North America Instant Water Heater Market Size – By Application (Residential, Commercial), By Energy Source (Electric, Gas), 2025 – 2034

North America Instant Water Heater Market Size

North America Instant Water Heater Market was valued at USD 191.8 million in 2024 and is estimated to grow at a CAGR of 5.3% from 2025 to 2034. Instant water heaters provide hot water on-demand, eliminating the need for a storage tank and offering greater energy efficiency compared to traditional tank water heaters.
 

Growing consumer demand for energy-efficient, space-saving, and continuous hot water solutions will drive the business landscape. Many North American states and provinces have implemented regulations promoting energy efficiency in home appliances, including water heaters. Incentive programs and rebates from utilities and governments for installing high-efficiency models are driving the product adoption. Further, as consumers become more environmentally conscious, there is an opportunity for tankless water heater manufacturers to capitalize on the growing demand for green and energy-efficient home appliances.
 

Stringent energy efficiency standards for appliances by governments, requiring water heaters to meet or surpass these benchmarks, position them as a favored option and enhance the industry landscape. Furthermore, numerous federal, state, and local initiatives provide rebates and incentives for the installation of energy-efficient appliances, boosting their adoption and propelling the business momentum.
 

North America Instant Water Heater Market Trends

Technological advancements leading to more reliable and efficient heating systems, provide better temperature control, higher flow rates, and smart features for remote monitoring through mobile apps, thereby augmenting the business dynamics. The tankless water heaters offer the advantage of providing hot water on-demand, reducing standby heat loss and saving energy fueling the adoption of tankless systems in both residential and commercial settings. Additionally, the compact, wall-mounted design of instant water heaters makes them ideal for smaller homes and apartments, increasing their market penetration.
 

North America Instant Water Heater Market Analysis

Based on application, the commercial segment is anticipated to reach more than USD 53 million by 2034, owing to reducing energy consumption by eliminating the need to maintain a large volume of continuously hot water. Their higher efficiency ratings significantly lower energy bills for businesses, especially those with high hot water demands like hotels, restaurants, and fitness centers. Additionally, many states and municipalities have adopted stringent energy codes and standards that encourage or require the use of energy-efficient appliances, driving the business scenario.
 

Based on energy source, gas segment is anticipated to witness more than 6% CAGR through 2034, on account of growing preference in regions with affordable natural gas. Key features including their efficiency and performance will drive the industry scenario. They 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, driving the market growth.
 

The U.S. Instant water heater market is likely to exceed USD 225 million by 2034. Incentive programs and rebates from utilities and governments for installing high-efficiency models are driving the adoption of tankless water heaters. Companies are incorporating Wi-Fi and app-controlled features into their models, allowing users to control and monitor water temperature remotely, set schedules, and receive maintenance alerts, driving the business scenario. Further, growing focus on eco-friendly and high-performance homes in new construction and renovations as a part of the overall energy-efficient design will strengthen the market growth.
 

North America Instant Water Heater Market Share

Several established brands and emerging players dominate the North American market for instant water heaters. Major players are vying for market share by offering energy-efficient, eco-friendly, and technologically advanced products. Companies investing in consumer education and offer clear, transparent pricing and installation options are likely to see strong growth. Favorable government policies, a rising adoption of solar energy, and advancements in solar tracking technologies bolster these ventures. Collaborations among manufacturers, tech firms, energy providers, and regulatory bodies fuel innovation, boost efficiency, and elevate 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
• Haier Inc.
• Navien Inc.
• Rinnai Corporation
• Rheem Manufacturing Company
• Whirlpool Corporation
   

North America Instant Water Heater Industry News:

• In October 2023, Navien commenced shipping its new NHW-A non-condensing instant water heaters, designed for both interior and exterior installations. These heaters effectively tackle the "cold water sandwich" phenomenon, addressing low flow rate concerns. Additionally, they minimize hot water wait times by enabling internal or external recirculation, all without the need for external parts or controls.
   
• In May 2022, GE Appliances opened a water heating manufacturing facility with advanced technology worth USD 70 million in South Carolina. This vertically integrated plant was set to make products ranging from coils of steel to high-quality water heaters for homes in the U.S. homes. This expansion allowed the company to showcase its expertise in large-scale projects in the country, thereby maintaining a strong position across 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 and ‘000 Units)” from 2021 to 2034, 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