Global Electric Tankless Water Heater Market Size, Forecast, and Trend Highlights Over 2022 - 2031
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Base Year |
2021 |
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Forecast Year |
2022-2031 |
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CAGR |
~9% |
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Base Year Market Size (2021) |
~USD 6 Billion |
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Forecast Year Market Size (2031) |
~USD 13 Billion |
The global electric tankless water heater market is estimated to garner a revenue of approximately USD 13 billion by the end of 2031 by growing at a CAGR of ~9% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 6 Billion in the year 2021. The growth of the market can primarily be attributed to the worldwide expansion of green buildings. For instance, till 2020, there were approximately 130,000 green buildings in the world.
Tankless water heaters, also referred as, instant or on-demand water heaters. Unlike conventional tank-style water heaters, which use electricity continuously to retain a hot water supply, tankless water heaters use electricity only when you turn on a hot water tap or use appliances. Their such energy sustainability factor is a major thing which is leading their market growth. As per a report, an electric tankless water heater saves up to 36% more energy than a storage tank water heater.
Global Electric Tankless Water Heater Market: Growth Drivers and Challenges
Growth Drivers
- Increasing Awareness for Energy Efficiency- Energy efficiency is one of the easiest and most affordable way to tackle climate change and to lessen consumer energy costs. According to the data provided by the IEA, global energy intensity - a key determines of the economy's energy efficiency - was grew by 1.9% in 2021, up from 0.5% in 2020.
- Emerging Economies- The global economic growth is still strengthening, which is leading to embrace new technology and rising up the standard of living. An approximately 6% growth was recorded in the global economy in 2021.
- Increasing Adoption of IoT in Home Management- Currently lots of people are seeking IoT based home management devices for the ease of living. For example, Bluetooth-based automation, ZigBee and GSM are extensively used wireless technologies. The number of IoT devices is estimated to reach approximately 42 billion by the 2025.
- Infrastructural Developments in Low and Middle Income Countries- Private investment in low- and middle-income countries infrastructure is evolving the economic status of low and middle income countries. According to the data provided by the World Bank, in 2021, private investment agreements in low- and middle-income countries topped USD 76.2 billion, increased by 49% from 2020.
Challenges
- Temporary Shutdown of Manufacturing Centers
- Lack of Workforce
- Disruptions in Raw Material Supply
The global electric tankless water heater market is segmented and analyzed for demand and supply by application into residential and commercial. Out of these, commercial segment is expected to hold the highest growth over the forecast period owing to the fast progression in tourism sector, which in turn boosts the construction of hotels, buildings, and restaurants. Between January and March 2022, there was a 184% increase in international travel.
Major Macro-Economic Indicators Impacting the Market Growth
In 2019, the world’s total energy supply was 606EJ, wherein the highest share in terms of source was captured by oil, accounting for 30.9%, followed by coal (26.8%), natural gas (23.2%), biofuels and waste (9.4%), nuclear (5.0%), hydro (2.5%), and other (2.2%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 1% due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Global Electric Tankless Water Heater Market Regional Synopsis
Regionally, the global electric tankless water heater market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Europe is projected to hold the largest market share by the end of 2031 backed by the growing adoption of low carbon electricity generation, adoption of energy efficient products, and increased demand for substitutions of conventional water heaters. As per a report by the European Commission, the European Commission has approved a series of guidelines to make the EU's energy, transportation, and climate systems capable of lowering net carbon gas emissions by at least 55% by 2030.
The global electric tankless water heater market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Market Segmentation
Our in-depth analysis of the global electric tankless water heater market includes the following segments:
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By Type |
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By Energy Factor |
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By Installation |
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By Features |
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By Application |
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Top Featured Companies Dominating the Global Electric Tankless Water Heater Market
- A. O. Smith Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Rinnai Corporation
- Noritz America Corporation
- Robert Bosch GmbH
- Rheem Manufacturing Company
- Whirlpool Corporation
- Stiebel Eltron, Inc.
- Navien, Inc.
- Bajaj Electricals Ltd.
- Haier Smart Home Co., LTD.
