The Global Tankless Water Heater Market was worth US$ 6.1 billion in 2022 and is anticipated to reach a valuation of US$ 9.011 billion by 2028 and is predicted to register a CAGR of 6.8% during 2023-2028.
Market Overview:
A tankless water heater is a device that quickly heats water as you need it, without storing it in a big tank like regular water heaters. When you turn on the hot water tap, cold water enters the tankless heater, where it gets heated instantly by electric coils or gas burners. Then, the hot water comes out of the faucet or shower right away. The best part is that it never runs out of hot water, as it's heated on demand. Tankless water heaters are space-saving, energy-efficient, and can last a long time. However, they may cost more upfront, but they save money on energy bills in the long run.
Market Drivers:
The tankless water heaters market demand is booming because they are highly energy-efficient. Unlike traditional water heaters that keep a large tank of water hot all the time, tankless heaters only heat water when you need it, which saves both energy and money. This feature is becoming increasingly appealing to consumers due to rising energy costs and growing environmental concerns. People are now more conscious of reducing their energy usage and carbon footprint, leading to a surge in market demand for tankless water heaters as an efficient and eco-friendly heating solution.
The tankless water heater market growth is rapidly increasing due to the rising number of construction and renovation projects. As more buildings are being constructed or upgraded, there is a growing demand for water-heating solutions that are efficient and modern. Tankless water heaters are popular choices during these projects because they offer a modern look and save space, making them ideal for these projects. As a result, the market demand for tankless water heaters is increasing continuously.
Market Restraints:
The tankless water heater market may face challenges because these heaters have a higher initial cost than traditional ones. Some cost-conscious consumers may be hesitant to choose tankless technology, especially in areas where energy prices are low, as it may take longer to see the cost savings and benefits. However, as people become more aware of long-term energy savings and environmental benefits, the market trends for tankless water heaters are expected to grow steadily.
Market Opportunities:
The tankless water heater market has exciting opportunities due to technological advancements. As technology improves, tankless heaters can become even more efficient and advanced. By integrating smart home capabilities, it improved control systems, and better energy management features, these heaters become appealing to tech-savvy consumers. As a result, the demand for these advanced tankless water heaters is expected to grow and give manufacturers a chance to cater to the needs of tech-conscious customers.
Market Key Developments:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
6.8% |
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Segments Covered |
By Technology Type, Smart Feature Type, End-User, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Rinnai Corporation, Navien Inc., Noritz Corporation, A.O. Smith Corporation, Rheem Manufacturing Company, Stiebel Eltron, Bosch Thermotechnology, Bradford White Corporation, Takagi Industrial Co., Ltd., EcoSmart Green Energy Products, and Others. |
Market Segmentation:
Electric tankless water heater market shares are the highest due to their advantages. In regions with affordable electricity or a focus on renewable energy, they are popular for energy efficiency. Additionally, their easy and cost-effective installation, without the need for gas lines or venting, makes them a preferred choice for many consumers.
Wi-Fi connectivity is dominating the tankless water heater market, enabling remote control and monitoring via smartphones. This smart feature enhances convenience and allows users to adjust settings, receive notifications, and set hot water schedules. As smart home technologies and energy efficiency grow, manufacturers are refining these features to meet consumer demands.
The homeowner's segment is growing at a higher rate in the tankless water heater market due to their demand for efficient and space-saving water heating solutions. Increasing awareness about energy efficiency and environmental impact further drives the demand for tankless water heaters known for their energy-saving benefits.
Market Regional Analysis:
The Global Tankless Water Heater Market Report includes the segmentation of regions:
North America is leading the tankless water heater market with strong demand in the United States and Canada. They have modern infrastructure, higher incomes, and care about saving energy and the environment, making tankless water heaters popular. Europe, including Germany, the UK, and Italy, also likes these heaters for being eco-friendly and efficient in modern homes. Asia-Pacific, with China, Japan, and South Korea, is growing in this market due to urbanization and more people seeking energy efficiency. The Middle East and Africa have a smaller share as energy-efficient demand increases but face awareness and infrastructure challenges. Latin America, including Brazil and Mexico, is showing interest due to urban growth and space-saving needs.
The COVID-19 pandemic had a significant impact on the tankless water heater market. Initially, the market growth faced challenges due to economic uncertainties, lockdowns, and disruptions in construction activities, leading to a decline in market demand. However, as the pandemic continued, there was a shift in consumer behavior toward cleanliness and hygiene. This increased focus on sanitization and home improvements led to a rebound in the market share, with more people opting for tankless water heaters to ensure a steady supply of hot water for cleaning purposes. Additionally, the rise of remote work and smart home trends further boosted the demand for energy-efficient and technologically advanced tankless water heaters. Overall, the tankless water heater market is expected to recover and grow in the post-pandemic period.
Market Key Players:
Frequently Asked Questions
The Tankless Water Heater Market size is expected to grow with a CAGR of 6.8% during the forecast period.
North America is currently dominating the Tankless Water Heater Market share by region.
Homeowners dominate the Tankless Water Heater Market by End-User type.
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