Point-of-Use (POU) Tank Water Heaters Market

Market Overview

The Global Point-of-Use (POU) Tank Water Heaters Market Size is projected to grow at CAGR of approximately 4.6% during the forecast period.

Point -of-use (POU) tank heaters are designed to bring hot water to a specific location, such as a sink or shower, without a central heating system. These water heaters are installed directly at the point of use and are typically smaller than conventional tank-style water heaters.

The demand for energy-efficient and affordable water heating options is what is driving the market for POU tank water heaters. Because these water heaters heat water as needed, energy waste and costs related to energy use are reduced. They are a popular option for tiny houses, apartments, and other locations with restricted square footage because they are very simple to install and take up less room than conventional tank-style water heaters.

Market Dynamics

Market Drivers

• Energy Efficiency

POU tank water heaters use less energy than conventional tank water heaters because they only heat water when needed. Traditional tank water heaters continuously heat and store water. As more consumers explore ways to reduce their energy use and save money on their utility bills, this energy efficiency is a significant market driver for POU tank water heaters.

• Space-Saving Design

POU tank water heaters are far more portable and compact than conventional tank water heaters, which makes them perfect for confined locations or other applications. Customers in metropolitan regions with small apartments are especially drawn to this space-saving design.

Market Restraints

• Installation Constraints

Installation constraints may be a significant market barrier for POU tank water heaters because not all homes or structures are suitable for installing these systems. For instance, some buildings lack the necessary electrical or plumbing infrastructure to support a POU tank water heater, making conversion costly.

Additionally, because installing a POU tank water heater may require a certain skill and knowledge, some clients could find it challenging. Since they might need to hire a licensed plumber or electrician to install the system, renters and homeowners uncomfortable with DIY installation may find this particularly difficult.

Market Opportunities

• Technological Advancements

POU tank water heaters could become even more energy-efficient and user-friendly with the development of new technologies, such as smart controls and better insulation. By capturing customers' attention drawn to the newest and most cutting-edge items, these technological developments can assist in increasing the potential market for POU tank water heaters. Hence, Technological advancements can provide significant room for growth.

Market Scope

Segmental Analysis

By Type

The market is bifurcated into Less than 2 Gallons, 2. to 5 gallons, and 5.1 to 7 Gallons.

Less than 2 gallons are the smallest POU tank water heaters currently on the market, and they are made for single-point use, such as a kitchen or bathroom sink. They are frequently small and energy-efficient, which makes them a popular option for RVs or small flats.

2 to 5 gallons supply hot water to several sites of usage, including a bathroom sink and shower. They are frequently utilized in compact dwellings or as an addition to more substantial central tank water heating systems.

5.1 to 7 gallons may heat water for several sites of use, including a shower and a kitchen sink. Small residences are frequently utilized as the main source of hot water or as an addition to a larger central tank water heating system.

By Application

Commercial Application and Residential Application are the two sub-segments of Application.

The residential segment is predicted to remain the largest sub-segment, driven by population growth, urbanization, and increased demand for energy-efficient and space-saving water heating systems. Customers increasingly seek compact, efficient water heating systems that supply hot water while consuming less energy.

On the other hand, it is anticipated that the need for hot water in commercial structures like hotels, hospitals, and restaurants will increase more quickly. Commercial POU tank water heaters are a reliable and cost-effective alternative to traditional central tank water heating systems, which can be expensive to install and maintain.

Regional Analysis

The Global Point-of-Use (POU) Tank Water Heaters Market is segmented by region as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

The main market for POU tank water heaters has historically been in North America, which consists of the United States and Canada. Some market-driving elements include a high level of living, favorable governmental laws, and a significant demand for energy-efficient and space-saving water-heating solutions. While the commercial segment is anticipated to grow substantially over the next few years, the residential segment will remain the largest sub-segment.

The European region is primarily driven by favorable government laws, a high level of life, and a keen interest in the energy economy. While the commercial segment is anticipated to grow quickly over the next several years, the residential segment is anticipated to dominate the market.

The European region is primarily driven by favorable government laws, a high level of life, and a keen interest in the energy economy. While the commercial segment is anticipated to grow quickly over the next several years, the residential segment is anticipated to dominate the market.

Key Players

1. Bosch
2. Rheem
3. O. Smith
4. Stiebel Eltron
5. Haier
6. Vanward
7. Ariston
8. Kingspan

Recent Developments

In February 2023, Following the fulfillment of all preceding conditions, Ariston Group announced the completion of the acquisition of 100% of the share capital of CENTROTEC Climate Systems GmbH from CENTROTEC SE.