Tankless Water Heater Market Insights: Top Vendors, Outlook, Drivers & Forecast To 2028
Author : Eva Smith | Published On : 10 Mar 2022
The global tankless water heater market is projected to expand at a CAGR of 7.4% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing consumer concerns regarding the sustainable use of energy.
Tankless water heaters are also called as inline, continuous flow, on-demand, or flash water heaters. They are used to instantly heat water as it flows through the device and does not reserve water internally except in heat exchanger coil. These water heaters provide hot water only when required and thus does not require a storage tank with it. These heaters are around 30% more energy efficient as compared to the traditional water heaters.
Companies are focusing on technological advancements in tankless water heaters, which are expected to increase the adoption of these heaters in the foreseeable future. For instance, in April 2019, Intellihot Inc. announced the launch of neuron series of water heaters, which offers cellular Wi-Fi connectivity to monitor flow and water temperature. Tankless water heaters are usually used in schools, hotels and restaurants. They can be installed in existing water connections, thus reducing the time required for re-piping and installation by 50%.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing adoption of tankless water heaters owing to its capability of saving space and energy is projected to spur the market growth during the forecast period.
- Rising demand for water heating systems owing to increasing disposable income and rapid urbanization is expected to drive the market growth.
- High cost of installation and maintenance restrains the growth of the market.
- High cost of tankless water heater can impede the market growth. However, higher durability of these products as compared to conventional heaters can stimulate the market growth.
- Government initiatives to promote energy efficient systems have positively impacted the market growth.
- Increasing demand for solar water heating systems is expected to restrain the market growth.
Scope of the Report
The report on the global tankless water heater market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Global Tankless Water Heater Market Segment Insights
Electric water heaters accounts for a large market share.
Based on products, the market is segmented into electric and gas. The electric segment is expected to witness a substantial growth during the forecast period owing to its easy installation and low cost maintenance. Additionally, electric tankless water heaters are durable and has low operating cost. Moreover, they can be installed in small spaces and do not require extra ventilation as compared to traditional water heaters. On the other hand, gas water heater requires regular maintenance by trained professionals, which is restraining the growth of the gas segment.
Condensing segment expected to account for a large market share.
On the basis of technology, the market is dived into condensing and non-condensing. The condensing segment is anticipated to witness a substantial growth rate during the forecast period. Condensing type tankless water heaters are more energy efficient as compared to non-condensing water heaters.
Residential segment projected to account for a large market share.
Based on applications, the market is segmented into residential and commercial. The residential sector is anticipated to witness a healthy growth rate owing to rising adoption of eco-friendly and energy efficient products in this sector. Additionally, improving standard of living along with shift in consumer preference towards energy efficient product is projected to spur the market growth.
The commercial segment is projected to expand at a substantial CAGR owing to the increasing product visibility due to the increasing innovation in the market. Rising demand for hot waters in places such as restaurants, hotels and resorts is expected to positively impact the market growth. Furthermore, increasing awareness and government policies to increase the adoption of eco-friendly water heaters are expected to fuel the demand during the forecast period.
Europe anticipated to account for a significant market share.
In terms of regions, the market is classified into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is anticipated to account for a large market share owing to shifting consumer preference for tankless water heater owing to its benefits. Additionally, increasing demand for the product in commercial spaces such as restaurants, hotels and resorts is expected to spur the market growth in the region.
The market in North America is expected to register a substantial CAGR owing to growing inclination toward eco-friendly products. Furthermore, the presence of prominent manufacturers in this region is anticipated to positively impact the market growth.
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