Data released by TechNavio showed that the water heater market in North America is expected to enjoy healthy growth through 2018. The report estimated a compound annual growth rate of 8.3 percent over the next four years, and noted that much of this growth is going to be driven by tankless water heaters. Greater demand for greater energy efficiency in appliances and more compact water heater applications has resulted in surging tankless water heater sales. Building and remodeling contractors looking to make their services more appealing to customers should consider the benefits of installing tankless water heaters in residential and commercial buildings.

Reliable long term performance
One way that tankless water heaters can add value to a contractor's services is through their longevity. High-end tankless appliances boast a life cycle of twenty years, doubling the expected operation time of most conventional storage tank models. Cutting-edge tankless models are designed to prevent any scale or corrosion from compromising the performance of the heater. Contractors can highlight these features when discussing design plans with a client that prioritizes long-term solutions.

Greater design flexibility
One way that building contractors can endear themselves to customers is by promising plenty of usable floor space for their money. Tankless water heaters are just a tenth of the size of an average storage tank, so choosing one of these compact appliances in lieu of an average sized tank is one of the easiest ways to free up space on a floor plan, according to Remodelista. Homeowners no longer need to relegate water heaters to basements and storage closets. Tankless models can instead be installed near the home's major hot water points, eliminating energy waste caused by stand by loss. Contractors will have extra luck leveraging both the space- and cost-saving benefits of on-demand hot water when working with green remodelers. Likewise, contractors working with sustainable architects can demonstrate value by offering tankless installation as a solution for green office buildings.

Shrinking cost gap
Increased scrutiny from governmental regulations has forced the water heater industry to adapt. Water heaters must now meet stricter performance standards than ever before, and the cost of conventional water heaters has subsequently begun to increase, said TecHome Builder. However, this shift in demand has also helped to make tankless water heaters less expensive. Homeowners also stand to make up the difference in cost between on-demand and conventional water heaters through the cost-savings that tankless provides.