PUBLISHER: KBV Research | PRODUCT CODE: 1871396
PUBLISHER: KBV Research | PRODUCT CODE: 1871396
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 Juarez 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).
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
Table of Contents
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
- 3.1.1 Overview
- 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:
LIST OF TABLES
- 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.
