Tankless Water Heater Market Analysis | 2023-2028

“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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Market Dynamics

Introduction

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 electric segment dominates the market during the forecast period”.

The market for tankless water heaters is segmented into electric and gas. The electric segment dominates the market during the forecast period. 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 regular professional maintenance. As a result of these considerations, electric items are likely to be more useful than their gas counterparts.

By Application Type

“The residential segment leads the market during the forecast period”.

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”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). In terms of regions, 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 the key players in the Tankless Water Heater Market (arranged alphabetically)

• 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

Note: The above list does not necessarily include all the top players in the market.

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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.

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Research Methodology

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 with industry experts to obtain both qualitative and quantitative insights.

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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.

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