Commercial Heat Pump Water Heater Market Expected to Reach $608.5 Million by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Commercial Heat Pump Water Heater Market," The commercial heat pump water heater market was valued at $299.4 million in 2022, and is estimated to reach $608.5 million by 2032, growing at a CAGR of 7.4% from 2023 to 2032.

heat pump water heater uses energy-efficient technology to heat water for various commercial applications. It operates on the same principles as a heat pump used for space heating & cooling but is specifically configured to heat water. Further, owing to economic growth in emerging markets, the demand for commercial heat pump water heater size is anticipated to witness growth during the forecast period.   

In addition, rise in need for sustainable technologies from the commercial sector will bolster the product requirement. The majority of governments around the globe are implementing various policies and schemes to promote the distribution of clean technologies in the commercial sectors, and improving the technology perception. Furthermore, the 500L-1000L segment is anticipated to register a CAGR of 5.0% over the commercial heat pump water heater forecast period owing to rapid urbanization and rise in demand for commercial space.

Increase in construction activities during the forecast period is expected to contribute to the Europe commercial heat pump water heater market growth. Moreover, stringent emission norms & regulations will compel constructors to install energy-efficient and renewable technologies, which is anticipated to stimulate the commercial heat pump water heater market demand.   

Air source heat pump water heater is expected to dominate commercial heat pump water heater market during forecast period owing to the need for energy-efficient and environmentally friendly water heating solutions in various industries. In addition, owing to rise in hospitality, restaurants, healthcare, agriculture, retail and commercial buildings, recreation and sports facilities further drives the demand for air source heat pump water heater.

Furthermore, the market for storage capacity of less than 10 kW is a significant growing segment within the commercial heat pump water heater industry. Moreover, presence of multiple manufacturers offers heat pump water heater with different capacity range. In addition, heat pump water heaters with a capacity exceeding 10 kW play a significant role in the commercial heat pump water heater market and serves larger-scale applications such as hotels, restaurants, industrial facilities, and other commercial enterprises. 

The commercial heat pump water heater market is expected to be driven by factors such as the promising growth of the construction industries. Furthermore, increase in disposable incomes of individuals across the globe is projected to encourage the uptake of a variety of commercial heat pump water heater during the forecast period. In addition, factors such as rise in inclination of consumers toward energy-efficient systems and increase in popularity of air source heat pump water heater positively impact the commercial heat pump water heater market growth.

According to the Economic Outlook for Southeast Asia, China and India 2023 the economic growth of China, India, and Southeast Asia expanded by more than 65% in 2021. ASEAN countries are exhibiting higher growth commercial heat pump water heater market opportunities. Indonesia, the Philippines, Malaysia, Vietnam, and Thailand are expected to add more than 50 million new consumers to the category of middle-class by 2020, thereby adding over $350 billion disposable income.  

Rise in population positively influencing the commercial constructions is expected to increase demand for commercial heat pump water heater market. For instance, rise in population in Gulf countries is anticipated to contribute significantly to construction spending in GCC countries. This is likely to propel growth in construction activities in the infrastructure & building sector, particularly education, housing, and healthcare infrastructure, to support communities.

Owing to rise in commercial heat pump water heater market trends such as demand for smart and connected features, hybrid systems, advancement in refrigerant and compressor technology further drives the commercial heat pump water heater market. The commercial heat pump water heater market expands into new application areas, such as data centres, and other commercial settings owing to significant demand for hot water. Asia-Pacific is expected to be the largest as well as the fastest growing region in the commercial heat pump water heater market during the forecast period. 

Furthermore, factors driving the growth of the commercial heat pump water heater market include the energy efficient technology along with the usage of non-conventional sources of energy to heat the water. In addition, supportive regulations and grants for using renewable sources of energy in different applications are expected to play a key role in the growth of commercial heat pump water heater market during the forecast period.    

The commercial heat pump water heater market is segmented on the basis of type, storage, capacity, refrigerant type, and region. On the basis of type, it is bifurcated into air source and geothermal. As per storage, it is divided into upto 500L, 500L-1000L, and above 1000L. Depending on capacity, it is bifurcated into less than 10kW and more than 10kW. According to refrigerant type, it is classified into R410A, R407C, and R744.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. In 2023, Asia-Pacific accounts for the largest commercial heat pump water heater market share, followed by Europe and North America.

The report provides a detailed commercial heat pump water heater market analysis of these key players. The major companies profiled in this report include Ingersoll Rand, Mitsubishi Electric, Midea Group Co., Ltd., Viessmann Group, A.O. Smith Corporation, Bosch Industries, NIBE Energy Systems, Valliant Group, Rheem Manufacturing Company, Inc., and Daikin Industries, Ltd. Further, key strategies adopted by potential market leaders to facilitate effective planning have been discussed under commercial heat pump water heater market scope in this report.    

Key Findings Of The Study : 

• On the basis of type, the air source segment accounts for more than four-fifths of the market share, in terms of revenue, in 2022.  

• On the basis of storage, the 500‒1,000 L segment accounts for more than half of the market share, in terms of revenue, in 2022.  

• On the basis of capacity, the above 10 kW segment accounts for more than three-fourths of the market share, in terms of revenue, in 2022.  

• On the basis of refrigerant, the R410A segments accounts for more than two-fifths of the market share, in terms of revenue, in 2022. 

• Region-wise, Asia-Pacific accounts for nearly two-fifths of the market share, in terms of revenue, in 2022.