North America Tankless Water Heater Market Size, Share & Industry Analysis Report By Product (Electric, and Gas), By Application (Residential, and Commercial), By Country and Growth Forecast, 2025 - 2032

The North America Tankless Water Heater Market would witness market growth of 9.4% CAGR during the forecast period (2025-2032).

The US market dominated the North America Tankless Water Heater Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $1,323 million by 2032. The Canada market is experiencing a CAGR of 10.8% during (2025 - 2032). Additionally, The Mexico market would exhibit a CAGR of 10.5% during (2025 - 2032). The US and Canada led the North America Tankless Water Heater Market by Country with a market share of 67.2% and 19% in 2024.

The North American tankless water heater market has gone from being a niche technology to a common choice. This is because energy efficiency standards are getting stricter, space is limited, and more people are becoming aware of the benefits. On-demand units that heat water only when needed are replacing traditional storage-tank systems. These units waste less energy and are easier to install because they are smaller. The U.S. Department of Energy's rules and state-level incentives have sped up this change, making tankless systems more cost-competitive over their entire life cycle. A. O. Smith, Rinnai, and Rheem are some of the biggest OEMs that have added more manufacturing space and new products to their lines, including advanced, connected, and condensing models. Demand has also grown because more people are moving to cities, housing units are getting smaller, and people are worried about the environment.

To stay ahead of the competition in North America, top manufacturers are putting money into new ideas, automation, and making things in different parts of the world. For example, A. O. Smith's new factory in Ciudad Juárez shows how serious the company is about increasing production and lowering costs for tankless units. Companies are also working to get into more markets by forming partnerships with big retailers and installer networks to expand their channels. Widespread adoption has been helped by better education for consumers and more access through wholesale and retail channels. Competitive dynamics are still fairly concentrated, which is good for established brands that have strong distribution networks, are in line with regulations, and have scale advantages. Even though there are problems like higher upfront costs, the segment is still growing faster than traditional systems. This shows that both residential and commercial markets are moving toward more sustainable and efficient water-heating solutions in the long term.

Product Outlook

Based on Product, the market is segmented into Electric, and Gas. The Electric market segment dominated the Canada Tankless Water Heater Market by Product is expected to grow at a CAGR of 10.1 % during the forecast period thereby continuing its dominance until 2032. Also, The Gas market is anticipated to grow as a CAGR of 12.3 % during the forecast period during (2025 - 2032).

Application Outlook

Based on Application, the market is segmented into Residential, and Commercial. With a compound annual growth rate (CAGR) of 8.3% over the projection period, the Residential Market, dominate the US Tankless Water Heater Market by Application in 2024 and would be a prominent market until 2032. The Commercial market is expected to witness a CAGR of 9.2% during (2025 - 2032).

Free Valuable Insights: The Tankless Water Heater Market is Predicted to reach USD 8.06 Billion by 2032, at a CAGR of 9.7%

Country Outlook

The North American tankless water heater market has evolved from a niche product to a mainstream solution, driven by rising energy-efficiency regulations, compact housing trends, and growing consumer awareness. Unlike traditional storage-tank systems, tankless units offer on-demand heating, reduced energy waste, and space-saving benefits. Regulatory support from the U.S. Department of Energy, coupled with state-level incentives, has further accelerated adoption. Leading manufacturers such as A. O. Smith, Rinnai, and Rheem are expanding production, integrating smart-home connectivity, and enhancing efficiency through innovation. Increasing urbanization and the shift toward sustainable, connected living have strengthened demand in both residential and commercial sectors. With improved installer training, broader retail access, and regulatory alignment, tankless systems are becoming a standard water-heating choice in North America, reflecting a lasting move toward efficient and environmentally conscious technologies.

List of Key Companies Profiled

• Rheem Manufacturing Company
• Bradford White Corporation
• Robert Bosch GmbH
• Rinnai Corporation
• EcoSmart Green Energy Products, Inc.
• Stiebel Eltron GmbH & Co. KG
• Noritz Corporation
• Kyungdong Navien Co., Ltd.
• Takagi Seiko Co., Ltd.
• A. O. Smith Corporation

North America Tankless Water Heater Market Report Segmentation

By Product

• Electric
• Gas

By Application

• Residential
• Commercial

By Country

• US
• Canada
• Mexico
• Rest of North America

Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 North America Tankless Water Heater Market, by Product
1.4.2 North America Tankless Water Heater Market, by Application
1.4.3 North America Tankless Water Heater Market, by Country
1.5 Methodology for the research

Chapter 2. Market at a Glance
2.1 Key Highlights

Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario 
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges

Chapter 4. Market Trends – North America Tankless Water Heater Market
Chapter 5. State of Competition – North America Tankless Water Heater Market
Chapter 6. Value Chain Analysis of Tankless Water Heater Market
Chapter 7. Competition Analysis - Global
7.1 Strategies Deployed in Tankless Water Heater Market
7.2 Porter Five Forces Analysis

Chapter 8. Product Life Cycle – Tankless Water Heater Market
Chapter 9. Market Consolidation – Tankless Water Heater Market
Chapter 10. Key Customer Criteria – Tankless Water Heater Market
Chapter 11. North America Tankless Water Heater Market by Product
11.1 North America Electric Market by Region
11.2 North America Gas Market by Region

Chapter 12. North America Tankless Water Heater Market by Application
12.1 North America Residential Market by Country
12.2 North America Commercial Market by Country

Chapter 13. North America Tankless Water Heater Market by Country
13.1 US Tankless Water Heater Market
13.1.1 US Tankless Water Heater Market by Product
13.1.2 US Tankless Water Heater Market by Application
13.2 Canada Tankless Water Heater Market
13.2.1 Canada Tankless Water Heater Market by Product
13.2.2 Canada Tankless Water Heater Market by Application
13.3 Mexico Tankless Water Heater Market
13.3.1 Mexico Tankless Water Heater Market by Product
13.3.2 Mexico Tankless Water Heater Market by Application
13.4 Rest of North America Tankless Water Heater Market
13.4.1 Rest of North America Tankless Water Heater Market by Product
13.4.2 Rest of North America Tankless Water Heater Market by Application

Chapter 14. Company Profiles
14.1 Rheem Manufacturing Company
14.1.1 Company Overview
14.2 Bradford White Corporation
14.2.1 Company Overview
14.3 Robert Bosch GmbH
14.3.1 Company Overview
14.3.2 Financial Analysis
14.3.3 Segmental and Regional Analysis
14.3.4 Research & Development Expenses
14.3.5 SWOT Analysis
14.4 Rinnai Corporation
14.4.1 Company Overview
14.4.2 Financial Analysis
14.4.3 Recent strategies and developments:
14.4.3.1 Product Launches and Product Expansions:
14.5 EcoSmart Green Energy Products, Inc.
14.5.1 Company Overview
14.5.2 Recent strategies and developments:
14.5.2.1 Product Launches and Product Expansions:
14.6 Stiebel Eltron GmbH & Co. KG
14.6.1 Company Overview
14.6.2 Recent strategies and developments:
14.6.2.1 Partnerships, Collaborations, and Agreements:
14.7 Noritz Corporation
14.7.1 Company Overview
14.7.2 Financial Analysis
14.7.3 Recent strategies and developments:
14.7.3.1 Product Launches and Product Expansions:
14.8 Kyungdong Navien Co., Ltd.
14.8.1 Company Overview
14.9 Takagi Seiko Co., Ltd.
14.9.1 Company Overview
14.9.2 SWOT Analysis
14.10. A. O. Smith Corporation
14.10.1 Company Overview
14.10.2 Financial Analysis
14.10.3 Regional Analysis
14.10.4 Recent strategies and developments:
14.10.4.1 Product Launches and Product Expansions:

TABLE 1 North America Tankless Water Heater Market, 2021 - 2024, USD Million
TABLE 2 North America Tankless Water Heater Market, 2025 - 2032, USD Million
TABLE 3 Key Customer Criteria – Tankless Water Heater Market
TABLE 4 North America Tankless Water Heater Market by Product, 2021 - 2024, USD Million
TABLE 5 North America Tankless Water Heater Market by Product, 2025 - 2032, USD Million
TABLE 6 North America Electric Market by Region, 2021 - 2024, USD Million
TABLE 7 North America Electric Market by Region, 2025 - 2032, USD Million
TABLE 8 North America Gas Market by Region, 2021 - 2024, USD Million
TABLE 9 North America Gas Market by Region, 2025 - 2032, USD Million
TABLE 10 North America Tankless Water Heater Market by Application, 2021 - 2024, USD Million
TABLE 11 North America Tankless Water Heater Market by Application, 2025 - 2032, USD Million
TABLE 12 North America Residential Market by Country, 2021 - 2024, USD Million
TABLE 13 North America Residential Market by Country, 2025 - 2032, USD Million
TABLE 14 North America Commercial Market by Country, 2021 - 2024, USD Million
TABLE 15 North America Commercial Market by Country, 2025 - 2032, USD Million
TABLE 16 North America Tankless Water Heater Market by Country, 2021 - 2024, USD Million
TABLE 17 North America Tankless Water Heater Market by Country, 2025 - 2032, USD Million
TABLE 18 US Tankless Water Heater Market, 2021 - 2024, USD Million
TABLE 19 US Tankless Water Heater Market, 2025 - 2032, USD Million
TABLE 20 US Tankless Water Heater Market by Product, 2021 - 2024, USD Million
TABLE 21 US Tankless Water Heater Market by Product, 2025 - 2032, USD Million
TABLE 22 US Tankless Water Heater Market by Application, 2021 - 2024, USD Million
TABLE 23 US Tankless Water Heater Market by Application, 2025 - 2032, USD Million
TABLE 24 Canada Tankless Water Heater Market, 2021 - 2024, USD Million
TABLE 25 Canada Tankless Water Heater Market, 2025 - 2032, USD Million
TABLE 26 Canada Tankless Water Heater Market by Product, 2021 - 2024, USD Million
TABLE 27 Canada Tankless Water Heater Market by Product, 2025 - 2032, USD Million
TABLE 28 Canada Tankless Water Heater Market by Application, 2021 - 2024, USD Million
TABLE 29 Canada Tankless Water Heater Market by Application, 2025 - 2032, USD Million
TABLE 30 Mexico Tankless Water Heater Market, 2021 - 2024, USD Million
TABLE 31 Mexico Tankless Water Heater Market, 2025 - 2032, USD Million
TABLE 32 Mexico Tankless Water Heater Market by Product, 2021 - 2024, USD Million
TABLE 33 Mexico Tankless Water Heater Market by Product, 2025 - 2032, USD Million
TABLE 34 Mexico Tankless Water Heater Market by Application, 2021 - 2024, USD Million
TABLE 35 Mexico Tankless Water Heater Market by Application, 2025 - 2032, USD Million
TABLE 36 Rest of North America Tankless Water Heater Market, 2021 - 2024, USD Million
TABLE 37 Rest of North America Tankless Water Heater Market, 2025 - 2032, USD Million
TABLE 38 Rest of North America Tankless Water Heater Market by Product, 2021 - 2024, USD Million
TABLE 39 Rest of North America Tankless Water Heater Market by Product, 2025 - 2032, USD Million
TABLE 40 Rest of North America Tankless Water Heater Market by Application, 2021 - 2024, USD Million
TABLE 41 Rest of North America Tankless Water Heater Market by Application, 2025 - 2032, USD Million
TABLE 42 Key Information – Rheem Manufacturing Company
TABLE 43 Key Information – Bradford White Corporation
TABLE 44 Key Information – Robert Bosch GmbH
TABLE 45 Key Information – Rinnai Corporation
TABLE 46 Key Information – EcoSmart Green Energy Products, Inc.
TABLE 47 Key Information – Stiebel Eltron GmbH & Co. KG
TABLE 48 Key Information – Noritz Corporation
TABLE 49 Key Information – Kyungdong Navien Co., Ltd.
TABLE 50 key Information – Takagi Seiko Co., Ltd.
TABLE 51 Key Information – A. O. Smith Corporation

List of Figures
FIG 1 Methodology for the research
FIG 2 North America Tankless Water Heater Market, 2021 - 2032, USD Million
FIG 3 Key Factors Impacting north America Tankless Water Heater Market
FIG 4 Value Chain Analysis of Tankless Water Heater Market
FIG 5 Porter’s Five Forces Analysis – Tankless Water Heater Market
FIG 6 Product Life Cycle – Tankless Water Heater Market
FIG 7 Market Consolidation – Tankless Water Heater Market
FIG 8 Key Customer Criteria – Tankless Water Heater Market
FIG 9 North America Tankless Water Heater Market share by Product, 2024
FIG 10 North America Tankless Water Heater Market share by Product, 2032
FIG 11 North America Tankless Water Heater Market by Product, 2021 - 2032, USD Million
FIG 12 North America Tankless Water Heater Market share by Application, 2024
FIG 13 North America Tankless Water Heater Market share by Application, 2032
FIG 14 North America Tankless Water Heater Market by Application, 2021 - 2032, USD Million
FIG 15 North America Tankless Water Heater Market share by Country, 2024
FIG 16 North America Tankless Water Heater Market share by Country, 2032
FIG 17 North America Tankless Water Heater Market by Country, 2021 - 2032, USD Million
FIG 18 SWOT Analysis: Robert Bosch GmbH
FIG 19 SWOT Analysis: Takagi Seiko Co., Ltd.