Global Tankless Water Heater Market by Product (Electric, Gas), by Application (Commercial, Residential) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Industry Insights

Global tankless water heater market was worth USD 2.8 billion in 2018, and is expected to grow at 7.5% CAGR over the forecast period. The main reason for the rise in tankless water heater demand is consumer concern over the sustainability of energy. According to Energy.gov, tankless water heaters can be up to 24% to 34% less energy efficient than traditional products.

Many companies are now introducing tankless water heaters that are more technologically advanced. This will increase their popularity in the coming years. In April 2019, Intellihot Inc., a clean technology IoT firm and one of the largest manufacturers of commercial tankless heaters, introduced its Neuron Series water heaters. These models can be remotely monitored and controlled via Wi-Fi using cellular WiFi connectivity.

These models can be used in schools, restaurants, hotels, and other places that require water connections. This eliminates the need to re-pipe and cuts down on installation time. Many heater manufacturers offer special features in their products. Stiebel Eltron, for instance, has a patent for their Advanced Flow Control technology. This automatically reduces flow rate when there is high demand.

These heaters are rapidly becoming more popular in commercial and residential areas. This will increase tankless water heater market growth. Many tankless water heaters have energy star ratings that make them more eco-friendly and economically viable for buyers. These products are generally more expensive than traditional 40 gallon water heaters, but they have longer warranties and last longer than traditional hot water heaters. A tankless water heater will save you between USD 100 and USD 200 on your electric bill each year.

Product Insights

In 2018, electric heaters held the largest market share and are expected to see the most growth in the future. These heaters are simple to install and have a lower installation cost. Electric products are also durable and low in operating costs. These heaters are also easy to install and require no ventilation, unlike their gas counterparts. Electric products are more maintenance-intensive than gas products, and require less or no maintenance. These factors will increase the utility of electric products compared to their gas counterparts.

Application Insights

In 2018, the residential segment accounted for 72.4% of the market. The main driver of residential product demand is the increasing adoption of eco-friendly and energy-efficient products, such as tankless water heaters. These solutions will be more popular due to the rising number of residential units, particularly in emerging economies like India and China.

The industry is expected to continue growing because of the favorable factors such as a rising standard of living and shifting preference for energy-efficient products like tankless water heaters. New products are also expected to create new opportunities. Rheem's Prestige models include EcoNet Smart Technology, which provides Wi-Fi connectivity. It also offers add-on features that offer system control, protection, and monetary savings.

From 2019 to 2025, the commercial application segment will grow at a 7.8% CAGR. The forecast period will see tankless water heater demand rise due to increased product visibility and innovative products. Intellihot's tankless heater heats water continuously when it is needed. This eliminates energy wastage, environmental impact, and reduces greenhouse gas emissions by more than 40%.

The tankless system also comes with two years of remote monitoring and serviceable parts delivered onsite proactively. This is encouraging the adoption of these systems in commercial sectors. The rising demand for hot water in restaurants, hotels, resorts and commercial buildings will drive the need for tankless water heaters. Demand will rise due to increased awareness and strict government regulations regarding the use of eco-friendly and energy efficient water heaters in government buildings and hospitals.

Regional Insights

Europe held the largest market share in 2018, due to its higher production adoption rate and shift consumer preference for economically-oriented products. The market is also expected to see a rise in demand from the commercial sector, including hotels and restaurants. The region is also seeing an increase in tankless water heater adoption in countries like the U.K., Germany, Switzerland and Germany.

North America will experience a 10.7% CAGR between 2019 and 2025. The forecast period will see a significant increase in tankless water heater demand due to increasing awareness about ecological products and increased product visibility. In the future, tankless water heater demand will be driven by prominent players in the region.

Tankless Water Heater Market Insights

Global market is extremely competitive. Key players in the market have attempted to identify the market through various strategic activities, such as mergers and acquisitions and product innovation. Rinnai is one of the most prominent players in this market. It offers Amazon's Alexa integration to its products. This allows users to ask Alexa for circulation to allow tankless water heaters to take action.

Its products can also be integrated with Google Home so that users can monitor the temperature and recirculation of their tankless systems. A. O. Smith, Rinnai Corporation, Bradford White Corporation; Robert Bosch LLC. EcoSmart Green Energy Products Inc.; Stiebel Eltron Inc. Takagi; Noritz America. Navien Inc.

The Report Covers Certain Segments

This report predicts revenue growth at both the country and regional levels. It also provides analysis of industry trends for each sub-segment from 2015 to 2025. Up Market Research has divided the global tankless water heater market by product, region, and application.

• Product Outlook (Revenue USD Million, 2015-2025)

  • Electric

  • Gas

• Application Outlook (Revenue USD Million, 2015-2025)

  • Residential

  • Commercial

• Regional Outlook (Revenue USD Million, 2015-2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

Up Market Research published a new report titled “Tankless Water Heater Market research report which is segmented by Product (Electric, Gas), by Application (Commercial, Residential), By Players/Companies Product Outlook (Revenue USD Million 2015 - 2025)ElectricGas, Gas, Electric”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Tankless Water Heater Market Report Segments:

The market is segmented by Product (Electric, Gas), by Application (Commercial, Residential).

Tankless Water Heater Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Tankless Water Heater Market

Overview of the regional outlook of the Tankless Water Heater Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Tankless Water Heater Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Tankless Water Heater Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Electric

                2. Gas

                1. Commercial

                2. Residential

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Tankless Water Heater Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Tankless Water Heater Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.