The commercial water heater market is expected to witness robust growth by 2028 owing to mounting consumer demand in key regions across the globe. In addition, prevalent need for energy-efficient water heaters for commercial utilization is anticipated to drive market growth through the forecast timeline.

Recently, industry players have been focusing on product development to monetize emerging trends, thereby fostering business outlook. For instance, in March 2021, Lochinvar, a company providing water heating solutions owned by market leader A. O. Smith, expanded its range of ARMOR condensing water heaters. The line of water heaters has a unique water tube design that minimizes heat loss and offers superior performance in large commercial applications like universities, hotels, and hospitals.

The commercial water heater market has been categorized on the basis of product, capacity, energy source, application, and region. Based on product, the market has been divided into instant and storage.

The storage sub-segment is estimated to reach a sizable valuation by the end of 2028, progressing at a steady CAGR through the assessment timeframe. Increasing availability in several capacities, coupled with rising consumer awareness pertaining to smart & efficient systems, is likely to augment segmental demand in the coming years.

In terms of capacity, the market has been segregated into below 30 liters, 100-250 liters, 30-100 liters, 250-400 liters, and above 400 liters. The 30-100 liters sub-segment held over 15% revenue share in the market in 2021 and is projected to see substantial growth through the analysis time period.

The above 400 liters sub-segment is anticipated to observe solid growth, expanding at a notable CAGR over the study timeline. Surging investments towards the development of large houses and villas are slated to facilitate segmental adoption over the forthcoming years.

From the application perspective, the market has been bifurcated into college/university, government/military, offices, and others. The college/university sub-segment is calculated to grow at a stable pace to reach a substantial valuation by the end of the 2028. Growing need for savings in electricity bills, coupled with ongoing initiatives to replace conventional water heaters, is slated to bolster product uptake in college/university applications.

With respect to energy source, the market has been segmented into gas and electric. The gas sub-segment is foreseen to account for more than 32% revenue share in 2028, progressing at a significant CAGR over the review period.

By region, the commercial water heater market spans the geographies of North America, Eurasia, Europe, CIS, LATAM, Asia Pacific, and Middle East & Africa. The Europe commercial water heater market holds a considerable share in the overall industry revenue and is slated to amass profitable gains by 2028. France is speculated to surpass a valuation of USD 52 million, expanding at a solid pace over 2021-2028, which is set to boost regional market growth in the following years.

The Asia Pacific commercial water heater market is projected to register strong growth over the forecast period. Indonesia is estimated to attain approximately 4% revenue share in the regional market by 2028.