According to a new report, published by KBV research, The Global Tankless Water Heater Market size is expected to reach USD 8.06 billion by 2032, rising at a market growth of 9.7% CAGR during the forecast period.
The global tankless water heater market has evolved significantly over recent decades, transitioning from a niche segment of the water-heating industry to a mainstream technology driven by energy-efficiency imperatives, compact living spaces, and regulatory pressure. Initially, conventional storage-tank water heaters dominated residential and commercial hot-water supply.
The Electric segment led the Global Tankless Water Heater Market by Product in 2024, growing at a CAGR of 9 % during the forecast period. Electric tankless water heaters have become popular due to their compact design, energy efficiency, and suitability for modern homes and apartments. These systems heat water instantly as it flows through the unit, eliminating the need for bulky storage tanks and reducing standby energy loss. They are widely installed in residential spaces where electrical infrastructure is readily available and ventilation options are limited. According to manufacturers and energy-efficiency sources, electric tankless systems are valued for their simple installation, lower maintenance needs, and compatibility with smart-home features that allow temperature control and monitoring.
The Residential segment is leading the Global Tankless Water Heater Market by Application in 2024 and would continue to be a dominant market till 2032; thereby, achieving a market value of $5.69 billion by 2032.  These systems heat water on demand rather than maintaining a large storage tank, which means less standby energy loss and a smaller footprint—traits that appeal in urban homes, apartments, and compact living environments. Many manufacturers and energy-efficiency programs point to the attractive lifecycle benefits of residential tankless systems: lower energy use (especially in homes with moderate to high hot-water demand), reduced maintenance (no tank to corrode or sediment to build up), and quicker recovery during peak usage.
The Europe region dominated the Global Tankless Water Heater Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $2,573.2 million by 2032. The Asia Pacific region is exhibiting a CAGR of 10.2% during (2025 - 2032). Additionally, The North America region would experience a CAGR of 9.4% during (2025 - 2032).
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