Tankless Gas Water Heaters vs. Storage Gas Water Heaters: Which Is Better for the Latin American Market?

Accelerating urbanization, growing middle-class households, and a growing demand for energy-efficient solutions are driving changes in the Latin American water heater industry. Gas water heaters remain a necessity in daily life across the region, but buyers—consumers, distributors, and brands—often face the same question: are tankless gas water heaters or storage water heaters more suitable for this market?

This article explores the regional landscape, highlights data from representative countries, and provides insights for distributors and brand owners planning to expand in Latin America.

Overall Market Trends & Key Insights

Tankless gas water heaters are increasingly popular in urban and mid-to-high-income households. Their compact design, on-demand heating, and energy efficiency align well with space-constrained apartments and environmentally conscious consumers.

Storage gas water heaters, however, still play an important role in rural and price-sensitive segments, where lower upfront cost and simpler technology are more attractive.

Key influencing factors include gas infrastructure, water pressure, installation practices, and government energy efficiency regulations. Across the region, the trend is clear: tankless units are gaining momentum, but storage systems remain part of the mix.

Country-Specific Market Insights

Mexico

In large urban centers, consumers increasingly favor tankless systems for their efficiency and convenience. However, rural areas and lower-income households still rely heavily on storage heaters due to affordability.

Brazil

Coastal urban areas such as São Paulo and Rio de Janeiro show strong adoption of tankless heaters, supported by a consumer base interested in long-term energy savings. Yet inland regions often face gas supply and infrastructure challenges, making storage heaters a stable choice.

Chile

Chile is a standout case. The term calefont is almost synonymous with tankless gas water heaters, which dominate the market. Chilean households prioritize energy efficiency, safety, and modern designs. Distributors here can find strong demand for thermostatic and advanced venting models.

Argentina

Argentinian households also have a tradition of using calefón tankless units. However, economic instability and consumer price sensitivity require suppliers to offer both affordable tankless models and storage heaters to balance market needs.

Colombia & Peru

In these emerging markets, adoption of small-capacity tankless heaters is increasing, especially in urban centers. Yet water pressure and ventilation issues often limit their widespread use. Suppliers offering low-water-pressure ignition and forced exhaust models can gain a significant competitive edge.

Tankless vs. Storage: Pros & Cons in Latin America

Tankless Gas Water Heaters	Instant hot water on demand	Storage Gas Water Heaters	Lower initial purchase cost
	Compact, space-saving design		Simple installation and fewer infrastructure requirements
	Higher energy efficiency and longer lifespan		Familiar for consumers in rural and cost-sensitive markets
	Ideal for urban apartments and eco-conscious households		Reliable in regions with irregular water pressure

For distributors and brand owners, this comparison highlights the importance of a dual product strategy. Success comes not from choosing one over the other but from aligning product lines with regional realities.

For companies entering or expanding in Latin America, choosing the right manufacturer is just as critical as choosing the right product type. Beyond supplying hardware, the right partner provides localized solutions that reduce after-sales costs and build consumer trust.

Title

Over the past two decades, Greaidea has established itself among the top manufacturers of tankless gas water heaters serving Latin America. Our experience in Mexico and Chile, where we already collaborate with leading distributors, shows the value of delivering products tailored to local needs:

Over the past two decades, Greaidea has established itself among the top manufacturers of tankless gas water heaters serving Latin America. Our experience in Mexico and Chile, where we already collaborate with leading distributors, shows the value of delivering products tailored to local needs:

Product Variety – From natural exhaust models to forced exhaust and the latest air-cooled thermostatic units, built for both high and low water pressure conditions.

Market Adaptation – Gas types (NG/LPG) and safety certifications .

Durability & Performance – Each unit undergoes strict testing, including water pressure, wind resistance, ignition stability, and gas leakage checks.

OEM/ODM Capabilities – Customized solutions for brands looking to expand with models suited to Latin American consumer preferences.

This approach has enabled partners to strengthen their market share, reduce warranty claims, and build strong brand reputations with end consumers.

Latin America is not a one-size-fits-all market. Tankless gas water heaters are expanding rapidly, especially in Chile and Mexico, while storage heaters remain relevant in Brazil, Argentina, and other price-sensitive areas.With more than 25 years of expertise in gas water heater manufacturing and proven collaborations across Latin America, Greaidea stands ready to support partners seeking reliable, efficient, and market-ready solutions.

Contact us today to request product catalogs or samples, and explore how our tailored gas water heaters can help you grow in the Latin American market.