Gas Water Heater Market Overview:
As per MRFR analysis, the Gas Water Heater Market Size was estimated at 16.01 (USD Billion) in 2022. The Gas Water Heater Market Industry is expected to grow from 16.76(USD Billion) in 2023 to 25.27 (USD Billion) by 2032. The Gas Water Heater Market CAGR (growth rate) is expected to be around 4.67% during the forecast period (2024 - 2032).
Key Gas Water Heater Market Trends Highlighted
The gas water heater market is benefitting from the surge in demand for instantaneous hot water, particularly in developing countries. The increase in population and urbanization, as well as the shift in consumer behavior towards energy-efficient appliances, also add to the market growth. Also, the outlook for the demand is favorable due to the government policies encouraging the use of natural gas as an alternative cleaner energy.
New markets for the gas water heater span in seeking out advanced technologies like smart appliances and connected devices. These devices include useful functions such as remote functionality, energy monitoring and leak monitoring to the consumers, and therefore enhance safety and ease of usage. There are also prospects that market growth will be realized through the use of other gas supply options like biogas and renewable natural gas.
The recent trends in the gas water heater market have also included the increasing demand for tankless water heaters since they do not require storage capacities of hot water but can give a continuous supply of hot water. In fact, another trend has been the embedding of water purification systems in gas water heaters, allowing users to draw clean hot water from their taps. Rising awareness among people regarding sustainable practices and energy conservation is also increasing the market for energy-efficient and utility bill-saving gas water heaters.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Gas Water Heater Market Drivers
Rising Demand for Energy-Efficient Solutions
The growing emphasis on energy conservation and sustainability is driving the demand for energy-efficient appliances, including gas water heaters. These heaters offer significant energy savings compared to traditional electric models, making them an attractive option for homeowners and businesses alike. The implementation of government regulations and incentives promoting energy efficiency further stimulates market growth for gas water heaters.
Increasing Adoption of Smart Home Technologies
With the development of smart homes and the constant increase in the number of smart technologies, the new opportunity is the growth of gas water heaters. Smart water heaters are made in such a way that they can be controlled from a distance using a smartphone or smart home speaker. They can be used in a complex with other smart home devices, and they independently determine the optimal water temperature and adjust energy consumption, which leads to a general increase in the Gas Water Heater Market Industry.
Government Regulations and Incentives
Governments across the globe are increasingly passing laws and offering subsidies to promote the use of energy-efficient technology including the use of gas water heaters. This is a result of the global campaign against carbon emissions and sustainability advice. This approach has fostered very conducive market settings for the development of the Gas Water Heater Market Industry.
Gas Water Heater Market Segment Insights:
Gas Water Heater Market Type Insights
Type Segment The Gas Water Heater Market is segmented by type into Residential and Commercial. In 2023, the residential segment dominated the market and it is anticipated to maintain its position throughout the forecast period. The dominance of the residential segment is attributed to a massive increase in the construction of worldwide residential units. The residential segment is anticipated to dominate the market due to other reasons such as a rise in disposable income and the urbanization of the rural population. The commercial segment is also likely to exhibit significant growth in the future.Growth in the construction of commercial buildings such as offices, hotels, and hospitals results in the growth of the segment. Also, the increased popularity of tankless water heaters in commercial properties is aiding the growth of the segment. The Gas Water Heater Market is anticipated to grow at a CAGR of 4.67 percent from 2024 to 2032. In 2023, the market is predicted to be USD 16.76 billion and forecast to reach USD 25.27 billion by 2032. The growth of the market can be credited to the following growth factors: the rise in the demand for energy-efficient water heaters, the rise in the construction of residential and commercial buildings and the rising popularity of tankless water heaters.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Gas Water Heater Market Gas Type Insights
The Gas Water Heater Market segmentation by Gas Type includes Natural Gas, Propane, and Butane. The Natural Gas segment held the largest market share in 2023, and it is expected to continue to dominate the market throughout the forecast period. The widespread availability of natural gas, its low cost, and its high energy efficiency make it the preferred choice for gas water heaters. The Propane segment is expected to witness significant growth during the forecast period due to its increasing adoption in off-grid areas and recreational vehicles.Butane is a clean-burning fuel that is often used in portable gas water heaters, and it is expected to experience steady growth in the coming years. The Gas Water Heater Market segmentation provides valuable insights into the different types of gas used in water heaters, helping manufacturers, suppliers, and distributors to make informed decisions and cater to specific market demands.
Gas Water Heater Market Ignition System Insights
The Gas Water Heater Market is segmented by Ignition System into Electronic Ignition and Pilot Light Ignition. The Electronic Ignition segment held a larger market share in 2023 and is projected to continue to grow at a higher CAGR during the forecast period. Electronic Ignition systems use an electric spark to ignite the gas, while Pilot Light Ignition systems use a small flame to ignite the gas. Electronic Ignition systems are more efficient and convenient than Pilot Light Ignition systems, as they do not require a standing pilot light.This makes them more cost-effective to operate and can help to reduce energy consumption. Additionally, Electronic Ignition systems are more reliable and require less maintenance than Pilot Light Ignition systems. As a result, Electronic Ignition systems are expected to continue to gain market share over Pilot Light Ignition systems in the coming years.
Gas Water Heater Market Tank Capacity Insights
The Gas Water Heater Market is segmented by Tank Capacity into 'Up to 40 Gallons', '40-60 Gallons', and 'Over 60 Gallons'. Among these, the 'Up to 40 Gallons' segment is expected to hold the largest market share in 2023, owing to its affordability and suitability for smaller households. The '40-60 Gallons' segment is projected to witness significant growth during the forecast period, driven by the increasing demand for larger capacity water heaters in residential and commercial applications. The 'Over 60 Gallons' segment is expected to account for a smaller market share due to its higher cost and limited applications.
Gas Water Heater Market Energy Efficiency Insights
The energy efficiency segment of the Gas Water Heater Market is classified into standard efficiency, high efficiency, and ultra-high efficiency. Standard-efficiency gas water heaters have an energy factor (EF) of less than 0.62, high-efficiency gas water heaters have an EF of 0.62 to 0.75, and ultra-high-efficiency gas water heaters have an EF of greater than 0.75. In 2023, the high-efficiency segment held the largest market share, accounting for over 55% of the Gas Water Heater Market revenue. The growing demand for energy-efficient appliances and government regulations promoting the adoption of high-efficiency water heaters are key factors driving the growth of this segment.The ultra-high efficiency segment is expected to witness the highest growth rate during the forecast period, owing to increasing consumer awareness about energy conservation and the availability of government incentives for the installation of ultra-high efficiency gas water heaters.
Gas Water Heater Market Regional Insights
The Gas Water Heater Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. The market growth in this region can be attributed to the increasing demand for energy-efficient and cost-effective water heating solutions, as well as the presence of a large number of manufacturers and suppliers in the region. Europe is expected to be the second-largest market for gas water heaters, followed by APAC. The growing population and increasing urbanization in APAC are driving the demand for gas water heaters in the region. South America and MEA are expected to witness steady growth in the gas water heater market over the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Gas Water Heater Market Key Players And Competitive Insights:
Major players in the Gas Water Heater Market are actively participating in expanding the product portfolio through continuous research and development, along with mergers and acquisitions, to gain a competitive edge in the Gas Water Heater Market industry. Leading Gas Water Heater Market players are focusing on providing innovative products to cater to the changing lifestyle of consumers. Gas Water Heater Market development is being accelerated by collaborations and partnerships between market participants. For instance, in 2021, Reliance Industries Ltd. announced a partnership with Gas Natural Fenosa to develop and market gas-based solutions in India, including gas water heaters. Technological advancements, such as the integration of smart technologies and energy efficiency improvements, are driving Gas Water Heater Market innovation. Additionally, government regulations and policies promoting energy efficiency and environmental sustainability are influencing Gas Water Heater Market trends.A. O. Smith Corporation, a leading player in the Gas Water Heater Market, has been focusing on expanding its global footprint and introducing innovative products. The company has invested in research and development to enhance the energy efficiency and performance of its gas water heaters. A. O. Smith Corporation has also expanded its distribution network to reach new markets and increase its market share. For instance, in 2022, the company announced the launch of its new Voltex gas water heater, which is designed to provide high performance and energy efficiency.Rheem Manufacturing Company, a major competitor in the Gas Water Heater Market, has been focusing on product innovation and expansion into new markets. The company has invested in developing new technologies, such as its EcoNet smart home system, which allows consumers to monitor and control their gas water heaters remotely. Rheem Manufacturing Company has also expanded its international presence to increase its global market reach. For instance, in 2021, the company acquired Heatrae Sadia, a leading provider of water heating solutions in the United Kingdom, to strengthen its position in the European market.
Key Companies in the Gas Water Heater Market Include:
- Ariston Thermo Group
- Haier
- Bosch
- Hengdian Grou
- LG Electronics
- Rinnai Corporation
- Noritz
- Samsung Electronics
- Stiebel Eltron
- Rheem
- Bradford White
- GE Appliances
- Electrolux
- Changa
- O. Smith
Gas Water Heater Market Industry Developments
The Gas Water Heater Market is projected to reach USD 25.27 billion by 2032, exhibiting a CAGR of 4.67% during the forecast period (2024-2032). Rising concerns over energy efficiency and environmental sustainability are driving the demand for gas water heaters. Government initiatives and regulations promoting the adoption of energy-efficient appliances further contribute to market growth. Technological advancements, such as the integration of smart features and IoT capabilities, are enhancing the functionality and convenience of gas water heaters, making them more appealing to consumers. Key industry players are focusing on expanding their product offerings and investing in research and development to cater to the evolving needs of customers. Strategic partnerships and acquisitions are also prevalent in the market as companies seek to strengthen their market position and expand their geographical reach.
Gas Water Heater Market Segmentation Insights
- Gas Water Heater Market Type Outlook
- Residential
- Commercial
- Gas Water Heater Market Gas Type Outlook
- Natural Gas
- Propane
- Butane
- Gas Water Heater Market Ignition System Outlook
- Electronic Ignition
- Pilot Light Ignition
- Gas Water Heater Market Tank Capacity Outlook
- Up to 40 Gallons
- 40-60 Gallons
- Over 60 Gallons
- Gas Water Heater Market Energy Efficiency Outlook
- Standard Efficiency
- High Efficiency
- Ultra-High Efficiency
- Gas Water Heater Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
16.01(USD Billion) |
| Market Size 2023 |
16.76(USD Billion) |
| Market Size 2032 |
25.27(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.67% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Ariston Thermo Group, Haier, Bosch, Hengdian Grou, LG Electronics, Rinnai Corporation, Noritz, Samsung Electronics, Stiebel Eltron, Rheem, Bradford White, GE Appliances, Electrolux, Changa, A.O. Smith |
| Segments Covered |
Type, Gas Type, Ignition System, Tank Capacity, Energy Efficiency, Regional |
| Key Market Opportunities |
1 Energy-efficient models2 Smart and connected features3 Growing demand in developing regions4 Increased focus on indoor air quality IAQ5 Government incentives for energy upgrades |
| Key Market Dynamics |
1. Rising energy costs Increasing demand for energy-efficient appliances 2. Growing construction and renovation activities T 3. technological advancements 4. Government initiatives promoting energy conservation |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Gas Water Heater Market is anticipated to reach a valuation of approximately 16.76 Billion USD in 2023.
The Gas Water Heater Market is estimated to expand at a CAGR of around 4.67% from 2024 to 2032.
By 2032, the Gas Water Heater Market is projected to reach a valuation of approximately 25.27 Billion USD.
North American region is anticipated to dominate the Gas Water Heater Market by 2032 due to increasing urbanization and rising demand for hot water in residential and commercial sectors.
Gas water heaters are primarily used for providing hot water for bathing, washing, and other household purposes in residential and commercial settings.
Prominent players in the Gas Water Heater Market include A.O. Smith, Bosch, Rheem, Rinnai, and Bradford White, among others.
