Home > Industrial Machinery > HVAC > Water Heater > Commercial Water Heater Market

Commercial Water Heater Market Size By Product (Instant, Storage), 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), 2024 – 2032

  • Report ID: GMI2910
  • Published Date: May 2023
  • Report Format: PDF

Commercial Water Heater Market Size

Commercial Water Heater Market size was valued at USD 7.58 billion in 2023 and is anticipated to grow at 6.7% CAGR from 2024 to 2032. These are an energy-efficient system/unit that utilizes electricity or gas to heat portable water for use. Growing installation of energy efficient equipment governed by strict industry norms along with rapid development of commercial establishments across the developing economies will lead to the market growth.
 

Increasing number of smart city projects along with growth in the real estate industry will influence the market trends. Rapid construction of high-rise buildings and ongoing expansion of the real estate industry will augment the business growth. In addition, shifting focus of the industry manufacturers toward development of region-specific equipment will strengthen the business landscape.
 

Commercial Water Heater Market

Increasing consumer spending in research, design & development to introduce smart and modern water heating equipment coupled with robust development of service sector will drive the commercial water heater market share. Rapid awareness regarding the new technologies coupled with increasing demand for instant hot water across hospitals, care centers and offices will augment the industry landscape. Stringent policies aimed at deployment of energy efficient electrical systems across various commercial establishments including malls, hospitals among others combined with significant reduction in the heating bills is anticipated to positively augment the industry outlook.
 

Ongoing government investment toward the development of smart cities coupled with introduction of energy efficiency codes and standards will drive the market size. Additionally, stringent mandates toward the installation of efficient heating systems across commercial and educational institutes along with significant reduction in heating bills will positively influence the industry growth.
 

COVID- 19 Impact

The economic slowdown caused by the pandemic has led to delays and cancellations of construction projects, which might affect the demand for commercial water heaters in the short term. The pandemic has disrupted global supply chains, leading to shortages of various components and equipment. However, restart of commercial activities and constant requirement for strategies to respond to the existing crisis will further impact the commercial water heater market statistics. Shifting focus on sustainable and green infrastructure development will further contribute to the business scenario. Moreover, as the world recovers from the pandemic and seeks to build back better, water heater units are likely to play an increasingly important role in providing sustainable and efficient water heating solutions across the buildings and communities.
 

Commercial Water Heater Market Analysis

Commercial Water Heater Market Size, By Product, 2021-2032 (USD Billion)

The instant water heater market revenue will expand at a rate of over 6% by 2032, on account of ongoing technological advancements focusing on efficiency improvements. Growing preference for on demand heating units coupled with increasing investments toward research and development including product innovation and integration of smart technologies will fuel the industry growth. Integration of smart features including mobile remote controlling software, leak detection systems and multiple communication options will fuel the commercial water heater market revenue. The units are preferred over its storage counterparts owing to key benefits including high supply output, on demand heating and limited standby losses.
 

Increasing applicability across hospitality and healthcare to meet the critical hot water demand will augment the business landscape. In addition, replacement of conventional units with instant heating technologies across malls, airports and shopping centers will positively enhance the industry outlook.
 

The gas water heater market is projected to reach USD 4.4 Billion by 2032, due to higher efficiency and larger flow rates in comparison to its electrical substitutes. Growing demand from off grid areas along with significant savings in electricity bills will positively influence the industry growth. Extensive distribution of electricity network along with simple designs will amplify the commercial water heater market growth. The tankless models provide highly efficient point of use application with low power consumption. Lower standby losses and stable prices in comparison with volatile fuel cost will enhance the business outlook.
 

The commercial water heater market from 100-250 Liters segment held over USD 2.2 Billion revenue in 2022, owing to rising demand of hot water across shopping complexes along with government mandates toward the deployment of water heaters across commercial buildings. Requirement of effective water management and control systems across shopping malls and airports will accelerate the industry size. Strict environment protection standards toward limiting the emissions from conventional heating systems along with active measures by companies toward reducing their carbon footprint will further stimulate the product demand.
 

Commercial Water Heater Market Revenue Share, By Application, 2032

The commercial water heater market from Colleges & Universities segment accounted for more than USD 1.5 Billion revenue in 2022, led by ongoing mandates by respective government toward the installation of water heater along with rising hot water consumption across colleges & universities. Growing investment pertaining to the expansion and construction of educational institutes coupled with rising demand from off grid buildings will augment the industry landscape. Rapid adoption of digital technologies in the industry along with growing need for instant hot water delivery systems will encourage the product penetration. Government mandates toward the promotion of individual metering coupled with growing concerns toward energy efficiency will further strengthen the market size.
 

Asia Pacific Commercial Water Heater Market Size, 2021 - 2032 (USD Billion)

Growing investments in the infrastructure development by both private & government organizations along with mounting demand for on demand heating across hotels, hospitals and government buildings is anticipated to drive the Asia Pacific water heater market growth. Ongoing government mandates toward adoption of energy efficient equipment for reduction in electricity bills coupled with favorable regulatory norms & policies to reduce the carbon footprint will strengthen the commercial water heater market landscape. Moreover, rising urbanization, increasing green building projects in line with the building codes & standards will boost the market outlook. Shifting customer trends toward advanced heating units will, in turn, encourage the product installation in the region.
 

U.S. commercial water heater market will reached USD 752 million by 2032. Extreme climatic conditions along with presence of major companies competing on product differentiation will accelerate the growth across the country. Integrated remote monitoring and automatic control systems enhances the product performance. Further, upgradation and replacement of the existing systems with more efficient and compact designs will positively influence the business growth.
 

Commercial Water Heater Market Share

The major players operating across the commercial water heater market are:

  • A.O Smith
  • Whirlpool Corporation
  • Ariston Thermo
  • Bosch Thermotechnology
  • State water heaters
  •  Ferroli
  • Rinnai Corporation
  • Noritz Corporation
  •  Haier Electronics
  • Rheem Manufacturing
  • Bradford white Corporation
     

Product differentiation and technological development are key strategic measures adopted by the established players. Furthermore, mergers and acquisitions along with geographical expansion across the emerging economies provides better growth prospects for the business.
 

Commercial Water Heater Industry News

  • In 2021, Bradford White Corporation acquired Keltech to expand its portfolio in commercial & industrial electric products to meet the rising needs of a wider customer base and support them in the adoption of electrification initiatives throughout North America.
     
  • In 2019, Rheem Manufacturing, subsidiary Paloma Rheem Global acquired Intergas to augment its prevalent customer base across Europe.
     

This commercial water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘’000 Units’ & USD’ from 2023 to 2032 for the following segments:

Click here to Buy Section of this Report


Market, 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

Market, By Capacity

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

Market, By Application

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

Market, By Energy Source

  • Electric
  • Gas

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

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

 

Authors: Ankit Gupta, Srishti Agarwal

Frequently Asked Questions (FAQ) :

Commercial water heater market size reached USD 7.58 billion in 2023 and will exceed USD 13.48 billion by 2032, says this GMI report.

The gas water heater market valuation will surpass USD 4.4 billion by 2032, due to benefits such as higher efficiency and larger flow rates as compared to electrical substitutes.

U.S. market size will reach over USD 752 million by 2032, owing to the presence of leading companies and extreme climatic conditions across the country.

Whirlpool Corporation, Ariston Thermo, Ferroli, Noritz Corporation, Haier Electronics, and Rheem Manufacturing are some of the leading suppliers of commercial water heaters.

Commercial Water Heater Market Scope

Buy Now


Premium Report Details

  • Base Year: 2023
  • Companies covered: 31
  • Tables & Figures: 2001
  • Countries covered: 54
  • Pages: 1000
 Download PDF