Commercial Water Heaters Market
PUBLISHED: 2023 ID: SMRC22785
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Commercial Water Heaters Market

Commercial Water Heaters Market Forecasts to 2028 - Global Analysis By Storage Capacity (>400 Liters, 100-250 Liters, 250-400 Liters, <30 Liters, 30-100 Liters, <500 Liters, Other Storage Capacities), Product Type (Storage, Instant), Energy Storage (Gas, Electric, Other Energy Storages) Others

4.1 (93 reviews)
4.1 (93 reviews)
Published: 2023 ID: SMRC22785

This report covers the impact of COVID-19 on this global market
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Years Covered

2020-2028

Estimated Year Value (2022)

US $6.07 BN

Projected Year Value (2028)

US $8.67 BN

CAGR (2022 - 2028)

6.1%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

Europe


According to Stratistics MRC, the Global Commercial Water Heaters Market is accounted for $6.07 billion in 2022 and is expected to reach $8.67 billion by 2028 growing at a CAGR of 6.1% during the forecast period. Modern appliances called commercial water heaters use an energy source to heat portable water for use in business settings including hospitals, sewage treatment facilities, hotels/restaurants, motels, retail centres, and many more. They provide a number of advantages, such as uninterrupted and constant water pressure, a user-friendly interface, and many consumption locations in addition to others.

According to a study from the University of California on water use in San Francisco, in the first five months of stay-at-home orders, usage in residential properties increased by 32% from the previous year; commercial and industrial usage declined by 22%.

Market Dynamics:

Driver:

Increasing demand from the hospitality sector

In commercial buildings, there are several restrooms with water heaters installed, and hot water is utilised often. As a result, commercial buildings get greater energy reductions from water heaters than do residential structures. Each watt of energy saved while boiling water is compounded since facilities like hospitals, hotels, and airports see high levels of usage. Hence, significant energy savings and rising investment in new hotels are two major reasons influencing the use of water heaters in the hospitality industry. Moreover, because luxury hotels, malls, entertainment venues, airports, etc. need a lot of hot water, using electric water heaters not just to instantly heats water but also helps hotel owners cut costs significantly. As a result, throughout the projection period, there will be a large increase in the requirement for commercial water heaters.

Restraint:

Technical challenges associated with the products

Commercial water heater sales are hampered by the short lifespan and explosion danger associated with gas water heaters. An explosion can occur with gas water heaters if there is a leak in the tanks, pipes, or valves, mostly because of excessive gas pressure. Although high-capacity water heating applications are used by the business sector, the range of applications for such systems depends on the rules and restrictions of the nation where the heaters are placed. Also, because there is a higher risk of explosion, governments throughout the world are putting rigorous regulations on the manufacture of gas and lpg water heaters. Large-scale product recalls will occur if these rules are not followed.

Opportunity:

Increasing demand for hybrid water heaters

Solar, propane, oil, and electricity are some of the energy sources utilised by water heaters to heat water. But hybrid water heaters also known as heat pump water heaters—use the hot air in the area to heat an enclosed water tank. The water heater automatically changes to a regular resistance electric heating mode when there is a strong demand for hot water. Due to their reduced energy consumption, hybrid water heaters can solve the shortcomings of traditional gas and solar water heaters. Hybrid water heaters are more energy-efficient that standalone solar or gas water heaters because of these properties. Hybrid water heaters also come with functions like timed mode, which reduces energy use whenever the water heater is at its best for a longer length of time.

Threat:

High Capital Expenditure

The major manufacturers of these heaters take a variety of safety precautions to guarantee their proper operation over time. Industrial water heater producers utilise premium techniques and materials, and their products also need trained labour and specialised machinery, which drives up the price of production. Also, some producers charge more for their products by selling clients customised items with site-specific requirements.

Covid-19 Impact

Water use changed dramatically when the COVID stay-at-home protocols were implemented. With vacant offices and facilities, certain industries witnessed significant drops in commercial water consumption, whilst others saw sharp rises. Even though many restaurants were only serving takeaway or at reduced capacity, improved sanitation and disinfection procedures led to a significant rise in water consumption. For obvious reasons, hospitals have experienced the most dramatic increases in hot water demand during the epidemic. For the sake of sanitization and cleanliness, hot water is regarded as a necessary service. Those who labour to replace and repair water heaters in an emergency are frequently referred to as "authorised" or "essential" personnel.

The less than 500 liters segment is expected to be the largest during the forecast period

The less than 500 liters segment is estimated to have a lucrative growth due to their applications for residential and commercial institutions like hospitals, banks, hotels, governmental organisations, and retail facilities, small commercial water heaters of less than 500 litres are used to maintain vacation homes. This ensures that water temperature for bathing, personal washing up, and other uses is available without interruption. The items are used in swimming pools, saunas, kitchens, and bathrooms, which is fueling the segment's expansion throughout the course of the projection period.

The Electric segment is expected to have the highest CAGR during the forecast period

The Electric segment is anticipated to witness the fastest CAGR growth during the forecast period. In the business sector, electric water heaters have long been used to heat water. The market for electric water heaters has been revitalised despite the fact that they have reached their mature stage because to continued advances in tankless or instant water heaters. Also, utilising electric water heaters is far more economical than using gas to heat water. Electric water heaters are increasingly being used in commercial buildings because they require less maintenance than gas water heaters and may be installed more adaptably into existing infrastructure.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to due to factors like the accelerating use of renewable energy and energy-efficient products, growing investments in the commercial sectors in the region's major economies, rapid economic development in nations like China and India, the strong influence of globally known market players in the region, and it is also influenced by rising urbanisation, ongoing expenditures in the infrastructure sector, and a growing reliance on clean energy sources to reduce pollution.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to factors including the rising demand for efficient and dependable water heaters from a wide range of business and industrial end-users, the rising need for heated water to satisfy the necessary environmental conditions due to the region's extreme cold weather, and the increasingly strict environmental norms towards reducing carbohydrate consumption.



Key players in the market

Some of the key players profiled in the Commercial Water Heaters Market include American Water Heaters, Johnson Controls, Mitsubishi Electric, Daikin, Hitachi Air Conditioning, Robert Bosch LLC, Whirlpool Corporation, Bajaj Electricals Ltd, Bradford, Danfoss and A.O. Smith Corporation.

Key Developments:

In October 2021, A. O. Smith Corporation, a leading provider of water technology, announced that it had acquired Giant Factories, Inc, a Canadian company that makes residential and commercial water heaters, for approximately USD192 million.

In July 2020, Bradford White announced the launch of a new feature within the American-made line of eF120 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 April 2020, Danfoss opened a new online digital design and innovation center that provides users with all relevant design tools, building information modeling (BIM) tools, drawings, and product information and knowledge through a self-service based easy-to-access method.

Storage Capacities Covered:
• >400 Liters
• 100-250 Liters
• 250-400 Liters
• <30 Liters
• 30-100 Liters
• <500 Liters
• Other Storage Capacities

Product Types Covered:
• Storage
• Instant

Energy Storages Covered:
• Gas
• Electric
• Other Energy Storages

Technologies Covered:
• Heat Pump
• Bio-fuel & Solid Fuel-Fired
• Gas
• Oil
• Hybrid
• Solar
• Other Technologies

Applications Covered:
• Commercial
• Offices
• Government/Military
• College/University
• Residential
• Other Applications

Rated Capacities Covered:
• Above 300kW
• 150 -300kW
• 50- 150kW
• 10- 50kW
• Up to 10kW
• Other Rated Capacities

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Technology Analysis
3.8 Application Analysis
3.9 Emerging Markets
3.10 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Commercial Water Heaters Market, By Storage Capacity
5.1 Introduction
5.2 >400 Liters
5.3 100-250 Liters
5.4 250-400 Liters
5.5 <30 Liters
5.6 30-100 Liters
5.7 <500 Liters
5.8 Other Storage Capacities

6 Global Commercial Water Heaters Market, By Product Type
6.1 Introduction
6.2 Storage
6.3 Instant

7 Global Commercial Water Heaters Market, By Energy Storage
7.1 Introduction
7.2 Gas
7.2.1 Natural Gas
7.2.2 LPG
7.3 Electric
7.4 Other Energy Storages

8 Global Commercial Water Heaters Market, By Technology
8.1 Introduction
8.2 Heat Pump
8.3 Bio-fuel & Solid Fuel-Fired
8.4 Gas
8.5 Oil
8.6 Hybrid
8.7 Solar
8.8 Other Technologies

9 Global Commercial Water Heaters Market, By Application
9.1 Introduction
9.2 Commercial
9.3 Offices
9.4 Government/Military
9.5 College/University
9.6 Residential
9.7 Other Applications

10 Global Commercial Water Heaters Market, By Rated Capacity
10.1 Introduction
10.2 Above 300kW
10.3 150 -300kW
10.4 50- 150kW
10.5 10- 50kW
10.6 Up to 10kW
10.7 Other Rated Capacities

11 Global Commercial Water Heaters Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa

12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies

13 Company Profiling
13.1 American Water Heaters
13.2 Johnson Controls
13.3 Mitsubishi Electric
13.4 Daikin
13.5 Hitachi Air Conditioning
13.6 Robert Bosch LLC
13.7 Whirlpool Corporation
13.8 Bajaj Electricals Ltd
13.9 Bradford
13.10 Danfoss
13.11 A.O. Smith Corporation

List of Tables
1 Global Commercial Water Heaters Market Outlook, By Region (2020-2028) ($MN)
2 Global Commercial Water Heaters Market Outlook, By Storage Capacity (2020-2028) ($MN)
3 Global Commercial Water Heaters Market Outlook, By >400 Liters (2020-2028) ($MN)
4 Global Commercial Water Heaters Market Outlook, By 100-250 Liters (2020-2028) ($MN)
5 Global Commercial Water Heaters Market Outlook, By 250-400 Liters (2020-2028) ($MN)
6 Global Commercial Water Heaters Market Outlook, By <30 Liters (2020-2028) ($MN)
7 Global Commercial Water Heaters Market Outlook, By 30-100 Liters (2020-2028) ($MN)
8 Global Commercial Water Heaters Market Outlook, By <500 Liters (2020-2028) ($MN)
9 Global Commercial Water Heaters Market Outlook, By Other Storage Capacities (2020-2028) ($MN)
10 Global Commercial Water Heaters Market Outlook, By Product Type (2020-2028) ($MN)
11 Global Commercial Water Heaters Market Outlook, By Storage (2020-2028) ($MN)
12 Global Commercial Water Heaters Market Outlook, By Instant (2020-2028) ($MN)
13 Global Commercial Water Heaters Market Outlook, By Energy Storage (2020-2028) ($MN)
14 Global Commercial Water Heaters Market Outlook, By Gas (2020-2028) ($MN)
15 Global Commercial Water Heaters Market Outlook, By Natural Gas (2020-2028) ($MN)
16 Global Commercial Water Heaters Market Outlook, By LPG (2020-2028) ($MN)
17 Global Commercial Water Heaters Market Outlook, By Electric (2020-2028) ($MN)
18 Global Commercial Water Heaters Market Outlook, By Other Energy Storages (2020-2028) ($MN)
19 Global Commercial Water Heaters Market Outlook, By Technology (2020-2028) ($MN)
20 Global Commercial Water Heaters Market Outlook, By Heat Pump (2020-2028) ($MN)
21 Global Commercial Water Heaters Market Outlook, By Bio-fuel & Solid Fuel-Fired (2020-2028) ($MN)
22 Global Commercial Water Heaters Market Outlook, By Gas (2020-2028) ($MN)
23 Global Commercial Water Heaters Market Outlook, By Oil (2020-2028) ($MN)
24 Global Commercial Water Heaters Market Outlook, By Hybrid (2020-2028) ($MN)
25 Global Commercial Water Heaters Market Outlook, By Solar (2020-2028) ($MN)
26 Global Commercial Water Heaters Market Outlook, By Other Technologies (2020-2028) ($MN)
27 Global Commercial Water Heaters Market Outlook, By Application (2020-2028) ($MN)
28 Global Commercial Water Heaters Market Outlook, By Commercial (2020-2028) ($MN)
29 Global Commercial Water Heaters Market Outlook, By Offices (2020-2028) ($MN)
30 Global Commercial Water Heaters Market Outlook, By Government/Military (2020-2028) ($MN)
31 Global Commercial Water Heaters Market Outlook, By College/University (2020-2028) ($MN)
32 Global Commercial Water Heaters Market Outlook, By Residential (2020-2028) ($MN)
33 Global Commercial Water Heaters Market Outlook, By Other Applications (2020-2028) ($MN)
34 Global Commercial Water Heaters Market Outlook, By Rated Capacity (2020-2028) ($MN)
35 Global Commercial Water Heaters Market Outlook, By Above 300kW (2020-2028) ($MN)
36 Global Commercial Water Heaters Market Outlook, By 150 -300kW (2020-2028) ($MN)
37 Global Commercial Water Heaters Market Outlook, By 50- 150kW (2020-2028) ($MN)
38 Global Commercial Water Heaters Market Outlook, By 10- 50kW (2020-2028) ($MN)
39 Global Commercial Water Heaters Market Outlook, By Up to 10kW (2020-2028) ($MN)
40 Global Commercial Water Heaters Market Outlook, By Other Rated Capacities (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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