A recent report issued by Persistence Market Research, entitled ‘Tankless Water Heater Market: Global Industry Analysis and Forecast, 2016 – 2024’, has set out a bright and prosperous future for the tankless water heaters market. The forecast outlined in the report estimates the revenue produced by tankless water heater sales reached $16.9bn by the end of 2016. Furthermore, it projects that this figure will increase at a CAGR (compound annual growth rate) of 5.3% for the period ending 2024.
Known by a variety of names, including flash, inline, continuous flow, instantaneous, or on demand water heaters, tankless water heaters are used in a variety of commercial and residential contexts. They use either electricity or gas as a power source and are considered to be one of the more efficient ways of heating water.
Why Go Tankless?
There are a number of features of tankless water heaters which make them desirable. For example, they require less space, owing to the absence of the tank. They are also very energy efficient, so they often save consumers, both individuals and businesses, money on their heating bills. Their long lifespan compared to other types of heater also help to reinforce the economic benefits of switching to a tankless heater.
Within the overall industry, it is the condensing technology sector which is expected to register the fastest growth. This reflects an increasing demand from consumers for energy efficient products and more environmentally responsible businesses. There have been a number of government initiatives enacted in order to give businesses the incentive to develop more energy efficient systems, and for consumers to purchase them. These initiatives have taken the form of subsidies and rebates for consumers and have played a big part in helping to drive demand for tankless water heaters.
Rate of Growth
For tankless water heaters that contain condensing technology, the CAGR is forecast slightly higher than the rest of the industry. Over the same period, this sector of the market will record an additional 1.3% of growth, giving an overall figure of 6.9%.
This prodigious rate of growth is a reflection of the growing demand from consumers for more ecologically responsible solutions for meeting our everyday needs and requirements. You can find a great guide to tankless water heaters over at Verellenhc, it’s worth having a look if you are in the market for a water heater.
Europe has emerged with the largest value share of the market for tankless water heaters. This is perhaps a reflection of a generally more environmentally conscious attitude amongst European nations; growth in this region alone is set to expand at a CAGR of 3.8% during the forecast period. In addition to this, the overall sales volume in Europe is set to rise by 1.3X between 2016 and the end of 2024.
Meanwhile, the North American market is set to register the highest growth, in terms of value and volume. The Asia-Pacific region is a close second.
The tankless water heater market is continuing to perform strongly. This forecast is further evidence that, looking to the future, efficiency and energy saving will be key considerations.