Global Commercial Water Heater Market - 2022-2029
The global commercial water heater market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Commercial water heaters are oil, gas or electric-fired devices used to heat water for commercial applications. The most common types are demand water heaters and storage water heaters. Commercial water heaters should be effective, for their function is essential to hotels, restaurants and other business establishments. Manufacturers need to check for corrosion, resistance to dust and venting and thermal efficiency. In addition, government regulations require the equipment to be energy efficient.
On-demand, heaters provide water without a storage tank. An on-demand water heater uses a heat source to heat the water and reduces energy consumption by stopping the standby losses caused by unused hot water in a tank. A tankless water heater delivers hot water by activating its heating device with water flow. Depending on their capacity, water heaters consume between 1000 and 6000 watts.
The global commercial water heater market is expected to increase demand for remote monitoring capabilities and energy-efficient systems.
Increasing demand for remote monitoring capabilities and energy-efficient systems
Today's two key trends impacting the commercial water heater market are remote monitoring capabilities, often called building management systems (BMS) and the shift to high-efficiency products. Many businesses with a building management system enjoy remote monitoring to control various appliances or equipment. Modulation and BMS are rapidly becoming the standard. For industries that have a high demand for hot water, such as hospitality, education and health care, the improved fuel utilization and efficiency provided by modulation can make a significant difference in a small amount of time. BMS capability integrates a water heater into an automated system that monitors electrical, security, communications and other systems. Building and facilities teams within a BMS network can remotely monitor essential functions and efficiently manage maintenance and repairs.
In 2020, Bradford White Water Heaters launched a new feature within the line of eF120 series commercial gas water heaters. The eF120 product line incorporates BMS and modulation technology for remote monitoring and increased fuel efficiency. The eF120 series modulation allows users to check burner output to variations in heating demand. Using sensors, variable speed blowers, electronic controls and algorithms, the heater keeps a higher constant temperature to respond quickly and efficiently to water draw.
As building standards increasingly focus on efficiency and consumer awareness of the benefits of energy-efficient products, high-efficiency water heaters continue to gain traction in the market. When comparing the energy efficiency of a typical efficiency gas water heater to a high-efficiency gas unit, the difference can vary from 10% to 17%. As the market drives toward these higher efficiency products, it requires more sophisticated combustion systems, refined heat exchanger designs and expanding the breadth of water heaters available to meet the needs of various commercial applications.
Impact of mineral deposits accumulation on the device efficiency
Hard water deposits minerals in the tank and the electrodes of the heating equipment. Silicate and sulfates coat the bottom of the tank, which interrupts the heater's normal operation. In gas and electric water heaters, calcium deposits form near the heating elements, making them operate extra hard and may cause them to burn out. As a result, the wastewater runs it to get it hot and the water heater ages prematurely as it works less efficiently. Significant accumulation of minerals and scale can increase the noise, reduce the water quantity heated and shorten the system's lifespan.
Regular water flushing from the tank reduces scale accumulation. However, commercial water heater manufacturers now offer an anti-scale feature for their devices. The feature works by decreasing minerals in hard water into harmless crystals. Reducing scaling feature that is not generally available for residential use. However, commercial devices require extra help due to the heavy-duty work. Some 100-gallon commercial water heaters have a glass lining at the bottom to prevent corrosion.
COVID-19 Impact Analysis
The beginning of the COVID stay-at-home protocols saw a drastic change in water usage. The shift in daytime water use almost overnight from commercial to largely residential. 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 32% from the previous year; commercial and industrial usage declined by 22%. While some sectors saw substantial decreases in commercial water use with empty office buildings and facilities, others saw steep increases. Even though numerous restaurants were operating at less capacity or takeout-only, increased hygiene and disinfection practices generated a huge jump in water use.
Hospitals have seen the most drastic gains in hot water usage throughout the pandemic for obvious reasons. Hot water is deemed an essential service for sanitization and hygiene purposes. In many countries, people working to provide emergency replacement and repairing water heaters have been classified as ''authorized'' or ''essential'' workers.
The global commercial water heater market is segmented based on type, fuel, rate capacity, end-user and region.
The growing usage of the storage water heaters due to their cost-effectiveness and easy maintenance will boost the market demand
Based on type, the global commercial water heater market is segmented into storage and on-demand water.
Tank systems have an insulated container that stores the water after heating. The main benefit of traditional tank water heaters is their easy installation. Most tank storage systems use natural gas as a fuel, which is more cost-effective for heating than electricity. Because these heaters are less complicated and have fewer parts, their maintenance is affordable and simpler. One of the main drawbacks of the traditional tank is that it usually needs to reheat the water.
In cold environments, it can support raising the temperature of the water, regardless of the current needs. The heaters also take time to heat water and need a significant amount of space. A tankless system is more suitable for your applications if the business requires a 100-gallon commercial water heater. A tankless system delivers 22% more energy-efficient than a traditional heater. For heating over 86 gallons of water, 8-14% of energy efficiency. Tankless systems are costly to repair and acquire. The vast majority of hotels operate conventional natural gas tank-storage water heaters. The tank-storage water heater stores water in a large storage tank until it’s needed.
Continuous government support and involvement in encouraging the use of energy-efficient water heaters in North America will influence the market growth
Businesses such as hotels, restaurants, schools, shopping malls, hospitals and offices tend to need commercial water heaters in the region. The Environmental Protection Agency recommends that schools minimize their water spending countrywide by substituting aging appliances with energy-efficient replacements. For instance, tankless water heaters feature 99% thermal efficiency. The sustainable appliances can convert nearly all the school's water heating bill into hot water, compared to the 65% thermal efficiency in traditional storage tanks. Schools can then maximize those savings using a point-of-use strategy for efficient water heating.
ENERGY STAR is a government-backed organization in the region that provides simple, credible information that consumers and businesses rely on to make decisions. ENERGY STAR has also set a performance requirement for commercial electric heat pump water heaters. The Federal Energy Management Program has calculated that the required ENERGY Star-certified commercial gas water heater saves money if priced not more than US$ 383 above the less efficient model. On an annual basis, an ENERGY STAR commercial water heater would be expected to save 10 MWh with emissions savings equivalent to withdrawing 1.5 cars from the road per year. If all commercial water heaters in the U.S. were ENERGY STAR certified, the energy cost savings would grow to nearly US$ 890 million and over 17 billion pounds of annual GHG would be prevented.
The global commercial water heater market is competitive with several local and global brands. Primary players in the market include Solahart Industries, O. Smith Corporation, RHEEM Manufacturing Company, Rinnai Corporation, Carrier Global, American Water Heaters, Valliant Group, Stiebel Eltron, Viessmann Group, NIBE Energy Systems, others. The players in the market are known to incorporate numerous market strategies to achieve growth in the global commercial water heater market; these include product launches, mergers, acquisitions and collaborations.
In 2020, A. O. Smith launched the Cyclone LV, a large commercial water heater that rounds out the industry-leading Cyclone range of high-efficiency gas products. The Cyclone modulating process can adjust the burner's firing rate to a specific demand, which gives a high efficient performance of up to 96% thermal efficiency while lowering operating costs.
Overview: Rinnai Corporation offers gas appliances, including tankless water heaters, a broad range of kitchen appliances and air and heating conditioning units. As the technology leader, Rinnai is the major gas appliance manufacturer in Japan and is the highest-selling brand of tankless gas water heaters in the U.S and Canada. Annual corporate revenues of the company, including its subsidiaries, are over US$ 3.2 billion.
CU199: The key components in the commercial water heater are manufactured for commercial requirements and manufactured by the company, ensuring maximum quality and reliability in commercial tankless water heating solutions.
Key Development: In 2021, Rinnai America Corporation announced the acquisition of Industrias MASS, a commercial water heater manufacturer in Mexico.
Why Purchase the Report?
To visualize the global commercial water heater market segmentation by type, fuel, rated capacity, end-user and region and understand key commercial assets and players.
Identify commercial opportunities in the global commercial water heater market by analyzing trends and co-development.
Excel data sheet with numerous commercial water heater market-level data points with four segments.
PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
Type mapping available as excel consists of key products of all the major market players
The global commercial water heater market report would provide approximately 69 tables, 68 figures and almost 204 pages.
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