Natural Gas Tankless Water Heater Market

The global Natural Gas Tankless Water Heater Market is valued at USD 6.71 Billion in 2022 and is projected to reach a value of USD 8.67 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 3.25% between 2023 and 2030.

Premium Insights

The growth and adoption of Natural Gas Tankless Water Heater in the market are fueled by various factors like the increasing focus on energy efficiency and sustainability, which drives consumers and businesses to choose these environmentally friendly alternatives. Moreover, government incentives and regulations that support energy-efficient appliances play a significant role in expanding the market. The on-demand hot water delivery and compact design of tankless systems meet the changing needs of consumers who seek efficient and space-saving solutions. The growing number of residential and commercial construction projects also contributes to the demand for these systems as builders and homeowners recognize their benefits.

• Furthermore, advancements in technology, such as smart features and improved controls, make natural gas tankless water heaters more appealing
• North America generated more than 35.5% of revenue share in 2022
• Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
• 4-6 GPM segment accounted for the largest market growth in 2022
• Residential segment led the market in 2022 with largest market share

Economic Insights

The Natural Gas Tankless Water Heater market is flourishing and expanding economically such as increasing consumer awareness of energy efficiency, the desire for cost-effective and environmentally friendly technologies, and government initiatives promoting the adoption of energy-efficient appliances. The demand for these water heaters is further boosted by the rise in residential and commercial construction activities. The market also benefits from competition among manufacturers, leading to the introduction of innovative features.

Top Market Trends

• Rising Demand for Energy-Efficient Solutions: Increasing awareness of energy conservation and the need for sustainable practices has led to a growing demand for energy-efficient electric heat pump water heaters.
• Technological Advancements: Ongoing advancements in technology, including improvements in heat pump efficiency, smart features, and integration with IoT (Internet of Things), have contributed to the market's development.
• Transition towards Green Technologies: The global push towards reducing carbon footprints and transitioning to greener technologies has boosted the demand for electric heat pump water heaters as they are considered more environmentally friendly compared to traditional water heating systems.
• Integration of Smart Features: Smart technology integration, such as remote monitoring, control through mobile applications, and connectivity with home automation systems, has become a notable trend in the electric heat pump water heater market.

Market Segmentation

Natural Gas Tankless Water Heater The global Natural Gas Tankless Water Heater market can be categorized into Product , Application , Region. The Natural Gas Tankless Water Heater market can be categorized into 2-4 GPM, 4-6 GPM, > 6 GPM, Others based on Product . The Natural Gas Tankless Water Heater market can be categorized into Residential, Commercial, Other Applications based on Application . The Natural Gas Tankless Water Heater market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

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Based on Product

4-6 GPM will dominate the market during Forecast Period

The Natural Gas Tankless Water Heater market is anticipated to be dominated by the 4-6 GPM because this indicates a significant demand for tankless water heaters with a moderate flow rate. Such dominance could be influenced by the versatility of the 4-6 GPM range, catering to a broad spectrum of residential and light commercial applications where a moderate hot water supply is required.

Based on Application

Residential led the market in 2022

Residential led the market in 2022 because the demand for energy-efficient and space-saving water heating options is rising among homeowners. Tankless water heaters are popular for their ability to provide hot water on demand and their compact design. Furthermore, government incentives aimed at promoting energy-efficient appliances in homes may play a role in the market's expansion. The choice of natural gas tankless water heaters in residential settings reflects a larger trend of homeowners valuing sustainable and affordable technologies for their houses.

Based on Region

North America will lead the market

The Natural Gas Tankless Water Heater market in the North America region is expected to lead the industry due to factors such as strong emphasis on energy efficiency, environmental considerations, and the prevalence of residential and commercial construction activities. In North America, the adoption of natural gas tankless water heaters may be driven by the region's infrastructure, energy policies, and consumer awareness of sustainable technologies. Local incentives and regulations that promote the use of energy-efficient appliances, including natural gas tankless water heaters, may also contribute to the market's leadership.

Competitive Landscape

The global Natural Gas Tankless Water Heater market is highly competitive, established manufacturers engage in strategic initiatives such as mergers, acquisitions, and collaborations to enhance their product portfolios, expand market reach, and stay at the forefront of industry advancements. The market witnesses a continuous focus on research and development to introduce innovative features, improve energy efficiency, and address evolving consumer preferences. As the demand for energy-efficient and space-saving water heating solutions grows, new entrants and startups also contribute to the competitive landscape by introducing disruptive technologies.

The players in the global Natural Gas Tankless Water Heater market include Rheem Manufacturing Company, Midea Group, Bosch, Crompton Greaves Ltd., Eccotemp Systems, A.O. Smith Corporation, Rinnai, Bradford White Corporation, Electrolux, Rinnai, Noritz Corporation, Reliance Water Heater Company, Heat Transfer Products Inc. among others.

Recent Market Developments

• 2022: The New RE Series Tankless Water Heater with Smart-Circ Intelligent Recirculation has been introduced by Rinnai, a company known for manufacturing tankless water heaters. This heater is designed to work with a Wi-Fi module controller, allowing for scheduled recirculation or on-demand operations.

Segmentation of the Global Natural Gas Tankless Water Heater Market