Tankless water heaters are also known as instantaneous or instant-on water heaters that are used to heat water instantly and turn on by sensor. The source of energy is mainly gas or electric and they produce more heat by using less energy than the traditional tank heater. The tankless heater heats the water without any storage tank as water travels through a pipe into the unit where a gas burner or an electric elements heat the water which leads to a constant supply of hot water. Moreover, tankless water prevents standby heat losses related to storage water heaters.
The global tankless water heater market was estimated to account for US$ 19.5 billion in terms of revenue in 2018 and is predicted to grow at a CAGR of 5.4% during the forecast period (2019 to 2027).
Advantages associated with the tankless water heaters such as low space utilization, durable, and highly energy efficient is anticipated to drive the market growth of the tankless water heaters. These tanks save energy up to by 40% and are highly cost-effective which is expected to foster market growth. Moreover, these tanks are compact and utilize very less space as compared to traditional water heaters. These factors are estimated to propel the market growth of the tankless water heaters.
Increasing launch of advanced tankless water heaters by the manufacturer in order to meet the rising consumer demand is expected to propel the market growth. For instance, in April 2019, the Neuron Series introduced two models, the iN401 and iN501, providing up 399,999 and 499,999 BTU/hr, respectively. Both models feature direct cellular LTE connectivity for remote monitoring and independently controlled twin engines offering built-in redundancy and twice the power of competing for tank water heaters.
Rising adoption of solar water heater system as they require very less maintenance and is considered highly cost-effective technology which is expected to hinder the market growth of the tankless water heaters. Moreover, rising government initiatives for promoting the adoption of the solar system in order to maintain sustainability is further anticipated to restrict the adoption of the tankless water heaters. In recent time the cost of solar water is lowered due to advancement in the technology is further anticipated to hinder the market growth of the tankless water heaters.
Among end user, residential segment dominated the global tankless water heater market in 2018 with a 67.7% of market share in terms of revenue, followed by commercial segment. Rising demand for advanced energy-efficient home appliances in residential sector is expected to foster the market growth.
Rising adoption of growth strategies such as acquisition and merger among major players is expected to fuel the market growth of the tankless water heater. For instance, in January 2019, Japanese tankless water heater maker Noritz Corp. acquired PB Heat, a manufacturer of high-efficiency, cast iron and stainless steel boilers and indirect-fired water heaters. After the acquisition, the PB Heat's Peerless brand will continue to be marketed and sold independently of Noritz’s branded products.
Rising expansion of production of tankless water heaters in order to meet the rising demand across consumer is expected to fuel the market growth. For instance, in August 2017, Rinnai America has announced to begin manufacturing gas tankless water heaters in the United States. The U.S. water heater market is estimated to be around 9 million units per year, but the market has traditionally centered on storage-type (tank-based) water heaters. Hence, increasing the production of a tankless water heater system is expected to fuel market growth.
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.
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Ariston Thermo SPA
Rheem Manufacturing Company
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