New York, United States, April 24, 2024 (GLOBE NEWSWIRE) -- Tankless water heaters are an excellently cost-efficient alternative to conventional water heater tanks, in addition to being more energy-efficient than traditional water heater tanks. Tankless water heaters, also called instant, constant flow, tank-less, direct-vent, or flash hot water heaters, are appliances that do not store any water in internal tanks but instead heat large volumes of water quickly by convection from a supply source. Other names for tankless water heaters include instant, constant flow, tankless, direct-vent, or flash hot water heaters. After there, the heat is sent to a network of showerheads, faucets, and bathtubs, where it is used to directly heat the water. Tankless heaters are an excellent choice for situations in where there is either an inadequate supply of natural gas or propane gas, or in which there is a concern about the cost of the fuel.
Rapid Urbanization
Rapid urbanisation is a phenomenon that is shared by both industrialized and emerging nations. The United Nations (UN) projects that by the year 2050, around 68 percent of the world's population would reside in urban regions, which is an increase from the current percentage of 55 percent in 2018. In 1950, there were 751 million people living in urban areas, but in 2018, there were around 4.2 billion people living in urban areas, according to the same source. As a direct consequence of this, there has been an uptick in requests for tankless water heaters.
A rising demand for energy-efficient water heaters
The demand for water heaters that are efficient in terms of energy among consumers in industrialised nations is growing. As a consequence of this, leading players in the market are concentrating their efforts on the introduction of energy-efficient goods that can reduce monthly energy costs and lead to the installation of an increasing number of heating appliances that are energy-efficient. As a result, the expansion of the worldwide tankless water heater market would be fuelled by these factors during the projected period.
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Another major development in the industry is the high demand for electric water heaters
In the market for tankless water heaters throughout the world, electric heaters are seeing a significant uptick in demand. This is as a result of the fact that they are simple to set up and call for a reduced number of maintenance procedures. Additionally, electric devices have a long lifespan and have low ongoing maintenance and replacement expenses. In addition, the cutting-edge design of these heaters makes it possible to put them in confined spaces while at the same time eliminating the need for ventilation. This is in contrast to the design of gas water heaters.
Rising use of tankless water heaters to replace older water heaters
Over the course of the projected period, it is predicted that rising rates of replacement of conventional water heaters with tankless water heaters would present enormous opportunities. Old water heaters are being phased out in favour of tankless models thanks to financial incentives provided by the government in the form of rebates and subsidies, as well as a shift in customers' attitudes toward more technologically sophisticated heaters.
An increase in the demand for hybrid tankless water heaters with simple installation and operation
The expansion of the market is anticipated to be propelled during the projected period by the increasing demand for hybrid tankless water heaters that are simple in both their operation and their installation. In addition, the incorporation of regular features found on traditional water heaters into energy-efficient and cost-effective tankless water heaters is anticipated to create enormous development prospects for both the client and the producer.
Regional Overview of Tankless Water Heater Market
As a result of increased manufacturing adoption and a movement in customer demand toward more energy efficient and cost-effective products, Europe maintained the largest market share in 2018. In addition, a growing demand from commercial establishments such as restaurants, hotels, and hospitals is anticipated to have a beneficial influence on the expansion of the market.
From 2019 to 2025, it is predicted that growth in North America will occur at a CAGR that is the highest, at 10.7 percent. Over the course of the projection period, one of the most important factors that will be driving demand for tankless water heaters is an increased awareness connected to ecological products, together with an increase in product visibility.
Key Highlights
- The tankless water heater market size was valued at USD 3.58 billion in 2021; it is estimated to reach USD 6.84 billion by 2030 and expand at a CAGR of 7.45% over the forecast period.
- Rapid urbanization is anticipated to fuel market expansion for tankless water heaters worldwide.
- A rising demand for energy-efficient water heaters is anticipated to drive the growth of the worldwide tankless water heater market.
- The rising use of tankless water heaters to replace older water heaters is driving the market.
- An increase in the demand for hybrid tankless water heaters with simple installation and operation will give opportunity for expansion to the market.
- In 2018, electric heaters held the largest market share, and it is projected that this segment would have the most rapid expansion in the years to come.
- In 2018, the residential application market had the dominant share of 72.4% of the overall market.
- From 2019 to 2025, the market for commercial applications will rise at a compound annual growth rate (CAGR) of 7.8 percent.
- As a result of increased manufacturing adoption and a movement in customer demand toward more energy efficient and cost-effective products, Europe maintained the largest market share in 2018.
Recent Developments by Key Players
The business introduced its Simplicity Series of concentric vented, non-condensing tankless water heaters in January 2016. The new water heater has innovative gas-convertible combustion mechanisms that are intended to simplify installation.
Segmentation of Tankless Water Heater Market
By Product
- Electric
- Gas
By Type
- Condensing
- Non-Condensing
By Application
- Residential
- Commercial
By Location
- Indoor
- Outdoor
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East
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