Global Residential Gas Storage Water Heater Market Overview
As per MRFR analysis, the Residential Gas Storage Water Heater Market Size was estimated at 14.18 (USD Billion) in 2022. The Residential Gas Storage Water Heater Market Industry is expected to grow from 14.48(USD Billion) in 2023 to 17.48 (USD Billion) by 2032. The Residential Gas Storage Water Heater Market CAGR (growth rate) is expected to be around 2.11% during the forecast period (2024 - 2032).
Key Residential Gas Storage Water Heater Market Trends Highlighted
The Residential Gas Storage Water Heater Market is poised for substantial growth, driven by key factors such as rising energy costs, increasing demand for hot water in households, and government initiatives promoting gas-powered appliances. Advanced technologies such as tankless water heaters are gaining popularity, offering energy efficiency and space-saving benefits. Additionally, concerns over carbon emissions have led to a shift towards more environmentally friendly gas-powered options.
Opportunities in the market lie in the exploration of new materials and designs to enhance performance and reduce costs. Smart water heaters with advanced features like remote control and monitoring capabilities present potential for growth. Manufacturers should focus on product innovation and strategic partnerships to capture these opportunities.
Recent trends in the Residential Gas Storage Water Heater Market include the integration of artificial intelligence (AI) and the Internet of Things (IoT) to enable remote monitoring and diagnostics. Additionally, there is a growing emphasis on sustainability, with manufacturers incorporating eco-friendly materials and technologies into their products. These trends indicate a progressive shift towards smart, energy-efficient, and environmentally conscious solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Gas Storage Water Heater Market Drivers
Rising Energy Efficiency Concerns
The growing awareness of energy conservation and environmental sustainability is driving the demand for energy-efficient appliances, including residential gas storage water heaters. Consumers are becoming increasingly conscious of the environmental impact of their energy consumption and are seeking ways to reduce their carbon footprint. Gas storage water heaters offer higher energy efficiency compared to traditional electric water heaters, as they utilize the combustion of natural gas or propane to heat water.
This efficiency translates into lower energy bills and reduced greenhouse gas emissions, making them an attractive option for homeowners looking to minimize their environmental impact while saving money on their energy costs. The increasing adoption of energy-efficient appliances, including gas storage water heaters, is expected to continue to drive market growth in the coming years.
Government Regulations and Incentives
Government regulations and incentives play a significant role in shaping the market dynamics of the Residential Gas Storage Water Heater Market Industry. Governments worldwide are implementing stringent energy efficiency standards and building codes to promote the adoption of energy-efficient appliances. These regulations often include minimum energy efficiency requirements for water heaters, which has led to an increased demand for gas storage water heaters that meet or exceed these standards.
Additionally, governments may offer financial incentives, such as tax credits or rebates, to encourage consumers to purchase energy-efficient appliances, including gas storage water heaters. These incentives can significantly reduce the upfront cost of purchasing and installing a gas storage water heater, making them more accessible to a wider range of consumers and further driving market growth.
Technological Advancements
Technological advancements are continuously enhancing the performance and capabilities of residential gas storage water heaters. Manufacturers are investing in research and development to introduce innovative features and improve the overall efficiency of these appliances. These advancements include the development of high-efficiency burners, improved insulation materials, and smart controls that optimize energy consumption.
Additionally, the integration of smart technologies, such as Wi-Fi connectivity and remote monitoring, allows consumers to control and monitor their water heaters remotely, further enhancing convenience and energy savings. The ongoing advancements in technology are expected to continue to drive market growth as consumers seek more efficient, convenient, and feature-rich water heating solutions.
Residential Gas Storage Water Heater Market Segment Insights:
Residential Gas Storage Water Heater Market Fuel Type Insights
The Residential Gas Storage Water Heater Market segmentation by Fuel Type includes Natural Gas and Propane. In 2023, the Natural Gas segment accounted for a larger revenue share, owing to its extensive availability and cost-effectiveness. Propane, on the other hand, is gaining traction due to its portability and convenience, making it suitable for off-grid locations. The Residential Gas Storage Water Heater Market revenue for Natural Gas is projected to reach USD 11.28 Billion by 2032, exhibiting a CAGR of 2.55% during the forecast period.
Propane, with its growing popularity, is estimated to register a CAGR of 3.12%, resulting in a market valuation of USD 3.2 Billion by 2032. The increasing adoption of energy-efficient gas storage water heaters, coupled with rising construction activities and urbanization, is driving the growth of both Natural Gas and Propane segments. Furthermore, government initiatives promoting the use of clean and efficient energy sources are expected to positively impact market growth over the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Residential Gas Storage Water Heater Market Energy Efficiency Rating Insights
The Energy Efficiency Rating segment plays a crucial role in the Residential Gas Storage Water Heater Market, with distinct efficiency ranges driving market growth. Water heaters with an Energy Efficiency Rating of 0.60-0.69 accounted for a significant market share in 2023, reflecting consumer demand for cost-effective and energy-efficient solutions. This segment is projected to maintain stable growth over the forecast period, reaching a valuation of 4.56 billion USD by 2032. Moving up the efficiency spectrum, water heaters with a rating of 0.70-0.79 offer enhanced energy savings and are gaining traction in the market.
This segment is expected to witness a robust CAGR of 2.67% during 2023-2032, reaching a valuation of 6.23 billion USD by 2032. Its growth is attributed to government regulations promoting energy efficiency and consumer awareness of environmental sustainability. Water heaters with an Energy Efficiency Rating of 0.80 and above represent the pinnacle of energy efficiency and are becoming increasingly sought after by consumers seeking significant energy savings. This segment is poised for impressive growth, with a projected valuation of 6.69 billion USD by 2032, expanding at a CAGR of 3.12% during the forecast period.The rising adoption of smart home technologies and the integration of energy-monitoring systems are driving the demand for these highly efficient water heaters.
Residential Gas Storage Water Heater Market Venting Type Insights
The Residential Gas Storage Water Heater Market is segmented by Venting Type into Direct Vent, Power Vent, and Atmospheric Vent. Among these, the Direct Vent segment is expected to hold the largest market share in 2023, accounting for around 42.1% of the commercial water heaters revenue. It is gaining popularity due to its ability to efficiently remove combustion gases from indoor spaces, making it a safer option for homes.
The Power Vent segment is projected to witness significant growth over the forecast period, owing to its high efficiency and ability to handle longer vent runs compared to Direct Vent water heaters. The Atmospheric Vent segment, while still prevalent in certain regions, is expected to experience a decline in market share due to stricter regulations and the growing preference for more efficient venting systems.
Residential Gas Storage Water Heater Market Regional Insights
The regional segmentation of the Residential Gas Storage Water Heater Market offers valuable insights into the market's geographic distribution and growth potential. North America is expected to hold a significant share of the market in 2024, driven by the presence of major manufacturers and increasing demand for energy-efficient water heaters. Europe is anticipated to follow closely, with growing adoption of gas-powered appliances and government initiatives promoting energy conservation.
The APAC region is projected to witness substantial growth, primarily due to rising urbanization and increasing disposable income in countries like China and India.South America and MEA are expected to experience moderate growth, fueled by expanding construction activities and government efforts to improve infrastructure.
Residential Gas Storage Water Heater Market Key Players And Competitive Insights:
Major players in Residential Gas Storage Water Heater Market industry are constantly striving to develop innovative products and technologies to meet the evolving needs of consumers. Leading Residential Gas Storage Water Heater Market players are investing heavily in research and development to enhance the efficiency, durability, and safety of their products. The Residential Gas Storage Water Heater Market development is driven by the increasing demand for energy-efficient and environmentally friendly appliances. Manufacturers are focusing on reducing the carbon footprint of their products by incorporating advanced technologies, such as condensing heat exchangers and electronic ignition systems.
Residential Gas Storage Water Heater Market Competitive Landscape is characterized by intense competition among established and emerging players. Key strategies adopted by players include product innovation, strategic alliances, and geographical expansion. The market is expected to witness further consolidation in the coming years, with larger players acquiring smaller companies to expand their market share.
A.O. Smith Corporation, a leading player in the Residential Gas Storage Water Heater Market industry, has a strong global presence and offers a wide range of gas water heaters to meet the diverse needs of consumers. The company is focused on providing high-quality, energy-efficient products and has invested significantly in research and development. A.O. Smith's commitment to innovation has resulted in the development of advanced technologies, such as the Vertex condensing water heater, which offers exceptional energy efficiency and performance. The company's strong brand reputation, extensive distribution network, and commitment to customer satisfaction have contributed to its leading position in the market.
Rheem Manufacturing Company, a major competitor in the Residential Gas Storage Water Heater Market, is known for its innovative products and customer-centric approach. The company offers a comprehensive range of gas water heaters, including high-efficiency models, tankless water heaters, and solar water heaters. Rheem's focus on sustainability has led to the development of products that meet or exceed industry standards for energy efficiency. The company's strong distribution network and commitment to providing excellent customer service have helped it gain a significant market share. Rheem's continued investment in research and development is expected to further strengthen its position in the market.
Key Companies in the Residential Gas Storage Water Heater Market Include:
- Paloma Co., Ltd
- Bradford White
- State Water Heaters
- Rheem
- Navien
- O. Smith
- American Water Heater
- Rinnai Corporation
- Stiebel Eltron
- Bosch
- Ariston Thermo Group
- Vaillant Group
- Noritz America Corporation
- Rheem Manufacturing Company
Residential Gas Storage Water Heater Market Industry Developments
The Residential Gas Storage Water Heater Market is projected to reach USD 14.48 billion by 2023, exhibiting a CAGR of 2.11% during the forecast period (2024-2032). Rising energy costs, coupled with increasing awareness about energy efficiency, are driving the market growth. Additionally, government initiatives promoting the adoption of energy-efficient appliances are further bolstering the market.
Asia Pacific is expected to remain the largest market, owing to the increasing construction activities and growing demand for energy-efficient appliances in the region. North America is also expected to witness significant growth, driven by the rising adoption of smart home technologies and increasing investments in infrastructure development. Key players in the market include Rheem, A.O. Smith, Bosch, and Bradford White. Recent developments include the launch of new energy-efficient models and strategic partnerships to expand market reach.
Residential Gas Storage Water Heater Market Segmentation Insights
-
Residential Gas Storage Water Heater Market Fuel Type Outlook
-
Residential Gas Storage Water Heater Market Capacity Outlook
- Up to 50 Gallons
- 51-75 Gallons
- Over 75 Gallons
-
Residential Gas Storage Water Heater Market Energy Efficiency Rating Outlook
- 60-0.69
- 70-0.79
- 80 and Above
-
Residential Gas Storage Water Heater Market Venting Type Outlook
- Direct Vent
- Power Vent
- Atmospheric Vent
-
Residential Gas Storage Water Heater Market Installation Type Outlook
- Floor-Mounted
- Wall-Mounted
- Ceiling-Mounted
-
Residential Gas Storage Water Heater Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
14.18(USD Billion) |
| Market Size 2023 |
14.48(USD Billion) |
| Market Size 2032 |
17.48(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.11% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Paloma Co., Ltd, Bradford White, State Water Heaters, Rheem, Navien, A.O. Smith, American Water Heater, Rinnai Corporation, Stiebel Eltron, Bosch, Ariston Thermo Group, Vaillant Group, Noritz America Corporation, Rheem Manufacturing Company |
| Segments Covered |
Fuel Type, Capacity, Energy Efficiency Rating, Venting Type, Installation Type, Regional |
| Key Market Opportunities |
Increasing energy efficiency rising demand from emerging markets technological advancements government incentives growing awareness of energy conservation |
| Key Market Dynamics |
Increasing Energy Efficiency Rising Demand for Smart Appliances Government Regulations Growing Construction Activities Technological Advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Residential Gas Storage Water Heater Market is estimated to be around USD 14.48 billion in 2023.
The Residential Gas Storage Water Heater Market is expected to grow at a CAGR of approximately 2.11% from 2024 to 2032.
North America is expected to be the largest market for residential gas storage water heaters in 2023.
Increasing demand for energy-efficient appliances and rising natural gas prices are key factors driving market growth.
Major players include A.O. Smith, Bradford White, Rheem, and State Water Heaters.
Single-family homes and multi-family dwellings are the primary application segments for residential gas storage water heaters.
The Residential Gas Storage Water Heater Market is expected to reach approximately USD 17.48 billion by 2032.
Technological advancements, such as smart water heaters and tankless water heaters, are shaping the market.
Fluctuating raw material prices and competition from electric water heaters are challenges faced by the market.
Growing awareness of energy efficiency and government incentives for energy-efficient appliances present growth opportunities.
