The global tankless
water heater market is driven by consumers’ concern over sustainable use of
energy, technological advancement and increasing number of residential units. Tankless
water heaters also known as instantaneous water heaters or demand technology
water heaters, are the source of hot water when needed. Energy.gov states that tankless
water heaters typically produce 2 to 5 gallons (7.6 to 15.2 liters) of hot
water every minute. Tankless water heaters powered by gas have higher flow
rates than those powered by electricity. However, there are times when even the
largest gas-fired model is unable to provide enough hot water for numerous
simultaneous usages in large households.
The market will expand
as a result of shifting customer preferences toward smart appliances and
significant investments in R&D, including the integration of smart
technologies and new product improvements.
Additionally, it is
anticipated that product development would offer up new possibilities for
market expansion. For instance, EcoNet Smart Technology, which supports Wi-Fi
connectivity, and other features offering system control, cost savings, and
protection are included in Rheem's Prestige models. The development of
carbon-neutral buildings included with the growth of smart cities and
commercial infrastructure, are all fueling the market. Soon, market growth
is predicted to be driven by ongoing technological advancement.
Sales of tankless water
heaters are expected to increase as companies develop services and goods that
are convenient and interoperable. In this market, reasonable pricing, ease of
use, and rising acceptance may be seen.
The market for tankless
water heater systems will also experience considerable expansion as traditional
water heater units in commercial settings like hospitals, hotels, restaurants,
beauty salons & spas, etc. are increasingly replaced by tankless water
Energy Saving Properties
Are Fueling the Market Growth
As per energy.gov,
demand technology water heaters can be 24%–34% more energy efficient than
traditional storage tank water heaters for households using 41 gallons or
less of hot water daily. For homes consuming a lot of hot water roughly 86
gallons per day, they can be 8%–14% more energy efficient. If a
demand technology water heater is installed at each hot water outlet, energy
can be significantly saved. The average amount of electricity bill saved by a
tankless water heater is around USD100-200.
Long Life Expectancy is
Fueling the Market Growth
A tankless water heater is more expensive to buy initially
than a traditional storage water heater. Still, they often live longer and have
lower operating and energy costs, making up for their higher original cost.
The majority of tankless water heaters have a lifespan of over 20 years.
They also feature pieces that are simple to swap out, adding many more years to
their lifespan. Storage water heaters, on the other hand, endure 10 to 15
Advancement is Aiding the Market Growth
With consumers becoming more aware of the cutting-edge
technologies available on the market, manufacturers are now concentrating on
developing innovative products. For instance, Rinnai, a top producer of
tankless water heaters, has integrated Amazon Alexa's compatibility with Rinnai
products, enabling consumers to ask Alexa to switch on circulation, allowing
the tankless water heating system to function. Additionally, it offers Google
Wi-Fi connectivity for compatible products, enabling users to track the
effectiveness of their tankless water heater recirculation system.
High Efficiency Rate of Condensing
Water Heater is Driving the Market Growth
Over the anticipated
term, a high growth rate is projected for the condensing segment. Condensing
tankless water heaters, which are more prevalent in emerging nations than
non-condensing tankless water heaters, are more energy efficient.
Key producers of water
heaters will benefit from the high market concentration resulting from various
government and corporate sectors concentrating on creating power plants that utilize
renewable energy sources, such as solar and wind.
High Installation Cost
is Hindering the Market Growth
Tankless water heaters
are costlier to install than traditional water heaters. However, a variety of
elements play specific roles in proper installation. These elements include the
technology of fuel used, the environment, the needs of the local construction
codes, and safety concerns, particularly those relating to the operation of
gas-fired water heaters. Tankless heater installation typically costs
between USD4,500 and USD6,500, with an average cost of roughly USD5,500.
(Including the water heater, warranty, and tune-ups). The price of the tankless
installation without the unit can range from USD1800 to USD3500, with an
average of USD2650.
Labor rates are among
major factors. An electric tankless water heater will probably cost
somewhere around USD2,500, according to data from Energy Sage. This price
covers both the equipment and the installation. The typical pricing point for a
gas-powered system will be closer to USD3,500.
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The global tankless
water heater market is segmented based on technology, energy source, end-use,
distribution channel, region, and competitional landscape. Based on technology,
the market is further fragmented into condensing, non-condensing. Based on energy
Source, the market is segmented into electric, gas. In terms of end-use, the
market is divided into condominiums, salons/parlor, hotels & resorts,
hospitals, residential, and others (colleges/universities, offices, etc.). Based
on distribution channels, the market is segmented into
hypermarkets/supermarkets, exclusive stores, multi-brand stores, online, and others
(direct sales, distributor/channel sales, etc..). The market analysis also
studies the regional segmentation to devise regional market segmentation,
divided among North America, Europe, Asia-Pacific, South America, and Middle
East & Africa.
Ariston Holding N.V., A.O. Smith, Bosch
Thermotechnology Corp, Bradford White Corporation, GE Appliances, Rheem
Manufacturing Company, Whirlpool Corporation, Rinnai Corporation, FERROLI
S.p.A, Havells India Limited, are among the major market players in the global
platform that lead the market growth of the global Tankless Water Heater
2018 – 2021
2024 – 2028
Revenue in USD
Billion, Volume in Thousand Units and CAGR for 2018-2021
company share, competitive landscape, growth factors, and trends
North America, Europe,
Asia-Pacific, Middle East & Africa and South America
United States, Canada, Mexico, Germany,
France, United Kingdom, Italy, Spain, Netherland, Switzerland, China, India,
Japan, South Korea, Australia, New Zealand, Thailand, Saudi Arabia, UAE,
South Africa, Qatar, Kuwait, Brazil, Argentina, Colombia
Holding N.V., A.O. Smith Corporation, Bosch Thermotechnology GmbH, Bradford
White Corporation, GE Appliances, Rheem Manufacturing Company, Whirlpool
Corporation, Rinnai Corporation, FERROLI S.p.A, Havells India Limited, etc.
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regional & segment scope.
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In this report, the global tankless
water heater market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Tankless Water Heater Market, By Technology:
- Tankless Water Heater Market, By Energy Source:
- Tankless Water Heater Market, By End-Use:
- Tankless Water Heater Market, By Distribution Channel: