U.S. Gas Water Heater Market - By Product, By Application, By Capacity, By Fuel & Forecast, 2024 – 2032

U.S. Gas Water Heater Market Size

U.S. gas water heater market size was valued at USD 1.79 billion in 2023 and is estimated to grow at a CAGR of 6.1% from 2024 to 2032. A gas water heater is an appliance that heats water for residential or commercial use using natural gas or propane as its fuel source. It typically consists of a storage tank that holds a specified volume of water and a burner that heats the water as needed.

Ongoing advancements in technology and changes in consumer behavior along with higher adoption in areas with established natural gas infrastructure will drive the industry scenario. The tankless models offer benefits such as on-demand heating and space savings, appealing to homeowners looking for efficiency and convenience, contributing to the product demand. Further, many governments are implementing supportive policies, including tax credits, feed-in tariffs, and renewable energy targets, will encourage the product adoption.
 

Shifting focus on consumers on High-efficiency gas water heaters, which often come with better insulation and improved burner technology owing to both rising energy costs and environmental concerns will drive the product demand. The U.S. government has implemented stricter energy efficiency standards for water heaters, pushing manufacturers to innovate and produce more efficient gas models, thereby contributing to the business momentum. Additionally, utility companies and government programs provide rebates for purchasing energy-efficient gas water heaters, which can stimulate adoption and make these products more attractive to consumers.
 

U.S. Gas Water Heater Market Trends

Gas water heaters typically heat water faster than electric models, providing a more immediate supply of hot water and especially beneficial for larger households with high hot water demands which will stimulate the business statistics. Advances in technology have led to the development of high-efficiency gas water heaters, thereby strengthening the product penetration. Many areas in the U.S. have well-developed natural gas infrastructure, making it convenient and accessible for homeowners to choose gas water heaters. In addition, government programs that promote the use of natural gas as a clean alternative to electricity can enhance the appeal of gas water heaters, driving the market growth.
 

U.S. Gas Water Heater Market Analysis

Based on product, the market is segmented into instant and storage. Storage is anticipated to grow over USD 2.95 billion by 2032 owing to consumer preferences, technological advancements, and regulatory influences. Storage gas water heaters remain a popular option for many households due to their ability to provide a large volume of hot water quickly. Consumers are increasingly opting for high-efficiency storage gas water heaters, which use advanced insulation and burner technology to reduce energy consumption, leading to market growth. Furthermore, regulatory requirements mandating higher efficiency for water heaters are influencing the manufacturers to develop more efficient storage models, additionally driving the business scenario.
 

Based on application, the U.S. gas water heater market is segmented into residential and commercial. Residential is set to grow at a CAGR of over 5.5% till 2032 owing to being a preferred choice in many regions, particularly in areas with established natural gas infrastructure. Many consumers are prioritizing energy efficiency owing to the rising energy costs and environmental concerns. The high-efficiency gas water heaters are designed to reduce energy consumption, boosting the industry landscape. Additionally, the integration of smart technology in gas water heaters, including Wi-Fi connectivity for monitoring and control, is driving interest among tech-savvy consumers, thereby contributing to the business momentum.
 

Based on fuel, the market is segmented into Natural Gas and LPG. Natural Gas is anticipated to grow over USD 1.03 billion by 2032 owing to growing integration of smart technology. Growing preference for high-efficiency gas water heaters, spurred by incentives and regulations promoting energy-efficient appliances will boost the industry landscape. Natural gas is generally less expensive than electricity in many regions, resulting in lower operating costs for gas water heaters. This long-term savings makes them financially appealing. Stricter energy efficiency standards and building codes are encouraging the adoption of more efficient gas water heaters. Furthermore, while natural gas water heaters often have a higher initial cost compared to electric models, their lower operating costs (due to cheaper fuel prices) make them appealing in the long run, thereby driving the business outlook.
 

U.S. Gas Water Heater Market Share

In the U.S. gas water heater industry, established players are competing for market share, navigating shifting consumer preferences and regulatory hurdles. The companies emphasize innovation, efficiency, and active customer engagement strengthening the business landscape. They invest in Research & Development activities to create more efficient and technologically advanced products. The established brands continue to leverage their reputation and customer loyalty while some players focus on lower cost products to capture the market share.
 

U.S. Gas Water Heater Market Companies

Eminent players operating in the U.S. gas water heater industry are:

• A.O. Smith
• American Water Heater
• Ariston Thermo USA
• Bosch Thermotechnology
• Bradford White
• Hubbell Heaters
• Lennox International
• Noritz
• Parker Boiler
• Rheem Manufacturing
• Rinnai America
• State Industries
• Westinghouse Electric
   

U.S. Gas Water Heater Industry News:

• In May 2024, the U.S. DOE proposed efficiency standards on water heaters to preserve the ability of the consumers to continue to choose from all types of tankless water heaters. The rule was originally proposed in 2023 and published on April 30, 2024, limiting the consumer access to certain tankless water heater products. Further, the company along with the DOE is continuously striving to meet energy savings goals in the United States.
   
• In February 2024, Ariston USA, a global leader in heating and water heating products, officially entered the U.S. builder segment, bolstering its presence with top-tier business development resources. The company manufactures water heaters under the HTP and American Standard Water Heater brands, aims to be a comprehensive supplier of premium water heaters for both new residential constructions and remodeling projects.
   

The U.S. 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 & ‘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