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Press Release: Tankless Water Heater Market to Surpass US$ 29.7 Billion by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Tankless water heaters also referred to as demand-type water heaters or an instant water heater that provides hot water instantly or on-demand. These water heaters can be installed in a closet or on exterior walls and can give the endless source of hot water by while saving money on energy by heating or reheating the same tank. Tankless water heaters are widely used across residential as well as commercial spaces. Tankless water heaters are highly durable and can be last for many years. Moreover, it lowers the energy bills by up to saving 40%energy as these heaters are highly efficient.
The global tankless water heater market is estimated to account for US$ 29.7 billion in terms of revenue by the end of 2027, growing at a CAGR of 5.4% during the forecast period (2019-2027)
Drivers
Rising construction activities around the globe coupled with the increasing investment by government in the construction industry especially in the Asia Pacific region is a prime factor fueling the market growth of tankless water heaters. According to the report published by Globaldata in October 2018, the global construction output is forecast to rise to US$ 12.9 trillion by 2022, up from US$ 10.8 trillion in 2017. Therefore, rising construction industry around the globe is projected to propel the market growth tankless water heaters.
Increasing disposable income of middle-class urban population along with the rising trend of adopting a better lifestyle are some of the key factors projected to fuel the demand tankless water heaters. Moreover, demand for continuous hot water coupled with the rising need for saving energy and money are further anticipated to foster the demand for cost-effective tankless water heaters. Also, growing population base rate around the globe is estimated to propel the market growth over the forecast period.
On the basis of region, Europe dominated the global tankless water heater market in 2018, reporting 35.6% market share in terms of revenue, followed by Asia-Pacific and North America, respectively.
Figure 1. Global Tankless Water Heater Market, Revenue Share (%), By Region, 2018
Market Restraints
High investment cost and also the high cost of the tankless water heaters compared to the traditional water heater is also expected to hinder the market growth over the forecast period. Moreover, other factors such as unavailability of suitable equipment and fluctuation in the supply of natural gas or propane is also expected to restrain the market growth of the tankless water heaters over the forecast timeframe.
The smaller units won't produce enough hot water to the household, for example, they only serve one faucet at a time. However, there are larger units also available that serve enough hot water to households, but they are expensive. This factor is expected to hinder the market growth of tankless water heaters. Moreover, the large unit also utilizes high-powered burners and require special venting a requirement which is further expected to restrict the market growth.
Market Opportunities
Rising replacement of existing water heaters with tankless water heaters is anticipated to offer immense opportunity over the forecast period. Government rebates and subsidize along with the changing perception of consumers towards advanced heaters are further promoting the replacement of traditional water heaters with tankless water heaters. Hence, increasing replacement of existing water heaters across residential as well as commercial places are projected to propel the market growth.
Rising demand of hybrid-tankless water heaters that have easy operation and installation is expected to propel the market growth over the forecast period. Moreover, the integration of regular features of conventional water heaters with energy and cost-effective tankless water heaters is expected to offer immense growth opportunities for manufacturers as well as the customer. Therefore, the rising adoption of hybrid tankless water heaters is expected to foster market growth.
Figure 2. Global Tankless Water Heater Market – Opportunity Analysis
Market Trends
The increasing introduction of multi-utility systems by the manufacturer is anticipated to augment the market growth over the forecast period. Rising demand for energy-efficient systems that save money, space, and efforts, manufacturers are introducing a multi-utility tankless water heaters system that not only heats the water but also fulfill the other needs. For example, in recent years, tankless water heaters have been paired with paired air conditioning or handling systems for space heating in recent years.
The rising focus of manufacturers on strengthening the distribution channel through e-commerce is a major trend that has been observed in the market. For instance, in March 2019, the Indian water heater brand Racold builds an e-Commerce campaign around misspelled search keywords. This step will help the brand to touch newer heights and witness great success. Therefore, the rising focus of manufacturers in strengthening the distribution channel is projected to foster market growth.
Figure 3. Global Tankless Water Heater Market, Revenue Share (%), By Energy Factor, in 2018
On the basis of location, in 2018, indoor segment accounted the largest market share of 76.3% in terms of revenue, followed by outdoor. Tankless water heaters are more compact than traditional storage water heaters as a result of which they are widely preferred in indoor sections of buildings.
Competitive Section:
Key players active in the market are Rheem Manufacturing Company, Rinnai Corporation, A. O. Smith, Noritz America Corp., Ariston Thermo Group, Kyungdong Navien Co., Ltd., Stiebel Eltron GmbH & Co. KG, Bradford White Corp., Haier Electronics Group Co, Ltd., and Bajaj Electricals Ltd.
Few Recent Developments
AO Smith Corporation
Tankless water heater is a sort of water heater which do not store hot water in tanks and heats the water instantly by using heat exchanger coils made of copper. It provides an economical solution for energy savings as it heats water only on demand unlike conventional water heaters which store hot water. On basis of energy source used for heating the coils, they can be bifurcated into electric and gas. The surge in demand for advance home appliances in luxurious residential buildings has propelled the growth of the global tankless water heater market in recent times.
Market Dynamics
The global tankless water heater market has witness a growth in recent few years, owing to the higher energy saving potential of tankless water heaters. Furthermore, they provide a continuous flow of water supply and are more compactly designed as compared to the standard storage water tanks on account of which they are vastly preferred in the indoors.
On the basis of the region, Europe has accounted for a substantial market share in 2018, owing to the rising demands for energy efficient systems in hotels and corporate offices. Consumers are now more inclined towards using economical energy saving water heater systems, in both residential and commercial sector. This scenario is expected to fuel the demand for tankless water heaters in the European region.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
*Browse 45 market data tables* and 30 figures* on "Global Tankless Water Heater Market” – global forecast to 2027
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