What Fueled The Previous Growth In The Tankless Water Heater Market?
The tankless water heater market has seen considerable growth due to a variety of factors.
• In recent times, there has been a significant increase in the tankless water heater market size. The market is predicted to rise from $4.55 billion in 2024 to $4.95 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.8%.
Factors contributing to the growth during the historic period include energy efficiency worries, a space-saving design, an extended lifespan, a continuous source of hot water, and heightened consumer awareness.
How Does the Forecast Look for the Tankless Water Heater Market?
The tankless water heater market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for robust expansion in the tankless water heater market in the coming years. The market is anticipated to reach a worth of $6.52 billion by 2029, with a compound annual growth rate (CAGR) of 7.1%.
The predicted growth for the forecast period can be credited to factors such as water conservation endeavors, integration with smart homes, affordability, hybrid tankless systems, and growth in commercial usage. Significant trends projected during the forecast period encompass technology advancements, smart technologies incorporation, compact designs that save space, advanced water heating technologies, and hybrid tankless systems.
What Are The Leading Drivers Of Growth In The Tankless Water Heater Market?
Initiatives by the government to encourage the use of green water heaters are anticipated to stimulate the expansion of the tankless water heater market. These initiatives refer to the measures, strategies, and programs executed by governments to address various challenges, realize specific objectives, and cater to the needs of their residents. By setting standards and laws for appliances, as well as introducing incentive programs for both consumers and producers, governments can foster the preference for energy-efficient tankless water heaters over conventional tank-based models. For example, in July 2023, the U.S. Department of Energy, an American government agency, introduced new energy efficiency norms aimed at generating annual savings of $11.4 billion for consumers on their energy and water charges. The proposed regulations, which come into effect in 2029, seek to preserve $198 billion for Americans and decrease 501 million metric tons of CO2 over three decades. This is equivalent to the annual emissions of 63 million homes, or about 50% of all residences in the United States. Thus, increased government initiatives to endorse eco-friendly water heaters are fuelling the expansion of the tankless water heater market.
How Are The Segments Defined Within The Global Tankless Water Heater Market?
The tankless water heater market covered in this report is segmented –
1) By Type: Condensing, Non-Condensing
2) By Energy Source: Electric, Gas
3) By Application: Residential, Commercial
Subsegments:
1) By Condensing: Natural Gas Condensing Water Heaters, Propane Condensing Water Heaters
2) By Non-Condensing: Natural Gas Non-Condensing Water Heaters, Propane Non-Condensing Water Heaters, Electric Non-Condensing Water Heaters
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What New Trends Are Influencing The Tankless Water Heater Market?
Leading companies in the tankless water heater sector are exploring new product developments, such as electric tankless water heaters, aimed at delivering enhanced features to customers. These electric tankless water heaters function as on-demand water heating systems primarily powered by electricity. For instance, in January 2023, Bosch Thermotechnology - a German firm specialising in heating and hot water solutions, introduced the Tronic 4000 C and Tronic 6100 C. The Tronic 4000 C sets itself apart as one of the most compact and energy-conserving electric tankless water heaters on the market, purpose-built for point-of-use and under-sink installations. With its impressively small footprint at only 8.5” X 13” and weight of merely 4.4 lbs., it can be inconspicuously mounted under the sink. It operates solely on electricity, does not contain a water storage tank and needs virtually no upkeep, making it an exceptional option for users in search of space-saving and easily manageable solutions. On the other hand, the Tronic 6100 C presents a unique trait by offering on-demand hot water to entire households. Bosch, through the Tronic 6100 C, successfully integrates energy conservation and convenience in an aesthetically pleasing, easy-to-install design that is both compact and light, making it especially suitable for whole-house applications while ensuring a continuous and efficient hot water supply.
Who Are the Key Players In The Tankless Water Heater Market?
Major companies operating in the tankless water heater market report are:
• Robert Bosch GmbH
• General Electric
• Haier Group Corporation
• Honeywell International Inc.
• Whirlpool Corporation
• Paloma Industries Ltd.
• Westinghouse Electric Corporation
• Vaillant Group
• A.O. Smith Corporation
• Rinnai Corporation
• Ariston Thermo Group
• Rheem Manufacturing Company
• Stiebel Eltron GmbH & Co. KG
• Bajaj Electricals Ltd.
• Groupe Atlantic
• Ferroli S.p.A.
• V-Guard Industries Ltd.
• Bradford White Corporation
• Noritz Corporation
• EcoSmart Green Energy ProductsInc.
• Navien Inc.
• Hubbell Electric Heater Company
• Laars Heating Systems
• Eccotemp Systems LLC
• Takagi Industrial Co. Ltd.
What Is The Most Dominant Region In The Tankless Water Heater Market?
Europe was the largest region in the tankless water heater market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the tankless water heater market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
