Tankless Water Heater Market

Global Market Study on Tankless Water Heaters: Electric Heaters to Account for Over 80% Market Share by 2031

Tankless Water Heater Market Segmented By Condensing Tankless Water Heaters, Non-condensing Tankless Water Heaters Technology with 0 to 0.79 EF, 0.80 to 0.89 EF and 0.90 EF and Above Tankless Water Heaters

About the Report

The global tankless water heater market is poised to expand at a healthy CAGR of close to 6% over the next ten years (2021 to 2031), and cross a valuation of US$ 6.3 Bn in 2031. Rising preference for tankless water heater units coupled with increased investments on research & development, including product innovation and integration of smart technologies, will boost overall market growth.

Almost all tankless water heaters are integrated with star rating standards, making them economical and eco-friendly. Electric tankless water heaters will hold bulk of the demand share throughout the ongoing decade

Many more unique growth factors have been analyzed in detail, while a comprehensive assessment of some of the key challenges for tankless water heater manufacturers has also been discussed in the revised report by Persistence Market Research.

The report also has a detailed regional analysis, which points toward Europe holding the largest share in this highly competitive market space. This edition (2021-2031) brings readers up-to-date with key market developments, providing analysis on how manufacturers and other stakeholders are reacting to change.

Key industry metrics have been captured, and their impact on tankless water heater sales has been analyzed. A detailed COVID-19 impact has also been included in the report, to aid readers in making well-informed business decisions for the present and future. The study also expands on the previous competitive landscape section, and readers will get to know the key strategies of established players as well as new entrants.

Find Out More about the Report Coverage

Companies

  • 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)

Historical Trends vs. Future Market Outlook  

Continued technological advancements, construction of smart cities, expansion of commercial infrastructure, and construction of zero emission buildings will reinforce and strengthen the business landscape. Continuous advancements in technology are expected to fuel market growth over the coming years.

Growing demand for convenient and easy-to-use products, along with partnerships, acquisitions, and mergers, are expected to increase sales of tankless water heaters.

Economical pricing, convenience, and increasing acceptability in the healthcare and hospitality sector is being witnessed. Moreover, replacement of standard water heater units with tankless water heating technology across commercial spaces such as hospitals, hotels, restaurants, salons & spas, airports, and others will positively impact market outlook. Sustainable approaches and continuous technological advances are expected to encourage market growth.

As per Persistence Market Research’s analysis, the market is projected to expand at a healthy CAGR of close to 6% through 2031.

Customize this Report

Explore Intelligence Tailored to Your Business Goals.

How are Merges & Acquisitions Revolutionizing the Market for Tankless Water Heaters?

Tankless water heater manufacturer are focusing on expanding their technological and manufacturing capabilities through strategic mergers and acquisitions across value chains. Especially, North Americas and Asia Pacific giants are focusing more on strategically acquiring small and medium manufacturers to expand their product lines and complement their manufacturing capabilities.

  • Rinnai America Corporation, one of the prominent manufacturers of tankless water heaters, offers Amazon's integration with Alexa and its products, allowing users to ask Alexa to start circulating water. In addition, the company’s products are incorporated with Google Home, allowing users to monitor their tankless system’s recirculation and temperature.
  • In December 2020, Bradford White Corporation, entered into a strategic partnership with Bradley Corporation for the acquisition of Keltech Inc., which would help the company enlarge its commercial electric products portfolio and prepare for further adoption of electrification initiatives by communities throughout North America.

Market Research Methodology - Perfected through Years of Diligence

A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.

Get actionable insights on Ship Repair And Maintenance Services Market

Will Growth in Construction and Manufacturing Activities Continue Driving Sales of Tankless Water Heaters?

Middle-income economies with a high population base in developing countries such as China, India, and South Africa are observing robust growth in recreational and construction activities. Long-term structure planning of governments and initiatives taken by them, coupled with positive industrial outlook of various business sectors, are projected to be the prime reason driving the growth of manufacturing and construction activities in developing economies.

Steady raw material prices, increased spending power, and steady interest rates as home loans are promoting home owners to invest in purchasing new homes, are estimated to drive tankless water heater demand.

Explore Persistence Market Research’s expertise in promulgation of the business !

Will Replacement of Existing Water Heaters With High-energy Heaters Shape Market Growth?

Utilizing and optimizing available energy resources efficiently is considered to be one of the top priorities of governments all over the world. These sustainability goals of governments are estimated to create rapid replacement of high-energy consuming heaters to low-energy water heaters.

Government rebates and subsidies as well as changing perception of consumers toward water heaters with high energy factors are promoting the rate of replacement of water heaters with tankless water heaters.

How Has COVID-19 Affected the Market? 

The ongoing COVID-19 pandemic has affected the global economy in various ways. It has led serious implications for most manufacturers of tankless water heater products in the form of supple chain disruptions. The crisis has decreased the purchasing capacity of consumers. Also, limited availability of raw materials, shortage of labor supply, and limited availability of components have drastically impacted market growth.

Besides this, the outbreak of COVID-19 further resulted a drastic change in consumer buying behavior. Shift in consumer spending from non-essential to essential products further impacted sales in the initial period of the outbreak, as such, posing numerous challenges on& the sales front.

tankless-water-heater-market

Country-wise Insights

What are the Various Factors Expected to Drive the U.S Market?

Demand for tankless water heaters in the U.S market is estimated to grow significantly over the coming years. Technological advancements in the industry and high consumption of tankless water heaters in the commercial sector are acting as catalysts for market growth. As per information released by the US department of Energy, nearly all U.S. homes have at least one water heater installed.

In addition, another factor contributing to the demand for tankless water heater sin the US is the unpredictable weather. According to the National Oceanic and Atmospheric Administration (NOAA), in 2019, the average U.S. temperature was 40.7F / 4.8C. As a result, demand for tankless water heater is expected to grow significantly across the U.S.

What Makes the U.K. a Prominent Market for Tankless Water Heaters?

The U.K. is one of the most dominant countries in this market, owing to high product adoption and shifting consumer preference toward energy-efficient and economical products. Adding to this, key manufacturers in the U.K. are investing heavily in research & development activities to offer enhanced customer experience and reduce operating costs.

Introduction of products with features such as advanced heating capabilities, energy optimization, low standby losses, remote control, and Wi-Fi integration are likely to boost market growth in the country.

In addition, presence of major leading companies such as Bradford White Corp., A.O. Smith Corporation, Rinnai Corp., Robert Bosch GmbH, and others is expected to have a positive impact on the demand for tankless water heaters in the U.K.

How is Installation of Solar Water Heating Systems India Positively Influencing Sales of Tankless Water Heaters?

In India, the market for tankless water heaters has been booming over the past few years, and is expected to grow by double digits in the near future. Rise in installation of solar water heating systems is promoting market growth. The International Energy Agency (IEA) technology collaborating program on cooling and solar heating has increased the number of installations by 26% in 2017 in India. This provides ample opportunity for manufacturers to launch new non-consumer electronics products in the Indian market.

What are the Opportunities for Tankless Water Heater Manufacturers in Saudi Arabia?

Favourable government policies and consumer inclination toward the adoption of sustainable heating systems will simulate Saudi Arabia's market. GCC internationally adopted and accepted green growth strategies, including solar powered heating solutions, which will surge demand for the product. For example, in 2016, the UAE invested more than US$ 6 million across the region for the implementation of strategic planning.

Significant economic changes due to growing urban population and increased demand for high-tech solutions will have a positive impact on product acceptance. According to the Business Council, the UAE government aims to consolidate power mixes to 44% renewable by 2050.

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

Australia is one of the lucrative markets in Oceania, and is expected to register higher growth in terms of value over the forecast period. The Australian market is emerging as a competitive market with a massive number of local players and international brands.

Rising number of growth opportunities in the market are attracting several new players to enter the market and enhance their penetration in the country. Moreover, collaborations and acquisitions of small companies is further accelerating market growth in Australia.

Category-Wise Insights

Why Does the Residential Segment Dominate Demand for Tankless Water Heaters?

The residential application segment accounted for a significant share of 1/4 in 2019. Increasing acceptance of eco-friendly and energy efficient products, including tankless water heaters, is a major factor driving demand in the residential sector.

Further, mounting number of residential units and construction projects due to the rising number of the middle-class people, especially in developing countries such as India, China, and others, is expected to encourage the adoption of these solutions over the coming years.

In addition, improving quality and standard of living, coupled with changes in consumer preferences toward energy-efficient products, including tankless water heaters, is expected to remain a positive factor for the growth of the industry.

Moreover, introduction of new products with innovative and advanced features is expected to open up new avenues. For instance, Rheem's Prestige models with EcoNet Smart Technology offers Wi-Fi connectivity and additional features, providing system protection, control, and cost savings.

Is Condensing Technology Gaining More Popularity?

The condensing segment accounted for around 3/4 market value share in 2020, and is expected to exhibit fastest growth registering a CAGR of more than 8% over the forecast period. Condensing tankless water heaters are more energy efficient when compared to non-condensing tankless water heaters, and are gaining significant penetration in emerging economies.

This segment is expected to be the most attractive segment, due to greater emphasis of various governments and private bodies on setting up power plants to harness renewable energy sources such as solar and wind, which is creating significant market opportunities for key players across the globe.

Electric or Gas - Which Energy Source is Better?

Electric tankless water heaters are estimated to account for around 80% market share by the end of 2031. Global sales revenue of electric tankless water heaters is expected to increase at a CAGR of more than 5% over the next ten years.

Easily available electrical energy sources and factors such as lack of availability of fuel such as natural gas or propane, as well as poor gas supply infrastructure, especially in developing economies, are considered to be the major factors driving demand for electric tankless water heaters.

Which Energy Factor Is More Efficient?

Energy factor – 0.80 to 0.89 EF is estimated to account for around 1/3 in terms of value share by end of 2021, and is expected to register a CAGR of over 6% throughout the forecast period. Rising demand due to availability of a wide variety of products as well as price being an essential factor are making middle-class consumers prefer 0.80 to 0.79 EF, keeping in mind better energy efficiency at a reasonable cost.

Competitive Landscape

Players operating in the market are finding new ways to minimize operating costs and enhance output. These measures and efforts are being undertaken due to rising input costs and retailer power. Well-established firms are considering their operational chains and examining them from both, output and input perspectives.

In light of this, building new strategic relations with essential players or suppliers to achieve new levels of efficiency is likely to help players cut down on their operating costs.

Persistence Market Research has profiled the following prominent manufacturers in its report:

  • A. O. Smith Corp.
  • Ariston Thermo Spa
  • Bradford White Corporation
  • Dometic Group AB
  • Haier Smart Home Co Ltd.
  • NORITZ Corp.
  • Rheem Manufacturing Co.
  • Rinnai Corp
  • Robert Bosch GmbH
  • Westinghouse Electric Corp.
  • Navien Inc.
  • Takagi
  • Stiebel Eltron Inc.
  • EcoSmart Green Energy Products, Inc.
  • General Electric Co.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Brazil
  • Mexico
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa.

Key Segments Covered

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

Key Companies Profiled

  • A. O. Smith Corp.
  • Ariston Thermo Spa
  • Bradford White Corporation
  • Dometic Group AB
  • Haier Smart Home Co Ltd.
  • NORITZ Corp.
  • Rheem Manufacturing Co.
  • Rinnai Corporation
  • Robert Bosch GmbH
  • Westinghouse Electric Corp.
  • Navien Inc.
  • Takagi
  • Stiebel Eltron Inc.
  • EcoSmart Green Energy Products, Inc.
  • General Electric Co.

Report Coverage

  • Market Forecast
  • brand share analysis
  • competition intelligence
  • DROT analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Market Segmentation by Category  

Technology

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

By Energy Factor

  • 0 to 0.79 EF Tankless Water Heaters
  • 0.80 to 0.89 EF Tankless Water Heaters
  • 0.90 EF and Above Tankless Water Heaters

By Location

  • Indoor Tankless Water Heaters
  • Outdoor Tankless Water Heaters

Energy Source

  • Electric Tankless Water Heaters
  • Gas Tankless Water Heaters

Sales Channel

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

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa (MEA)

Key Questions Answered in Report 

  • What is the market size of tankless water heaters?

    The global market is expected to witness a CAGR of close to 6% during the forecast period of 2021-2031. As per Persistence Market Research, global market valuation was around US$ 3.6 Bn in 2020.

  • Which is the most lucrative market for tankless water heaters?

    Europe currently leads as far as sales of tankless water heaters are concerned. Sales in North America would be over one-third of the global share throughout the forecast period.

  • Which are some of the leading companies offering tankless water heaters?

    Some of the leading companies providing tankless water heaters are A. O. Smith Corp., Ariston Thermo Spa, Bradford White Corp., Dometic Group AB., Haier Smart Home Co Ltd., NORITZ Corp., Rheem Manufacturing Co., Rinnai Corporation, Robert Bosch GmbH, Westinghouse Electric Corp., Navien Inc, Takagi, Stiebel Eltron Inc., EcoSmart Green Energy Products, Inc., and General Electric Co.

Enquiry before Buying

  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts at Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    The company follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Persistence Market Research speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample, and it will be sent to you through an email.

  • How can I buy this report?

    Persistence Market Research provides a secure online payment system to buy reports seamlessly. You can buy the report securely and safely.

Media Release

Recommendations

Luggage Leather Goods Market

This global research report is used to determine top industry players, products, applications, overall market size, industry connotations & manufacturers of luggage and leather goods.

U.S Bottled Water Market

Global Bottled Water Market - check share, size, revenue, valuation, CAGR, regional outlook, key players, competitive landscape, top manufacturers & forecast.

Bopp For Labels Market

This study on the global BOPP for labels market also provides an estimate of the global BOPP for labels market size and corresponding revenue forecast carried out in terms of absolute $ opportunity. It also offers actionable insights based on future trends in the BOPP for labels market. .

Ozone Technology Market

Global Ozone Technology Market - explore share, size, revenue, valuation, CAGR, regional outlook, key players, competitive landscape, current trends & forecast.

Our Clients

Our Clients