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Tankless Water Heater Market Share, Trends 2025 | Industry Report

Tankless Water Heater Market Analysis Report By Product, By Application, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619863  |  Published: July 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: HVAC (Heating, Ventilation, & Air Conditioning)  |  Publisher: Grand View Research

Industry Insights

The global tankless water heater market size was worth USD 2.8 billion in the year 2018 and is predicted to grow with a CAGR of 7.5% for the period 2019 to 2025. The rising awareness among consumers regarding the efficient use of energy has contributed to the adoption of tankless water heaters. For example, as stated by Energy.gov, tankless water heaters are 24% to 34% more efficient than the traditional product.

Companies are launching tankless water heaters with advanced features which are predicted to increase the demand for these products in the near future. For example, Intellihot Inc., a clean technology IoT firm and also a renowned manufacturer of commercial tankless water heaters, in April 2019, introduced the Neuron Series heaters which have in-built Wi-Fi connectivity to monitor water temperature and flow.

U.S. tankless water heater market

Additionally, these products are designed for restaurants, hotels, and schools and can be used in existing water connections thus, reducing installation and re-piping time. Moreover, a larger number of companies provide special features in certain models. For example, Stiebel Eltron holds a patent on its Advanced Flow Control technology, which reduces flow rate automatically when the demand is higher.

The rising demand for these heaters in commercial and residential sectors due to their ability to save energy and space is predicted to drive the tankless water heater market. Furthermore, many tankless water heaters facilitate energy star ratings, thus, making them economical and eco-friendly for the buyers. These products might be costlier than conventional 40-gallon water heaters; however, these are long-lasting with a longer warranty than traditional heaters. These tankless water heaters can save up to USD 100-200 electric bills every year.

Product Insights

Electric heaters were the leading share in 2018. The division is expected to grow significantly over the next few years. These types of heaters reduce installation costs, are easy to install, and are long-lasting. The innovative designs of these heaters are augmented with features that do not need ventilation and can be installed in a limited space. Moreover, electric products are easier to maintain as compared to gas counterparts that need frequent maintenance by professionals. These factors are anticipated to contribute to the growth of this segment over the years.

Application Insights

The residential application accounted for a market share of 72.4% in 2018. The rising demand for eco-friendly and energy-efficient products is projected to fuel the segment growth over the next few years. Moreover, the growth in residential units due to a rise in the middle-class population in countries like China and India is predicted to drive the demand for these products over the forecast period.

The rising standard of living along with the demand for energy-efficient products is expected to be the driving factor for the market growth. Additionally, product development is predicted to open new channels of growth for the market. For example, Rheem’s Prestige models consist of EcoNet Smart Technology that fosters Wi-fi connectivity and other features that provide offer system control, monetary savings, and protection.

Global tankless water heater market

The commercial application is expected to grow at a CAGR of 7.8% for the period of 2019 to 2025. The increasing product development and innovation are predicted to be favorable factors for the growth of the segment. For example, Intellihot’s tankless water heater offers hot water when required thus, reducing energy wastage and environmental harm by reducing greenhouse emissions by more than 40%.

Furthermore, the tankless system is equipped with two years of 24/7 scrutinizing through serviceable parts shipped onsite, thus, increasing the demand for these products in the commercial sector. The growth in commercial buildings due to the increasing tourism sector and rising demand for hot water among restaurants, resorts, and hotels is expected to remain the key factor in driving the demand for these products. Government regulation and rising awareness for fostering energy-efficient water heaters in government hospitals, and buildings are expected to boost the market further.

Regional Insights

Europe held the largest tankless water heater market share in 2018, due to large-scale production and trend for economical and energy-efficient products. Additionally, the growth is attributed to the increasing demand from the commercial sector such as hospitals, hotels, and restaurants. The surging demand for tankless water heaters from countries like Germany, U.K., and Switzerland has also contributed to the market growth in the region.

North America is expected to register a CAGR of 10.7% over the forecast period. The rising awareness for ecological products along with product visibility is expected to remain the favorable factor for growth in this region. Additionally, the presence of established players is also predicted to boost the market over the years.

Tankless Water Heater Market Share Insights

The worldwide market is highly competitive therefore companies are focusing on strategies like mergers and acquisitions, product innovation, and expansions to attract a larger customer base. For example, the merger of Amazon’s Alexa with Rinnai, a leading player in the industry, allowed the customers to ask Alexa to circulate thus, allowing the tankless water heater to head start in the market.

Additionally, its products are combined with Google Home, thus, offering the customers to monitor their system’s recirculation and temperature. The key players include A. O. Smith; Rinnai Corporation; Rheem Manufacturing Company; Bradford White Corporation; EcoSmart Green Energy Products, Inc.; Robert Bosch LLC; Takagi; Navien Inc.; and Noritz America.

Report Scope

Attribute

Details

The base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country Scope           

U.S., Germany, U.K., Japan, China, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global tankless water heater market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Electric
    • Gas

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Residential
    • Commercial

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa

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