Reports - Gas Water Heater Market
Gas Water Heater Market Size, Share & Trends Analysis Report by Fuel Type (Natural Gas, LPG) by Product Type (Instant, Storage) by Application (Residential, Commercial, Industrial) by Installation Type (Outdoor, Indoor) by Region (North America, Asia Pacific, Europe, Latin America, Middle East & Africa) - Global Industry Assessment (2018 - 2023) & Forecast (2024 - 2032)
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USD 7.85 Billion
USD 12.2 Billion
5%
Asia Pacific
North America
2023
2020 - 2022
2024 - 2034
By Fuel Type, By Product Type, By Application, By Installation Type, By Region
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The global Gas Water Heater Market is valued at USD 7.85 Billion in 2023 and is projected to reach a value of USD 12.2 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 5% between 2024 and 2032.
The Asia Pacific Gas Water Heater market exhibited significant dominance in 2023, with 38.5% of the revenue share. This is because of the rapid urbanization, industrialization, and rising disposable incomes across the region. Increased demand for efficient and environmentally friendly water heating solutions and government initiatives promoting energy efficiency of appliances are other key drivers. Further growth is expected to be driven by developments in technology, e.g. smart controls and energy efficiency designs. In addition, the leading countries such as China, India, and Japan are significant contributors to market expansion.
The global Gas Water Heater market can be categorized as Fuel Type, Product Type, Application, and Region.
Parameter | Details |
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Segment Covered | By Fuel Type
By Product Type
By Application
By Installation Type
By Region
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Companies Covered |
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Extensive growth was observed in the Global Gas Water Heater market within the LPG category in 2023. The Fuel Type segment is divided into Natural Gas and LPG. The Liquefied Petroleum Gas (LPG) segment in the global Gas Water Heater market experiences largest growth due to its versatility, energy efficiency, and eco-friendliness. LPG powered water heaters are valued for their portability, making them popular in regions without access to natural gas pipelines. The growth in demand for renewable energy sources and the need to reduce carbon emissions will benefit this segment. As consumers look for alternatives to traditional electrical water heaters, LPG offers an assured and cost effective solution.
In 2023, considerable growth was seen in the Instant segment, commanding a market share of 54.5%. Based on the Product Type, the Gas Water Heater market is separated into Instant and Storage. The instant segment in the global Gas Water Heater market is gaining traction, driven by the increasing demand for on-demand hot water mainly across the residential sector. Unlike traditional storage-based systems, instant Gas Water Heater heat water only when needed, providing energy savings and reducing water wastage. This segment appeals to consumers seeking efficiency, space-saving designs, and fast access to hot water, mainly in areas with limited space. The rapid urbanization and growth of compact living spaces further boost the adoption of instant Gas Water Heater. They are ideal for households with smaller hot water requirements and businesses that prioritize energy efficient solutions.
There was a major growth in the Commercial segment in 2023, i.e., 76.1% of revenue share. Based on the Application, the Gas Water Heater market is segmented into Residential, Commercial, and Industrial. The commercial segment in the Gas Water Heater market is driven by the increased hospitality, healthcare, and industrial sectors. In order to meet their operational needs, enterprises and institutions require reliable, high-capacity water heating systems. Key factors driving the commercial segments growth include the need for large-scale water heating in hotels, hospitals, laundries, and manufacturing facilities. Additionally, the increasing focus on sustainability and energy efficiency encourages businesses to invest in efficient gas-based systems, ensuring a stable segmental growth.
The Global Gas Water Heater Market is influenced by evolving energy efficiency standards, consumer sustainability trends, and regulatory frameworks such as those set by the Federal Energy Management Program (FEMP) and ENERGY STAR. FEMPs acquisition guidance encompasses a range of commercial Gas Water Heater, including storage units with input rates exceeding 75,000 British thermal units (Btu) per hour but under 4,000 Btu/hr per gallon of stored water, and gas-fired instantaneous-type units with input rates over 200,000 Btu/hr but not less than 4,000 Btu/hr per gallon of stored water. In addition, ENERGY STAR specifications cover heat pump water heaters with electric power inputs over 12 kilowatts (kW), driving manufacturers to innovate towards energy-efficient solutions. Manufacturers that align with these regulatory and consumer demands are poised to expand their market presence, catering to both the commercial and residential segments.
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In January 2024, A.O. Smith, a top provider of water heating and treatment solutions, introduced the Emerge™ X Air Source Heat Pump Water Heater (HPWH), a new addition to its line of high-efficiency commercial products. The Emerge X HPWH boosts energy efficiency and also simplifies installation and usage, providing significant cost savings and reliable hot water for commercial settings with high demand. This innovative product uses patented technology to maximize heat transfer and reduce emissions, and ensure it is eco-friendly and economical. Installation is streamlined for contractors, as no special tools are needed, and the control box can be installed separately from the heat pump and tanks for greater flexibility.
Bradford White Water Heaters unveils Bradford White Connect™, a new external adapter that brings app-based monitoring capabilities to the AeroTherm® heat pump water heater (HPWH) series. With Bradford White Connect™, users can control their HPWHs, adjust settings, and receive alerts directly from a user-friendly mobile app available on both Google Play and Apples App Store. Contractors can leverage Bradford White Connect™ to oversee in-service AeroTherm units, assess performance, and set up alerts for any water heater malfunctions. In addition, the adapter’s CTA-2045 port meets grid-enabled demand response standards, allowing integration with utility programs.
A mix of established and new players, each competing for market shares through innovation and differentiation, dominates the global Gas Water Heater market. Leading companies such as A.O. Smith, Rheem, Bosch, and Rinnai focus on technological advancements, energy efficiency, and diverse product portfolios to maintain their competitive edge. Niche markets, offering specialized products or unique features, are often targeted by new players and smaller companies. Factors such as consumer demand for ecofriendly products, changes in legislation and energy costs influence market dynamics. As companies seek to increase their global reach and product lines, strategic partnerships, mergers and acquisitions are also common.
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