North America Residential Water Heater Market - By Product (Instant, STORAGE), By Capacity (<30 liters, 30 - 100 liters, 100-250 liters, 250-400 liters, >400 liters), By Energy Source (Electric, Gas) & Forecast, 2024 – 2032

North America Residential Water Heater Market - By Product (Instant, STORAGE), By Capacity (<30 liters, 30 - 100 liters, 100-250 liters, 250-400 liters, >400 liters), By Energy Source (Electric, Gas) & Forecast, 2024 – 2032

North America Residential Water Heater Market Size

North America Residential Water Heater Market was valued USD 3.17 billion in 2023 and is anticipated to grow at a CAGR of 6% between 2024 and 2032. A residential water heater is an appliance used to heat water for domestic purposes such as bathing, cooking, cleaning, and space heating. Residential water heaters come in various types and sizes to meet the specific needs of households.

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widespread availability and familiarity with storage water heaters support their continued adoption, will stimulate the product demand. Growing popularity of tankless water heaters will augment the industry landscape. In areas where natural gas is inexpensive, gas storage water heaters remain particularly competitive against electric tankless models. Furthermore, in colder regions, storage water heaters are often preferred due to their ability to maintain a large reservoir of hot water during extended periods of high demand, which is set to drive the business scenario.
 

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Traditional storage water heaters are favored for their consistent hot water supply, which is crucial for households with high hot water demand will stimulate the product adoption. The initial cost is a significant factor in water heater selection, with storage water heaters being more affordable upfront compared to tankless systems. Furthermore, growing environmental awareness is driving the adoption of more sustainable water heating solutions will contribute to business growth.

North America Residential Water Heater Market Trends

Continuous improvements in energy efficiency, integration with smart home systems for better energy management and user convenience and strict energy efficiency standards set by government bodies are pushing manufacturers to develop more efficient water heaters, driving the product adoption. For instance, The U.S. Department of Energy (DOE) mandates minimum energy efficiency standards for residential water heaters, encouraging the production of more energy-efficient models. Additionally, Rebates and tax credits for purchasing ENERGY STAR-certified water heaters incentivize consumers to choose more efficient models which will drive the business scenario.

North America Residential Water Heater Market Analysis

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Based on product, the market is segmented into Instant, and storage. Storage is projected to grow by more than USD 5.25 billion by 2032 on account of their reliability, familiarity, and relatively low initial cost compared to tankless systems. Government policies and energy efficiency standards coupled with  Incentive programs from federal, state, and local governments, as well as utility companies, promote the adoption of high-efficiency water heaters. Newer models of storage water heaters are increasingly energy-efficient, incorporating advanced insulation and heat pump technologies, leading to commercial adoption. Further, integration with smart home systems allows for better energy management and convenience, will drive the industry scenario.

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Based on Capacity, the North America residential water heater market is segmented into <30 liters, 30 - 100 liters, 100 – 250 liters, 250 – 400 liters and >400 liters. 100 – 250 liters water heaters is set to grow more than CAGR 5.5% on account of their capability to cater average-sized households with moderate hot water demand. It can adequately supply enough hot water for daily activities such as showers, laundry, and dishwashing. Lower operating costs, combined with the relatively lower upfront costs of the gas tank heaters compared to alternative technologies, contribute to their adoption. In addition, homes with existing natural gas connections prefer gas appliances due to the ease of integration into the existing infrastructure.

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The U.S. residential water heater market is anticipated to grow over USD 3.73 billion by 2032 driven by presence of major water heater manufacturers including A.O. Smith, Bradford White and Rheem manufacturing among others. Rising per capita income and improving living standards have further escalated the product demand. Ongoing upgradation and replacement of existing models with more efficient and compact designs will augment the industry landscape. Additionally, well established natural gas infrastructure in many areas of the U.S. along with availability of the gas tank water heaters in various capacities to suit the household requirement will drive the adoption across the region.

North America Residential Water Heater Market Share

Industry collaborations in the residential water heater industry across North America are essential for driving innovation, improving product efficiency, and enhancing sustainability. These collaborations often involve partnerships between manufacturers, utility companies, technology providers, and regulatory bodies. In addition, partnering with utility companies, regulatory bodies, technology firms, and industry associations, manufacturers are able to innovate and bring new, more efficient products to market.

North America Residential Water Heater Market Companies

Eminent players operating in the North America residential water heater industry are

• A.O.Smith
• Ariston Thermo
• American Standard Water Heaters
• Bradford White Corporation
• EcoSmart Green Energy Products, Inc.
• GE Appliances
• HTP Comfort Solutions LLP
• Lennox International Inc.
• Noritz America
• Navien Inc.
• Racold
• Rheem Manufacturing Company
• Rinnai America Corporation
• State Industries
• Whirlpool Corporation
• Westinghouse Electric Corporation

North America Residential Water Heater Industry News

• In February 2024, Ariston Holding N.V. announced its entry into the U.S. builder segment by adding up its business development resources. Ariston USA, along with the support of experienced business leaders, plans to bring its plumbing and water heater products to its builder segment. This will significantly expand its presence and lead the electrification transition across the market.
   
• In May 2022, GE Appliances opened a water heating manufacturing facility worth USD 70 million in South Carolina with advanced technology. This vertically integrated plant was set to make products, beginning from steel coils into high-quality water heaters, for the U.S. homes with robotic material handling & processing, cutting-edge machines for metal fabrication & welding, and still enameling. This expansion allowed the company to showcase its expertise in large-scale projects in the U.S., thereby maintaining a strong position across the industry.

North America Residential Water Heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Million and ‘000 Units)” from 2021 to 2032, for the following segments

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Market, By Production Method

• Instant
• Storage

Market, By Capacity

• <30 liters
• 30 - 100 liters
• 100 -250 liters
• 250 – 400 liters
• >400 liters

Market, By Energy Source

• Electric
• Gas
  • Natural Gas
  • LPG

The above information has been provided for the following countries

• U.S.
• Canada