North America Residential Water Heater Market to Reach USD 5.54 Billion by 2030, Driven by Rising Home Construction and New Energy Efficiency Standards

North America Residential Water Heater Market Outlook 

According to Mordor Intelligence, North America Residential Water Heater Market is witnessing steady growth, with its market size expected to expand from USD 4.28 billion in 2025 to USD 5.54 billion by 2030. The growth rate of 5.29% CAGR reflects rising residential construction, increasing demand for energy-efficient solutions, and supportive federal and state incentives. Heat-pump water heaters and tankless models are becoming increasingly popular as homeowners and developers aim to reduce utility costs and meet the Department of Energy’s efficiency standards.  

North America Residential Water Heater Market Growth Drivers 

DOE 2029 Efficiency Standards Driving Replacement of Conventional Units 

Upcoming efficiency rules are accelerating adoption of heat-pump and high-efficiency gas water heaters, with homeowners upgrading ahead of compliance deadlines. 

Residential Construction Growth Creating Baseline Demand for Modern Water Heaters 

Rebound in single-family and multifamily housing ensures steady demand, with new builds favoring heat-pump or tankless systems due to design flexibility. 

Shift Toward Tankless and Heat-Pump Water Heaters for Energy Savings 

Consumers are increasingly choosing tankless and heat-pump models to reduce energy losses and benefit from tax incentives, despite installation challenges. 

Utility Rebates and Federal Incentives Supporting Electrification 

Programs like the Inflation Reduction Act and state/utility rebates make high-efficiency water heaters more affordable, encouraging broader adoption. 

Market Segmentation: 

• By Product Type: Storage, Tankless, and Hybrid Heat-Pump Water Heaters. 
• By Energy Source: Electric, Gas, Solar, and Others. 

North America Residential Water Heater Companies 

• A. O. Smith Corporation 
• Bradford White Corporation 
• Rheem Manufacturing Company 
• Rinnai Corporation 
• Navien Inc. 

Dominating Country 

The United States leads the North America residential water heater market, driven by strong housing construction, supportive government incentives, and growing demand for energy-efficient systems. Heat-pump and tankless water heaters are increasingly preferred in new residential projects, especially across Sun-Belt states and major metropolitan areas. Utility demand-response programs and favorable manufacturing policies further strengthen the country’s position compared to other regional markets. 

Conclusion 

The North America Residential Water Heater Market is on a steady growth path, supported by efficiency-driven policies, consumer awareness, and advancements in heat-pump and tankless technologies. With strong housing activity and government incentives encouraging energy-efficient upgrades, the market is set to remain competitive and innovative-focused. 

Get the latest industry insights on the North America Residential Water Heater Market: https://www.mordorintelligence.com/industry-reports/north-america-residential-water-heaters-market?utm_source=Industrytoday.co.uk   

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