North America Tankless Water Heater Market Size, Share & Trends Analysis Report By Product (Electric, Gas), By Application (Residential, Commercial), And Segment Forecasts, 2023 - 2030

North America Tankless Water Heater Market Size, Share & Trends Analysis Report By Product (Electric, Gas), By Application (Residential, Commercial), And Segment Forecasts, 2023 - 2030

North America Tankless Water Heater Market Growth & Trends

The North America tankless water heater market size is estimated to reach USD 1,671.5 million in 2030 and is anticipated to grow at a CAGR of 10.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. Tankless water heaters are known for their energy efficiency. Unlike traditional tank-style water heaters that continuously heat and store water, tankless heaters only heat water on demand. This results in lower energy consumption and reduced utility bills, making them a cost-effective choice for consumers. Many companies in the region are incorporating smart technology into their tankless water heaters, allowing users to control and monitor their water heaters remotely through smartphone apps. This technology can provide greater convenience and energy savings by optimizing water heating schedules.

The gas product segment dominated the market in 2022. Gas tankless water heaters generally require fewer home service upgrades compared to electric ones. This is because many homes and businesses already have natural gas or propane connections in place, making the installation of a gas tankless water heater more straightforward. The residential segment held the largest share in 2022. Tankless water heaters provide a continuous and endless supply of hot water, eliminating the issue of running out of hot water during showers or other activities. This feature is highly valued by homeowners who appreciate the convenience and comfort it offers.The presence of energy-efficient and space-saving appliances, such as tankless water heaters, can enhance the resale value of a home.

Potential homebuyers often look for these features as they represent long-term cost savings and modern living. The U.S. accounted for the largest share of the overall revenue in 2022. Tankless water heating systems are gaining popularity among U.S. consumers due to the product’s ability to save both energy and space. The on-demand heating and compact design of these tankless water heating units make them an attractive choice for homeowners looking to reduce their energy consumption and maximize their living space. The support of federal and state governments in promoting energy-efficient solutions, including tankless water heating systems, plays a crucial role in driving the market's growth. Key companies are adopting strategies, such as new product launches, partnerships, M&As, and regional expansions, to gain higher market shares.

North America Tankless Water Heater Market Report Highlights

• The market in Canada is expected to register a CAGR of 10.9% over the forecast period. This growth is strongly influenced by the evolving landscape of regulations, climate change concerns, and government policies
• The electric product segment is estimated to grow at a CAGR of 10.9% over the forecast period
• This growth is attributed to the high demand for electric units due to their features, such as high energy efficiency, ease of installation, compact design, and low maintenance
• The residential application segment is anticipated to register a CAGR of 10.4% over the forecast period due to the high product demand for a continuous and endless supply of hot water

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