The global tankless water heater market is projected to have a considerable CAGR of 8.2% during the forecast period. The market is mainly driven by the growing demand for tankless water heater in various residential and commercial sectors due to various benefits over the storage-tank water heater. The tankless water heater 8%-34% more efficient than storage water heaters. They could save $100 or more annually with an ENERGY STAR qualified tankless water heater and have lower operating costs. Moreover, these water heaters significantly reduce standby losses, which in turn, makes them an energy-efficient substitute to conventional water heaters. According to the US Department of Energy (DOE), a gas-fired tankless water heater has the ability to save nearly $108 per year, whereas, an electric model can save up to $44 per year from the electricity bill. Therefore, the tankless water heaters can significantly reduce home energy consumption and can aid customers in saving utility costs thus creating demand in various sector applications. 

Segmental Outlook  

The global tankless water heater market is segmented based on product type and application. Based on the product type, the market is further classified into an electric water heater and gas water heater. The gas water heater segment is projected to have significant growth during the forecast period. The increasing demand for gas tankless water heaters is due to the factor that gas tankless water heater is more efficient than conventional gas water heaters. Moreover, energy is not lost during the storage as a continuous supply of hot water is maintained which is another factor driving the market of gas tankless water heaters. On the basis of application, the market is further segregated into residential and commercial. 

Global Tankless Water Heater Market Share by Application, 2019(%)

Global tankless water heater market to be driven by residential application

Among the application, the residential segment held a significant share in the market in the global tankless water heater market. There are several utilities that are offering rebates for encouraging residential users to adopt energy-efficient water heaters. For instance, Alliant Energy, a public utility holding company in the US offers a rebate up to $350 for electric heat pump water heaters for residential users. Moreover, the utility companies and organizations are offering rebates for several energy-efficient water heaters. Moreover, the government is working towards encouraging consumers to use energy-efficient water heaters that can support to save energy. In this context, EPA’s Energy Program is intended to save energy and protecting the environment and they recommended the use of a gas water heater. The use of ENERGY STAR heat pump water heater can save a family of four nearly $330 annually on its electricity bills rather than using a standard electric water heater.

Regional Outlook 

Geographically, the global tankless water heater market is further classified into North America, Europe, Asia-Pacific, and the Rest of the World.  North America has significant growth in the global tankless water heater market.  The advancement of tankless water heater for various application in North America such as the US and Canada coupled with the integration of tankless water heater systems in the commercial sector further making a considerable contribution towards the market in the region 

Global Tankless Water Heater Market Growth, by Region 2020-2026

Asia-Pacific to hold a considerable share in the global tankless water heater market

Geographically, Asia-Pacific is projected to hold a significant market share in the global tankless water heater market during the forecast period. Major economies that are anticipated to contribute to the Asia-Pacific tankless water heater market include China, India Japan and others. The major factors contributing to the growth of the market in the region include the rising demand for tankless water heater in the residential and commercial sectors coupled with rising disposable income in emerging economies. Moreover, a growing urban population coupled with industrialization raises the installation of the water heating solutions in urban areas. According to the world bank data, in 2017 China's urban population was accounted for 57.9% of the total population from 56.7% of the total population in 2016.

Market Players Outlook

The key players in the tankless water heater market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include A.O. Smith Corp., Robert Bosch GmbH, Haier electronics group Co., Ltd., Havells India Ltd.,  General Electric Co., and others. These market players adopt various strategies such as product launch, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. 

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global tankless water heater market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.