Tankless Water Heater Market Size was valued at USD 3.6 Billion in 2022. The tankless water heater market industry is projected to grow from USD 3.91 Billion in 2023 to USD 7.690 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2023 - 2032). The main market driver of demand for tankless water heaters is growing customer concerns about sustainable energy consumption.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Tankless Water Heater Market Trends
The concept of rapid urbanization is common to both emerging and developed nations. The United Nations (UN) estimates that by 2050, around 68% of the world's population would live in urban areas; this is a rise from the current 55% in 2018. According to the same source, there were approximately 4.2 billion people living in metropolitan areas in 2018 as opposed to 751 million in 1950. Requests for tankless water heaters have increased directly as a result of this. Because of this, it is projected that during the projection period, these kinds of elements will be the main drivers of expansion in the Tankless Water Heater Market share.
Throughout the projection period, there should be a lot of chances due to the rising rates of tankless water heater replacement over conventional water heater replacement. Tankless water heaters are gradually replacing conventional ones, thanks to government financial incentives like as rebates and subsidies, as well as a shift in customer perceptions regarding more technologically advanced heaters. As a result, it is anticipated that increasing rates of water heater replacement in both residential and commercial settings would be a major factor driving market expansion.
The technological advancements in design and increased efficiency are one of the main drivers of market growth. Due to the growing need for water heating systems worldwide, innovative and efficient tankless water heaters have been introduced. Vendors are now pushing solutions that match customers' evolving design preferences as a result of the surge in sales of tankless water heaters in home and commercial settings. The location and atmosphere of the installation determine whether a particular design is required. For instance, household tankless water heaters are made for light use and can be installed both indoors and outdoors. For use in industrial settings, tankless water heaters need to be sophisticated, cutting edge, and more efficient. Numerous global market competitors, including A. O. Smith and NORITZ AMERICA, provide robust, square-shaped, cylindrical, and rack system tankless water heaters that are engineered for high volume applications. Tankless water heaters are becoming more efficient thanks to the technological advancements that vendors are using. One such example is the addition of new features that make installation, operation, and maintenance simpler. Over the course of the projected period, growing product offers and innovation will result from manufacturers' growing expertise in the worldwide market, which will in turn drive higher product use. Thus, driving the tankless water heater market revenue.
Tankless Water Heater Market Segment Insights:
Tankless Water Heater Type Insights
The Tankless Water Heater Market segmentation, based on type includes Condensing and Non-Condensing. The condensing segment dominated the market. The rise in demand for condensing heaters across a range of applications, such as hotels, buildings, and other infrastructures, is the reason for this growth. Condensing tankless water heaters produce cooler exhaust gases, usually about 100° F, by employing a number of methods to extract more heat from the exhaust gases.
Tankless Water Heater Product Insights
The Tankless Water Heater Market segmentation, based on product, includes Electric and Gas. The electric category generated the most income. These heaters are inexpensive to install and simple to set up. Furthermore, electric items often have minimal operating costs and a long lifespan. In addition, compared to their gas equivalents, these heaters' creative design allows for easy installation in tiny places and eliminates the need for ventilation.
Tankless Water Heater Application Insights
The Tankless Water Heater Market segmentation, based on application, includes Residential and Commercial. The residential category generated the most income. The primary driver of these items' demand in the residential market is the increasing adoption of eco-friendly and energy-efficient devices, such as tankless water heaters. Furthermore, during the projected period, the growing middle class population—particularly in emerging economies like China and India—will lead to an increase in the number of residential units, which will encourage the use of these solutions.
Tankless Water Heater Location Insights
The Tankless Water Heater Market segmentation, based on location, includes Indoor and Outdoor. The outdoor category generated the most income as a result of rising consumer demand for space-saving designs, energy-efficient solutions, and environmentally sustainable products. Outdoor tankless water heater usage is being driven by factors such as the trend toward outdoor living spaces, the desire for on-demand hot water, and an increase in eco-friendly housing solutions.
Figure 1: Tankless Water Heater Market, by Location, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Tankless Water Heater Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American tankless water heater market area will dominate this market due to the increased spending power of consumers in the area, growing consumer awareness of ecological products, and strong rise in product visibility. Furthermore, a variety of well-known market companies in North America, ongoing technological advancements, and the growing use of tankless water heaters in a variety of industrial applications are likely to present profitable growth opportunities in the years to come.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: TANKLESS WATER HEATER MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe tankless water heater market accounts for the second-largest market share. Robust product innovation and growing investment in the creation of cost-effective and energy-efficient products are driving the expansion of the regional market. Moreover, rising commercial sector demand together with the growing use of these heaters in developed economies like the United Kingdom, Germany, France, and Switzerland could fuel market expansion. Further, the German tankless water heater market held the largest market share, and the UK tankless water heater market was the fastest growing market in the European region
The Asia-Pacific Tankless Water Heater Market is expected to grow at the fastest CAGR from 2023 to 2032. The growth in demand for replacing outdated conventional water heaters and the rise in investments in low-carbon energy generation are linked to the proliferation of tankless water heaters in this area. Furthermore, a considerable number of prominent industry participants engaged in the tankless water heater industry are present in the area. Moreover, China’s tankless water heater market held the largest market share, and the Indian tankless water heater market was the fastest growing market in the Asia-Pacific region.
Tankless Water Heater Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the tankless water heater market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, tankless water heater industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global tankless water heater industry to benefit clients and increase the market sector. In recent years, the tankless water heater industry has offered some of the most significant advantages to medicine. Major players in the tankless water heater market are attempting to increase market demand by investing in research and development operations includes A. O. Smith, Rheem Manufacturing Company, Rinnai Corporation, Noritz America, Robert Bosch LLC, Navien Inc., Bradford White Corporation, StiebelEltron Inc., Takagi, and EcoSmart Green Energy Products, Inc.
A division of Robert Bosch Stiftung GmbH, Robert Bosch GmbH (Bosch) is a technology and services provider. The company provides a broad range of goods and services, including solar inverters, home appliances, security systems, automotive technology, e-bike systems, automotive components and accessories, packaging technology, and business process management solutions.
The company Rinnai Corp. (Rinnai) designs, produces, and sells heating goods. Traditional thermal energy equipment, such as air conditioners, hot water heaters, and cooking stoves and rice cookers for the kitchen, are among the company's product offerings. The company sells unconventional items like clothes dryers and dishwashers together with heating systems like gas fan heaters and infrared heaters. The company's products are used in restrooms, kitchens, hot water heaters, dressing rooms, and commercial settings.
Key Companies in the tankless water heater market include
Tankless Water Heater Industry Developments
January 2023: Bosch Thermotechnology Corp., a top supplier of cutting-edge heating and cooling water systems, introduced the Tronic 4000 C electric tankless water heater for under-sink applications and the Tronic 6100 C water heater for whole-house applications. The need for a storage tank is decreased by these devices, which offer 100% electric, on-demand hot water.
August 2022: A brand-new tankless water heater with smart-circulation intelligent recirculation, the RE Series, was introduced by Rinnai, a pioneer in the industry. To enable scheduled recirculation or on-demand operations, the RE Series is compatible with the Wi-Fi module controller.
Tankless Water Heater Market Segmentation:
Tankless Water Heater Type Outlook (USD Billion, 2018-2032)
Tankless Water Heater Product Outlook (USD Billion, 2018-2032)
Tankless Water Heater Application Outlook (USD Billion, 2018-2032)
Tankless Water Heater Location Outlook (USD Billion, 2018-2032)
Tankless Water Heater Regional Outlook (USD Billion, 2018-2032)
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 3.6 Billion |
| Market Size 2023 | USD 3.91 Billion |
| Market Size 2032 | USD 7.690 Billion |
| Compound Annual Growth Rate (CAGR) | 8.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Product, Application, Location, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | A. O. Smith, Rheem Manufacturing Company, Rinnai Corporation, Noritz America, Robert Bosch LLC, Navien Inc., Bradford White Corporation, StiebelEltron Inc., Takagi, and EcoSmart Green Energy Products, Inc. |
| Key Market Opportunities | · Technical advancements in efficiency and design |
| Key Market Dynamics | · Growing trend of replacing outdated water heaters with tankless water heaters · Rising demand for easily installed and operated hybrid tankless water heaters |
Frequently Asked Questions (FAQ) :
The Tankless Water Heater Market size was valued at USD 3.6 Billion in 2022.
The global market is projected to grow at a CAGR of 8.80% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are A. O. Smith, Rheem Manufacturing Company, Rinnai Corporation, Noritz America, Robert Bosch LLC, Navien Inc., Bradford White Corporation, StiebelEltron Inc., Takagi, and EcoSmart Green Energy Products, Inc.
The residential category dominated the market in 2022.
The condensing category had the largest share in the global market.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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