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U.S. Commercial Water Heater Market - By Product (Instant, Storage), By Capacity (< 30 Liters, 30-100 Liters, 100-250 Liters, 250-400 Liters, > 400 Liters), By Energy Source (Electric, Gas), 2025 – 2034

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U.S. Commercial Water Heater Market Size

The global U.S. commercial water heater market was valued at USD 554.9 million in 2024 and is estimated to grow at a CAGR of 5.6% from 2025 to 2034. A commercial water heater is a large-scale water heating system designed to provide hot water for businesses, industrial facilities, or other commercial settings. Commercial water heaters can be powered by various energy sources, including electricity, natural gas, propane, or solar power, and they come in different types based on the heating methods.
 

Increasing requirement for energy-efficient heating systems along with ongoing investments toward the development of sustainable technologies will sway the business statistics. Continuous replacement of traditional heating systems with smart hot water equipment in line with surging demand for modern facilities across the commercial sector will drive the industry dynamics.
 

High energy savings, increased efficiency, flexible integration across multiple building in line with continuous adoption of ecofriendly sources will boost the business demand. Additionally, ongoing deployment of efficient systems to offer secure heating services will positively stimulate the market statistics.
 

U.S. Commercial Water Heater Market Trends

The demand for on-demand water heating systems is increasing as traditional units undergo refurbishment. Features like efficient performance, quick operation, compact size, and low power usage are driving this growth. Additionally, rising investments in green building infrastructure and consumer preference for high-capacity systems are expected to boost the market growth.
 

U.S. Commercial Water Heater Market Analysis

U.S. Commercial Water Heater Market Size, By Product, 2022-2034 (USD Million)

Based on product, the storage segment is anticipated to reach more than USD 925 million by 2034, on account of enhanced energy efficiency, the cost of installation and operation, space requirements, and the specific needs of businesses. Larger commercial storage water heaters tend to be more energy-efficient when scaled appropriately, as they can heat large volumes of water more efficiently over time. Further, newer storage water heaters are designed to be energy-efficient, with advanced insulation and temperature controls that minimize heat loss. This can help reduce operational costs and improve overall efficiency. In addition, many governments offer incentives, rebates, or tax credits for businesses that adopt energy-efficient water heating solutions, driving the business scenario.
 

U.S. Commercial Water Heater Market Share, By Capacity, 2024

The 250–400-liter commercial water heater segment is expected to grow at a CAGR of over 6% through 2034, on account of favorable government regulations promoting efficient systems in commercial establishments are driving growth in the market for 250 - 400 liters capacity commercial water heaters. Commercial water heaters are increasingly used in colleges and universities due to the focus on improving educational facilities with advanced heating systems. Their high efficiency, safe operation, and easy installation with simple designs are driving their adoption. Additionally, their compact size and cost-effective heating solutions have boosted their installation in smaller commercial facilities, supporting industry growth.
 

U.S. Commercial Water Heater Market Size, By Region, 2022-2034 (USD Million)

The U.S. North East commercial water heater market is likely to exceed USD 245 million by 2034. These units are preferred for consistently supplying hot water to commercial establishments. Rising disposable incomes and advancements in commercial facilities are driving the industry growth. Reduced bills owing to continuous adoption of natural gas-based heating systems across end-users have proliferated the product adoption. In addition, the robust growth of advanced units with low NOx emissions will sway the business outlook. Additionally, the shift to cleaner, more efficient systems with operational benefits is positively impacting the market statistics.

 

U.S. Commercial Water Heater Market Share

U.S. Commercial Water Heater Company Market Share

Ongoing investments in R&D aim to boost operational efficiency and cut costs. As commercial infrastructure expands, these investments are set to spur innovations. The technological advancements are being driven by a growing demand for features like corrosion resistance, sterilization, filtration, easy installation, and low maintenance. Additionally, government regulations pushing for the replacement of traditional heaters, combined with a trend towards cleaner and more efficient fuel options, are paving the way for significant innovations in the sector.
 

U.S. Commercial Water Heater Market Companies

Eminent players operating in the U.S. commercial water heater industry are:

  • American Standard Water Heaters
  • A. O. Smith
  • Ariston Holding N.V.
  • Armstrong International Inc.
  • Bosch Thermotechnology Corp.
  • Bradford White Corporation, USA
  • GE Appliances
  • Haier Group
  • Hubbell Electric Heater Company
  • Havells India Ltd.
  • Rheem Manufacturing Company
  • Rinnai Corporation
  • RECO USA
  • State Industries.
  • Stiebel Eltron GmbH & Co.
  • Sioux Corporation
  • Viessmann
  • Watts
  • Westinghouse Electric Corporation
     

U.S. Commercial Water Heater Industry News

  • In January 2022, Rheem Manufacturing Company acquired DEJONG, a leading manufacturer & provider of stainless-steel tanks for hot water catering to numerous categories including solar, heat pump, and boiler configurations. The acquisition will augment the company’s overall growth and expand its presence across the European region. It will further stimulate the product offerings for the various brands offered by the company.
     
  • In September 2021, Rinnai America Corporation acquired Industrias MASS, a leading commercial water heater manufacturer in Mexico. This acquisition enhances Rinnai's presence in Mexico and establishes a robust manufacturing and distribution network in the market.
     

This U.S. commercial water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD Million & ‘000 Units” from 2021 to 2034, for the following segments:

Market, By Product

  • Instant
  • Storage

Market, By Capacity

  • 30 liters
  • 30 – 100 liters
  • 100 – 250 liters
  • 250 – 400 liters
  • > 400 liters

Market, By Energy Source

  • Electric
  • Gas

Market, By Application

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

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

  • East North Central
    • Illinois
    • Indiana
    • Michigan
    • Ohio
    • Wisconsin
  • West South Central
    • Arkansas
    • Louisiana
    • Oklahoma
    • Texas
  • South Atlantic
    • Delaware
    • Florida
    • Georgia
    • Maryland
    • North Carolina
    • South Carolina
    • Virginia
    • West Virginia
    • Washington D.C.
  • North East
    • Connecticut
    • Maine
    • Massachussets
    • New Hampshire
    • Rhode Island
    • Vermont
    • New Jersey
    • New York
    • Pennsylvania
  • East South Central
    • Alabama
    • Kentucky
    • Mississippi
    • Tennessee
  • West North Central
    • Iowa
    • Kansas
    • Minnesota
    • Missouri
    • Nebraska
    • North Dakota
    • South Dakota
  • Pacific States
    • Alaska
    • California
    • Hawaii
    • Oregon
    • Washington
  • Mountain States
    • Arizona
    • Colorado
    • Utah
    • Nevada
    • New Mexico
    • Idaho
    • Montana
    • Wyoming

 

Authors: Ankit Gupta, Srishti Agarwal
Frequently Asked Question(FAQ) :
Who are the major players in the U.S. commercial water heater market?
Key players include American Standard Water Heaters, A. O. Smith, Bosch Thermotechnology, Rheem Manufacturing, Bradford White Corporation, GE Appliances, and Rinnai Corporation, among others.
What trends are shaping the North East U.S. commercial water heater market?
What drives the growth of the 250–400-liter commercial water heater segment?
Why is the storage segment gaining traction in the U.S. commercial water heater market?
How big is the U.S. commercial water heater market?
U.S. Commercial Water Heater Market Scope
  • U.S. Commercial Water Heater Market Size
  • U.S. Commercial Water Heater Market Trends
  • U.S. Commercial Water Heater Market Analysis
  • U.S. Commercial Water Heater Market Share
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    Premium Report Details

    Base Year: 2024

    Companies covered: 19

    Tables & Figures: 30

    Countries covered: 1

    Pages: 110

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