Global gas water heater market valued approximately USD 19.6 billion in 2016 is anticipated to witness the annual growth of more than 5% over the forecast period 2017-2025. Increasing government mandates towards >Energy Star' rated products along with the replacement demand for heaters in North America and Europe is the major reason behind the growth of the market.
Gas heaters are always considered to be safer than the electric models, also they offer higher energy efficiency as compared to the electric versions. Owing to such advantages gas water heaters have been significantly popular among the consumers over the last several years. Moreover, rapid urbanization coupled technological developments including remote automation and smart temperature controls are also likely to fuel the demand for gas models over the forecast period. The market has been broadly segmented into different screen sizes and geography. Each of the segment is further divided as follows:
Storage Type:
> Tank
> Tankless / Instantaneous
End-Use
> Commercial
> Residential
Regions:
> North America
o U.S.
o Canada
> Europe
o UK
o Germany
o France
> Asia Pacific
o China
o India
o Japan
> Latin America
o Brazil
o Mexico
> Rest of the World
Storage/tank models have always been popular among the consumers, it accounted for the largest market share, more than 85% in the year 2016. However, the introduction of tankless models with higher efficiency and compact designs is projected to shift the demand from tank models to tankless models. This growth is attributed to the advantages such as durability, constant supply, compact size and no standby energy losses offered by the tankless models.
Geographically, the market is dominated by North America and Europe. Factors such as high disposable income and frostier weather conditions are the major reason behind the huge installation of water heaters. Further, Asia Pacific is anticipated to witness significant growth on the account of its rapidly developing countries such as India and China coupled with rising disposable income & the vast presence of key manufacturers in the region.
Some of the key players involved in gas water heater manufacturing are; A.O. Smith Corporation, Rheem Manufacturing Company, and Bradford White Corporation. These key players have a strong foothold in the industry due to their wide product offerings and geographical presence. Further, merger and acquisition is the key strategy adopted by key players, this has enabled them to gain competitive advantages and their hands on recent technological developments. Manufacturers also significantly invest in R&D for heating elements and energy efficiency of water heaters. This will help them to gain high sales volume in long run.
