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Tankless Water Heater Market

Market Study on Tankless Water Heaters: Steady Demand Growth to Be Exhibited by Residential Sector

Tankless Water Heater Market Segmented By Condensing Tankless Water Heaters, Non-condensing Tankless Water Heaters Technology from Electric, Gas Tankless Water Heaters Energy Source For Indoor and Outdoor

Tankless Water Heater Market Outlook (2022-2032)

The global tankless water heater market is projected to expand at 6.3% CAGR and reach US$ 7.38 Bn by the end of 2032, up from US$ 4 Bn in 2022.

Sales of tankless water heaters account for 7%-10% share of the global water heater market at present.

Attribute Key Insights

Tankless Water Heater Market Size (2022)

US$ 4 Bn

Projected Sales of Tankless Water Heaters (2032)

US$ 7.38 Bn

Market CAGR (2022 to 2032)

6.3%

Market Share of Top 5 Tankless Water Heater Manufacturers

5% to 8%

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Demand Analysis of Tankless Water Heaters (2017 to 2021) Vs. Market Projections (2022 to 2032)

From 2017 and 2021, worldwide demand for tankless water heaters increased at a steady CAGR of 4.9%, with India, China, Saudi Arabia, and Russia holding a significant market share of the global market.

Innovative technological developments and increased investments in research and development have been the main drivers for the growth of companies specializing in tankless water heater units. The expansion of smart cities and commercial infrastructure and the development of carbon-neutral buildings will strengthen the industry. Continuous technological development is anticipated to fuel market growth in the foreseeable future.

Development of services and products with convenience and interoperability is projected to boost the sales of tankless water heaters. Economical pricing, convenience, and increasing acceptability are being witnessed in this space.

Additionally, increasing replacement of traditional water heater units with tankless water heating technology in commercial spaces, such as hospitals, hotels, restaurants, beauty salons & spas, and so on, will lead to significant growth of the market for tankless water heater systems.

Sustainable approaches and new technology advancements are expected to drive the market forward. Over the next ten years, global sales of tankless water heaters are anticipated to increase faster than the historic period at 6.3% CAGR.

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How is the Tankless Water Heater Market Progressing?

“Surge in Mergers & Acquisitions Leading to Market Expansion & Product Development”

Tankless water heater manufacturers are putting their efforts toward expanding their technological and manufacturing capabilities through strategic mergers and acquisitions across the value chain. They are going the extra mile to fulfill the growing demand from North America and Asia Pacific for tankless water heaters. The aim is to include newer versions into their product lines or to supplement existing product offerings.

  • Bradford White Corp, which manufactures commercial, residential, and industrial heating products and storage applications, announced that in 2020 it had reached a deal to acquire the assets of Keltech, a manufacturer of commercial electric water heaters.

“e-Commerce sales platforms to Drive High Market Growth”

Manufacturers are now focusing not only on creative product development but are also effectively creating sales and distribution networks for their merchandise. Consumer focus is growing on online product research for information pertaining to their purchases. As such, manufacturers of tankless water heaters are increasing their market presence and product accessibility online.

  • Rinnai, a leading manufacturer of tankless water heaters, has installed Amazon Alexa's compatibility with Rinnai products, allowing users to ask Alexa to turn on circulation, allowing the tankless water heating system to run. It also supports integration with Google Wi-Fi for compatible products, allowing users to monitor the performance of their tankless water heater-recirculation system.
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Country-wise Insights

What’s Driving the U.S. Tankless Water Heater Market?

“Manufacturers in U.S. Offering Innovative Products”

Demand for tankless water heaters is expected to reach an all-time high in the U.S. over the coming years at an expected CAGR of 8.7% through the forecast period.

Continuing development of modern technology and high demand for tankless water heaters in the business area are catalysts that fuel the latest trends in tankless water heater production in the country.

According to data released by the United States Energy Information Administration, most homes in the U.S., have at least one water heater. At the same time, another factor contributing to the demand for tankless water heaters is seasonal weather variability.

Why Does the U.K. Dominate the Europe Tankless Water Heater Market?

“High Adoption of Energy-efficient & Economical Water Heaters”

The U.K. tankless water heater market occupies a leading position in Europe, with the country holding 18.5% revenue share in 2021.

High market growth is because the country is leading in the adoption of energy-efficient and economical products. This has increased manufacturing investments in the U.K. by key market players, which has led to a higher customer-partnership experience.

A greater amount of products with attributes such as advanced heating capabilities, energy optimization, low standby losses, remote manageability, and Wi-Fi connection are likely to boost industry growth. In addition to companies such as Bradford White, A.O. Smith, Rinnai, and Robert W. Bosch GmbH, the U.K. has several major companies that are expected to contribute to the growth of the tankless water heater market in the country.

What are the Opportunities for Tankless Water Heater Producers in Australia?

“Higher Prevalence of SMEs in Regional Market”

Australia is one of the lucrative markets in Oceania and it is expected to register growth at 3.5% CAGR in terms of value over the forecast period.

Australia's emerging market is brand-driven with a large number of both, large domestic and foreign companies. This is creating a growing need for entrepreneurs to increase market share and increase penetration in the regional market. Smaller companies are also increasingly leveraging mergers as an opportunity in the Australian market.

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Category-wise Insights

Which End Use Sector Dominates the Tankless Water Heater Market?

“Growth in Residential Sector to Boost Volume Sales of Water Heaters”

The residential segment of the global market accounted for a value share of 70.6% in 2021.

Advances in awareness that energy consumption contributes significantly to global warming is one of the major factors driving the demand for energy-efficient tankless water heaters in the residential sector. Financial improvement of the middle class in developing countries, including China and India, is expected to increase the desire for such amenities over the coming years.

New products and services, particularly those that have advanced and enhanced features, will enable new avenues to become available.

  • For instance, Rheem's Prestige models with EcoNet Smart Technology provide Wi-Fi connectivity and other advanced features, facilitating homeowners with improved system protection, control, and expense savings.

Why is Condensing Technology Gaining Immense Popularity?

“Higher Efficiency of Condensing Water Heaters Driving Segment Expansion”

The condensing segment accounted for around 77.5% value share in the global tankless water heater market at the end of 2021 and is expected to exhibit high growth at a CAGR of more than 7% over the forecast period.

Condensing tankless water heaters are more energy efficient than non-condensing tankless water heaters, which are increasingly common in emerging economies.

High market concentration arising from a variety of government and private sectors focusing on developing power plants that use renewable sources of energy, such as solar and wind, will create opportunities for key manufacturers of water heaters.

Which Type of Tankless Water Heater is Seeing High Demand Growth?

“Electric Tankless Water Heaters Gaining Huge Prominence”

Electric tankless water heaters are estimated to account for 75.9% market share by the end of 2022. Global sales of electric tankless water heaters are expected to increase at a CAGR of 6.9% during the forecast period.

Lack of availability of electrical power, including natural gas or propane, and poor gas pipeline infrastructure in some regions, are the factors driving high demand for electrical tankless water heating devices.

Tankless Water Heater Industry Report Scope

Attribute Details

Forecast Period

2022-2032

Historical Data Available for

2017-2021

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • South Africa
  • Northern Africa
  • GCC Countries
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia & New Zealand

Key Market Segments Covered

  • Technology Type
  • Energy Source
  • Energy Factor
  • Application
  • End User
  • Sales Channel
  • Region

Key Companies Profiled

  • A. O. Smith Corp.
  • Ariston Thermo Spa
  • Bradford White Corporation
  • Haier Smart Home Co Ltd.
  • NORITZ Corp.
  • Rheem Manufacturing Co.
  • Rinnai Corporation
  • Robert Bosch GmbH
  • Bradford White Corporation
  • Bajaj Electricals Ltd.
  • Kyungdong Navien Co. Ltd.
  • Whirlpool Corporation
  • Atmor
  • Hubbell Electric Heater Company
  • Stiebel Eltron Inc.
  • EcoSmart Green Energy Products, Inc.
  • Others (on request)

Pricing

Available upon Request

Segmentation of Tankless Water Heater Industry Research

Tankless Water Heater Market by Technology Type:

  • Condensing Tankless Water Heaters
  • Non-Condensing Tankless Water Heaters

Tankless Water Heater Market by Energy Factor:

  • 0 to 0.79 EF
  • 0.80 to 0.89 EF
  • 0.90 EF and Above

Tankless Water Heater Market by Energy Source:

  • Electric Tankless Water Heaters
  • Gas Tankless Water Heaters

Tankless Water Heater Market by Application:

  • Indoor Tankless Water Heaters
  • Outdoor Tankless Water Heaters

Tankless Water Heater Market by End User:

  • Residential Tankless Water Heaters
  • Commercial Tankless Water Heaters

Tankless Water Heater Market by Sales Channel:

  • Hypermarkets/ Supermarkets 
  • Specialty Stores 
  • Consumer Electronic Stores 
  • Online Retailers 
  • Direct Sales
  • Other Sales Channels

Tankless Water Heater Market by Region:

  • North America Tankless Water Heater Market
  • Latin America Tankless Water Heater Market
  • Europe Tankless Water Heater Market
  • East Asia Tankless Water Heater Market
  • South Asia Tankless Water Heater Market
  • Oceania Tankless Water Heater Market
  • MEA Tankless Water Heater Market

- Companies Covered in This Report -

  • A. O. Smith Corp.
  • Ariston Thermo Spa
  • Bradford White Corporation
  • Haier Smart Home Co Ltd.
  • NORITZ Corp.
  • Rheem Manufacturing Co.
  • Rinnai Corporation
  • Robert Bosch GmbH
  • Bradford White Corporation
  • Bajaj Electricals Ltd.
  • Kyungdong Navien Co. Ltd.
  • Whirlpool Corporation
  • Atmor
  • Hubbell Electric Heater Company
  • Stiebel Eltron Inc.
  • EcoSmart Green Energy Products, Inc.
  • Others (As per request)

- Frequently Asked Questions -

The global tankless water heater market increase at 4.9% CAGR to reach US$ 3.76 Bn at the end of 2021.

Worldwide sales of tankless water heaters are expected to increase at 6.3% CAGR.

Europe leads the global tankless water heater market with a notable share of 35.2% in 2021.

Leading tankless water heater manufacturers are A. O. Smith Corp., Ariston Thermo Spa, Bradford White Corp., Dometic Group AB., and Haier Smart Home Co. Ltd.

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