Tankless Water Heater Market Challenges: Addressing Installation and Maintenance Issues

The global tankless water heater market is experiencing significant growth. In 2022, the market size was valued at USD 3.49 billion, and it's projected to expand at a healthy compound annual growth rate (CAGR) of 8.7% from 2023 to 2030.

This growth is primarily driven by a growing consumer focus on sustainable energy use. Tankless water heaters offer a clear advantage in this regard. Compared to traditional models, they can be 24.0% to 34.0% more energy efficient, as documented by Energy.gov. This benefit extends to both residential and commercial sectors, where space-saving and energy-saving features are highly desirable. The increased adoption of tankless heaters in these areas is expected to be a major driver of market growth in the coming years.

Gather more insights about the market drivers, restrains and growth of the Tankless Water Heater Market

Furthermore, many tankless water heaters boast Energy Star ratings, solidifying their eco-friendly and cost-effective appeal for consumers. While they may have a higher upfront cost compared to conventional 40-gallon heaters, tankless models typically come with longer warranties and have a longer lifespan. This, coupled with the potential annual savings of USD 100 to USD 200 on electricity bills, makes them an attractive long-term investment. As a result, the market is expected to see a surge in replacements of existing water heaters with tankless models throughout the forecast period.

Regional Insights:

North America Tankless Water Heater Market Trends

North America is poised to experience the most rapid growth in the tankless water heater market, with an anticipated CAGR of 10.2% throughout the forecast period. This surge is primarily attributed to the rising awareness and adoption of eco-friendly products, coupled with increased product visibility. Furthermore, the presence of major industry players within the region is expected to further stimulate demand for tankless water heaters in the coming years. Consequently, North America is projected to exhibit the highest growth rate during the forecast period.

Europe Tankless Water Heater Market Trends

Europe held the largest market share in 2022, driven by high product adoption, shifting consumer preferences towards energy-efficient and economical products, and surging demand from the commercial sector (restaurants, hotels, hospitals). The increasing adoption of tankless water heaters in countries like Switzerland, Germany, and the U.K. further fuels regional demand.

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Key Companies & Market Share Insights

Manufacturers are focusing on integrating new & advanced technologies including smart control & monitoring features to enhance product service life and reduce maintenance time. In addition, major companies are focusing on enhancing their product portfolios with low price ranges that are suitable for diverse customer requirements.

• In January 2023, Bosch Thermotechnology Corp. a leading provider of advanced heating and cooling water systems, launched - Tronic 4000 C for under-sink applications and Tronic 6100 c for whole-house applications under its electric tankless water heater category. These products provide 100% electric, on-demand hot water and reduces the requirement of storage tank.

• In August 2022, Rinnai, a manufacturer of tankless water heaters launched the New RE Series Tankless Water Heater with Smart-Circ Intelligent Recirculation. The RE Series is compatible with the Wi-Fi module controller, to achieve scheduled recirculation or on-demand operations

• In January 2022, Bradford White Corporation introduced the Kwick Shot, a dependable and simple-to-install tankless electric water heater available in thermostatic and non-thermostatic models to meet a range of water temperature needs in a variety of everyday applications

Key Tankless Water Heater Companies

Some of the prominent players in the global tankless water heater market include:

• A. O. Smith

• Rheem Manufacturing Company

• Rinnai Corporation

• Bradford White Corporation

• Robert Bosch LLC

• EcoSmart Green Energy Products, Inc.

• StiebelEltron Inc.

• Takagi

• Noritz America

• Navien Inc.

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