Tankless Water Heater Market

Global Tankless Water Heater Market Size (2024-2032):

The size of the global tankless water heater market was worth USD 6.51 billion in 2023. The global market is anticipated to grow at a CAGR of 6.8% from 2024 to 2032 and be worth USD 11.77 billion by 2032 from USD 7 billion in 2024. 

Current Scenario of the Global Tankless Water Heater Market

A tankless water heater is a device that quickly heats water as you need it, without storing it in a big tank like regular water heaters. When you turn on the hot water tap, cold water enters the tankless heater, where it gets heated instantly by electric coils or gas burners. Then, the hot water comes out of the faucet or shower right away. The best part is that it never runs out of hot water, as it's heated on demand. Tankless water heaters are space-saving, energy-efficient, and can last a long time. However, they may cost more upfront, but they save money on energy bills in the long run.

MARKET DRIVERS

The tankless water heaters market demand is booming because they are highly energy-efficient. Unlike traditional water heaters that keep a large tank of water hot all the time, tankless heaters only heat water when you need it, which saves both energy and money.

This feature is becoming increasingly appealing to consumers due to rising energy costs and growing environmental concerns. People are now more conscious of reducing their energy usage and carbon footprint, leading to a surge in market demand for tankless water heaters as an efficient and eco-friendly heating solution.

The tankless water heater market growth is rapidly increasing due to the rising number of construction and renovation projects. As more buildings are being constructed or upgraded, there is a growing demand for water-heating solutions that are efficient and modern. Tankless water heaters are popular choices during these projects because they offer a modern look and save space, making them ideal for these projects. As a result, the market demand for tankless water heaters is increasing continuously.

MARKET RESTRAINTS

The tankless water heater market may face challenges because these heaters have a higher initial cost than traditional ones.

Some cost-conscious consumers may be hesitant to choose tankless technology, especially in areas where energy prices are low, as it may take longer to see the cost savings and benefits. However, as people become more aware of long-term energy savings and environmental benefits, the market trends for tankless water heaters are expected to grow steadily.

MARKET OPPORTUNITIES

The tankless water heater market has exciting opportunities due to technological advancements. As technology improves, tankless heaters can become even more efficient and advanced. By integrating smart home capabilities, it improved control systems, and better energy management features, these heaters become appealing to tech-savvy consumers. As a result, the demand for these advanced tankless water heaters is expected to grow and give manufacturers a chance to cater to the needs of tech-conscious customers.

IMPACT OF COVID-19 ON THE GLOBAL TANKLESS WATER HEATER MARKET

The COVID-19 pandemic had a significant impact on the tankless water heater market. Initially, the market growth faced challenges due to economic uncertainties, lockdowns, and disruptions in construction activities, leading to a decline in market demand. However, as the pandemic continued, there was a shift in consumer behavior toward cleanliness and hygiene. This increased focus on sanitization and home improvements led to a rebound in the market share, with more people opting for tankless water heaters to ensure a steady supply of hot water for cleaning purposes. Additionally, the rise of remote work and smart home trends further boosted the demand for energy-efficient and technologically advanced tankless water heaters. Overall, the tankless water heater market is expected to recover and grow in the post-pandemic period.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Tankless Water Heater Market Analysis By Technology Type

Electric tankless water heater market shares are the highest due to their advantages. In regions with affordable electricity or a focus on renewable energy, they are popular for energy efficiency. Additionally, their easy and cost-effective installation, without the need for gas lines or venting, makes them a preferred choice for many consumers.

Global Tankless Water Heater Market Analysis By Smart Feature Type

Wi-Fi connectivity is dominating the tankless water heater market, enabling remote control and monitoring via smartphones. This smart feature enhances convenience and allows users to adjust settings, receive notifications, and set hot water schedules. As smart home technologies and energy efficiency grow, manufacturers are refining these features to meet consumer demands.

Global Tankless Water Heater Market Analysis By End-User

The homeowner's segment is growing at a higher rate in the tankless water heater market due to their demand for efficient and space-saving water heating solutions. Increasing awareness about energy efficiency and environmental impact further drives the demand for tankless water heaters known for their energy-saving benefits.

REGIONAL ANALYSIS

North America is leading the tankless water heater market with strong demand in the United States and Canada. They have modern infrastructure, higher incomes, and care about saving energy and the environment, making tankless water heaters popular. Europe, including Germany, the UK, and Italy, also likes these heaters for being eco-friendly and efficient in modern homes. Asia-Pacific, with China, Japan, and South Korea, is growing in this market due to urbanization and more people seeking energy efficiency. The Middle East and Africa have a smaller share as energy-efficient demand increases but face awareness and infrastructure challenges. Latin America, including Brazil and Mexico, is showing interest due to urban growth and space-saving needs.

KEY PLAYERS IN THE GLOBAL TANKLESS WATER HEATER MARKET

Companies playing a prominent role in the global tankless water heater market include Rinnai Corporation, Navien Inc., Noritz Corporation, A.O. Smith Corporation, Rheem Manufacturing Company, Stiebel Eltron, Bosch Thermotechnology, Bradford White Corporation, Takagi Industrial Co., Ltd., EcoSmart Green Energy Products, and Others.

RECENT HAPPENINGS IN THE GLOBAL TANKLESS WATER HEATER MARKET

• In 2021, Rinnai has been focusing on expanding its product offerings and market reach. They have introduced high-efficiency tankless water heaters with advanced features like Wi-Fi connectivity and smart home integration, allowing users to control and monitor their water heaters remotely through mobile apps.
• In 2021, Navien has been actively developing condensing tankless water heaters, which offer even higher energy efficiency and performance. They have also been improving their eco-friendly technologies to reduce greenhouse gas emissions and provide greener solutions to consumers.

DETAILED SEGMENTATION OF THE GLOBAL TANKLESS WATER HEATER MARKET INCLUDED IN THIS REPORT

This research report on the global tankless water heater market has been segmented and sub-segmented based on technology type, smart feature type, end-user, and region.

By Technology Type

• Electric
• Gas

By Smart Feature Type

• Wi-Fi connectivity
• mobile apps
• voice control
• Others

By End-User

• Homeowners
• Apartment complexes
• Hotels
• Hospitals
• Educational institutions
• Other

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa