Commercial Water Heater Market Size By Product (Instant [Electric, Gas], Storage [Electric {<30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, >400 Liters}, Gas {<30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, >400 Liters}]), By Capacity (<30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, >400 Liters), By Application (College/University, Offices, Government/Military), By Energy Source (Electric, Gas [Natural gas, LPG]), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Commercial Water Heater Market size exceeded USD 6 billion in 2019 and the industry is expected to surpass an annual installation of 4 million units by 2026. Swift shift in consumer focus toward the advantages of modern and advanced water heating equipment coupled with surging demand of hot water in various commercial establishments is set to fuel the product penetration.
 

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Introduction of stringent government norms and directives toward the adoption of energy efficient heating devices, considerable reduction in electricity bills coupled with increased consumer spending toward advanced technologies will encourage the commercial water heater industry growth. Furthermore, rapid expansion of the high-rise buildings driven by various foreign investments is anticipated to influence the product demand.
 

The COVID-19 pandemic may impact the overall production of water heaters owing to various restrictions imposed in various countries, thereby limiting the industry trends. The shutdown of various component manufacturing facilities in the emerging economies on account of supply chain disruptions, lower availability of workforce and minimum on site operations will further result in a decline in the product installation. However, upliftment of lockdown, restart of commercial activities and constant requirement for strategies to respond to the existing crisis will positively influence the industry outlook.
 

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New product developments have influenced the commercial water heater market share

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Rising investment toward research, design and development activities is set to augment the commercial water heater market growth. Increasing consumer awareness toward smart and advanced products along with rising need for on demand heating in establishments including shopping complexes, airports among others will strengthen the business outlook.
 

In 2020, A.O. Smith, the leading water heating and treatment manufacturer, introduced a gas tankless product line. The system has X3 scale prevention technology, thereby enhancing the performance and lifespan of the product.
 

Enhanced adoption of instant heating systems owing to simple & compact designs along with low power consumption is anticipated to drive the commercial water heater industry share. Introduction of modern and innovative models equipped with high energy efficiency and low cost will strengthen the industry outlook. Additionally, ongoing construction of smart cities in the emerging economies combined with development of zero emission buildings will accelerate the business landscape.
 

Surging demand for deployment of gas units will stimulate the industry landscape

Gas water heater market exceeded USD 2 billion in 2019. Growing need to address the peak hour hot water requirement across the existing commercial building infrastructure along with the timely availability of supply is projected to influence the product penetration. Replacement and refurbishment of the conventional heating equipment coupled with rising requirement for significant savings in the electricity bills will further augment the business landscape. Ongoing expansion of the piped gas networks across the emerging countries will further lead to widespread adoption of the gas water heater.
 

Stringent government norms to shift to energy efficient systems will drive the water heating demand in offices

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Growing hot water consumption coupled with ongoing mandates for the installation of efficient heating equipment will boost the commercial water heater market statistics. Changing focus of the industry players to comply with the prevailing industry norms and standards will further drive the product demand. Additionally, rising demand from off grid markets, evolving trends of manufacturers focused primarily at product differentiation coupled with integration with local manufacturers to suit the customer requirements will augment the market share.
 

Low energy consumption and significant savings in the electricity bills will boost the instant water heater market growth

Instant water heater segment of the market is set to grow owing to the ongoing commercial infrastructure development primarily across the developing economies. Surging demand of the equipment across various commercial establishments including hotels, hospitals and shopping complexes will accelerate the business landscape. The high installation cost, greater replacement charges along with its inability to be used simultaneously for different operations give its substitutes an edge over the product. However, the equipment can save nearly 24-34% on the energy costs, thereby stimulating the market trends.
 

North America and Asia Pacific region is anticipated to witness growth at the fastest rate

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Latin America, Europe and Asia Pacific contribute to over 75% of the revenue share in 2019 and will continue to dominate the industry in the forecasted timeline. Increased customer spending, shifting consumer trend toward smart appliances coupled with growing investments by the government to enhance the infrastructure development in the emerging countries of the region will strengthen the market demand. Economic transformations owing to extensive electricity distribution network in both remote and rural areas will further fuel the commercial water heater deployment.
 

In Latin America, Mexico and Brazil accounted for over 85% of the market share in 2019. Expansion of the piped gas networks in different countries of the region coupled with rising requirement for on demand heating by the manufacturing industries will augment the commercial water heater market outlook. Growing installation of instant water heating systems across various commercial establishments owing to product longevity and higher efficiency will strengthen the industry landscape.
 

Considerable growth in the service industry, extreme climatic conditions and introduction of smart and advanced products will drive the U.S. market. Replacement of the existing conventional systems with advanced and compact designs is set to augment the business landscape.
 

Various business expansion initiatives including joint ventures & acquisitions are taken by the key market participants to influence the product adoption

New product design & development by the manufacturers are equipped with various smart features comprising Wi-fi connection, leakage detection, and remote monitoring. For instance, A.O Smith, in 2018, introduced the iCOMM connectivity platform primarily for water heaters that provides essential data regarding the performance of equipment and supports in their remote monitoring. Moreover, inorganic joint ventures along with the leading technology providers is set to influence the industry landscape. For instance, Rheem Manufacturing, subsidiary Paloma Rheem Global acquired Intergas, in 2019, to augment its prevalent customer base in Europe.
 

The industry players operational in the commercial water heater market include A.O Smith, Bradford white Corpration, Whirlpool Corporation, Bosch Thermotechnology, Ferroli, State water heaters, Rinnai Corporation, Rheem Manufacturing, Noritz Corporation, Ariston Thermo, and Haier Electronics amongst others.
 

Commercial water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” and “Units” from 2015 to 2026, for the following segments:

By Product

• Instant
  • Electric
  • Gas
• Storage
  • Electric
    • <30 Liters
    • 30-100 Liters
    • 100-250 Liters
    • 250-400 Liters
    • >400 Liters 
• Gas
  • <30 Liters
  • 30-100 Liters
  • 100-250 Liters
  • 250-400 Liters
  • >400 Liters

By Capacity

• <30 Liters
• 30-100 Liters
• 100-250 Liters
• 250-400 Liters
• >400 Liters

By Application

• College/University
• Offices
• Government/Military
• Others

By Energy Source

• Electric
• Gas
  • Natural Gas
  • LPG

The above information has been provided for the following regions and country:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Austria
  • Spain
  • Netherlands
  • Denmark
  • Finland
  • Sweden
  • Norway
• Eurasia
  • Russia
  • Belarus
  • Armenia
  • Kazakhstan
  • Kyrgyzstan
• CIS
  • Azerbaijan
  • Moldova
  • Tajikistan
  • Turkmenistan
  • Ukraine
  • Uzbekistan
• Asia Pacific
  • China
  • Australia
  • India
  • Myanmar
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Singapore
  • Thailand
  • New Zealand
  • Philippines
  • Vietnam
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Bahrain
  • Oman
  • Turkey
  • South Africa
  • Nigeria
  • Algeria
  • Egypt
  • Israel
  • Cyprus
  • Lebanon
  • Iraq
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Mexico