Tankless water heater, also referred to as demand-type water heaters are instant water heaters that provide hot water instantly or on-demand. These water heaters can be installed in a closet or on exterior walls and can give an endless source of hot water, while saving money on energy by heating or reheating the same tank. Tankless water heater are widely used across residential as well as commercial spaces. Tankless water heater are highly durable and can last for many years. Moreover, they lower the energy bills by up to saving 40% energy as these heaters are highly efficient.
Global tankless water heater market was valued at US$ 21.66 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.4% during the forecast period (2022 to 2030).
Rising construction industry 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 heater. According to the report published by Globaldata in October 2018, the global construction output is forecasted 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 of tankless water heater.
Increasing disposable income of middle-class in urban population along with the rising trend of adopting a better lifestyle are some of the key factors projected to fuel demand for tankless water heater. Moreover, demand for continuous hot water coupled with the rising need for saving energy and money are further anticipated to foster demand for cost-effective tankless water heater. Also, growing population around the globe is estimated to propel the market growth over the forecast period.
The COVID- 19 outbreak had a considerable impact on the overall industry growth on account of the shutdown of various manufacturing & industrial facilities along with delays in several infrastructural development projects. However, government relaxations on imposed lockdowns, followed by the resumption of industries and operations have augmented the market growth. Moreover, storage water heater systems will experience a surge in demand owing to the expansion of infrastructural buildings and rising construction industry across residential & commercial establishments.
Among region, Europe dominated the global tankless water heaters market in 2021, reporting 35.6% market share in terms of revenue, followed by Asia Pacific and North America, respectively.
Figure 1. Global Tankless Water Heater Market Value Share (%), By Region, 2021
High cost of the tankless water heater 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 tankless water heater over the forecast period.
The smaller units, which can only supply one faucet at a time, cannot create enough hot water for the entire home. There are larger units that provide adequate hot water for houses, but they are more expensive. This factor is expected to hinder the market growth of tankless water heater. Moreover, the large unit also utilizes high-powered burners and require special venting, a requirement which is further expected to restrict the market growth.
|Base Year:||2021||Market Size in 2021:||US$ 21.66 Bn|
|Historical Data for:||2017 to 2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||5.4%||Forecast Period:||2022-2030|
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
|Restraints & Challenges:||
Rising replacement of existing water heaters with tankless water heater is anticipated to offer immense opportunities for global tankless water heater market 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 heater. 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 heater 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 heater is expected to offer immense growth opportunities for water heater manufacturers as well as the customer. Therefore, the rising adoption of hybrid tankless water heater is expected to foster market growth. .
Figure 2. Global Tankless Water Heater Market Value Share (%), By Energy Factor, 2021
On the basis of energy factor, in 2021, 0.80 to 0.89 EF accounted the largest market share of 47.90% in terms of revenue, followed by 0.90 EF and above and 0 to 0.79 EF.
Major players operating in the global tankless water heater market include 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.
Tankless water heater is a sort of water heater which does 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 growth of the global tankless water heater market in recent times.
Tankless water heater market is majorly driven by growth of end-use industries such as construction coupled with increasing usage of flooring tool in these industries. On the basis of location, in 2021, indoor segment accounted for 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.
Furthermore, growing commercial sector, increasing disposable income, changing trends in home furnishing, and lifestyle are the factors that are expected to fuel demand for construction activities, which is further expected to drive growth of the tankless water heater market in Europe over the forecast period.
Global tankless water heater market was estimated at US$ 21.66 Billion in 2021, 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 region, Europe has accounted for a substantial market share in 2021, owing to the rising demand 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 demand for tankless water heaters in the Europe region.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section
Joining thousands of companies around the world committed to making the Excellent Business Solutions.View All Our Clients