Global tankless water heater market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.
Ascending Demand for Energy-efficient Appliances Creates Tailwinds for Global Tankless Water Heater Market
Demand-type water heaters, often tankless water heaters, are instantaneous water heaters that deliver hot water immediately or as needed. These water heaters can provide an unlimited hot water supply while using less energy by heating or reheating the same tank. They can be mounted on exterior walls or in closets. Both residential and business spaces frequently use tankless water heaters. Tankless water heaters are extremely sturdy and have a long lifespan. Furthermore, because these heaters are efficient and can reduce energy bills by up to 40%. Consumption of energy-efficient water heaters is rising among customers in industrialized countries. As a result, tankless water heater market leaders are focusing on developing energy-efficient products that can lower monthly energy expenses and encourage installing more energy-efficient heating appliances. Numerous tankless water heaters have energy star ratings, which make them inexpensive and environmentally friendly for customers.
In addition, these items typically cost more than standard 40-gallon water heaters; however, they typically come with longer warranties and last longer than ordinary hot water heaters. Over the forecast period, the worldwide tankless water heater market is expected to experience significant growth due to the rising replacement of old water heaters with tankless water heaters. Tankless water heaters are being used instead of traditional water heaters due to government rebates and subsidies and consumers' changing attitudes toward sophisticated heaters. Therefore, increased replacement of existing water heaters across residential and commercial settings is anticipated to fuel market expansion. Tankless water heaters are more expensive than conventional water heaters, which is also anticipated to slow the market expansion throughout the forecast period.
Over the course of the forecast period, additional factors like a lack of appropriate equipment and variations in the supply of natural gas or propane are also anticipated to hinder the market growth for tankless water heaters. The smaller units cannot provide enough hot water to fill the house because they can only serve one faucet at a time. Larger, more expensive systems can supply enough hot water for homes. The expansion of tankless water heater market is anticipated to be hampered by this problem. Additionally, the huge unit uses powerful burners and calls for particular ventilation. Tankless water heater maker, Rinnai, in August 2022, introduced the New RE Series Tankless Water Heater with Smart-Circ Intelligent Recirculation. The RE Series may perform scheduled recirculation or on-demand activities using the Wi-Fi module controller.
Tankless Water Heater Market: COVID-19 Impact
The COVID-19 outbreak significantly affected the tankless water heater industry worldwide. Due to the epidemic and the worldwide lockdown, a fall in firm income was seen in the construction and building, transportation, oil and gas, automotive, and energy sectors in 2020. Due to this, there is less demand for tankless water heaters in the commercial and residential sectors, hindering tankless water heater market expansion. Additionally, due to the rigorous measures of social isolation, a scarcity of manpower, and disruptions in the supply of raw materials, building and construction activities were put on pause throughout the pandemic period in all parts of the world.
Increasing M&A Activity Bolsters Tankless Water Heater Market Growth
Manufacturers of tankless water heaters are working to increase their production and technological capabilities through smart mergers and acquisitions along the entire value chain. They are going above and beyond to meet the rising demand in North American, and Asia Pacific tankless water heater market. The intention is to upgrade existing models or add new ones to their product line-ups. The commercial, residential, and industrial heating goods and storage applications manufacturer Bradford White Corp stated in 2020 that it had achieved an agreement to buy the assets of Keltech, a producer of commercial electric water heaters.
E-commerce Sales Platforms Fuel Tankless Water Heater Market Expansion
In addition to developing innovative products, manufacturers are increasingly efficiently building sales and distribution networks for their products. Online product research is becoming increasingly popular among consumers looking for information about potential purchases. Tankless water heater producers are consequently expanding their online market reach and product availability. Leading tankless water heater market Rinnai has integrated Amazon Alexa's interoperability with Rinnai devices, enabling users to ask Alexa to turn on circulation to activate the tankless water heating system. Additionally, it allows Google Wi-Fi connectivity for compatible products, enabling consumers to track the effectiveness of their tankless water heater recirculation system.
High Initial Costs, and Equipment Price Point Hinder Tankless Water Heater Market Growth
Major factor likely to impede the tankless water heater market expansion during the anticipated period is the high initial investment cost, which is in addition to the high cost of tankless water heaters relative to conventional water heaters. Additionally, it is projected that additional problems, such as a lack of suitable equipment and variations in the supply of natural gas or propane will limit the market growth throughout the anticipated period.
Residential Segment Dominates Tankless Water Heater Market as More Consumers Seek Environmentally Sustainable Heating Solutions
Residential category was the largest market segment in 2021 and is predicted to grow at the quickest CAGR over the forecast period. The demand for these items in the residential market is primarily driven by the increasing use of energy-efficient, and environment-friendly technologies, such as tankless water heaters. Additionally, it is anticipated that during the projection period, the adoption of these solutions would be aided by the rising number of residential units brought on by the expanding middle-class population, particularly in emerging nations like China, and India. The commercial category is anticipated to experience the largest CAGR growth during the projection period. Demand for tankless water heaters is anticipated to be significantly influenced by the rising visibility of novel products throughout the projected period. For instance, Intellihot's tankless water heater provides continuous hot water as needed, reducing greenhouse gas emissions by more than 40% and reducing energy waste and environmental effects. The tankless system also includes two years of 24/7 remote monitoring and proactive onsite shipping of serviceable parts, which encourages using these systems in the business sector.
Greater Efficiency of Condensing Water Heaters Fuels Segment's Expansion in Tankless Water Heater Market
At the end of 2021, the condensing category held a value share of roughly 77.5% in the global tankless water heater market and was predicted to develop quickly. Condensing tankless water heaters, becoming more popular in emerging nations, are more energy efficient than non-condensing tankless water heaters. Key producers of water heaters will benefit from the high market concentration that results from various government and corporate sectors concentrating on creating power plants that use renewable energy sources, such as solar and wind.
Tankless Water Heater Market Grows Prominent Across Europe, and North America, Cost- and Energy-efficient Heaters Gain Traction
Europe continued to hold the largest market share in 2021 due to increased manufacturing adoption and a shift in consumer demand toward more energy- and cost-efficient products. In addition, rising demand from commercial facilities, including hotels, restaurants, and hospitals, is predicted to impact the tankless water heater market growth positively. Additionally, the adoption of tankless water heaters by many countries, including Switzerland, Germany, and the United Kingdom, is raising demand in the region. North America is expected to experience the highest CAGR of all regions throughout the projection period. Improved awareness of eco-friendly products, together with an increase in product visibility, will be two of the most significant variables influencing demand for tankless water heaters during the course of the forecast period. Additionally, it is predicted that demand for tankless water heaters will increase in the next years due to the presence of large regional rivals.
Global Tankless Water Heater Market: Competitive Landscape
Tankless water heater maker, Rinnai, in August 2022, introduced the New RE Series Tankless Water Heater with Smart-Circ Intelligent Recirculation. The Wi-Fi module controller is compatible with the RE Series, enabling scheduled recirculation or on-demand operations. The Kwick Shot, a durable and easy-to-install tankless electric water heater available in thermostatic and non-thermostatic variants to fulfil a range of water temperature needs in several common applications, was introduced by Bradford White Corporation in January 2022.
A few of the tankless water heater market players include A. O. Smith, EcoSmart Green Energy Products, Bradford White Corporation, Inc., Robert Bosch GmbH, GENERAL ELECTRIC, NORITZ Corporation, Navien Inc., Westinghouse Electric Corporation, Stiebel Eltron, Inc., and V-Guard Industries Ltd.
Global Tankless Water Heater Market is Segmented as Below:
By Energy Source
By Energy Factor
By End User
Key Elements Included In The Study: Global Tankless Water Heater Market
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