U.S. Water Heater Market - Industry Outlook & Forecast 2021-2026

U.S. Water Heater Market - Industry Outlook & Forecast 2021-2026

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this U.S. Water Heater Market Report

The U.S. water heater market was valued at USD 3,129.54 million in 2020 and is expected to reach USD 4,167.68 million by 2026 growing at a CAGR of 4.89% during the forecast period

The following factors are likely to contribute to the growth of the U.S. water heater market during the forecast period:

Growing traction for smart water heaters
Emergence of hybrid water heaters
Growth in the commercial Sector
Expansion of residential sector
Rising demand for energy efficiency
Investment in research & development


The US water heater market is growing significantly due to the increasing demand for hot water for various chores such as laundry, cleaning, shower, cooking, and others. Various factors such as the increasing inclination of the country’s population towards energy-efficient applications products and continuous innovation by various vendors to launch heaters with advanced features in the industry are likely to further add to the revenue of water heater vendors operating in the US market.


In 2020, the gas & oil water heaters generated the highest revenue of USD 1,305.29 million and is expected to grow at a CAGR of 4.08%.
Heat pump water heaters are increasingly gaining momentum as these are highly efficient as compared to electric and conventional gas water heaters.
Several commercial spaces such as hotels, hospitals, resorts, and restaurants have tremendously contributed to the growth of the commercial water heater market in the US.
The residential sector holds a share of 66.35% and is leading the end-user segment due to several single-family and multi-family housing units.
Midwest and Northeast regions are generating the highest revenue for the heater market in the United States due to the huge population in the Midwestern states and cold climate in these areas.
In July 2021, Bradford white, water heater manufacturing company, launched tankless water heater which includes features such as integrated flush ports, digital controls, technology that helps in maintaining constant water temperature, field gas conversion, Venting and modulation, and others.

The study considers a detailed scenario of the present US water heater market and its market dynamics for the period 2021−2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.


This research report includes a detailed segmentation by

Product Type
Distribution Channel


Electric water heaters held the second-highest share of 39.24% in 2020. The low cost of purchase and easy installation is driving the demand for these water heaters.
Storage water heaters held a share of 74.91% in 2020 and dominated the water heater market in the US. The high penetration of these water heaters is attributed to their low purchase and installation cost.

Segmentation by Product Type
Gas & Oil
Heat Pump

Segmentation by Category

Segmentation by Distribution Channel

Segmentation by End User


Midwest: Technological advancement and growing inclination towards smart appliances that restricts carbon emissions are likely to support the growth of the water heater industry in the region.
Northeast: New York, Pennsylvania, New Jersey, and Massachusetts are expected to generate the highest demand for water heaters. This is due to the huge population base supported by high median disposable income. Around 80% of the population in New York City have access to smartphones, and more than 70% have access to high-speed Internet at home. These factors are likely to propel the demand for smart water heaters in the region.

Segmentation by Geography

Midwest US
Northeast US
South US
West US


The key players in the US water heater industry are O. Smith, Bradford White, and Rheem Manufacturing.
The scope for product differentiation is low in the market. Quality, price, and after-sales services are decisive variables affecting the sales of water heaters in the US.
Vendors can tap into the tremendous growth opportunities by targeting the rental home market.

Key Vendors

A.O. Smith
Bradford White
Rheem Manufacturing Company

Other Prominent Vendors

Bock Water Heaters
General Electric
Hubbell Water Heaters
Noritz America Corporation
Rinnai American Corporation
State Water Heaters
Stiebel Eltron
Watts Water Technologies
Westinghouse Electric Company

1. How big is the U.S. water heater market?
2. What is the biggest opportunity for growth in the U.S. water heater market?
3. What factors affect the growth of the water heater manufacturing industry in the US?
4. Which is the fastest-growing type segment during the forecasted period in the U.S. water heaters market?
5. Who are the key players in the US water heater market?

1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope Of The Study
4.4 Market Segments
4.4.1 Market Segmentation By Product Type
4.4.2 Market Segmentation By Category
4.4.3 Market Segmentation By End User
4.4.4 Market Segmentation By Distribution Channel
4.4.5 Market Segmentation By Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market At A Glance
7 Introduction
7.1 Overview
7.2 Components Of Storage Water Heater
7.3 Government Regulations
7.4 Industry FAQs
7.4.1 How Will The Us Water Heater Market Perform In The Coming Years?
7.4.2 Which Is The Fastest-Growing And Most Preferred Category Of Water Heaters In The Market?
7.4.3 Which Water Heater By Product Type Has The Highest Revenue Share And Fastest Growth In The Market?
7.4.4 Which End-User Segment Generates The Highest Revenue For Water Heater Vendors Operating In The Us?
7.4.5 Who Are the Key Players In The Us Water Heater Market?
7.5 Impact Of Covid-19
7.5.1 Supply Side
7.5.2 Demand Side
8 Market Opportunities & Trends
8.1 Growing Traction For Smart Water Heaters
8.2 Emergence Of Hybrid Water Heaters
8.3 Growth In Commercial Sector
9 Market Growth Enablers
9.1 Expansion Of Residential Sector
9.2 Rising Demand For Energy Efficiency
9.3 Investment In R&D Initiatives
10 Market Restraints
10.1 Impact Of Covid-19 On Steel Prices
10.2 High Installation & Maintenance Costs For Commercial Water Heaters
10.3 Trade Conflicts Between Us & China
11 Market Landscape
11.1 Market Overview
11.1.1 Key Applications
11.2 Vendor Analysis
11.3 Market Size & Forecast
11.4 Five Forces Analysis
11.4.1 Threat Of New Entrants
11.4.2 Bargaining Power Of Suppliers
11.4.3 Bargaining Power Of Buyers
11.4.4 Threat Of Substitutes
11.4.5 Competitive Rivalry
12 Product Type
12.1 Market Snapshot & Growth Engine
12.2 Market Overview
12.3 Gas & Oil
12.3.1 Market Overview
12.3.2 Market Size & Forecast
12.3.3 Market By Geography
12.4 Electric
12.4.1 Market Overview
12.4.2 Market Size & Forecast
12.4.3 Market By Geography
12.5 Heat Pump
12.5.1 Market Overview
12.5.2 Market Size & Forecast
12.5.3 Market By Geography
12.6 Solar
12.6.1 Market Overview
12.6.2 Market Size & Forecast
12.6.3 Market By Geography
13 Category
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Storage Water Heater
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.3.3 Market By Geography
13.4 Instant Water Heater
13.4.1 Market Overview
13.4.2 Market Size & Forecast
13.4.3 Market By Geography
14 Distribution Channel
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Offline
14.3.1 Market Overview
14.3.2 Consumer Electronics Retail Stores
14.3.3 Departmental Stores
14.3.4 Specialty Stores
14.3.5 Others
14.3.6 Market Size & Forecast
14.3.7 Market By Geography
14.4 Online
14.4.1 Market Overview
14.4.2 Direct Sales
14.4.3 Third-Party Sales
14.4.4 Market Size & Forecast
14.4.5 Market By Geography
15 End User
15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 Residential
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.3.3 Market By Geography
15.4 Commercial
15.4.1 Market Overview
15.4.2 Healthcare
15.4.3 Hospitality
15.4.4 Other Commercial End Users
15.4.5 Market Size & Forecast
15.4.6 Market By Geography
16 Geography
16.1 Market Snapshot & Growth Engine
16.2 Geographic Overview
17 Midwest
17.1 Market Overview
17.1.1 Illinois
17.1.2 Michigan
17.1.3 Ohio
17.2 Market Size & Forecast
17.3 Product Type
17.3.1 Market Size & Forecast
17.4 Category
17.4.1 Market Size & Forecast
17.5 End User
17.5.1 Market Size & Forecast
17.6 Distribution Channel
17.6.1 Market Size & Forecast
18 Northeast
18.1 Market Overview
18.1.1 New Jersey
18.1.2 New York
18.2 Market Size & Forecast
18.3 Product Type
18.3.1 Market Size & Forecast
18.4 Category
18.4.1 Market Size & Forecast
18.5 End User
18.5.1 Market Size & Forecast
18.6 Distribution Channel
18.6.1 Market Size & Forecast
19 South
19.1 Market Overview
19.1.1 Texas
19.1.2 Florida
19.2 Market Size & Forecast
19.3 Product Type
19.3.1 Market Size & Forecast
19.4 Category
19.4.1 Market Size & Forecast
19.5 End User
19.5.1 Market Size & Forecast
19.6 Distribution Channel
19.6.1 Market Size & Forecast
20 West
20.1 Market Overview
20.1.1 California
20.1.2 Washington
20.1.3 Utah
20.2 Market Size & Forecast
20.3 Product Type
20.3.1 Market Size & Forecast
20.4 Category
20.4.1 Market Size & Forecast
20.5 End User
20.5.1 Market Size & Forecast
20.6 Distribution Channel
20.6.1 Market Size & Forecast
21 Competitive Landscape
21.1 Competition Overview
22 Key Company Profiles
22.1 A.O. SMITH
22.1.1 Business Overview
22.1.2 Product Offerings
22.1.3 Key Strategies
22.1.4 Key Strengths
22.1.5 Key Opportunities
22.2.1 Business Overview
22.2.2 Product Offerings
22.2.3 Key Strategies
22.2.4 Key Strengths
22.2.5 Key Opportunities
22.3.1 Business Overview
22.3.2 Product Offerings
22.3.3 Key Strategies
22.3.4 Key Strengths
22.3.5 Key Opportunities
23 Other Prominent Vendors
23.1.1 Business Overview
23.1.2 Product Offerings
23.2.1 Business Overview
23.2.2 Product Offerings
23.3.1 Business Overview
23.3.2 Product Offerings
23.4 HTP
23.4.1 Business Overview
23.4.2 Product Offerings
23.5.1 Business Overview
23.5.2 Product Offerings
23.6.1 Business Overview
23.6.2 Product Offerings
23.7.1 Business Overview
23.7.2 Product Offerings
23.8.1 Business Overview
23.8.2 Product Offerings
23.9.1 Business Overview
23.9.2 Product Offerings
23.10.1 Business Overview
23.10.2 Product Offerings
23.11.1 Business Overview
23.11.2 Product Offerings
23.12.1 Business Overview
23.12.2 Product Offerings
23.13.1 Business Overview
23.13.2 Product Offerings
23.14.1 Business Overview
23.14.2 Product Offerings
24 Recent Developments
24.1 Merger, Acquisitions & Partnerships
24.2 New Product Launches
25 Report Summary
25.1 Key Takeaways
25.2 Strategic Recommendations
26 Quantitative Summary
26.1 Market By Geography
26.2 Midwest
26.2.1 Product Type: Market Size & Forecast
26.2.2 Category: Market Size & Forecast
26.2.3 End User: Market Sizr & Forecast
26.2.4 Distribution Channel: Market Size & Forecast
26.3 Northeast
26.3.1 Product Type: Market Size & Forecast
26.3.2 Category: Market Size & Forecast
26.3.3 End User: Market Size & Forecast
26.3.4 Distribution Channel: Market Size & Forecast
26.4 South
26.4.1 Product Type: Market Size & Forecast
26.4.2 Category: Market Size & Forecast
26.4.3 End User: Market Sizr & Forecast
26.4.4 Distribution Channel: Market Size & Forecast
26.5 West
26.5.1 Product Type: Market Size & Forecast
26.5.2 Category: Market Size & Forecast
26.5.3 End User: Market Sizr & Forecast
26.5.4 Distribution Channel: Market Size & Forecast
26.6 Product Type
26.6.1 Market Size & Forecast
26.7 Category
26.7.1 Market Size & Forecast
26.8 End User
26.8.1 Market Size & Forecast
26.9 Distribution Channel
26.9.1 Market Size & Forecast
27 Appendix
27.1 Abbreviations

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