Residential Gas Storage Water Heater Market size was estimated at USD 14.8 billion in 2024 and is expected to surpass USD 20 billion by the end of 2037, rising at a CAGR of 2.4% during the forecast period, i.e., 2025-2037. In 2025, the industry size of residential gas storage water heaters is evaluated at USD 15.1 billion.
Demand for energy-efficient equipment, such as residential gas storage water heaters is rapidly increasing owing to increasing awareness about environmental sustainability and energy-saving. Customers are looking for methods to lessen their carbon footprint as they are becoming more aware of the effects of energy usage on the environment. Since gas storage water heaters heat water by burning natural gas or propane, they are more energy-efficient than conventional electric water heaters.
The residential gas storage water heater industry is significantly shaped by government incentives and regulations. To encourage the use of energy-efficient appliances, governments all over the world are enforcing strict construction rules and energy efficiency standards. The need for gas storage water heaters that meet or beyond these standards has grown as a result of these regulations.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
2.4% |
Base Year Market Size (2024) |
USD 14.8 billion |
Forecast Year Market Size (2037) |
USD 20 billion |
Regional Scope |
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Fuel Type (Natural Gas, Propane)
Natural gas segment is likely to capture residential gas storage water heater market share of over 74.5% by 2037. In many areas, natural gas is less expensive than electricity, which makes gas water heaters a more cost-effective choice for homes in terms of both the initial investment and ongoing maintenance expenses. Cost-conscious consumers find modern natural gas water heaters, particularly high-efficiency versions, enticing since they use less energy than older models or electric water heaters.
Venting Type (Direct Vent, Power Vent, Atmospheric Vent)
The direct vent segment is likely to hold a significant share during the forecast period. The purpose of direct vent systems is to reduce the possibility of dangerous gasses such as carbon monoxide getting into the living area. Compared to conventional atmospheric venting types, direct vent water heaters are a safer choice since they use outside air for burning, lowering the possibility of drawing in dangerous inside air.
Our in-depth analysis of the global residential gas storage water heater market includes the following segments:
Fuel Type |
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Capacity |
|
Energy Efficiency Rating |
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Venting Type |
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Installation Type |
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North America Market Analysis
North America residential gas storage water heater market is expected to dominate revenue share of around 71% by the end of 2037, owing to high focus on energy efficiency, stricter energy efficiency standards and laws, and the presence of leading companies. Improvements in insulation, burner technology, and heat recovery systems have resulted in the growing adoption of residential gas storage water heaters. The U.S. and Canada are key contributing countries in this region.
The market for residential gas storage water heaters in the U.S. is anticipated to expand due to reduced energy expenses, notable utility bill savings, and dependability, durability, and steady performance. As natural gas infrastructure is readily available, gas appliances are widely used throughout the economy, making gas storage water heater installation and operation practical for both businesses and homeowners.
In Canada, the growing use of high-efficiency gas storage water heaters, including condensing models, among homeowners looking to cut energy use and utility bills, combined with technological developments, consumer preferences, and energy-efficient regulations, will propel market expansion. The integration of smart technology such as digital controls, mobile apps, and Wi-Fi connectivity, gives homeowners more convenience and control as it allows for remote monitoring, energy usage tracking, and personalized scheduling.
Asia Pacific Market Analysis
Asia Pacific is expected to experience a stable CAGR during the forecast period due to rising adoption of advanced technologies, improving standard of living, and a growing emphasis on comfort and luxury. The rapidly expanding residential building sector in China, India, Japan and South Korea, rising advancements in smart home solutions, presence of key manufacturing giants, and government initiatives to promote residential gas storage water heaters are expected to drive market growth in APAC.
Increasing urbanization and rising disposable income in India have resulted in increasing demand for modern home appliances, including gas storage water heaters. In addition, expanding piped natural gas in urban areas and government initiatives to enhance energy access contribute to overall market growth in India.
In China, the market is expected to account for a significant share during the forecast period owing to rapid urbanization, rising adoption of advanced and modern home appliances, and increasing investments in developing advanced products.
To cater to the changing needs of consumers, major players in the residential gas storage water heater market are always working to create new products and technologies. Leading companies in the market are making significant R&D investments to improve the effectiveness, robustness, and safety of their goods. The growing need for eco-friendly and energy-efficient appliances is propelling the growth of the residential gas storage water heater market. By employing cutting-edge technologies like electronic ignition systems and condensing heat exchangers, manufacturers are concentrating on lowering the carbon footprint of their goods.
Here are some leading players in the residential gas storage water heater market:
Author Credits: Richa Gupta
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