The instant water heater market size is expected to reach $2,6948.2 million in 2027 from $1,8810.6 million in 2019, owing at a CAGR of 7.70% from 2021 to 2027. Instant water heater, as the name suggests, is a device that heats water instantly. It is also known as an inline water heater or tank-less water heater. It is a heating equipment that heats water by using electricity or gas as its power source. It is different from regular water heaters as it does not store water and heats water as water passes through the device a little time. There is a water flow sensor in instant water heaters that starts automatically when it detects the water flow. These water heaters have proved to be very useful in commercial as well as household sectors, which, in turn, gives traction to the instant water heater market growth globally. There are numerous advantages of instant water heaters such as compactness and energy-saving efficiency. Hence, to improve global sales, manufacturers of instant water heaters are developing new and innovative instant water heaters, which are cost-effective in design. In accordance with the current trends, it is further anticipated that the instant water heaters market would grow exponentially during the instant water heater market forecast period.
Government regulations and strict building codes and standards toward adoption of energy efficient technologies are expected to drive demand for instant water heaters. Moreover, establishment of residential projects, coupled with rise in infrastructural investments are expected to augment the business landscape. The industry is governed with key regulations including energy efficiency directive and energy performance of buildings, eco design, and minimum energy performance standards, which have created a stringent environment for both manufacturers and end users.
Increased disposable income of consumers and burgeoning trends of urbanization and globalization has provided a boost to construction activities across the globe. Especially in the emerging economies, the residential construction is on the rise, creating numerous opportunities for players in the instant water heater market. Increasing population and a substantial rise in discretionary income of consumers in developing countries, such as China and India, is expected to generate new avenues of growth for players in the instant water heater market
By Product Type
The Electric instant water heaters segment would witness the fastest growth, registering a CAGR of 9.0% during the forecast.
Innovation and technology have provided advanced devices in the instant water heater market to improve wellbeing and living standards of the population. Automation and advancements in home essentials have created an impact on minds of customers. Earlier, water heaters were leading the market, however as investments in the R&D increased improved models such as instant water heaters.
Emerged economies serve as potential for the instant water heater market as they are untapped. Non-member nations of the Organization for Economic Co-operation and Development (OECD) comprise more than 80% of the global population; yet consume less as compared to developed economies. Countries in the Asia-Pacific and LAMEA have witnessed substantial economic growth over past few years, and as a result, it has also led to change in lifestyle. Thus, promoting growth of instant water heaters in Asia-Pacific. Emerging economies are estimated to constitute a population of more than 60% of present global population of middle class by 2020. Considering the pace of change, in China, around 3 million households had a disposable income of around $10,000 in 2000, which increased to 60 million in 2012. This number is expected to exceed 230 million by 2020. Thus, increase in middle-class population is expected to boost demand for instant water heater products, thereby augmenting growth of the instant water heater market during the forecast period.
By Application
Residential segment would witness the fastest growth, registering a CAGR of 8.4% during the forecast period.
On the basis of product type, the gas instant water heaters segment accounted for the maximum instant water heater market share in 2019. This is attributed to abundant natural gas resources along with availability of piped natural gas for both commercial and residential customers. Increase in demand for replacement of conventional systems, coupled with adoption of low emission heating appliances is expected to amplify the growth of instant water heater industry.
On the basis of application, the residential segment accounted for the maximum market share in 2019. This is attributed to rise in population along with growth in urbanization across Asia-Pacific. Surge in residential building construction projects and customer focus toward minimizing energy bills have led to deployment of energy efficient heating appliances. Ease of installation, low power consumption and minimal maintenance are some of the vital parameters, which is expected to facilitate the product adoption. Furthermore, ongoing development of green buildings, coupled with growing execution of smart city projects is anticipated to augment the business landscape.
By Distribution Channel
Online sales channel segment would witness the fastest growth, registering a CAGR of 10.9% during the forecast period.
On the basis of distribution channel, the supermarkets and hypermarkets store segment accounted for the maximum market share in 2019. This is attributed as supermarkets and hypermarkets provide ease of purchase to its customers. It offers different types of water heaters such as gas, instant, storage, and solar of various brands with unique features in each brand product. Customers can choose from a wide variety of products in one shop and do not have to visit numerous shops of different brands. Therefore, this saves a lot of time and energy of consumers. Hence, supermarkets and hypermarkets drive sales of instant water heaters.
Players operating in the instant water heater industry have adopted new product launch as their key developmental strategy to expand their share in instant water heater market, increase profitability, and remain competitive. The key companies profiled in the report include A.O. Smith Corporation, Ariston Thermo S.P.A., Bradford White Corporation, General Electric Company, Ferroli S.P.A, Havells India Ltd, Nihon Itomic Co., Ltd, Rheem Manufacturing Company, Vaillant Group, and Whirlpool Corporation.
By Region
Asia-Pacific segment would witness the fastest growth, registering a CAGR of 10.0% during the forecast period.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current instant water heater market trends, estimations, and dynamics of the market size from 2019 to 2027 to identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth instant water heater market analysis and the market size and segmentation assist to determine the prevailing instant water heater market opportunity.
- The major countries across globe are mapped according to their revenue contribution to the market.
- The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the instant water heater market.
Instant Water Heater Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Application |
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 By Distribution Channel |
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 By Region |
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 Key Market Players | NIHON ITOMIC CO., LTD., FERROLI S.P.A., RHEEM MANUFACTURING COMPANY, GENERAL ELECTRIC COMPANY., A.O. SMITH CORPORATION., HAVELLS INDIA LTD., ARISTON THERMO S.P.A., VAILLANT GROUP., BRADFORD WHITE CORPORATION., WHIRLPOOL CORPORATION. |
Analyst Review
According to CXOs of leading companies, the instant water heater market is expected to grow at a significant rate during the forecast period, owing to various factors such as inclination of consumer toward adoption of energy-efficient systems, rise in number of hospitals & hotels, increase in population, and infrastructure improvement in rural areas. In addition, rapid urbanization, surge in disposable income, and improved lifestyle pattern fuel demand for instant water heater across the globe.
Manufacturers are integrating new technologies including smart monitoring and control features to improve product life and reduce maintenance time of instant water heater. Introduction of advanced designs with extensive features including leakage detection systems and Wi-Fi integration is expected to positively influence the instant water heater industry outlook. For instance, in 2019, A.O. Smith introduced its iCOMM connectivity platform for its product range comprising constant remote monitoring, giving customers detailed information regarding fault histories and notifications.
According to CXOs, Asia-Pacific is projected to register a significant growth during the forecast period, owing to expanding distribution channels, technological advancements, and increase in disposable income.
The instant water heater market size is expected to reach $2,6948.2 million in 2027 from $1,8810.6 million in 2019, owing at a CAGR of 7.70% from 2021 to 2027. Instant water heater, as the name suggests, is a device that heats water instantly. It is also known as an inline water heater or tank-less water heater.
The CAGR of Instant Water Heater Market is 7.70% from 2021 to 2027. It is a heating equipment that heats water by using electricity or gas as its power source. It is different from regular water heaters as it does not store water and heats water as water passes through the device a little time.
The sample report of Instant Water Heater Market can be downloaded by clicking on the link https://www.alliedmarketresearch.com/request-sample/7174
The key companies profiled in the report include A.O. Smith Corporation, Ariston Thermo S.P.A., Bradford White Corporation, General Electric Company, Ferroli S.P.A, Havells India Ltd, Nihon Itomic Co., Ltd, Rheem Manufacturing Company, Vaillant Group, and Whirlpool Corporation.
The global instant water heater market is divided on the basis of product type, application, and distribution channel. Depending on product type, the market is divided into gas instant water heaters and electric instant water heaters. By application, it is classified into commercial, residential, and industrial. By distribution channel, it is categorized into supermarkets and hypermarkets, specialty stores, convenience stores, and online stores.
Growth of the global instant water heater market is driven by factors such as inclination of consumer toward adoption of energy efficient systems, surge in number of households, hospitals and hotels, and increase in population and improved infrastructure in rural areas. In addition, rise in disposable income of consumers, coupled with improved lifestyle is significantly boost the market.
The residential segment dominated the global instant water heater market in 2019, accounting for around 45% of the overall revenue. This was attributed to rapid urbanization, rise in income level of consumers, and innovative marketing strategies implemented by leading manufacturers. Furthermore, this segment is expected to grow at the highest rate during the forecast period.
The closure of factories due to COVID-19 led to the decline in the production of the instant water heater in the market. This not only affected the scale of production but also the growth of these industries related to instant water heater.
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