North America Storage Water Heater Market Size - By Application, By Energy Source, By Capacity, Forecast, 2025 - 2034

North America Storage Water Heater Market Size

North America storage water heater market size was valued at USD 4 billion in 2024 and is anticipated to grow at a CAGR of 6.2% between 2025 and 2034. Many households and businesses are replacing older, less efficient water heating systems with modern storage water heaters. This replacement cycle is a significant driver of market growth as consumers seek more reliable and cost-effective solutions.
 

The systems are equipped with advanced insulation and energy saving features, making them more attractive to environmentally conscious consumers and businesses. Additionally, industry collaborations are crucial for driving innovation, expanding market reach, and improving efficiency in the storage water heater market, encouraging product penetration. For instance, in January 2022, HEH Holdings LLC, the owner of the Hubbell brand, acquired RECO that provides water heating equipment and storage tanks across the U.S.
 

The industry is governed by various environmental regulations pertaining to high carbon pollutants released by heating systems. The demand for these units has increased over the years owing to their clean combustion and limited emissions in comparison to other fuels. Furthermore, the government’s inclination toward the adoption of cleaner fuels will enhance business growth.
 

Electric heaters are most suitable for domestic applications due to their simple user interface, availability in multiple sizes, and low costs. In addition, the ongoing investments by several industry players in innovations for energy savings and enhanced efficiency will foster product adoption. For instance, in February 2024, Ariston Holding N.V. announced its entry into the U.S. builder segment by adding up its business development resources.
 

North America Storage Water Heater Market Trends

• The adoption of storage water heaters in the region is robust and growing, driven by factors comprising energy efficiency, technological advancements, and the need for reliable hot water. The expansion of residential and commercial infrastructure, particularly in rapidly growing cities, has led to increased demand for storage water heaters. New constructions often incorporate the latest water heating technologies, further driving market growth?.
   
• In addition, urban areas with high population density also see higher adoption rates due to the concentration of residential and commercial buildings requiring efficient hot water solutions, contributing to the business momentum. According to the U.S. between 2023 and 2024, the metro areas experienced an increase of nearly 3.2 million residents, a 1.1% rise, bringing the total metropolitan population to approximately 293.9 million.
   
• Innovations such as smart controls and better insulation have made storage water heaters more energy-efficient, reducing energy consumption and operational costs for businesses augmenting the industry landscape. Commercial entities rely on storage water heaters for a steady and reliable supply of hot water, which is crucial for their operations. For citation, in January 2024, GE Appliances announced plans to expand its RealMAX gas water heaters line at Air Conditioning, Heating, and Refrigeration Expo 2024 in Chicago.
   
• These are further designed to meet high demand scenarios, ensuring that hot water is always available when needed. Furthermore, technological advancements and regulatory compliance further support the adoption of these systems, ensuring they meet the evolving needs of commercial users. To cite an instance, in December 2023, Rheem Manufacturing Company introduced two new products by expanding the lineup of Maximus with super high-efficiency gas water heaters.
   

North America Storage Water Heater Market Analysis

• The North America storage water heater market was valued at USD 3.5 billion, USD 3.7 billion and USD 4 billion in 2022, 2023 and 2024 respectively. Based on application, the market is segmented into Residential and Commercial.
   
• Commercial is anticipated to grow over USD 1.5 billion by 2034 driven by several key factors, including the need for a reliable and consistent supply of hot water, energy efficiency requirements, and technological advancements.
   
• Establishments including hotels, resorts, restaurants and cafes commonly use to ensure a constant supply of hot water even during peak usage times. Hot water is essential for sanitation, patient care, and various medical procedures. Storage water heaters are widely used in healthcare facilities to meet these critical needs, ensuring that hot water is available around the clock. For instance, In February 2023, Rheem Manufacturing Company released Rheem Maximus, a gas water heater with 55% higher efficiency than standard gas water heaters. Moreover, stringent energy efficiency standards support reduce operational costs and supports sustainability initiatives, driving the business scenario.
   
• Residential is anticipated to grow more than USD 4.5 billion by 2034 on account of growing requirement for hot water in kitchen and bathrooms. Shifting consumer inclination toward high energy-efficiency rating appliances on account of rising awareness of its benefits, including reduced heating bills, low power consumption, and extensive performance, will positively sway industry growth. In addition, ongoing government programs for promoting the adoption of energy efficient & ecofriendly equipment along with the growing carbon emissions will enhance the business outlook.
   

• The North America storage water heater market share accounted for 62% in 2024. Based on capacity, the market is segmented into below 30 liters, 30 – 100 liter, 100 – 250 liter, 250 – 400 liter and Above 400 liter. 100 – 250 liter is set to grow at a CAGR of over 5% by 2034 on account of enhancing energy efficiency and incorporating smart technologies in water heaters.
   
• Larger families or households with higher hot water usage often require storage water heaters with capacities to ensure an adequate and continuous supply of hot water for various domestic needs, including bathing, cooking, and laundry. For instance, In January 2022, GE Appliances launched RealMAX, its first comprehensive atmospheric gas water heater series including atmospheric gas, and electric, heaters in different capacities of 100, 150, 189 liters applicable for residential & light commercial applications.
   
• Above 400 liter will grow to USD 400 million in 2034 owing to adoption of advanced technological advancements allowing users to control and monitor their water heaters remotely via smartphone apps. Pools located in areas with lower humidity, high average wind speed, and colder regions require high-capacity heating systems, which will further enhance the industry outlook.
   
• Below 30 liter will grow to CAGR 5% owing to Increasing developments and expansion of real estate properties across residential establishments. The rising disposable income has resulted in significant improvements in living standards, shifting consumer inclination toward comfortable & efficient heating technologies. For example, AO Smith, offers ProLine 6-Gallon specialty compact electric water heater deal for installation under a counter, in a crawl space or in other tight spaces.
   
• 30 – 100 Liter is set to grow to USD 1.4 billion by 2034 on account of government mandates for the deployment of energy-efficient heating systems across public facilities. The replacement of conventional systems with energy-efficient water heaters will further drive business growth. Easy installations along with multiple control options are some of the key factors which will foster product demand.
   
• 250 - 400 liter will grow to CAGR 7% in 2034 on account of high heating output in line with low operation costs. The products are suitable for both small & big commercial applications including hotels, shopping complexes, airports, and others. Ongoing integration of temperature and control features has further provided multiple operational & cost benefits to customers.
   

• The U.S. storage water heater market accounted for USD 2.5 billion, USD 2.7 billion and USD 2.9 billion in 2022, 2023 and 2024 respectively. Because of the numerous laws that were put in place to encourage energy efficiency, the United States accounted for 73% of the market in 2024.
   
• Adoption of energy-efficient storage water heaters is encouraged by initiatives like Energy Star certification, which lowers utility costs and energy consumption. Technology advancements in storage water heaters, like the incorporation of smart features that enable smartphone monitoring and remote control, have improved the usability and efficiency of these appliances and will promote product uptake.
   
• Additionally, a lot of homes and companies are switching to contemporary storage water heaters from outdated, inefficient water heating systems. This replacement cycle is a significant driver of market growth as consumers seek more reliable and cost-effective solutions, which will drive storage water heater market growth.
   
• Canada will grow to USD 1.8 billion in 2034 on account of extreme climatic conditions, high energy costs in some areas and stringent energy efficiency standards. A substantial amount of domestic energy use in Canada is attributed to water heating, which makes up 17.2% of all household energy consumption, according to Natural Resources Canada (NRCan). Manufacturers are also concentrating on creating cutting-edge water heaters with improved functionality and environmental advantages. The use of storage water heaters in Canadian homes is also anticipated to increase because of government incentives and initiatives to support energy-efficient appliances.
   

North America Storage Water Heater Market Share

• With over 38% of the market share, the top 5 companies in the North American storage water heater industry are AO Smith, Bradford White, Rheem Manufacturing, Bosch, and Lochinvar. Offering a variety of storage water heaters to satisfy the various needs of customers, several well-known producers and brands fight for market dominance.
   
• Customers looking for dependable and effective water heating solutions have many options owing to the numerous local and regional firms that contribute to the competitive scene. These collaborations can take many different forms, including joint ventures, strategic alliances, and mergers and acquisitions. Industry partnerships are also essential in the market for a few reasons, such as increased efficiency, market expansion, and innovation.
   

North America Storage Water Heater Market Companies

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

• American Water Heater
• A.O. Smith
• Ariston Thermo USA
• Bosch Thermotechnology
• Bradford White Corporation
• Hubbell Heaters
• Lochinvar
• Rheem Manufacturing Company
• Rinnai America Corporation
• State Industries

• Bosch Thermotechnology specializes in offering premium heating and cooling systems for use in commercial, industrial, and residential settings. The Tronic 5000T Electric Storage Water Heater, which comes in 30 to 50 gallon capacity, is one noteworthy model. Further, the company headquartered in Wetzlar, Germany, the company reported revenues of USD 5.39 billion in 2023 and employs approximately 14,600 associates.
   
• Bradford White is an American manufacturer specializing in water heating, space heating, combination heating, and storage solutions for residential, commercial, and industrial applications. The company offers a wide product portfolio including water heaters, storage tanks, and boilers. The company, in 2024, presented their selection of their innovative and energy-efficient water heating solutions during the show in the U.S. at the PHCC conference.
   

North America Storage Water Heater Industry News

• In February 2025, Rinnai America Corporation, showcased its high performance water heating solutions at the 2025 AHR expo, in Florida. The company’s product lineup is designed to make installation and maintenance easier for PROs, while driving energy efficiency and sustainability. Further, it plans to focus on enhancing performance, reducing setup times and providing flexible solutions to meet PRO needs in both residential and commercial applications.
   
• Ariston Holding N.V. announced in February 2024 that it was expanding its business development resources to enter the U.S. construction market. Ariston USA intends to introduce its plumbing and water heater solutions to its builder market with the help of seasoned company executives. This will lead the market's electrification transition and greatly increase its footprint.
   
• In January 2024, A.O. Smith acquired Pureit, a Unilever PLC business at the purchase price of USD 120 million. The brand complements the company’s premium brands in the market and their strength in e-commerce will allow us to expand our presence on that channel. Further the acquisition aligns with the company’s strategy of adding scale and enhance their premium water treatment product portfolio and distribution footprint.
   
• In September 2022, Essency launched EXR water heater in the U.S which can lasts for 30 years. This world’s first on-demand tank water heater suitable for residential purposes, has multi-tasking abilities, modern technology, polymer storage tank, and high energy efficiency. This innovative introduction accelerated the demand for water heaters in U.S., thereby complementing the business scenario and strengthening company’s position in the market.
   

North America storage water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “(‘000 Units and USD Million)” from 2021 to 2034, for the following segments:

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Market, By Application

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

Market, By Capacity

• Below 30 Liter
• 30 – 100 Liter
• 100 – 250 Liter
• 250 – 400 Liter
• Above 400 Liter

Market, By Energy Source

• Electric
• Gas

The above information has been provided for the following countries:

• U.S.
• Canada