The Global Commercial Water Heater Market was worth US$ 5.8 billion in 2022 and is anticipated to reach a valuation of US$ 8.24 billion by 2028 and is predicted to register a CAGR of 6.30% during 2023-2028.
As a result of the aggregative energy crisis, a number of important actors are focused on creating efficient heater technologies and utilizing renewable energy sources to regulate energy usage and mitigate the severity of the situation. Furthermore, the increasing demand for energy-efficient heaters for commercial applications is driving demand for these heaters all over the world. In addition, the increased demand for hot water in hospitals, hotels, and restaurants is propelling the industry forward.
The COVID-19 pandemic has had a significant impact on market growth. The crisis that has resulted from the worldwide infection problem explosion has put every country in an unprecedented scenario. Factors such as restrictions on exporting items, disruptions in manufacturing and supply arrangements, and government-mandated shutdowns have all had a negative impact on the market's operation.
Market Growth:
The commercial water heater market is influenced by expanding consumer awareness of smart and advanced products, as well as the growing demand for on-demand heating systems in shopping malls, hospitals, airports, and hotels, among other places.
Market Drivers:
The demand for hot water in commercial buildings is closely related to the total energy consumption of the building. Offices, hospitals, hotels, motels, commercial laundries, buildings with industrial processes, and other buildings such as dormitories or other high-density housing facilities that use storage waters that use gas, oil, or electricity as a fuel have the highest demand for hot water in commercial buildings. The rising demand for hot water, particularly in the hospitality, entertainment, travel, and tourism industries, has sparked a surge in interest in heating appliances, prompting a slew of initiatives to boost heater installation and open up new market prospects.
In buildings and complexes, electrification entails end users substituting electric technology for water heating. In addition, some commercial end applications, such as solar heaters, are partially electrified. These hybrid-heat commercial heating systems can automatically switch fuels based on price and availability, making this business closely linked to energy consumption and CO2 emissions. As a result, the development and widespread use of highly efficient water heaters has sparked the development and widespread use of highly efficient water heaters to significantly reduce the impact on the environment.
Market Restraints:
When installing a water heating system, it must always meet the minimum applicable mechanical, plumbing, electrical, and other codes in order to achieve the projected efficiency rate and calculate the total lifetime cost, which includes the unit's initial cost and running cost, and replacement cost. Commercial water heater deployment is hampered by high upfront operating costs, which are exacerbated by increased repair and replacement costs. The water heater's operating cost is mostly influenced by its location, especially if the unit is inadequately insulated. Furthermore, the heater with the lowest price tag has the highest operational and maintenance expenditures during its lifetime.
Market Recent Developments:
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
6.30% |
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Segments Covered |
By Storage Capacity, Power Rating, Fuel Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
A.O. Smith, Rinnai Corporation, Rheem Manufacturing, Ariston Thermo Spa, Racold, Midea Group, Nibe Corporation, Nortiz Corporation, Hubbell, Valliant, and Others. |
Market Segmentation:
The market is likely to be dominated by the 0 to 10 kW power capacity segment, which is typically employed where heater storage capacities vary from 30-100 liters. These heaters typically have a power output of 10 to 50 kW and a storage capacity of 50 to 500 liters, and they are utilized in business offices, cafes, restaurants, and other applications.
Electric fuel heaters use electricity to heat the heating element, which then transfers the heat to the water inside. Electric units are widely available and are the most common in the business sector in the United States.
Based on End Users, the construction industry is predicted to grow at the fastest rate of 2.7 percent. Utility construction refers to public and private construction projects such as private housing, office building, infrastructure, and retail construction, which account for the majority of the construction industry's market share. In the near future, the overall market growth for Commercial Water Heaters in the construction sector is predicted to expand by 7.2 percent.
Market Regional Analysis:
The Global Commercial Water Heater Market Report includes the segmentation of regions:
Because of higher water heating use and different sustainable attempts from key companies to supply energy-efficient products, North America is likely to dominate the market segment. Storage tank-type heaters are widely used in commercial applications. Various significant actors, on the other hand, advocate for the conversion of tankless heaters to more energy-efficient heaters.
Due to its greatest level of heat efficiency, the hybrid heater segment is driving the zero-emission carbon movement in Europe, which is strengthening the market across the area. Furthermore, as various countries leave natural gas-based systems in favor of a more efficient and perfect option based on renewable energy, demand for hybrid-type heaters is likely to rise. Furthermore, significant firms' acquisition programs have bolstered the market presence in Europe.
Because of its compact design and partial development of additional units, the product has a significant market share in the Asia Pacific. The development of gas pipelines and the growing need for highly efficient and high-capacity commercial heaters in China, on the other hand, are likely to extend the use of gas-type commercial heaters across the country.
Due to electricity shortages, Brazil spearheaded the spread of gas heaters throughout Latin America. Furthermore, renewable heating technologies, particularly solar water heating, are maturing and, in an increasing number of nations, are cost-competitive with fossil-fuel-based heat.
Commercial solar heaters have reduced electricity consumption and infrastructure costs for a variety of large-scale industries in the Middle East and Africa.
Market Key Players:
Frequently Asked Questions
The rising demand for hot water, particularly in the hospitality, entertainment, travel, and tourism industries, has sparked a surge in interest in heating appliances.
The electric fuel heaters are expected to dominate the Global Commercial Water Heater Market.
Commercial water heater deployment is hampered by high upfront operating costs, which are exacerbated by increased repair and replacement costs.
North America is likely to dominate the worldwide Commercial Water Heaters market.
Expanding consumer awareness of smart and advanced products, as well as the growing demand for on-demand heating systems.
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