North America Gas Water Heater Market Size

North America Gas Water Heater Market was valued USD 2.3 Billion in 2023 and is estimated to grow at a CAGR of 6.4% from 2024 to 2032. A gas water heater is a device that heats water for residential or commercial use using natural gas or propane as its fuel source. The water heater draws in cold water, heats it via a gas burner, and then distributes the heated water to taps, showers, appliances, and other fixtures.

Growing energy efficiency preferences, fuel costs, and regional energy policies will propel the product adoption. Shifting focus toward more energy efficient and environmentally friendly equipment both across residential and commercial sectors will augment the market landscape. Both the U.S. and Canada have set high standards for water heater efficiency, incentivizing the adoption of high-efficiency models, especially those with ENERGY STAR ratings. Furthermore, consumers are increasingly investing in expensive gas water heaters to benefit from energy savings thereby driving the market growth.

Tankless gas water heaters are gaining popularity for their ability to heat water instantly, eliminating the need for a storage tank which will stimulate the business statistics. The instant water heaters are compact and easier to fit into smaller homes, condos, and apartments, a trend that aligns well with the increasing number of urban residences across North America which will complement the product penetration. Moreover, the rise in housing developments, remodeling and energy-efficient upgrades is boosting the demand for gas water heaters, especially in regions where natural gas is widely available and affordable.

North America Gas Water Heater Market Trends

Many consumers are adopting smart water heaters connected to home automation systems, allowing for remote monitoring and control, which can increase the energy efficiency leading to enhanced product growth. Some utility providers are offering incentives for smart gas water heaters that allow for demand response programs, where heaters can be controlled to reduce energy usage during peak demand times, thereby augmenting interest in smart models. In addition, growing utilization across industrial applications especially in food service and manufacturing, are increasingly using high-capacity gas water heaters for cost savings.

North America Gas Water Heater Market Analysis

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Based on application, the commercial segment is anticipated to cross more than USD 1 billion by 2032, owing to their ability to ensure reliable and cost-effective heating. Hotels and resorts require large volumes of hot water to accommodate guest rooms, laundry facilities, kitchens, and spa services. Gas water heaters, especially large-capacity storage or tankless systems, are preferred because they provide rapid heating and continuous hot water, minimizing wait times. Gas water heaters are preferred for their high heat output and quick recovery rates, offer lower operational costs per unit of heat and offer consistent performance without significant downtime, augmenting the market growth.

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Based on application, the 100-250 liters gas water heaters is anticipated to grow at over 6% CAGR through 2032, owing to their capacity to supply sufficient hot water for daily needs, including multiple showers, laundry, and dishwashing, without frequent recovery times. Mid-capacity models reduce fuel consumption and offer savings on energy bills, making them ideal for families who want to balance energy savings with ample hot water. Additionally, homes in suburban and rural areas with access to natural gas lines tend to adopt these models more readily, as they are more economical over time compared to electric heaters, especially in colder regions. 

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The U.S. gas water heater market is predicted to hit USD 3 billion by 2032, especially in regions where natural gas is cheaper and readily available, such as the Midwest and parts of the Northeast. Enhanced efficiency and reduced operating costs along with space-saving benefits and integration with smart home systems will augment the demand for low-emission gas water heaters. Some states and provinces, particularly those with ambitious climate goals (like California and British Columbia), are placing stricter emission limits on gas water heaters. Rebates and tax credits are available for energy-efficient appliances, including gas water heaters, across several states and provinces will encourage the adoption of more efficient models.

North America Gas Water Heater Market Share

The competitive landscape for the gas water heater industry in North America is shaped by a combination of leading manufacturers, technological advancements, regulatory standards, and customer preferences. Leading players partner with large retailers such as Home Depot, Lowe’s, and Menards for wide consumer reach and strengthen the market presence ensuring that products are accessible to various customer segments. Companies like Rinnai offer online support and installation services, making it easier for consumers to access products and information without intermediaries.

North America Gas Water Heater Market Companies

Eminent players operating in the North America gas water heater industry are:

• A. O. Smith
• American Water Heater
• Ariston Thermo USA
• BDR Thermea Group
• Bosch Thermotechnology
• Bradford White Corporation
• GE Appliances
• Haier
• Havells India
• Hubbell Heaters
• Lennox International
• Noritz Corporation
• Parker Boiler Company
• Rheem Manufacturing Company
• Rinnai America Corporation
• State Industries
• Westinghouse Electric Corporation
  

North America Gas Water Heater Industry News

• In February 2024, Ariston USA, a global leader in heating and water heating products, made its official entry into the U.S. builder segment, enhancing its foothold with elite business development resources. The company, known for its HTP and American Standard Water Heater brands, aspires to be the go-to supplier of premium water heaters for both new residential constructions and remodeling endeavors.
  
• In February 2023, Rheem Manufacturing Company unveiled Rheem Maximus, a gas water heater boasting 55% greater efficiency than conventional models. This ENERGY STAR certified unit features fully recyclable packaging and achieves a remarkable reduction of up to 36% in CO2 and energy consumption, alongside a 75% decrease in NOx emissions. The introduction of this cutting-edge product bolstered the company's industry portfolio and presence.
  

This North America gas water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “(USD Million and ‘000 Units)” from 2021 to 2032, for the following segments:

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Market, By Product

• Instant
• Storage

Market, By Application

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

Market, By Capacity

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

Market, By Fuel

• Natural Gas
• LPG

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico