North America Instant Water Heater Market Size - By Application (Residential, Commercial & Industrial, Utility), Country Outlook & Forecast, 2024 – 2032

North America Instant Water Heater Market Size

North America Instant Water Heater Market Size was valued USD 175.9 million in 2023 and is anticipated to grow at a CAGR of 6.5% by 2032. An instant water heater, also known as a tankless water heater or on-demand water heater, is a type of water heating system that heats water only when it is needed. Unlike traditional water heaters that store hot water in a tank and keep it heated continuously, instant water heaters provide hot water immediately when a tap is turned on.
 

Changes in consumer preferences, technological advancements, and policy initiatives will propel the product penetration. Homeowners and businesses are seeking more efficient water heating solutions as the energy costs increases. Instant water heaters support reduce energy consumption and utility bills which will contribute to the business momentum. Additionally, Consumers are becoming more environmentally conscious and prefer appliances that have a lower carbon footprint which will stimulate the market statistics.
 

Governments in North America are implementing stricter energy efficiency standards for appliances. Tankless water heaters often meet or exceed these standards, making them an attractive choice, which will complement the industry landscape. In addition, Various federal, state, and local programs offer rebates and incentives for installing energy-efficient appliances, including instant water heaters, encouraging their adoption, thereby contributing to the business momentum.
 

North America Instant Water Heater Market Trends

Advances in technology have made instant water heaters more reliable and efficient, with better temperature control and higher flow rates along with smart features that allow for remote monitoring and control through mobile apps will propel the market growth. In addition, instant water heaters, being compact and wall-mounted, are ideal for smaller homes and apartments, thereby enhancing the product penetration.
 

North America Instant Water Heater Market Analysis

Based on application, the commercial segment is anticipated to grow over USD 47 million by 2032 on account of reducing energy consumption since they heat water on demand, eliminating the need to maintain a large volume of hot water continuously. With their higher efficiency ratings, tankless water heaters can significantly lower energy bills for businesses, particularly those with high hot water demands such as hotels, restaurants, and fitness centers. Furthermore, Many states and municipalities have adopted stringent energy codes and standards that encourage or require the use of energy-efficient appliances will drive the business scenario.
 

Based on energy source, the gas segment is set to grow at a CAGR of over 8% through 2032.  These heaters use natural gas or propane to heat water on demand and are gaining popularity due to their efficiency and performance. These are more energy-efficient than electric models, especially for households or businesses with high hot water demands. Moreover, in many areas, natural gas is more affordable than electricity. This cost advantage encourages the adoption of gas tankless water heaters over their electric counterparts which will drive the industry scenario.
 

The U.S. Instant water heater market is likely to exceed USD 210 million by 2032 owing technological advancements and new product developments. Gas tankless water heaters produce fewer greenhouse gases compared to traditional storage heaters, aligning with the growing consumer and regulatory focus on reducing environmental impact, which will uplift the product demand. Stricter energy efficiency standards and regulations encourage the use of high-efficiency appliances which will augment the industry landscape. Furthermore, businesses are increasingly adopting sustainable practices as part of their corporate social responsibility initiatives. Installing energy-efficient appliances like tankless water heaters helps businesses reduce their carbon footprint which will complement the business landscape.
 

North America Instant Water Heater Market Share

Several manufacturers are prominent in the instant water heater market, offering a range of products that cater to both residential and commercial needs. Continuous innovation to improve energy efficiency, reliability, and user convenience will drive the industry landscape. These ventures are supported by favorable government policies, increasing adoption of solar energy, and advancements in solar tracking technologies. partnerships between manufacturers, technology companies, energy providers, and regulatory bodies to drive innovation, improve efficiency, and enhance consumer adoption.
 

North America Instant Water Heater Market Companies

Eminent players operating in the North America instant water heater industry are:

• A. O. Smith
• Bosch Thermotechnology Corp.
• Bradford White Corporation
• GE Appliances
• Hubbell Heaters
• Rheem Manufacturing Company
• Whirlpool Corporation
• Rinnai Corporation
• Navien Inc.
• Haier Inc.
   

North America Instant Water Heater Industry News:

• In October 2023, Navien started the shipping for the new NHW-A non-condensing instant water heaters available for interior and exterior installations. It supports to helps eliminate the cold water sandwich effect to resolve the low flow rate issue. Further, it reduces the wait time for hot water by allowing external or internal recirculation without any external parts or controls.
   
• In August 2020, Bosch Thermotechnology Corp. introduced the Bosch Tronic 3000, a range of electric instantaneous water heaters. The heaters were designed to minimize the wait time with 360-degree easy installation and to conserve energy for residential & commercial uses. They are lightweight, compact, space-saving, and feature LED lights to signal the presence of running water. The rollout of the new product reinforced the company’s position in the industry.
   

This North America instant water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “(USD Million & ‘000 Units)” from 2021 to 2032, for the following segments:

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Market, By Application

• Residential
• Commercial
  • College/University
  • Offices
  • Government/Military
  • Others

Market, By Energy Source

• Electric
• Gas

The above information has been provided for the following countries:

• U.S.
• Canada