Tankless Water Heater Market Analysis | 2023-2028

Market Insights

The Tankless Water Heater Market is expected to grow from USD 3.23 billion in 2022 to USD 5.4 billion by 2028 at a CAGR of 8.87% during the forecast period.

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What are tankless water heaters?

Tankless water heaters, commonly referred to as demand-type or instantaneous water heaters, deliver hot water only when it is required. They don't have the same standby energy losses as storage water heaters, which might help to save money.

Market Drivers

Tankless water heaters are becoming more technologically advanced, which is projected to expand their adoption in the coming years. The tankless water heater market is estimated to grow rapidly over the forecast period due to the rapid use of these heaters in the residential and commercial sectors on account of their ability to save space and energy. Furthermore, many tankless water heaters have Energy Star ratings, making them both environmentally friendly and cost-effective for customers.

Segments Analysis

By Product Type

The market for tankless water heaters is segmented into electric and gas. The electric segment dominates the market. These heaters are simple to install and have a low installation cost. Furthermore, electric items are known for their extended lifespan and cheap operating costs. Additionally, unlike gas heaters, these heaters have a revolutionary design that allows them to be installed in a compact space and do not require any ventilation. Electric items also require less or no maintenance, but gas products require professional maintenance on a regular basis. As a result of these considerations, electric items are likely to be more useful than their gas counterparts.

By Application Type

The market is segmented into residential and commercial. The residential segment governs the global market. The key element driving the demand for these products in the residential sector is the increasing adoption of energy-efficient and environmentally-friendly technologies, such as tankless water heaters. Furthermore, the rising number of residential units as a result of the growing middle-class population, particularly in emerging economies such as India and China, is likely to encourage the adoption of these solutions over the forecast period.

Regional Analysis

Europe is expected to remain the largest market for tankless water heaters over the forecast period due to an increase in manufacturing adoption and increasing consumer preferences for energy-efficient and cost-effective products. Furthermore, rising demand from the commercial sector, which includes restaurants, hotels, and hospitals, is likely to boost the market growth. In addition, countries such as Switzerland, Germany, and the United Kingdom are boosting their use of tankless water heaters, which is driving the demand in the region.

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Key Players

Most of the companies in the market are integrated across the value chain and are involved in raw material production, processing, and manufacturing of finished products. The following are some of the key players in the tankless water heater market:

• A. O. Smith
• Bradford White Corporation
• EcoSmart Green Energy Products, Inc.
• Navien Inc.
• Noritz America
• Rheem Manufacturing Company
• Rinnai Corporation
• Robert Bosch LLC
• Stiebel Eltron Inc.
• Takagi; Noritz America

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s tankless water heater market realities and future market possibilities for the forecast period of 2023 to 2028. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and Passenger, please send your inquiry to sales@stratviewresearch.com