Tankless Water Heater Market Size, Share & Trends Analysis Report By Product (Electric Tankless Water Heater, Gas Tankless Water Heater), By Application (Residential, Commercial), By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the tankless water heater market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for tankless water heater market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of tankless water heater market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Tankless Water Heater Market Categorization:

The tankless water heater market was categorized into three segments, namely product (Electric Tankless Water Heater, Gas Tankless Water Heater), application (Residential, Commercial), region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa).

Segment Market Methodology:

The tankless water heater market was segmented into product, application, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The tankless water heater market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; Mexico; the UK; Germany; Italy; France; Spain; China; Japan; India; South Korea; Australia; Brazil; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Tankless water heater market companies & financials:

The tankless water heater market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• A.O. Smith is an American company, which is involved in the manufacturing and selling of comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Major application areas for the company’s product include residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses. The water heaters come in sizes ranging from 2.5 gallon to 4,000-gallon model with varying efficiency range. The company is comprised of two reporting segments: North America and Rest of World. The company has a strong and growing presence around the globe with its operations in 12 countries, and customer base for product sale and service in more than 60 countries.

• Rheem Manufacturing Company is an American privately managed manufacturer founded in the year 1925. The company has its headquarters situated in Georgia, United States. The company deals in the manufacturing of residential and commercial product including water heaters, boilers, tankless water heater, oil furnaces, and other heating ventilating & air conditioning equipment. In 1959, Rheem Manufacturing Company acquired Ruud Manufacturing, a company dealing in the production of heating, cooling, and water heating products for residential and light commercial purposes. The company is one of the major producers of water heating and HVAC equipment in the United States, and also produces and markets products in countries such as Mexico, Argentina, Australia, China, Canada, Kuwait, Oman, Iraq, Qatar, Bahrain, Brazil, New Zealand, Ukraine, and Singapore

• Rinnai Corporation is a Japanese company established in the year 1920 in Nagoya, Japan. The company deals in the manufacturing of home heating appliances, kitchen appliances, gas clothes dryers and commercial-use equipment such as dishwasher, stoves and rice cookers, grillers, gas fan heaters, floor heaters, tankless water heaters, gas stoves, and fryers. Additionally, it offers energy efficient products which include hybrid water heaters with heating systems which use a combination of electricity and gas to boil the water with minimum effort.

• Bradford White Corporation is an American company headquartered in Ambler, Pennsylvania, with its primary manufacturing facility located in Middleville, Michigan. The company deals in the manufacturing of residential, industrial, and commercial products for space heating, combination heating, water heating, and storage applications. Bradford White Corporation consists of four companies including Bradford White Water Heaters, Bradford White - Canada, Laars Heating Systems, and Niles Steel Tank. Brand White-Water manufacturers of water heating, space heating, combination heating, and water storage products. Bradford White - Canada helps the company to sale and distributes its product in the Canadian market through its Canadian Independent Sales Representatives. Laars Heating Systems is engaged in the manufacturing of high-efficiency residential and commercial hydronic boilers, volume water heaters, and commercial pool heaters. Niles Steel Tank offers custom and standard pressure vessels, hot water generators, process tanks, and storage tanks.

• Robert Bosch is a Germany based multinational company dealing in engineering and technology services and products. The company is headquartered in Stuttgart, Germany with around 460 fully consolidated subsidiaries and regional companies in more than 60 countries across the globe. The company’s core operating areas are spread across four business sectors: mobility (hardware and software), consumer goods (includes household appliances and power tools), industrial technology (includes drive and control), and energy and building technology. The company generates close to 60% of its total sales from mobility solution business sector. The household-appliance specialist sells its products under the global Bosch and Siemens brands under license. It also sells under the Gaggenau and Neff brands, as well as local brands such as Balay in Spain and Thermador in the United States.

• EcoSmart is a privately-owned company which deals in the manufacturing of green energy products including Pool and SPA heaters, water heater booster, electric showers heater, condensing tankless heater, tankless gas water heater, and tankless electric water heater for both residential and commercial purposes. The tankless water heaters are available for home use, radiant heating, point of use, and for pool & spa applications. For sales and distribution of the products the company has established a strong partnership with retailers such as, ACE Hardware, Home Depot, True Value, Orgill, Amazon, and Do It Best. All the product offered by the company are ETL CERTIFIED which signifies a proof of compliance to North American safety standards for safe and reliable product. EcoSmart Parent brand Eemax was acquired by Rheem, in December 2015.

• Stiebel Eltron is a German company founded in the year 1924 in Berlin. The company is currently headquartered in Holzminden, Germany. The company is involved in the manufacturing of advanced water heating and energy-saving products including heat pumps, system cylinders, instantaneous water heaters, wall, and floor mounted cylinders, automatic water boilers, hand dryers, storage heater, and controllers. Stiebel Eltron has various manufacturing plants around the world specializing in production of products including tankless electric and electric tank water heaters, heat pumps for domestic hot water.

• Takagi is into the manufacturing of tankless water heaters, venting kits, and related accessories such as anti scale system, remote temperature controllers, multi-unit controllers, neutralizer, pipe cutter, isolation valves & pressure relief valve, direct vent conversion kit, non-return valve and PVC adapter, concentric pvc termination, and outdoor vent cap for both residential and commercial purposes. The company has its global office located in Canada and regional offices in California, Tennessee, and New Jersey. It offers its products primarily through plumbing wholesalers and contractors spread across North America.

• Noritz America is a subsidiary of Noritz Corporation, a company based in Japan and involved in the production of tankless water heaters. The company was established in 2001 with its headquarters in California, U.S. The company deals in the manufacturing of tankless water heaters to meet hot water demand of residential and commercial applications across the U.S. and Canada. It offers distinguished product lines including ecoTOUGH, ProTOUGH, ValueSolutions, and commercial water heaters to meet the varying needs of its customers. It sell its product through a network of established wholesalers, contractors and homebuilders across America.

• Navien Inc. was established in 2006 with its headquarters in Irvine, California, U.S. The company deals in the manufacturing of water heater products including tankless water heaters, condensing heaters, gas boilers, combination boilers, boilers, HVAC, and water heaters for both commercial and residential applications. Navien operates in three different training centers located in California, New Jersey, and Ontario for its product development. It sells its products primarily in North America including Canada, Mexico, and the U.S. through a selected network of wholesale distributors. Additionally, it offers green technology products and customer services to over 30 countries in Europe, Asia, South America, and Oceania.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Tankless Water Heater Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Tankless Water Heater Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.