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.