Gas Water Heater Market

Gas Water Heater Market Research, 2031

The global gas water heater market size was valued at $7.42 billion in 2021, and gas water heater industry is projected to reach $12.41 billion by 2031, growing at a CAGR of 5.3% from 2022 to 2031.

Building & construction activities across the globe were on hold during the pandemic period owing to strict measures of social distancing, lack of labor, and raw material supply disruptions. This further declined the growth of the market in 2020. Moreover, temporary shutdown of factories, manufacturing bases, and other processing industries hampered the growth of the gas water heater market. Thus, all these factors collectively led to decreased growth of the global gas water heater market in 2020.

The gas water heater market is segmented into Product Type, Installation Type, Fuel Type and Application.

Globally decrease has been witnessed in the growth rate of the industries such as construction & building, transportation, oil & gas, automotive, and energy sectors owing to the lockdown imposed. This has further declined the need for gas water heaters, which, in turn, has hampered the gas water heater market growth.

A gas water heater is heating equipment that heats water by using gas as its energy source. The increase in infrastructural developments, replacement of conventional water heaters with more efficient gas water heaters, as well as deployment of smart water heaters, and building & construction activities across the globe are the major drivers that boost growth of the global gas water heater market.

The growth of the global water heater market is driven by factors such as inclination of consumer toward the adoption of energy efficient systems, favorable government subsidies that encourage the use of water heaters, surge in number of hospitals and hotels, and increase in population and improved infrastructure in rural areas. In addition, rise in disposable income of the consumers coupled with improved lifestyle is significantly boosting the market. Furthermore, encouraging the consumers to shift toward energy-efficient water heating systems has fueled the demand for gas water heaters in the commercial and residential sector. The global gas water heater market may offer various opportunities for the manufacturers including innovation in technologies such as heat pump technology and condensing gas-fired systems. Government initiatives to promote renewable water heater such as solar water heater and the presence of risk of leakage in the gas heaters compared to electric heaters are major factors hampering the growth of the gas water heater market.

The global gas water heater market forecast is segmented on the basis of by 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 segment into natural gas and LPG. In addition, on the basis of application, it 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 gas water heater market 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. Due to rapidly development of industrialisation, modernization and spread of information through internet led to the development of tourism industry has created great demand for hot water in cold regions, which in-turn has fuelled the demand for gas water heater. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the water heater application which led to attain key developments in the global gas water heater market trends.

Asia-Pacific region is analyzed across countries such as China, Japan, India, South Korea, Australia, and the Rest of Asia-Pacific. India and China are major players in this region majorly due to huge population and due to their demand for hot water during the winter season. Asia-Pacific is the highest revenue generating region of the global water heater market owing to huge demand from urban and rural regions. These developing countries are characterized with population growth, rise in income, and improved lifestyle. The surge in the leading players who are engaged in introducing innovative and affordable gas water heaters to address demand of hot water in this region is another driving factor. The above mentioned initiatives are major factor driving the growth of the market in this region during the forecast period.

The instant gas water heater segment dominates the global gas water heater market. Instant water heaters, also known as tankless water heaters supply hot water instantaneously. These water heaters are used in washbasins and kitchens where usage of water is less. They do not have any storage, which results in no wasting of hot water or heating extra water. In addition, they need to be switched on before use and switched off immediately after use. This leads to very less or no waste of electricity and the unit consumption is quite appropriate. These water heaters mostly operate on electricity or gas. Growth in consumer awareness toward sustainable use of energy is expected to propel the market growth of instant water heater. Instant water heaters are gaining popularity among consumers, owing to their energy-saving attribute. It provides hot water on demand rather than storing the heated water. It ensures a continuous supply of hot water by saving energy. It’s higher efficiency and innovation in design fuels the market growth.

The indoor segment dominates the global gas water heater market. Indoor gas water heaters can be installed in bedroom or bathroom closets, if preferred only they are electric, direct vent or sealed combustion chamber unit. Indoor gas water heater is ideal for cold and windy climates, as it is a far lower risk that a heater can suffer from freezing damage. Advantages of indoor tankless gas water heater are lower energy costs and, no risk of weather damage which increases the resale value of the real estate. The presence of above mentioned advantages will drive the growth of the market. However, the need for necessary maintenance, need for venting space, and risk of leaks are major factors hampering the sales of indoor gas water heater market.

The LPG segment dominates the global gas water heater market. LPG is one of the best alternatives to replace traditional electric water heaters that use up way more energy than they should to heat up water. Gas water heaters are custom made to use LPG to instantly heat up water used at any specific moment. Increase in demand for comfort and on-demand hot water services in luxury hotels, and other recreation centers drive the growth of the market. Extreme and adverse climatic conditions across various geographies with availability of multiple government incentives are set to enhance the market growth. The availability of LPG cylinders to refuel is another major factor driving the growth of gas water heater market.

The commercial segment dominates the global gas water heater market. Commercial water heaters are designed for large-scale requirements. They are characterized with unique designs, efficient performance, large capacity, safe-use, and easy adaptability. They are widely used by commercial users including, schools, corporate offices, hotels and hospitals, and other commercial infrastructures: thereby, leading to healthy growth of the market. The presence of above mentioned wide range of utilization of gas water heater panels in various commercial applications due to rise in number of commercial set-ups including schools, corporate offices, hotels, and others for hot water to clean and sanitize many surfaces within the hospital building, washing of the patient, and laundry will provide ample opportunities for the market. 

COVID-19 analysis:

COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for solar related equipment in most of the countries across the world led to decline in the demand of the gas water heater market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.

Building & construction activities across the globe were on hold during the pandemic period owing to strict measures of social distancing, lack of labor, and raw material supply disruptions. This further declined the growth of the market in 2020. Moreover, temporary shutdown of factories, manufacturing bases, and other processing industries hampered the growth of the gas water heater market. Thus, all these factors collectively led to decreased growth of the global gas water heater market in 2020.

The increase in awareness among consumer regarding health awareness led to increase in the demand for hot water, which led to increase in the demand for water heater industry. The presence of demand due to outbreak of pandemic has positive impact on the development of the market in the forecast period.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the gas water heater market analysis from 2021 to 2031 to identify the prevailing gas water heater market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the gas water heater market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global gas water heater market trends, key players, market segments, application areas, and market growth strategies.

 Gas Water Heater Market Report Highlights