Authored By: Sarah
11 Jul 2024

 Commercial Water Heaters Market Size to grow by USD 2617.8 million between 2024-2028

According to a research report “ Commercial Water Heaters Market” by Type (Electric water heater, Gas water heater, Solar water heater) Distribution Channel (Offline, Online) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2617.8 million, at a CAGR of  4.36% during the forecast period. In commercial settings, the energy savings from water heating can be significantly greater due to the high volume of water usage and frequent demand for hot water in establishments such as hospitals, hotels, and airports. Tankless electric water heaters, which offer immediate hot water and energy efficiency, are a popular choice for high-demand areas like guest rooms, kitchens, and laundry facilities in the hospitality sector. Heating pump water heaters, known for their energy efficiency and consistent hot water availability, are another preferred option for hotels with fluctuating hot water requirements throughout the day. Every watt of energy saved during water heating in these commercial spaces results in substantial cost savings and environmental benefits.

Browse market data tables, figures, and in-depth TOC on “Commercial Water Heaters Market” by Type (Electric water heater, Gas water heater, Solar water heater) Distribution Channel (Offline, Online) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Type, the Electric water heater segment is projected to dominate the market size in 2024

The Commercial Water Heaters Market is experiencing significant growth due to the robust offline distribution channels that provide consumers with a high level of reliability and support. Bosch Thermotechnik, a leading player in this market, distributes its water heater products through a diverse network of retail stores, wholesale distributors, trained installers, and Bosch Service Centers. This extensive network ensures that customers have access to flexible return policies, long warranties, expert advice, installation services, and comprehensive maintenance, repair, and replacement solutions throughout the product's lifecycle. The trust and confidence consumers place in brick-and-mortar stores, particularly in the heating and plumbing sector, are key factors driving the growth of the Commercial Water Heaters Market.

By Distribution Channel, Offline  segment is expected to hold the largest market size for the year 2024

In the commercial sector, electric water heaters have proven to be a reliable solution for water heating and indirect space heating applications. Despite reaching a maturity stage, advancements in tankless or instantaneous electric water heaters have invigorated market growth. The cost-effectiveness of electric water heating versus gas is a significant factor driving demand. Vendors are prioritizing the development of energy-efficient electric water heaters to decrease operational expenses. Furthermore, regulatory bodies, such as the US Department of Energy (DOE), mandate energy efficiency standards for electric water heaters with capacities over 55 gallons, requiring a minimum energy factor of 2. These regulations have boosted the commercial sector's demand for energy-efficient electric water heating solutions.

APAC is forecasted to hold the largest market size by region in 2024

The Commercial Water Heaters Market represents a significant business opportunity for manufacturers and suppliers. Demand for these systems is driven by various industries, including hospitality, healthcare, and education. Key market trends include energy efficiency, cost savings, and advanced technology. Market growth is expected due to increasing construction activities and regulatory compliance requirements. Companies focusing on these areas will likely capture a larger market share.

The Commercial Water Heaters Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • A. O. Smith Corp.
  • Ariston Holding NV
  • Bradford White Corp.
  • Daikin Industries Ltd.
  • Electric Heater Co.
  • Electrolux group
  • Ferroli Spa
  • Guangdong Vanward New Electric Co. Ltd.
  • Hangzhou Kangquan Water Heater Co. Ltd.
  • Jaquar India
  • MIDEA Group Co. Ltd.
  • Noritz Corp.
  • Rheem Manufacturing Co.
  • Rinnai Corp.
  • Robert Bosch GmbH
  • Solahart Industries Pty Ltd.
  • STIEBEL ELTRON GmbH and Co. KG
  • Vaillant GmbH
  • Viessmann Climate Solutions SE
  • Watts Water Technologies Inc.
.

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Research Analysis Overview

The Commercial Water Heaters market is experiencing significant growth due to the increasing demand for energy-efficient and technologically advanced solutions. Condensing heat technology is a key trend in this market, allowing for higher energy efficiency and lower CO2 emissions. Smart water heaters, equipped with advanced features like remote monitoring and control, are also gaining popularity. Incentives from governments and organizations, such as those in Massachusetts, are driving the adoption of energy-efficient heaters in commercial buildings like office buildings, hospitals, and hotels. Renewable water sources, like solar and electricity, are being integrated into water heating systems to promote sustainability and reduce reliance on traditional energy sources like oil. Heat pump heaters and heat recovery systems are other energy-efficient solutions that are becoming increasingly common in the market. These systems use renewable energy to heat water and can significantly reduce greenhouse gas emissions. The use of renewable sources and energy-efficient technologies is not only beneficial for the environment but also helps businesses save on energy costs during the energy crisis. Manufacturing facilities, restaurants, corporate places, and other commercial establishments are all potential customers for these sustainable and energy-efficient water heating solutions. The future of the Commercial Water Heaters market looks bright as businesses continue to prioritize sustainability and cost savings.

Market Research Overview

The Commercial Water Heaters market is witnessing significant growth due to the increasing demand for scheduled maintenance from facility managers in various sectors such as offices, hospitals, nursing homes, schools, cafes, SPAs, salons, institutes, restaurants, hotels, and healthcare facilities. The market is segmented based on fuel type into electric, gas, and biofuel heaters. The electric segment is expected to dominate the market due to its energy efficiency and ease of installation. Capacity and energy efficiency are key factors driving the market, with instant segment and energy-efficient models gaining popularity. Sustainability and reducing carbon footprints are major concerns, leading to the adoption of hybrid systems, renewable energy, IoT, and advanced control systems. Energy efficiency standards and environmental regulations are pushing manufacturers like Rinnai Corporation to develop technologically advanced, energy-efficient, and sustainable water heaters. Operational efficiency, remote monitoring, and smart controls are also crucial factors driving the market. Condensing heat, heat recovery factor, heat pump heaters, insulation, and efficiency are essential factors influencing energy performance and building energy consumption. Incentives for renewable water and energy sources are also boosting the market. The Energy crisis and the shift towards greenhouse gas reduction are further expected to fuel the market growth.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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