Gas Water Heater Market Expected to Reach $12.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Gas Water Heater Market," The gas water heater market was valued at $7.8 billion in 2022, and is estimated to reach $12.8 billion by 2032, growing at a CAGR of 5.1% from 2023 to 2032.

A gas water heater, also known as a heat exchanger, is a heating device that uses energy from various external sources and transfers it to heat the water. Water heaters come in various types such as instant gas water heaters and storage gas water heaters. Selection of a proper gas water heater depends upon several important factors such as the type of building that it is to be installed into requirements of households, availability of fuel types, fuel cost & efficiency of the system, storage, and distribution temperature, installation and maintenance cost, and safety of the user.

Growth of the global gas water heater market is driven by factors such as the inclination of consumers toward the adoption of energy-efficient systems, favorable government subsidies that encourage the use of gas water heaters, the surge in the number of hospitals and hotels, and an increase in population and improved infrastructure in rural areas. In addition, the rise in disposable income of consumers, coupled with improved lifestyle significantly boosts the market.

Furthermore, growth in concern among consumers toward natural resources and energy is encouraging consumers to shift toward energy-efficient water heating systems. Although purchase and installation costs are high, its operating cost is quite low. Rise in electricity prices, high operating costs, and technical issues associated with electric water heaters are expected to drive the growth of the global gas water heater industry. In addition, rapid urbanization, and development of global regions in context with the construction of new residential and commercial buildings and infrastructure are anticipated to fuel the gas water heater market opportunities globally.

The global gas water heater market is segmented on the basis of product type, installation type, fuel type, application, and region. On the basis of product type, the market is segmented into instant and storage. On the basis of installation type, it is bifurcated into indoor and outdoor. Furthermore, on the basis of fuel type, it is segmented into natural gas and LPG. In addition, on the basis of application type, the market is segmented into residential, commercial, and industrial. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by North America and Europe.

The major companies profiled in this report include A.O. Smith, Ariston Thermo S.p.A, BDR Thermea Group, Bosch Thermotechnology, Bradford White Corporation, Haier Electronics, HTP Comfort Solutions LLC, Lennox, Racold, and Rheem Manufacturing Company. The rapid development of industrialization, modernization, and the spread of information through the internet led to the development of the tourism industry has created a great demand for hot water in cold regions, which fuels the demand for gas water heaters. In addition, growth strategies such as the expansion of production capacities, acquisition, partnership, and research & innovation in the water heater application are key development in the global gas water heater market trends.

Key Findings Of The Study:

• On the basis of fuel type, the LPG segment emerged as the global leader by acquiring more than two-thirds the gas water heater market share in 2022 and is anticipated to continue this trend during the forecast period.
• On the basis of application, the commercial segment emerged as the largest market share in 2022, which accounts for more than two-fifths of the gas water heater market share.
• On the basis of product type, the instant segment emerged as the largest market share in 2022, which accounts for more than three-fifths of the carbon gas water heater market size.
• On the basis of the installation type, the indoor segment emerged as the largest market share in 2022 which accounts for more than two-thirds of the gas water heater market share and is anticipated to continue this trend during the forecast period.
• On the basis of region, Asia-Pacific is the major consumer of gas water heaters among other regions. It accounted for nearly two-fifths of the global market share in 2022, according to gas water heater market analysis.