The U.S. market for electric tankless water heaters is dominated by a few smaller companies, with tank manufacturers holding the largest market share, according to Trutankless, Inc.

Already, several Japanese and European manufacturers have begun marketing products in the United States, and since 2003, gasoline tankless products have experienced dramatic growth. 

Trutankless notes that tankless electric systems have not experienced comparable growth due to several factors, primarily product performance, capacity, product quality, and installation and power supply issues.

In contrast, this company adds, tank heater manufacturers have a competitive advantage due in large part to long-established usage in their product categories, name recognition, established distribution, and brand position in the marketplace. 

Trutankless claims that many plumbers and other building industry professionals opposed switching brands or tankless systems because many tankless water heaters have been poorly designed in the past. 

Water heaters

As a result, some contractors have the perception that these water heaters are more complicated and generally less reliable than traditional tank heaters. 

Often, this perception is conveyed to consumers when they make purchasing decisions or inquire about switching to a tankless water heater.

From a big picture perspective, key trends in the home automation space, which is estimated to reach $46.22 billion worldwide by 2025, have been driven by consumers’ desire to improve efficiency and lifestyle. 

Companies such as Nest have helped introduce the Internet of Things into home appliances with a direct impact on how users interact with traditional appliances and have the ability to reduce energy usage. 

Also, the trend towards integration with voice assistants is increasing with key industry leaders such as Alexa and Google Assistant playing larger roles in the home automation industry. 

The Trutankless product was designed to replace deficient tank water heating technology, which is second only to HVAC (heating, ventilation and air conditioning, an air conditioning and ventilation system) in energy consumption in most homes. 

Combined with Wi-Fi capabilities, the system could not only save energy but also has the ability to inform users and homeowners about energy usage, water usage and potential problems such as leaks or other plumbing system failures.