Tankless water heaters are devices used for water heating with the help of heating units such as electrical heating equipment or gas systems assembled in it. The hot water is produced as it flows through the unit and taken out for use with the help of heat out pipes. This type of water heater has become popular owing to consumer focus toward energy efficiency, cost saving, automatic controls, safety, and eco-friendly heating systems. Rapid urbanization and industrialization are the key factors that drive the demand for tankless water heaters globally.
Increase in infrastructural developments, replacement of traditional & tank-based water heaters with modern tankless water heaters, as well as deployment of smart water heaters, and building & construction activities across the globe are the major drivers that boost growth of the global tankless water heater market. Development of highly efficient tankless water heaters and incentives to deploy them are projected to drive the tankless water heater market growth in the coming years. Moreover, government initiatives & investments toward different infrastructure projects in smart real estate and public infrastructures are expected to create opportunities for key players that operate in the market during the forecast period.
The tankless water heater market is segmented on the basis of type, energy source, energy factor, and region. By type, the market is bifurcated into condensing and non-condensing. By energy source, it is divided into electric and gas. On the basis of energy factor, it is segmented into 0.80 to 0.90 EF and 0.91 to 0.99 EF. By end user, it is divided into residential and commercial. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global tankless water heater market covers in-depth information of the major tankless water heater industry participants. Some of the major players in the tankless water heater market include A.O. Smith, Bradford White Corporation, EcoSmart Energy Products, Inc., General Electric, Noritz Corporation, Navien, Inc., Robert Bosch GmbH, Stiebel Eltron, Inc., Westinghouse Electric Corporation, and V-Guard Industries, Ltd.
Other players that operate in the value chain of the global tankless water heater market include Takagi, Rheem Manufacturing, Co., Bajaj Electricals Ltd., Atmor, Hubbel Electric Water Heater Company, Rinnai Corporation, and others. Key players have adopted numerous strategies such as product launch, agreement, partnership, acquisition, and business expansion to stay competitive in the tankless water heater market.
Increase in infrastructural developments, replacement of traditional & tank-based water heaters with modern tankless water heaters, as well as deployment of smart water heaters, and building & construction activities across the globe are the major drivers that boost growth of the global tankless water heater market. Development of highly efficient tankless water heaters and incentives to deploy them are projected to drive the tankless water heater market growth in the coming years. Moreover, government initiatives & investments toward different infrastructure projects in smart real estate and public infrastructures are expected to create opportunities for key players that operate in the market during the forecast period.
The tankless water heater market is segmented on the basis of type, energy source, energy factor, and region. By type, the market is bifurcated into condensing and non-condensing. By energy source, it is divided into electric and gas. On the basis of energy factor, it is segmented into 0.80 to 0.90 EF and 0.91 to 0.99 EF. By end user, it is divided into residential and commercial. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global tankless water heater market covers in-depth information of the major tankless water heater industry participants. Some of the major players in the tankless water heater market include A.O. Smith, Bradford White Corporation, EcoSmart Energy Products, Inc., General Electric, Noritz Corporation, Navien, Inc., Robert Bosch GmbH, Stiebel Eltron, Inc., Westinghouse Electric Corporation, and V-Guard Industries, Ltd.
Other players that operate in the value chain of the global tankless water heater market include Takagi, Rheem Manufacturing, Co., Bajaj Electricals Ltd., Atmor, Hubbel Electric Water Heater Company, Rinnai Corporation, and others. Key players have adopted numerous strategies such as product launch, agreement, partnership, acquisition, and business expansion to stay competitive in the tankless water heater market.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global tankless water heater market analysis from 2021 to 2031 to identify the prevailing global tankless water heater market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the global tankless water heater market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global tankless water heater market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
- Condensing
- Non-Condensing
By Energy Source
- Electric
- Gas
By Energy Factor
- 0.80 to 0.90 EF
- 0.91 to 0.99 EF
By End User
- Residential
- Commercial
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest Of Asia Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- Rest of LAMEA
Key Market Players
- A. O. Smith
- Bradford White Corporation
- EcoSmart Green Energy Products, Inc.
- GENERAL ELECTRIC
- NORITZ Corporation
- Navien Inc.
- Robert Bosch GmbH
- Stiebel Eltron, Inc.
- Westinghouse Electric Corporation
- V-Guard Industries Ltd.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GLOBAL TANKLESS WATER HEATER MARKET, BY TYPE
CHAPTER 5: GLOBAL TANKLESS WATER HEATER MARKET, BY ENERGY SOURCE
CHAPTER 6: GLOBAL TANKLESS WATER HEATER MARKET, BY ENERGY FACTOR
CHAPTER 7: GLOBAL TANKLESS WATER HEATER MARKET, BY END USER
CHAPTER 8: GLOBAL TANKLESS WATER HEATER MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The global tankless water heater market size was valued at $6.3 billion in 2021, and is estimated to reach $12.3 billion by 2031, growing at a CAGR of 6.9% from 2022 to 2031.Tankless water heater is a heating equipment that heats water by using electricity or gas as its energy sources. It is different from traditional or tanked water heaters as it does not store water and heats water as water passes through the heating units in a short time. There is a water flow sensor in tankless water heaters that starts automatically when it senses the water flow.
These water heaters have proved to be very useful in commercial as well as residential sectors, which, in turn, gives traction to the tankless water heater market growth globally. There are numerous advantages associated with tankless water heaters such as compactness, energy & cost saving, and efficiency. Hence, to improve global sales, manufacturers of tankless water heaters have developed new and innovative tankless water heaters, which are cost-effective in design.
Rise in demand for tankless water heater from residential consumers, rapid growth of smart city infrastructure, and rise in investment toward upgradation of aged government infrastructure are the key factors that significantly contribute toward the growth of the global tankless water heater market.
However, cost associated with additional heat exchanger in case of condensing tankless water heater is anticipated to hamper the growth of the tankless water heater market, globally. Conversely, rise in focus toward manufacturing of tankless electric water heater with safety awareness, enhanced quality, and energy efficiency is expected to create potential growth opportunity for key players operating in this market.
Depending on type, the condensing segment registered the highest tankless water heater market share of about 62.7% in 2021, and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for condensing tankless water heaters from various end user applications including apartment buildings, nursing homes, hotels, and others. For the consumers with continuous demand for hot water, condensing tankless water heater is the best option owing to its capacity to provide more hot water as compared to non-condensing tankless water heaters, which in turn is anticipated to fuel the market growth in the coming years.
Depending on energy source, the electric segment registered the highest market share of about 56.7% in 2021, and is expected to maintain its dominance during tankless water heater market forecast period. This is attributed to rise in demand for hot water from various types of applications including residential, commercial, and industrial. In addition, benefits associated with tankless electric water heater such as high efficiency, low operating & energy costs, long life, minimized standby energy losses, and others are anticipated to fuel the growth of the tankless electric water heater market from 2022 to 2031.
By energy factor, the 0.91 to 0.99 EF segment registered the highest market share of about 71.7% in 2021, and is expected to maintain its dominance during the forecast period. Rise in demand for highly efficient water heaters is expected to drive the growth of this segment in the tankless water heater market during the forecast period. In addition, advantages such as longer lifespan, utility cost saving, sustainability, lower operational cost, and others along with high energy factor are anticipated to fuel the growth of the tankless water heater market for this segment and hence contribute toward the overall market growth in the coming years.
On the basis of end user, the commercial segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 7.1%. Rapid urbanization is the key factor that exhibits the growth of commercialization by fulfilling the need of urban population by building commercial infrastructures. This is expected to fuel the growth of the tankless water heater market during the forecast period. In addition, surge in demand for tankless water heaters from commercial applications such as hotels, warehouses, educational sites, offices, food sales/services, healthcare, and others are anticipated to drive the growth of the market from 2022 to 2031.
On the basis of region, the market is analyzed across four major regions, namely, North America, Europe, Asia-Pacific, and LAMEA. Europe garnered a dominant share in 2021, and is anticipated to maintain this dominance in the tankless water heater market during the forecast period. This is attributed to presence of key players and huge consumer base in the region.
In addition, tankless water heaters have gained importance owing to increase in electrification rate, rise in disposable income in European economies, and rapid urbanization, which, in turn, is expected to augment the growth of the tankless water heater market during the forecast period.
The market analysis covers in-depth information of the major tankless water heater industry participants. The key players that operate in the market are profiled in the report, which include A.O. Smith, Bradford White Corporation, EcoSmart Energy Products, Inc., General Electric, Noritz Corporation, Navien, Inc., Robert Bosch GmbH, Stiebel Eltron, Inc., Westinghouse Electric Corporation, and V-Guard Industries, Ltd.
Other players that operate in the value chain of the global tankless water heater market include Takagi, Rheem Manufacturing, Co., Bajaj Electricals Ltd., Atmor, Hubbel Electric Water Heater Company, Rinnai Corporation, and others.
Key Findings
In 2021, the condensing segment accounted for about 62.7% of the share in the global tankless water heater market, and is expected to maintain its dominance till the end of the forecast period.In 2021, the electric segment accounted for 56.7% tankless water heater market share in the year 2021, and is anticipated to grow at a rate of 7.3% in terms of revenue, increasing its share in the global tankless water heater market.
Commercial is the fastest-growing application segment in the global tankless water heater market, expected to grow at a CAGR of 7.1% during 2022-2031.
Europe is expected to grow at the fastest rate, registering a CAGR of 7.4%, throughout the forecast period.
In 2021, Europe dominated the global tankless water heater market with more than 31.4% of the share, in terms of revenue.
Impact of Covid-19 Outbreak on the market
The outbreak of COVID-19 has negatively impacted various industries and countries across the globe. Decrease has been witnessed in the growth rate of the industries such as construction & building, transportation, oil & gas, automotive, and energy sectors owing to the lockdown imposed, globally.
This has further declined the need for tankless water heaters, which, in turn, has hampered the growth of the tankless water heater market in 2020. In the Europe region, economies such as Germany, France, Spain and, Italy follow stringent measures such as attaining social distance and limiting movements to prevent the spread of coronavirus.
Furthermore, building & construction activities across the globe were on hold during the pandemic period owing to strict measures of social distancing, lack of labor, and raw material supply disruptions. This further declined the growth of the market in 2020. Moreover, temporary shutdown of factories, manufacturing bases, and other processing industries hampered the growth of the tankless water heater market. Thus, all these factors collectively led to decreased growth of the global tankless water heater market in 2020, and are expected to foster the market growth by the end of the second quarter of 2021.
Key Benefits for Stakeholders
- The report includes in-depth analysis of different segments and provides global tankless water heater market estimations between 2022 and 2031.
- The report also includes global tankless water heater opportunities.
Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
Estimations and forecast are based on factors impacting the global tankless water heater market growth, in terms of value.
Key market players are profiled to gain an understanding of the strategies adopted by them.
This report provides a detailed analysis of the current global tankless water heater market trends and future estimations from 2022 to 2031, which helps identify the prevailing market opportunities.
Companies Mentioned
- A. O. Smith
- Bradford White Corporation
- Ecosmart Green Energy Products, Inc.
- General Electric
- Noritz Corporation
- Navien Inc.
- Robert Bosch GmbH
- Stiebel Eltron, Inc.
- Westinghouse Electric Corporation
- V-Guard Industries Ltd.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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