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, By Energy Source, By Channel, Country Outlook & Forecast, 2024 – 2032

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, By Energy Source, By Channel, Country Outlook & Forecast, 2024 – 2032

Commercial Water Heater Market Size

Commercial Water Heater Market was valued USD 7.22 billion in 2023 and is anticipated to grow at a CAGR of 6.8% from 2024 to 2032. Commercial water heaters are heating systems specifically designed to meet the high-volume hot water demands of businesses and institutional settings. They are used in a variety of commercial applications, including hotels, hospitals, restaurants, schools, office buildings, and manufacturing facilities.

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Increasing demand for energy-efficient, sustainable, and technologically advanced solutions along with adoption of high efficiency and renewable water heating technologies will enhance the industry demand. Ongoing innovations, supportive regulatory frameworks, and growing market awareness coupled with introduction of regulatory frameworks and incentives will stimulate the industry dynamics. Furthermore, growing consumer awareness about the benefits of smart water heaters is essential for wider adoption will drive the industry dynamics.
 

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Key factors including maximize energy efficiency, often incorporating advanced technologies like condensing heat exchangers, smart controls, and better insulation will increase the product deployment. Many commercial units feature advanced control systems for precise temperature management, energy monitoring, and diagnostics. Some systems allow for remote monitoring and control via internet connected devices, improving maintenance and operational efficiency, which will boost the industry landscape.

Commercial Water Heater Market Trends

Increasing adoption of energy-efficient models to reduce operational costs and comply with environmental regulations coupled with integration of smart controls and IoT for better management, efficiency, and predictive maintenance will stimulate the industry statistics. Growing interest in renewable energy sources and hybrid systems to minimize carbon footprints and promote sustainability will impact the business dynamics. Additionally, adherence to stricter energy efficiency standards and environmental regulations driving innovation and market demand for high efficiency units will boost the business scenario.

Commercial Water Heater Market Analysis

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Based on product, the instant segment is anticipated to cross more than USD 2.11 billion by 2032. These water heaters can be installed close to the point of use, eliminating the need for long runs of piping and reducing heat loss through distribution lines. They have a smaller footprint making them ideal for businesses with limited space or those looking to maximize usable floor space which will impact the technology adoption.

Based on capacity, the 100 – 250 liters segment is poised to register more than 6% CAGR through 2032 owing to their capability for point-of-use applications, providing hot water directly to sinks, dishwashers, and other fixtures where hot water is required. They can be used as backup or supplemental heating units to ensure a reliable supply of hot water during peak usage periods. Further, businesses prioritize water heaters with commercial grade construction and durable components to ensure reliability and longevity, minimizing downtime and maintenance costs, strengthening the produce demand.

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Based on source, the electric segment is estimated to showcase about 6% growth rate from 2024 to 2032 owing to their buildup with durable materials and components to withstand high demand and ensure long-term reliability. Extensive availability of solar along with shifting focus toward the replacement of conventional fuel sources with renewable sources will positively influence the industry scenario. Manufacturers that innovate with advanced technologies, offer reliable service support, and ensure compliance with regulatory standards will be well-positioned to capitalize on this growing market demand will boost the industry statistics.

Based on application, the offices segment is anticipated to grow more than USD 2.9 billion by 2032. Offices may invest in water heaters with smart controls and remote monitoring capabilities, allowing facility managers to monitor performance, adjust settings, and receive alerts for maintenance or issues remotely will boost the business scenario. Further, scheduled maintenance of the equipment will support prevent breakdowns, extend equipment lifespan, and maintain optimal performance, which will significantly drive the industry scenario.

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North America commercial water heater market is projected to surpass USD 1.84 billion by 2032. Implementation of stringent energy efficiency standards along with introduction of incentives and rebates by the federal, state, and provincial programs that invest in energy-efficient water heating solutions will stimulate the industry landscape. Commercial buildings aiming for certifications such as LEED (Leadership in Energy and Environmental Design) prioritize energy-efficient water heating systems to meet the criteria for green building standards, which will positively impact the business growth.

Commercial Water Heater Market Share

A.O. Smith, Bosch Thermotechnology, Bradford White, American Standard Water Heaters and AQUAMAX Australia are some leading players operating in the industry. Reduction of energy consumption and operational costs will strengthen the demand for smart, high efficiency, and environmentally friendly water heating solutions. Manufacturers that innovate and provide reliable, cost effective, and sustainable options will be well positioned to capitalize in the market.

Commercial Water Heater Market Companies

Eminent players operating in the commercial water heater industry are

• American Standard Water Heaters
• A.O Smith
• AQUAMAX Australia Pty. Limited
• Bosch Thermotechnology Corp.
• Bradford White Corporation
• BDR Thermea Group
• GE Appliances
• Heatre Sadia
• HTP
• ORBITAL HORIZON
• Powrmatic Ltd.
• Racold
• Rinnai Corporation
• Rheem Manufacturing Company
• STIEBEL ELTRON GmbH & Co. KG
• State Industries
• Saudi Ceramic Company
• Toshiba Corporation
• Westinghouse Electric Corporation

Commercial Water Heater Industry News

• In January 2024, Laars Heating Systems, a subsidiary of Bradford White Corporation, has acquired Electro Industries, Inc., a leading U.S. manufacturer based in Monticello, Minnesota. This strategic acquisition expands Laars' portfolio of residential, commercial, and industrial water heating solutions. It emphasizes the company's dedication to meeting evolving customer needs and supporting electrification policies and regulations in North America.
• In February 2024, BDR Thermea completed the acquisition of Fortes Energy Systems, an expert in collective heat and cold networks catering to residential, commercial, utility, and industrial sectors. Fortes Energy Systems specializes in providing solutions that integrate comfortable indoor climate control, superior hot water comfort, optimal system efficiency, and reduced energy consumption. In addition, this acquisition further strengthens company’s position in the market and expands its portfolio of sustainable district & cooling and water heating solutions.

This commercial water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Million & ‘000 Units” from 2021 to 2032, for the following segments

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Market, By Product

• Instant
• Storage

Market, By Energy Source

• Electric
• Gas

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 Channel

• Online
• Dealer
• Retail

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Spain
  • Netherlands
  • Portugal
  • Romania
  • Switzerland
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina