Tankless Water Heater Global Market Report 2024

The tankless water heater market size has grown strongly in recent years. It will grow from $4.17 billion in 2023 to $4.55 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The growth observed in the historical period can be attributed to several factors, including heightened concerns about energy efficiency, the adoption of space-saving designs, appreciation for longer lifespan, the appeal of continuous hot water supply, and an increasing awareness among consumers regarding these advantages. These factors collectively contributed to the historical expansion of tankless water heaters.

The tankless water heater market size is expected to see strong growth in the next few years. It will grow to $6.1 billion in 2028 at a compound annual growth rate (CAGR) of 7.6%. The anticipated growth in the forecast period can be credited to factors such as the integration of tankless water heaters into smart home systems, the emphasis on water conservation initiatives, the emergence of hybrid tankless systems, expanding applications in commercial sectors, and the increasing affordability of these systems. Major trends expected in the forecast period encompass ongoing technological advancements, the integration of smart technologies into water heating systems, the adoption of compact and space-saving designs, the popularity of hybrid tankless systems, and the incorporation of advanced water heating technologies.

The growing government efforts to promote environmentally friendly water heaters are expected to propel the growth of the tankless water heater market going forward. Government efforts refer to the actions, initiatives, and programs undertaken by a government to address various issues, achieve specific goals, and meet the needs of its citizens. Governments can encourage the adoption of energy-efficient tankless water heaters over traditional tank-based models by establishing standards and regulations for appliances while also implementing incentive programs aimed at both consumers and manufacturers to promote the uptake of tankless technology. For instance, in July 2023, according to the Department of Energy, a US-based government agency, the U.S. Department of Energy put forth new energy efficiency standards, aiming to achieve annual savings of $11.4 billion for consumers on their energy and water bills. Aiming to save $198 billion for Americans and reduce 501 million metric tons of CO2 over 30 years, the proposed regulations, which take effect in 2029, are equal to the yearly emissions of 63 million households, or roughly 50% of all dwellings in the United States. Therefore, the growing government efforts to promote environmentally friendly water heaters are driving the growth of the tankless water heater market.

Major companies operating in the tankless water heater market are developing innovative products, such as electric tankless water heaters, to better serve customers with advanced features. Electric tankless water heaters are on-demand water heating systems that use electricity as their primary source of power. For instance, in January 2023, Bosch Thermotechnology, a Germany-based provider of heating and hot water products, launched the Tronic 4000 C and Tronic 6100 C. The Tronic 4000 C stands out as one of the most compact and energy-efficient electric tankless water heaters available, specifically designed for point-of-use and under-sink installations. Remarkably small at only 8.5” X 13” and weighing just 4.4 lbs., it can be conveniently wall-mounted directly under the sink. Operating solely on electricity and lacking a water-holding tank, the Tronic 4000 C requires no venting and entails virtually no maintenance, making it an exceptional choice for users seeking space-saving and hassle-free solutions. In contrast, the Tronic 6100 C introduces a distinct feature by providing on-demand hot water for entire households. Bosch, with the Tronic 6100 C, seamlessly combines energy efficiency and convenience into a beautifully streamlined, easy-to-install design that is both compact and lightweight, catering specifically to whole-house applications and ensuring continuous and efficient hot water supply.

In October 2021, A. O. Smith Corporation, a US-based manufacturer of residential and commercial water heating equipment, acquired Giant Factories Inc. for a deal of $192 million. With this acquisition, Smith enhances its portfolio with water-heating solutions that contribute to a more sustainable and environmentally friendly approach. The integration of Giant into A. O. Smith's current water heater operations expand the company's footprint in the Canadian water heater market, where there is a notable demand for replacements. Giant Factories Inc. is a Canada-based manufacturer of tankless water heaters.

Major companies operating in the tankless water heater market report are Robert Bosch GmbH, General Electric, Haier Group Corporation, Honeywell International Inc., Whirlpool Corporation, Paloma Industries Ltd., Westinghouse Electric Corporation, Vaillant Group, A.O. Smith Corporation, RinnAI Corporation, Ariston Thermo Group, Rheem Manufacturing Company, Stiebel Eltron GmbH & Co. KG, Bajaj Electricals Ltd., Groupe Atlantic, Ferroli S.p.A., V-Guard Industries Ltd., Bradford White Corporation, Noritz Corporation, EcoSmart Green Energy Products, Inc., Navien Inc., Hubbell Electric Heater Company, Laars Heating Systems, Eccotemp Systems LLC, Takagi Industrial Co. Ltd.

Europe was the largest region in the tankless water heater market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the tankless water heater market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tankless water heater market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tankless water heater market consists of sales of heat exchangers, burners, fans, flow sensors, pressure release valves, and temperature sensors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

A tankless water heater is a specific type of water heating system that heats water on demand without requiring a storage tank. This system operates by utilizing either an electric element or a gas burner to heat water as it flows through a pipe to the unit. The key advantage of a tankless water heater is its ability to provide a continuous and nearly limitless supply of hot water, as it heats the water directly at the moment it is needed, eliminating the need for a reservoir.

Tankless water heaters come in two main types such as condensing and non-condensing. A condensing tankless water heater is designed to recycle the excess heat generated during the water heating process, resulting in increased fuel efficiency. These water heaters utilize various energy sources, including electric and gas, and find applications in various settings such as residential and commercial environments. Condensing tankless water heaters are particularly valued for their ability to optimize energy usage and enhance overall efficiency in heating water.

The tankless water heaters market research report is one of a series of new reports that provides tankless water heaters market statistics, including the tankless water heaters industry global market size, regional shares, competitors with a tankless water heaters market share, detailed tankless water heaters market segments, market trends and opportunities, and any further data you may need to thrive in the tankless water heaters industry. This tankless water heaters market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.