openPR Logo
Press release

Tankless Water Heater Market Size to Be Worth USD 7.38 Billion by 2032 | CAGR of 6.3%

04-07-2025 03:02 PM CET | Consumer Goods & Retail

Press release from: Persistence Market Research

Tankless Water Heater Market

Tankless Water Heater Market

The global tankless water heater market is experiencing substantial growth, driven by the increasing need for energy-efficient, on-demand water heating solutions. Unlike traditional water heaters that store water in a tank, tankless water heaters heat water only when needed, offering energy savings and a constant supply of hot water. The market is expected to grow at a compound annual growth rate (CAGR) of 6.3%, with projections reaching approximately USD 7.38 billion by 2032, up from USD 4 billion in 2022. This growth is being fueled by growing demand for sustainable products, advancements in technology, and an increased focus on energy conservation.

Tankless water heaters are gaining popularity in both residential and commercial sectors due to their efficiency and space-saving designs. They eliminate the need for bulky water storage tanks, which can occupy valuable space in homes and businesses. The global tankless water heater market currently accounts for around 7-10% of the overall water heater market, a share that is expected to grow as more consumers and businesses seek eco-friendly alternatives to traditional water heating systems.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.persistencemarketresearch.com/samples/3286

Key Highlights from the Report

➤ The global tankless water heater market is projected to grow at a CAGR of 6.3% from 2022 to 2032.
➤ By 2032, the market is expected to reach a value of USD 7.38 billion.
➤ Gas-powered tankless water heaters dominate the market in terms of energy source.
➤ Condensing tankless water heaters are gaining traction due to their energy efficiency.
➤ North America is the largest market for tankless water heaters, driven by demand for energy-efficient solutions.
➤ Residential applications account for the largest share of the market in terms of end users.

Market Segmentation: Technology, Energy Source, and Application

The tankless water heater market is segmented based on technology type, energy factor, energy source, application, end-user, sales channel, and region. In terms of technology, the market is divided into condensing and non-condensing tankless water heaters. Condensing units are more energy-efficient, capturing heat that would otherwise be wasted, making them increasingly popular among environmentally-conscious consumers and businesses. Non-condensing models, while slightly less efficient, remain in demand due to their lower initial costs.

The market is also segmented by energy source, with electric and gas-powered tankless water heaters being the most common. Gas-powered models tend to have a higher flow rate and are favored for larger homes or commercial spaces where a substantial amount of hot water is needed. Electric tankless water heaters, on the other hand, are more suitable for smaller homes and applications where lower energy consumption is a priority. In terms of applications, tankless water heaters are used in both indoor and outdoor settings, with residential units being the most common in homes and commercial units used in restaurants, hotels, and other businesses.

Regional Insights: North America and Europe Lead the Way

North America is currently the leading region in the tankless water heater market, driven by strong demand for energy-efficient appliances and the growing trend of environmentally conscious living. The U.S., in particular, has seen a rise in the adoption of tankless water heaters due to favorable government policies that promote energy-efficient technologies and a shift toward sustainable living practices. The market in North America is further supported by advancements in technology, making tankless water heaters more efficient and affordable for homeowners and businesses.

Europe also represents a significant market for tankless water heaters, with increasing awareness about energy efficiency and a growing focus on reducing carbon footprints. The adoption of tankless water heaters is being driven by stringent regulations regarding energy consumption, which have encouraged consumers to seek more efficient heating solutions. Germany, the U.K., and France are the largest markets for tankless water heaters in Europe, where consumers are becoming more inclined toward sustainable alternatives for both residential and commercial applications.

Market Drivers: Energy Efficiency and Environmental Awareness

The primary drivers behind the growth of the tankless water heater market are energy efficiency and environmental awareness. As consumers and businesses alike become more aware of the environmental impact of their energy consumption, there is a growing demand for products that can help reduce energy use. Tankless water heaters, with their on-demand heating capabilities and high energy efficiency, have become an attractive option. These units eliminate the need to keep a large tank of water hot at all times, reducing energy waste and leading to lower utility bills.

Additionally, government regulations and incentives that encourage the adoption of energy-efficient products have further boosted the growth of the market. In many countries, there are rebates and tax credits available for consumers who install energy-efficient appliances, including tankless water heaters. This has made the technology more accessible and affordable for a wider range of consumers, particularly in North America and Europe.

Market Restraints: High Initial Costs and Installation Complexity

Despite the advantages of tankless water heaters, several factors may hinder their widespread adoption. The high initial cost of purchasing and installing a tankless water heater is one of the major barriers for consumers, especially in price-sensitive markets. While these units tend to save money in the long run due to their energy efficiency, the upfront investment can be a deterrent for many homeowners and small businesses.

Additionally, installation can be more complex and expensive compared to traditional tank water heaters. Tankless water heaters often require specialized installation, which may include upgrading electrical systems or gas lines. This added complexity and expense can make the transition to tankless water heaters less appealing for some consumers, particularly in regions where the benefits of switching may not be immediately apparent.

Market Opportunities: Increasing Demand for Sustainable Solutions

The market for tankless water heaters presents several opportunities for growth, particularly in the residential and commercial sectors. As more consumers and businesses seek ways to reduce their environmental impact and lower energy costs, tankless water heaters offer an appealing solution. The growing trend toward smart home technology also presents an opportunity, as tankless water heaters can be integrated into smart home systems to allow for remote control and monitoring, further improving their efficiency.

In addition, emerging markets in Asia Pacific and Latin America present new opportunities for market expansion. As disposable incomes rise and consumers in these regions become more aware of the benefits of energy-efficient appliances, demand for tankless water heaters is expected to grow. Manufacturers that can offer affordable, high-quality products tailored to these markets will be well-positioned to capitalize on this growth.

Frequently Asked Questions (FAQs)

➔ How Big is the Tankless Water Heater Market?
➔ Who are the Key Players in the Global Tankless Water Heater Market?
➔ What is the Projected Growth Rate of the Tankless Water Heater Market?
➔ What is the Tankless Water Heater Market Forecast for 2032?
➔ Which Region is Estimated to Dominate the Tankless Water Heater Market through the Forecast Period?

Key Players in the Tankless Water Heater Market

Several companies are playing a crucial role in the growth of the tankless water heater market, providing advanced products that cater to the increasing demand for energy-efficient water heating solutions. Key players in the market include:

✦ A. O. Smith Corp.
✦ Ariston Thermo Spa
✦ Bradford White Corporation
✦ Haier Smart Home Co. Ltd.
✦ NORITZ Corp.
✦ Rheem Manufacturing Co.
✦ Rinnai Corporation
✦ Robert Bosch GmbH
✦ Whirlpool Corporation
✦ Atmor

Recent Developments in the Market

■ A. O. Smith Corporation recently launched a new line of highly efficient, smart-enabled tankless water heaters, integrating IoT features for real-time monitoring and control.
■ Rinnai Corporation has expanded its product range with a new series of energy-efficient gas-powered tankless water heaters designed for both residential and commercial use.

Conclusion

The tankless water heater market is poised for significant growth over the next decade, driven by increasing demand for energy-efficient and environmentally friendly products. The market is expected to grow at a healthy CAGR of 6.3%, reaching USD 7.38 billion by 2032. While the market faces challenges such as high initial costs and installation complexity, opportunities abound in emerging markets and the growing demand for sustainable solutions. Key players are continuously innovating to offer smarter, more efficient products, positioning themselves to capture a larger share of the growing market for tankless water heaters.

Contact Us:

Persistence Market Research
G04 Golden Mile House, Clayponds Lane
Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Tankless Water Heater Market Size to Be Worth USD 7.38 Billion by 2032 | CAGR of 6.3% here

News-ID: 3958716 • Views:

More Releases from Persistence Market Research

Non-GMO Food Market Value to Hit $120.1 Bn by 2032 Driven by Health & Clean Label Demand
Non-GMO Food Market Value to Hit $120.1 Bn by 2032 Driven by Health & Clean Labe …
Overview of the Market The global non-GMO food market is experiencing robust momentum as consumers increasingly demand transparency, sustainability, and natural food options. According to market projections, the industry is set to grow from US$ 70.7 billion in 2025 to US$ 120.1 billion by 2032, reflecting an impressive CAGR of 7.9% during the forecast period. This growth is propelled by heightened awareness of food safety, rising health consciousness, and consumer concerns
U.S. Nuts Market to Reach $16,026.1 Mn by 2032 Driven by Healthy Snacking Trends
U.S. Nuts Market to Reach $16,026.1 Mn by 2032 Driven by Healthy Snacking Trends
Overview of the U.S. Nuts Market The U.S. nuts market is projected to rise from US$ 10,976.6 Mn in 2025 to US$ 16,026.1 Mn by 2032, registering a steady CAGR of 5.6% during the forecast period. Nuts are increasingly being recognized as a staple in the American diet due to their nutritional profile, health benefits, and versatility across food and beverage applications. The market is being shaped by rising consumer awareness
Champagne Market to reach US$11,189.6 Mn by 2032, driven by luxury demand & trends
Champagne Market to reach US$11,189.6 Mn by 2032, driven by luxury demand & tren …
Overview of the Market The global champagne market has remained a symbol of celebration, luxury, and fine living for centuries, and its demand continues to evolve alongside changing consumer lifestyles and preferences. According to market estimates, the champagne market size is projected to increase from US$ 7,923.0 million in 2025 to US$ 11,189.6 million by 2032, reflecting a compound annual growth rate (CAGR) of 5.1%. This growth trajectory highlights the premiumization
Europe Olive Oil Market Growth Driven by Health Trends, to Reach $15.7 Bn by 2032
Europe Olive Oil Market Growth Driven by Health Trends, to Reach $15.7 Bn by 203 …
Market Overview The Europe olive oil market is poised for steady expansion, estimated to grow from US$12.6 billion in 2025 to US$15.7 billion by 2032, recording a compound annual growth rate (CAGR) of 3.6% during the forecast period. Olive oil holds a central place in European diets, both as a traditional culinary staple and as a modern health-conscious choice. The growth trajectory is strongly supported by rising consumer awareness regarding the

All 5 Releases


More Releases for Tankless

Key Trends Reshaping the Tankless Water Heater Market: Bosch Thermotechnology Un …
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts Tankless Water Heater Market Size Growth Forecast: What to Expect by 2025? The market for tankless water heaters has significantly expanded in the recent past. The market is projected to increase from a value of $4.55 billion in 2024 to approximately $4.95 billion in 2025, exhibiting a compound annual
Tankless Commercial Toilets Market
According to Market Research Intellect, the global Tankless Commercial Toilets market under the Aerospace and Defense category is expected to register notable growth from 2025 to 2032. Key drivers such as advancing technologies, changing consumer behavior, and evolving market dynamics are poised to shape the trajectory of this market throughout the forecast period. The tankless commercial toilets market is witnessing steady growth, driven by increasing demand for efficient and water-saving sanitation
Tankless Commercial Toilets - Market 2024 Research Report
Tankless Commercial Toilets - Market The global market for Tankless Commercial Toilets was estimated to be worth US$ 654 million in 2023 and is forecast to a readjusted size of US$ 964.1 million by 2030 with a CAGR of 6.2% during the forecast period 2024-2030 View Sample Report https://reports.valuates.com/request/sample/QYRE-Auto-3P7292/Global_Tankless_Commercial_Toilets_Market_Insights_Forecast_to_2028 Report Scope This report aims to provide a comprehensive presentation of the global market for Tankless Commercial Toilets, focusing on the total sales volume, sales revenue,
Tankless Water Heater Market Growth - Industry Share | 2031
A tankless water heater, also known as an on-demand water heater or instantaneous water heater, is a type of water heating system that heats water only when it is needed, without the use of a storage tank. Unlike traditional storage tank water heaters, which keep a large volume of water hot at all times, tankless water heaters heat the water directly as it flows through the unit, providing hot water
Global Tankless Water Heater Market : Europe Dominating Region
The revenue generated from sales of tankless water heater market is estimated to be valued at US$ 16.9 Bn by 2016 end, and is expected to increase at a CAGR of 5.3% during the forecast period (2016–2024). Tankless water heaters, also called inline, flash, instantaneous, continuous flow, on demand, or instant-on water heater are used to heat water on demand and instantly.Tankless water heaters are used in residential and commercial applications
United States Tankless Gas Industry Report 2016
The recently published report titled United States Tankless Gas Industry 2016 Market Research Report is an in depth study providing complete analysis of the industry for the period 2016 – 2021. It provides complete overview of United States Tankless Gas market considering all the major industry trends, market dynamics and competitive scenario. The United States Tankless Gas Industry Report 2016 is an in depth study analyzing the current state of the