Tankless Water Heater Market Trends

Global Tankless Water Heater Market size was valued at USD 3.85 Billion in 2023 and is poised to grow from USD 4.18 Billion in 2024 to USD 8.15 Billion by 2032, growing at a CAGR of 8.7% in the forecast period (2025-2032).

Leading companies in the highly competitive tankless water heater industry are Rinnai Corporation, A. O. Smith Corporation, Bosch Thermotechnology, Noritz America, and Vaillant Group. Businesses are focusing on innovation through eco-friendly and energy-efficient solutions with diversified product lines. Manufacturers will invest in smart features and cutting-edge technology, along with tailored solutions for home and business applications, to find a competitive advantage. 'Rinnai Corporation', 'A. O. Smith Corporation', 'Bosch Thermotechnology', 'Noritz America', 'Vaillant Group', 'Takagi Industrial Co., Ltd.', 'Ecosmart Inc.', 'Stiebel Eltron', 'Ferroli S.p.A.', 'Ariston Thermo Group', 'Eemax Inc.', 'Paloma Industries Inc.', 'Bradford White Corporation', 'Atmor', 'Boshung Ltd.'

The high energy efficiency of tankless water heaters drives their popularity. Since they heat only the required amount of water, they save 24% to 34% of energy compared to conventional tank heaters. Environment-conscious consumers who seek to reduce power costs will be interested in this saving capacity because of long-term cost benefits. The demand for energy-efficient products drives the demand in the market.

Increasing Demand for Smart Features: The demand for tankless water heaters is being driven by the rise of smart home technologies, as more customers seek advanced features such as temperature monitoring, smartphone controls, and Wi-Fi connectivity. Such smart features enhance convenience and energy management by allowing consumers to control their water heating remotely. Smart technology-based tankless water heaters are predicted to rise in popularity as customers consider convenience and energy economy in household equipment the most important.

In 2024, the tankless water heater market share of Europe was the highest because of the rising demand for cost-effective and energy-efficient products. Consumer demand for sustainable alternatives has significantly driven the demand for tankless water heaters. The growth is mainly being led by the business sector, which involves establishments such as hotels, restaurants, and hospitals. To cut down operational costs and ensure a constant water supply at high temperatures, these companies seek energy saving technologies. Countries such as Switzerland, Germany, and the UK have also led this trend in the adoption of tankless water heaters which has increased demand in the market. This trend is expected to continue and will drive further growth in the market across Europe.