Europe 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 Europe Tankless Water Heater Market would witness market growth of 9.1% CAGR during the forecast period (2025-2032).

The Germany market dominated the Europe Tankless Water Heater Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $508.8 million by 2032. The UK market is experiencing a CAGR of 8% during (2025 - 2032). Additionally, The France market would exhibit a CAGR of 9.9% during (2025 - 2032). The Germany and UK led the Europe Tankless Water Heater Market by Country with a market share of 22% and 17.7% in 2024. The Spain market is expected to witness a CAGR of 10.5% during throughout the forecast period.

The European market for tankless water heaters has grown from a niche, high-end option to a mainstream one. This is because of strict EU energy-efficiency rules, a trend toward smaller homes, and a growing awareness of environmental issues. The Energy Efficiency Directive (EU/2023/1791) and Regulation (EU) 814/2013 on Ecodesign have encouraged the use of technologies that are both high-efficiency and low-standby-loss. Tankless systems are great for the growing number of apartments and smaller homes in Europe because they take up little space and heat up on demand. Western European nations—especially Germany, France, Italy, Spain, and the UK—have spearheaded adoption owing to robust distribution networks and retrofit prospects. Tankless systems are also important parts of sustainable building design because they can work with renewable sources and smart controls.

Manufacturers are focusing on innovation, smart connectivity, and modular product designs that go above and beyond efficiency standards and appeal to today's consumers. To make up for the higher costs up front, businesses are also offering more training for installers, building stronger partnerships in their communities, and promoting the benefits of lower lifetime costs. Improved service ecosystems and retail reach have made things even easier for customers and made them feel more confident. Because of this, Europe's tankless water heater market is moving from early adoption to steady growth in the mainstream. This is happening because of regulatory alignment, urbanization, and the move toward smart, low-carbon heating solutions.

Application Outlook

Based on Application, the market is segmented into Residential, and Commercial. With a compound annual growth rate (CAGR) of 7.7% over the projection period, the Residential Market, dominate the UK 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 8.7% during (2025 - 2032).

Product Outlook

Based on Product, the market is segmented into Electric, and Gas. The Electric market segment dominated the Italy Tankless Water Heater Market by Product is expected to grow at a CAGR of 8.9 % during the forecast period thereby continuing its dominance until 2032. Also, The Gas market is anticipated to grow as a CAGR of 11.1 % during the forecast period during (2025 - 2032).

Country Outlook

As energy prices rise, rules become stricter, and the national Energiewende agenda promotes efficient, low-carbon heating, the market for tankless water heaters in Germany is growing. Compact, on-demand systems fit with how people live in cities and the Buildings Energy Act of 2024, which says that new heating systems must use renewable energy. The EU Ecodesign and Energy Labelling Regulations also encourage the use of more efficient products. There is more demand in both the residential and commercial sectors, and people are interested in hybrid systems that combine tankless units with solar or heat-pump technologies. Even though high upfront costs and the difficulty of retrofitting are still problems, improvements in digital controls, connectivity, and installation flexibility are making people more willing to accept them. Tankless systems are a key part of Germany's move toward more sustainable heating. Manufacturers in Germany and around the world are competing through new ideas, good service, and local knowledge.

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

Europe Tankless Water Heater Market Report Segmentation

By Product

• Electric
• Gas

By Application

• Residential
• Commercial

By Country

• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe

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