Commercial Water Heaters Market: Global Size, Share, Trends, Growth and Forecast 2022-2032

Commercial Water Heaters Market: Overview and Definition

The global commercial water heaters market size is anticipated to reach a size of USD 11.3 billion by 2032, at a CAGR of around 6%, from an estimated USD 5.3 billion in 2021.

Commercial water heaters are advanced devices that use a source of energy to heat portable water for use in the commercial sectors such as institutional living quarters, hospitals, sewage treatment plants, hotels/restaurants, motels, shopping malls and many others. They provide various benefits including un-interrupted and continuous water pressure, friendly user interface, and multi usage points along with others benefits.

These usually come in the form of water boilers, solar water heaters, oil fired water heaters, and electric water heaters, and are seemingly used in myriad applications across various industries.

MARKET DRIVERS:

The growth of this market is attributed towards major pertaining factors including; the worldwide increasing investments for the development and expansion of commercial sector operations across different regions, the increasing demand and requirement for instant hot water across hotels, hospitals, care centers and offices, the growing technical advancements towards product design of water heaters, the growing number of stringent policies and supportive regulations and grants for using renewable sources of energy in different applications and the surging adoption of a diversified range of water heaters in the commercial as well as the industrial sector etc.

Additionally, the development and adoption of smart city and green building initiative is on the rise. To achieve this, energy efficient codes and standards are being implemented globally by the governments of different regions which compel the industry manufacturers to come up with systems that are in statutory compliance and are highly efficient. This contributes to the growth of the overall commercial water heaters market and at the same time opens doors for ample opportunities for the future.

Moreover, the growing focus and investments of the market players on technological advancement, product innovation and differentiation results in the launching of new products and technologies that offer enhanced customer experience and reduce the overall operating cost. The development of wireless techniques, mass flow heaters along with the introduction of heaters with features such as corrosion resistance, water filtration, advanced remote control propel the growth of the market tremendously.

Furthermore, other factors such as the robust development of service sector, the increasing expansion of commercial establishments, the growing integration of commercial water heaters with new-age technologies, the strict environment norms toward limiting CO2 emissions, growing consumer spending on smart and energy efficient appliances, increasing urbanization & industrialization,  disposable incomes of people, the increasing requirement to reduce electricity bills and the surging growth across the tourism sector further enhance the growth of this market.

However, high capital expenditure for development of commercial water heaters and regular maintenance requirements of these heaters hinder the growth of this market.

COMMERCIAL WATER HEATERS MARKET SEGMENTATION:

By Product Type:

• Instant
• Storage

By Technology:

• Electric
• Oil
• Gas
• Solar
• Hybrid
• Heat Pump
• Bio-fuel & Solid Fuel-Fired
• Others

By Rated Capacity:

• Up to 10kW
• 10‒50kW
• 50‒150kW
• 150‒300kW
• Above 300kW

By Storage Capacity:

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

By Application:

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

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

REGIONAL INSIGHT:

The Asia Pacific region holds the largest share and is the fastest growing regional market for commercial water heaters. The region is also projected to witness steep rise in growth and maintain its dominance in the foreseeable years owing to factors such as; the propelling use of renewable energy and energy efficient products, the growing investments in the commercial sectors in the major economies of the region, rapid economic development across countries such as China and India, the increasing presence of highly established market players in the region, the increasing availability of gas and electricity across rural areas and the rising demand for replacement of conventional water heaters with advanced systems. Moreover, rapid urbanization along with prevailing investments in the infrastructure sector and the increasing dependence on renewable sources to limit pollution also contribute to this region’s market growth. The major contributors in the region include India, China, Japan, South Korea and Australia.

The European region holding a major market share in the commercial water heaters market followed by North America is anticipated to register robust growth in the upcoming years owing to factors such as the surging demand for efficient and reliable water heaters from various commercial and industrial end-users, the increasing need for hot water to meet the required environmental conditions owing to extreme cold weather in the region, the increasing strict environmental norms towards reducing carbon emissions and the rising demand due to the replacement of aging commercial water heaters with newer technologies. The major contributors in the region include Germany, U.K, France, Italy and Spain.

FEW KEY PLAYERS IN COMMERCIAL WATER HEATERS MARKET:

• Danfoss
• American Water Heaters
• Daikin
• Mitsubishi Electric
• Johnson Controls-Hitachi Air Conditioning
• Ariston Thermo Group
• Solahart
• NORITZ Corporation
• Solahart Industries
• Carrier Global
• NIBE Energy Systems
• Jinyi Solar Water Heater
• Bock Water Heaters
• Giant
• PVI Industries
• Andrewes Water Heaters
• Robert Bosch LLC
• Rheem Manufacturing Company
• Bradford White Corporation
• Kenmore
• Midea Group
• Stiebel Eltron
• Whirlpool Corporation
• Westinghouse Electric Corporation
• Bajaj Electricals Ltd
• Himin Solar
• Jaquar
• Kanch Water Heaters
• Vaillant Group
• Viessmann Group
• A.O. Smith Corporation
• Havells India Ltd
• Lennox International Inc.
• FERROLI S.p.A
• Bosch Thermotechnology
• State Industries
• Rinnai Corporation
• Saudi Ceramics
• Haier Electronics
• Hubbell
• Linuo Ritter
• Other Players

RECENT DEVELOPMENTS:

• In July 2020, Bradford White announced the launch of a new feature within the American-made line of eF 120 series commercial gas water heaters. The eF120 product line is now said to incorporate BMS and modulation technology for remote monitoring capability and increased fuel efficiency.
• In January 2021, Bradford White Corporation, an industry-leading manufacturer of residential, commercial, and industrial heating solutions and storage applications, announced they have concluded their asset purchase of Keltech, Inc. from Bradley Corporation. Keltech is a world- renouned manufacturer of commercial and industrial tankless electric water heaters.