Tankless Water Heater Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Tankless Water Heater Market was valued at USD 3.78 Billion in 2024, and is expected to reach USD 6.11 Billion by 2030, rising at a CAGR of 8.38%. The global tankless water heater market is witnessing robust growth due to increasing consumer preference for energy-efficient and space-saving solutions. Unlike traditional storage water heaters, tankless systems heat water only when needed, eliminating standby energy losses and reducing operational costs.

Their compact design makes them ideal for urban homes, apartments, and commercial spaces with limited space. Technological advancements, such as smart controls and improved heating efficiency, are further enhancing their appeal. Additionally, growing environmental concerns and supportive government incentives promoting sustainable appliances are driving adoption. Rising disposable incomes and modern lifestyle trends are also contributing to the market’s expansion worldwide

Key Market Drivers

Rising Demand for Energy-Efficient Water Heating Solutions

A key driver of growth in the global tankless water heater market is the increasing focus on energy efficiency. Unlike traditional storage water heaters, which constantly heat large volumes of water and incur significant standby energy losses, tankless models operate only when hot water is needed. This on-demand functionality greatly reduces energy wastage and lowers utility costs, making them attractive to both residential and commercial users seeking to reduce carbon footprints and operational expenses. The shift is reinforced by rising environmental awareness and stricter energy efficiency regulations. Many governments now implement efficiency labeling programs and offer tax incentives or rebates to encourage the adoption of eco-friendly appliances. Strengthening this trend, the U.S. Department of Energy, in December 2024, introduced updated efficiency standards for gas-fired instantaneous (tankless) water heaters, mandating roughly 13% higher energy efficiency effectively requiring condensing technology to boost performance and align with long-term sustainability goals.

Key Market Challenges

High Initial Purchase and Installation Costs

One of the most significant challenges hindering the widespread adoption of tankless water heaters is their relatively high upfront cost. Compared to traditional storage water heaters, tankless systems can cost significantly more to purchase and install. The installation process is often more complex, requiring specialized labor, additional plumbing adjustments, and in many cases, electrical or gas line upgrades to meet the unit’s operational requirements. For example, high-capacity tankless models may need enhanced venting systems or increased electrical capacity, adding to the total expense.

While the long-term operational savings and extended lifespan of tankless units can offset the initial investment, many consumers, particularly in price-sensitive markets, hesitate to switch from conventional systems. This cost barrier is particularly pronounced in developing regions, where consumers prioritize affordability over long-term efficiency benefits. Even in developed markets, some homeowners delay adoption due to the perception that the payback period is too long, despite potential energy savings.

Key Market Trends

Integration of Smart Technology and IoT Connectivity

The integration of smart technology into tankless water heaters is becoming a defining trend in the market. Manufacturers are increasingly equipping units with Wi-Fi connectivity, smartphone compatibility, and advanced digital control panels. These features allow users to remotely monitor water temperature, adjust heating settings, and track energy consumption in real time through mobile apps.

Many modern models also include voice control compatibility with popular smart home assistants, enabling hands-free operation. IoT-enabled diagnostics can detect issues early and send alerts for maintenance, reducing downtime and repair costs. This shift toward smart integration not only enhances user convenience but also aligns with the broader global trend of connected, energy-efficient home appliances. In addition, the ability to integrate with home energy management systems allows for automated scheduling of water heating during off-peak electricity hours, maximizing cost savings and reducing grid strain.

Key Market Players

Ariston Holding N.V.
A.O. Smith
Bosch Thermotechnology Corp
Bradford White Corporation
GE Appliances
Rheem Manufacturing Company
Whirlpool Corporation
Rinnai Corporation
Ferroli S.p.A
Havells India Limited

Report Scope:

In this report, the Global Tankless Water Heater Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Tankless Water Heater Market, By Technology:

Condensing
Non-Condensing

Tankless Water Heater Market, By Energy Source:

Electric
Gas

Tankless Water Heater Market, By End Use:

Condominium
Salon/Parlor
Hotels & Resort
Hospitals
Residential
Others

Tankless Water Heater Market, By Sales Channel:

Hypermarkets/Supermarkets
Exclusive Stores
Multi-brand Stores
Online
Others

Tankless Water Heater Market, By Region:

North America
United States
Canada
Mexico
Europe
France
United Kingdom
Italy
Germany
Spain
Asia-Pacific
China
Japan
India
South Korea
Indonesia
South America
Argentina
Colombia
Brazil
Middle East & Africa
South Africa
Saudi Arabia
UAE
Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tankless Water Heater Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.

1. Introduction

1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered

2. Research Methodology

2.1. Methodology Landscape
2.2. Objective of the Study
2.3. Baseline Methodology
2.4. Formulation of the Scope
2.5. Assumptions and Limitations
2.6. Sources of Research
2.7. Approach for the Market Study
2.8. Methodology Followed for Calculation of Market Size & Market Shares
2.9. Forecasting Methodology

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions
3.5. Overview of Market Drivers, Challenges, and Trends

4. Voice of Customer

4.1. Brand Awareness
4.2. Factors Influence Purchase Decision

5. Global Tankless Water Heater Market Outlook

5.1. Market Size & Forecast
5.1.1. By Value
5.2. Market Share & Forecast
5.2.1. By Technology (Condensing, Non-Condensing)
5.2.2. By Energy Source (Electric, Gas)
5.2.3. By End Use (Condominium, Salon/Parlor, Hotels & Resort, Hospitals, Residential, Others)
5.2.4. By Sales Channel (Hypermarkets/Supermarkets, Exclusive Stores, Multi-brand Stores, Online, Others)
5.2.5. By Region
5.2.6. By Company (2024)
5.3. Market Map

6. North America Tankless Water Heater Market Outlook

6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Technology
6.2.2. By Energy Source
6.2.3. By End Use
6.2.4. By Sales Channel
6.2.5. By Country
6.3. North America: Country Analysis
6.3.1. United States Tankless Water Heater Market Outlook
6.3.1.1. Market Size & Forecast
6.3.1.1.1. By Value
6.3.1.2. Market Share & Forecast
6.3.1.2.1. By Technology
6.3.1.2.2. By Energy Source
6.3.1.2.3. By End Use
6.3.1.2.4. By Sales Channel
6.3.2. Canada Tankless Water Heater Market Outlook
6.3.2.1. Market Size & Forecast
6.3.2.1.1. By Value
6.3.2.2. Market Share & Forecast
6.3.2.2.1. By Technology
6.3.2.2.2. By Energy Source
6.3.2.2.3. By End Use
6.3.2.2.4. By Sales Channel
6.3.3. Mexico Tankless Water Heater Market Outlook
6.3.3.1. Market Size & Forecast
6.3.3.1.1. By Value
6.3.3.2. Market Share & Forecast
6.3.3.2.1. By Technology
6.3.3.2.2. By Energy Source
6.3.3.2.3. By End Use
6.3.3.2.4. By Sales Channel

7. Europe Tankless Water Heater Market Outlook

7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Technology
7.2.2. By Energy Source
7.2.3. By End Use
7.2.4. By Sales Channel
7.2.5. By Country
7.3. Europe: Country Analysis
7.3.1. France Tankless Water Heater Market Outlook
7.3.1.1. Market Size & Forecast
7.3.1.1.1. By Value
7.3.1.2. Market Share & Forecast
7.3.1.2.1. By Technology
7.3.1.2.2. By Energy Source
7.3.1.2.3. By End Use
7.3.1.2.4. By Sales Channel
7.3.2. Germany Tankless Water Heater Market Outlook
7.3.2.1. Market Size & Forecast
7.3.2.1.1. By Value
7.3.2.2. Market Share & Forecast
7.3.2.2.1. By Technology
7.3.2.2.2. By Energy Source
7.3.2.2.3. By End Use
7.3.2.2.4. By Sales Channel
7.3.3. Spain Tankless Water Heater Market Outlook
7.3.3.1. Market Size & Forecast
7.3.3.1.1. By Value
7.3.3.2. Market Share & Forecast
7.3.3.2.1. By Technology
7.3.3.2.2. By Energy Source
7.3.3.2.3. By End Use
7.3.3.2.4. By Sales Channel
7.3.4. Italy Tankless Water Heater Market Outlook
7.3.4.1. Market Size & Forecast
7.3.4.1.1. By Value
7.3.4.2. Market Share & Forecast
7.3.4.2.1. By Technology
7.3.4.2.2. By Energy Source
7.3.4.2.3. By End Use
7.3.4.2.4. By Sales Channel
7.3.5. United Kingdom Tankless Water Heater Market Outlook
7.3.5.1. Market Size & Forecast
7.3.5.1.1. By Value
7.3.5.2. Market Share & Forecast
7.3.5.2.1. By Technology
7.3.5.2.2. By Energy Source
7.3.5.2.3. By End Use
7.3.5.2.4. By Sales Channel

8. Asia-Pacific Tankless Water Heater Market Outlook

8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Technology
8.2.2. By Energy Source
8.2.3. By End Use
8.2.4. By Sales Channel
8.2.5. By Country
8.3. Asia-Pacific: Country Analysis
8.3.1. China Tankless Water Heater Market Outlook
8.3.1.1. Market Size & Forecast
8.3.1.1.1. By Value
8.3.1.2. Market Share & Forecast
8.3.1.2.1. By Technology
8.3.1.2.2. By Energy Source
8.3.1.2.3. By End Use
8.3.1.2.4. By Sales Channel
8.3.2. Japan Tankless Water Heater Market Outlook
8.3.2.1. Market Size & Forecast
8.3.2.1.1. By Value
8.3.2.2. Market Share & Forecast
8.3.2.2.1. By Technology
8.3.2.2.2. By Energy Source
8.3.2.2.3. By End Use
8.3.2.2.4. By Sales Channel
8.3.3. India Tankless Water Heater Market Outlook
8.3.3.1. Market Size & Forecast
8.3.3.1.1. By Value
8.3.3.2. Market Share & Forecast
8.3.3.2.1. By Technology
8.3.3.2.2. By Energy Source
8.3.3.2.3. By End Use
8.3.3.2.4. By Sales Channel
8.3.4. South Korea Tankless Water Heater Market Outlook
8.3.4.1. Market Size & Forecast
8.3.4.1.1. By Value
8.3.4.2. Market Share & Forecast
8.3.4.2.1. By Technology
8.3.4.2.2. By Energy Source
8.3.4.2.3. By End Use
8.3.4.2.4. By Sales Channel
8.3.5. Indonesia Tankless Water Heater Market Outlook
8.3.5.1. Market Size & Forecast
8.3.5.1.1. By Value
8.3.5.2. Market Share & Forecast
8.3.5.2.1. By Technology
8.3.5.2.2. By Energy Source
8.3.5.2.3. By End Use
8.3.5.2.4. By Sales Channel

9. Middle East & Africa Tankless Water Heater Market Outlook

9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Technology
9.2.2. By Energy Source
9.2.3. By End Use
9.2.4. By Sales Channel
9.2.5. By Country
9.3. MEA: Country Analysis
9.3.1. South Africa Tankless Water Heater Market Outlook
9.3.1.1. Market Size & Forecast
9.3.1.1.1. By Value
9.3.1.2. Market Share & Forecast
9.3.1.2.1. By Technology
9.3.1.2.2. By Energy Source
9.3.1.2.3. By End Use
9.3.1.2.4. By Sales Channel
9.3.2. Saudi Arabia Tankless Water Heater Market Outlook
9.3.2.1. Market Size & Forecast
9.3.2.1.1. By Value
9.3.2.2. Market Share & Forecast
9.3.2.2.1. By Technology
9.3.2.2.2. By Energy Source
9.3.2.2.3. By End Use
9.3.2.2.4. By Sales Channel
9.3.3. UAE Tankless Water Heater Market Outlook
9.3.3.1. Market Size & Forecast
9.3.3.1.1. By Value
9.3.3.2. Market Share & Forecast
9.3.3.2.1. By Technology
9.3.3.2.2. By Energy Source
9.3.3.2.3. By End Use
9.3.3.2.4. By Sales Channel
9.3.4. Turkey Tankless Water Heater Market Outlook
9.3.4.1. Market Size & Forecast
9.3.4.1.1. By Value
9.3.4.2. Market Share & Forecast
9.3.4.2.1. By Technology
9.3.4.2.2. By Energy Source
9.3.4.2.3. By End Use
9.3.4.2.4. By Sales Channel

10. South America Tankless Water Heater Market Outlook

10.1. Market Size & Forecast
10.1.1. By Value
10.2. Market Share & Forecast
10.2.1. By Technology
10.2.2. By Energy Source
10.2.3. By End Use
10.2.4. By Sales Channel
10.2.5. By Country
10.3. South America: Country Analysis
10.3.1. Brazil Tankless Water Heater Market Outlook
10.3.1.1. Market Size & Forecast
10.3.1.1.1. By Value
10.3.1.2. Market Share & Forecast
10.3.1.2.1. By Technology
10.3.1.2.2. By Energy Source
10.3.1.2.3. By End Use
10.3.1.2.4. By Sales Channel
10.3.2. Argentina Tankless Water Heater Market Outlook
10.3.2.1. Market Size & Forecast
10.3.2.1.1. By Value
10.3.2.2. Market Share & Forecast
10.3.2.2.1. By Technology
10.3.2.2.2. By Energy Source
10.3.2.2.3. By End Use
10.3.2.2.4. By Sales Channel
10.3.3. Colombia Tankless Water Heater Market Outlook
10.3.3.1. Market Size & Forecast
10.3.3.1.1. By Value
10.3.3.2. Market Share & Forecast
10.3.3.2.1. By Technology
10.3.3.2.2. By Energy Source
10.3.3.2.3. By End Use
10.3.3.2.4. By Sales Channel

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Disruptions: Conflicts, Pandemics and Trade Barriers

14. Porters Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Company Profiles
15.1.1. Ariston Holding N.V.
15.1.1.1. Business Overview
15.1.1.2. Company Snapshot
15.1.1.3. Products & Services
15.1.1.4. Financials (As Per Availability)
15.1.1.5. Key Market Focus & Geographical Presence
15.1.1.6. Recent Developments
15.1.1.7. Key Management Personnel
15.1.2. A.O. Smith
15.1.3. Bosch Thermotechnology Corp
15.1.4. Bradford White Corporation
15.1.5. GE Appliances
15.1.6. Rheem Manufacturing Company
15.1.7. Whirlpool Corporation
15.1.8. Rinnai Corporation
15.1.9. Ferroli S.p.A
15.1.10. Havells India Limited

16. Strategic Recommendations17. About the Publisher & Disclaimer

Companies Mentioned

Ariston Holding N.V.
A.O. Smith
Bosch Thermotechnology Corp
Bradford White Corporation
GE Appliances
Rheem Manufacturing Company
Whirlpool Corporation
Rinnai Corporation
Ferroli S.p.A
Havells India Limited

Table Information

Report Attribute	Details
No. of Pages	181
Published	September 2025
Forecast Period	2024 - 2030
Estimated Market Value ( USD ) in 2024	$ 3.78 Billion
Forecasted Market Value ( USD ) by 2030	$ 6.11 Billion
Compound Annual Growth Rate	8.3%
Regions Covered	Global
No. of Companies Mentioned	10

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