Tankless Water Heaters

Tankless Water Heaters

Global Tankless Water Heaters Market to Reach US$9.4 Billion by 2030

The global market for Tankless Water Heaters estimated at US$6.8 Billion in the year 2023, is expected to reach US$9.4 Billion by 2030, growing at a CAGR of 4.7% over the analysis period 2023-2030. Condensing Technology, one of the segments analyzed in the report, is expected to record a 5.4% CAGR and reach US$6.5 Billion by the end of the analysis period. Growth in the Non-Condensing Technology segment is estimated at 3.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.8 Billion While China is Forecast to Grow at 8.3% CAGR

The Tankless Water Heaters market in the U.S. is estimated at US$1.8 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.2 Billion by the year 2030 trailing a CAGR of 8.3% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.6% and 5.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.1% CAGR.

Global Tankless Water Heaters Market - Key Trends and Drivers Summarized

What Are Tankless Water Heaters and How Do They Work?
Tankless water heaters, also known as on-demand or instant water heaters, represent a significant innovation in residential and commercial heating systems. Unlike traditional water heaters that store hot water in a tank, these systems heat water instantly as it passes through a heat exchanger, providing a continuous supply of hot water. This technology eliminates standby heat loss, which occurs when hot water stored in a tank cools down over time and needs to be reheated. Tankless water heaters are available in both gas and electric models, and their energy-efficient design has gained favor in regions where electricity and fuel costs are high, offering substantial savings on utility bills. Additionally, they offer a more compact, space-saving design compared to bulky traditional water heaters, making them ideal for urban households and commercial spaces where square footage is at a premium.

What Applications and End-Users Benefit the Most from This Technology?
The adoption of tankless water heaters has been particularly strong in residential buildings where energy efficiency and space savings are top priorities. Homeowners are drawn to the promise of reduced energy costs, especially in regions with cold climates where hot water demand is high. In commercial settings such as hotels, restaurants, and hospitals, tankless systems are used to ensure an uninterrupted supply of hot water to meet the constant demand, while also reducing energy consumption. The systems are also increasingly being installed in new construction projects and green buildings, where there is a focus on reducing carbon footprints. End-users in industries such as manufacturing, where process heating is necessary, are finding tankless systems to be beneficial in managing hot water efficiently without the risk of running out.

What Segments and Technologies Are Fueling Growth in This Market?
Gas-powered tankless water heaters dominate the market in regions where natural gas is the primary energy source, as they tend to offer higher flow rates compared to electric models. However, electric tankless heaters are gaining market share due to advancements in heating technologies and growing concerns over greenhouse gas emissions. Furthermore, the market can be divided between indoor and outdoor installations, with outdoor units being favored in areas with mild climates. Technological improvements, such as enhanced heating elements and the incorporation of smart features that allow users to monitor and control their systems remotely, are key drivers of innovation in this space.

What Is Driving the Growth in the Tankless Water Heater Market?
The growth in the tankless water heater market is driven by several factors, including rising consumer awareness about energy efficiency, increasing regulatory support for sustainable building practices, and the demand for compact, space-saving heating solutions. Technological advancements, such as smart controls and improvements in heat exchanger efficiency, are also making tankless systems more attractive to consumers. Government incentives and rebates in many regions are encouraging homeowners and businesses to switch to tankless models, further propelling the market. Additionally, the growing trend toward green building and energy-efficient construction is boosting demand for these systems in both the residential and commercial sectors. As energy costs rise and consumers seek to reduce their environmental impact, the tankless water heater market is expected to see continued growth.

Select Competitors (Total 46 Featured) -

• Ecosmart US LLC
• Eemax Inc.
• Freeman Gas & Electric Company Inc.
• Furnace AC Direct
• Global Product Solutions
• Heatworks
• Intellihot Inc.
• Kellermeier Plumbing & Heating
• Mike Counsil Plumbing and Rooter
• Navien, Inc.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.