North America Gas Water Heater Market Analysis

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.

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. 

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.