Electric Tanks Accelerating Growth for Global Tankless Water Heater Market, Says Technavio

LONDON--()--According to the latest market research report by Technavio, the global tankless water heater market is expected to grow at a CAGR of close to 9% until 2020.

In this report, Technavio covers the present scenario and growth prospects of the global tankless water heater market for 2016-2020. The market size is based on the revenues generated from the sales of tankless water heaters and electric tankless water heaters for the residential segment.

“The electric segment of the global tankless water heater market was valued at close to USD 13 billion in 2015 and is expected to grow consistently over the next four years. This segment has witnessed healthy growth in countries such as, Brazil, Germany, Russia, Italy, Spain, Japan, and India,” said Jhansi Mary J, one of Technavio’s senior industry analysts for home, kitchen and large appliances research.

“These water heaters are compact and do not require ventilation. Unlike storage or gas tankless water heaters, these are suitable for even narrow and closed spaces like closets, under counters, or crawl spaces. In regions where gas prices are high due to a shortage of supply, electric units have emerged as the most cost-effective option. As electric tankless water heaters offer more advantages than gas tankless water heaters, the segment will continue to dominate the market during the forecast period,” added Jhansi.

APAC: largest region for the global tankless water heater market

The tankless water heater market is growing consistently in APAC thanks to its expanding market size in countries such as China, Japan, India, Australia, and New Zealand. Although the electric segment is hugely popular in other regions, due to the growth of the gas distribution system in China, the prevalence of gas tankless water heaters in country is on the rise. The most popular models have flow rates of 5-13 litres per minute and have a fan-assisted open flue. The market for electric tankless water heaters is also growing but is still small as these are considered expensive.

The tankless water heater market in India is dominated by electric tankless water heaters. The growth of the gas water heater segment is slowed due to a lack of distribution infrastructure and the high price of non-subsidized gas. However, these are gradually gaining popularity with many regions in India experiencing electricity shortage.

EMEA: the second largest region for the global tankless water heater market

The market in EMEA is experiencing significant growth as it is home to a large number of consumers, manufacturers, and exporters of tankless water heaters. In 2014, retailers of electric goods emerged as the primary distribution channel, contributing close to 49% of the sales volume of electric tankless water heaters. Online retail channels also constituted an important platform for sales during the same period.

In Europe, the sales of electric tankless water heaters are stable, whereas sales of gas tankless water heaters are on the decline. Germany is the leading market in the region, producing 10-12 litres of hot water per minute compared to the output of 3-5 litres per minute in the rest of Europe. These factors and the shift toward energy-efficient products has resulted in healthy growth in the electric tankless water heater market in Germany. Russia is another market in EMEA that is expected to contribute to a high demand for tankless water heaters over the next four years.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

According to the latest market research report by Technavio, the global tankless water heater market is expected to grow at a CAGR of close to 9% until 2020.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com