Tankless Water Heaters - Global Strategic Business Report

The global market for Tankless Water Heaters was valued at USD 7.1 Billion in 2024 and is projected to reach USD 9.4 Billion by 2030, growing at a CAGR of 4.7% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

Global Tankless Water Heaters Market - Key Trends and Drivers Summarized

What Are Tankless Water Heaters and How Do They Work?

Tankless water heaters, also known as on-demand or instant water heaters, represent a significant innovation in residential and commercial heating systems. Unlike traditional water heaters that store hot water in a tank, these systems heat water instantly as it passes through a heat exchanger, providing a continuous supply of hot water. This technology eliminates standby heat loss, which occurs when hot water stored in a tank cools down over time and needs to be reheated. Tankless water heaters are available in both gas and electric models, and their energy-efficient design has gained favor in regions where electricity and fuel costs are high, offering substantial savings on utility bills. Additionally, they offer a more compact, space-saving design compared to bulky traditional water heaters, making them ideal for urban households and commercial spaces where square footage is at a premium.

What Applications and End-Users Benefit the Most from This Technology?

The adoption of tankless water heaters has been particularly strong in residential buildings where energy efficiency and space savings are top priorities. Homeowners are drawn to the promise of reduced energy costs, especially in regions with cold climates where hot water demand is high. In commercial settings such as hotels, restaurants, and hospitals, tankless systems are used to ensure an uninterrupted supply of hot water to meet the constant demand, while also reducing energy consumption. The systems are also increasingly being installed in new construction projects and green buildings, where there is a focus on reducing carbon footprints. End-users in industries such as manufacturing, where process heating is necessary, are finding tankless systems to be beneficial in managing hot water efficiently without the risk of running out.

What Segments and Technologies Are Fueling Growth in This Market?

Gas-powered tankless water heaters dominate the market in regions where natural gas is the primary energy source, as they tend to offer higher flow rates compared to electric models. However, electric tankless heaters are gaining market share due to advancements in heating technologies and growing concerns over greenhouse gas emissions. Furthermore, the market can be divided between indoor and outdoor installations, with outdoor units being favored in areas with mild climates. Technological improvements, such as enhanced heating elements and the incorporation of smart features that allow users to monitor and control their systems remotely, are key drivers of innovation in this space.

What Is Driving the Growth in the Tankless Water Heater Market?

The growth in the tankless water heater market is driven by several factors, including rising consumer awareness about energy efficiency, increasing regulatory support for sustainable building practices, and the demand for compact, space-saving heating solutions. Technological advancements, such as smart controls and improvements in heat exchanger efficiency, are also making tankless systems more attractive to consumers. Government incentives and rebates in many regions are encouraging homeowners and businesses to switch to tankless models, further propelling the market. Additionally, the growing trend toward green building and energy-efficient construction is boosting demand for these systems in both the residential and commercial sectors. As energy costs rise and consumers seek to reduce their environmental impact, the tankless water heater market is expected to see continued growth.

Report Scope

The report analyzes the Tankless Water Heaters market, presented in terms of market value (USD Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments

Technology (Condensing, Non-Condensing); Energy Source (Electric, Gas); End-Use (Commercial, Residential).

Geographic Regions/Countries

World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Condensing Technology segment, which is expected to reach $6.5 Billion by 2030 with a CAGR of a 5.4%. The Non-Condensing Technology segment is also set to grow at 3.2% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $1.9 Billion in 2024, and China, forecasted to grow at an impressive 8.3% CAGR to reach $2.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in USD from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of major players such as Ecosmart US LLC, Eemax Inc., Freeman Gas & Electric Company Inc., Furnace AC Direct, Global Product Solutions and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Tankless Water Heaters Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Tankless Water Heaters Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Tankless Water Heaters Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Some of the 46 major companies featured in this Tankless Water Heaters market report include:

• Ecosmart US LLC
• Eemax Inc.
• Freeman Gas & Electric Company Inc.
• Furnace AC Direct
• Global Product Solutions
• Heatworks
• Intellihot Inc.
• Kellermeier Plumbing & Heating
• Mike Counsil Plumbing and Rooter
• Navien, Inc.