North America Residential Water Heater Market Analysis

North America Residential Water Heater Market Analysis

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Based on product, the market is segmented into Instant, and storage. Storage is projected to grow by more than USD 5.25 billion by 2032 on account of their reliability, familiarity, and relatively low initial cost compared to tankless systems. Government policies and energy efficiency standards coupled with  Incentive programs from federal, state, and local governments, as well as utility companies, promote the adoption of high-efficiency water heaters. Newer models of storage water heaters are increasingly energy-efficient, incorporating advanced insulation and heat pump technologies, leading to commercial adoption. Further, integration with smart home systems allows for better energy management and convenience, will drive the industry scenario.
 

Based on Capacity, the North America residential water heater market is segmented into <30 liters, 30 - 100 liters, 100 – 250 liters, 250 – 400 liters and >400 liters. 100 – 250 liters water heaters is set to grow more than CAGR 5.5% on account of their capability to cater average-sized households with moderate hot water demand. It can adequately supply enough hot water for daily activities such as showers, laundry, and dishwashing. Lower operating costs, combined with the relatively lower upfront costs of the gas tank heaters compared to alternative technologies, contribute to their adoption. In addition, homes with existing natural gas connections prefer gas appliances due to the ease of integration into the existing infrastructure.
 

The U.S. residential water heater market is anticipated to grow over USD 3.73 billion by 2032 driven by presence of major water heater manufacturers including A.O. Smith, Bradford White and Rheem manufacturing among others. Rising per capita income and improving living standards have further escalated the product demand. Ongoing upgradation and replacement of existing models with more efficient and compact designs will augment the industry landscape. Additionally, well established natural gas infrastructure in many areas of the U.S. along with availability of the gas tank water heaters in various capacities to suit the household requirement will drive the adoption across the region.