As natural gas rates increase and the push for more sustainable energy sources intensifies, heat pump water heaters appear poised for massive growth. States such as California and Massachusetts already have regulations prohibiting or disincentivizing gas water heaters in new construction, and New York City recently enacted similar restrictions for new construction. So, are heat pump water heaters the future of the water heating market? Maybe or maybe not — but some industry experts certainly think so.

According to a report from MarketsandMarkets, the heat pump water heater market is projected to reach $2.1 billion by 2026, with a CAGR of 6.8%.