating costs, and reduced environmental impact, influencing the business statistics.
 

Gas Water Heater Market Share

The competitive landscape for gas water heaters is shaped by a mix of established brands, technological advancements, market demands, and regulatory changes. Many manufacturers compete on pricing, offering a range of products at various price points to cater to both budget-conscious consumers and premium segments. Key players are investing heavily in R&D to develop more energy-efficient and durable water heaters. Providing strong customer support, warranties, and installation services can significantly enhance brand loyalty in the competitive water heater market.
 

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. This series encompasses atmospheric gas, electric, tankless, and point-of-use water heaters, each available in diverse capacities. These state-of-the-art products boast a range of capacities, straightforward installation, an LED indicator, and durability, making them suitable for both residential and light commercial applications. The introduction of these advanced products bolstered the company's portfolio and expanded its presence in the industry.
   

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