Global Tankless Water Heater Market Projected to Reach $6.8 Billion by 2030, Fueled by Rising Energy Efficiency Awareness

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Nov 24, 2023, 05:45 ET

DUBLIN, Nov. 24, 2023 /PRNewswire/ -- The "Tankless Water Heater Market Size, Share & Trends Analysis Report By Product (Electric Tankless Water Heater, Gas Tankless Water Heater), By Application, By Region, And Segment Forecasts, 2023 - 2030" report has been added to ResearchAndMarkets.com's offering.

The global tankless water heater market is poised for significant growth, with projections estimating its value to reach USD 6.80 billion by 2030, driven by a robust CAGR of 8.7% from 2023 to 2030.

The surge in the adoption of tankless water heaters, both in residential and commercial sectors, underscores the market's expansion. These heaters are gaining popularity due to their space-saving and energy-efficient features. Moreover, many tankless water heaters are equipped with energy star ratings, making them cost-effective and environmentally friendly. However, the higher initial cost compared to traditional water heaters may restrain market growth.

Electric Tankless Water Heaters Lead the Way

The electric tankless water heaters segment captured the lion's share of the market in 2021, accounting for approximately 70%. Electric units boast extended lifespans, low maintenance costs, and ease of installation in confined spaces without the need for ventilation. These advantages have contributed to their widespread adoption worldwide, resulting in substantial revenue generation in 2021.

Europe Takes the Helm in Market Revenue

In 2021, Europe emerged as the leader in tankless water heater market revenue, with the United Kingdom spearheading growth within the European market. The region's robust growth can be attributed to the adoption of energy-efficient and cost-effective products. This trend has prompted major companies to increase manufacturing investments in the U.K., resulting in enhanced customer partnerships. The availability of products with advanced heating capabilities, low standby losses, energy optimization, remote manageability, and Wi-Fi connectivity has further fueled demand in Europe, making it the highest revenue-generating region in 2021.

Embracing Digital Transformation

In response to changing consumer behavior, tankless water heater manufacturers are not only focusing on innovative product development but also on establishing robust sales and distribution networks online. Consumers increasingly rely on online research when making purchasing decisions, prompting companies to expand their online presence and product availability.

Key Market Insights:

North America is projected to dominate the tankless water heater market from 2023 to 2030, driven by continuous technological advancements and strong demand in the commercial sector.
The electric tankless water heater segment is expected to exhibit the fastest CAGR during the forecast period, driven by increasing demand in various applications, including commercial, residential, and industrial.
The residential segment is set to dominate the market, fueled by growing awareness of the impact of energy consumption on global warming, driving demand for energy-efficient tankless water heaters.

Companies Profiled:

A. O. Smith
Rheem Manufacturin
Rinnai
Bradford White
Robert Bosch
Ecosmart Green Energy Products
Stiebeleltron
Takagi
Noritz America
Navien

For more information about this report visit https://www.researchandmarkets.com/r/p9dpdu

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SOURCE Research and Markets