Technology marches on and for those of us working every day to bring the best DHW solutions to the market, global and national trends will inevitably drive the adoption of new techniques and new technologies that mostly help, but sometimes hurt us.
Digital and IOT based improvements to the tech surrounding DHW abound in 2020 and conversations around the “resident experience” are now common, though studies show that a desire for positive resident experiences has not become a core technology competency for the vast majority of building managers. For DHW used in hotels, apartments, and office buildings, upgrades and conversions continue to be a major source of industry growth despite this, as operators recognize the need for more efficient systems, and the impact of upgrades on bottom line operating costs.
Focus on the Commercial Domestic Hot Water Market
The U.S. commercial water heater market revenue is poised to cross USD 670 Million by 2026, as reported in the latest study by Global Market Insights, Inc. Increasing demand for water heating along with growing installation of various central water heating systems will encourage product deployment across the US in the next five years.
Some of the key growth drivers for DHW in the US are related to continued design for increases in efficiency of both boilers, and overall system operation.
Government investment toward establishment of energy efficient buildings coupled with rapid expansion of infrastructure have stimulated a considerable growth across the U.S. commercial water heater industry. The growing population and ongoing migration across suburban areas have led to a considerable increase in the product demand. Rapid commercial expansion coupled with urbanization has further instituted a favorable business scenario, though the impact of COVID-19 related economic effects are not fully comprehended in this study and may change the outlook for the better or worse.
Tank based water heater solutions prevail in the DHW market, however commercial tankless solutions continue to grow despite concerns over legionella safety and their relatively larger upfront costs. For more information see this discussion on tankless water heater safety.
Water heater usage across commercial applications has witnessed a substantial growth in the 30 – 100 liters capacity water heaters segment owing to rising hot water requirements primarily across hospitals, hotels and shopping complexes. Easy installations along with multiple control options will make the product more demanding during the forecast period. Replacement of conventional systems with advanced models and DHW control systems, will further accelerate business growth.
Thoughts on US Domestic Hot Water market for 2020 and beyond
While most research prior to 2020 showed a period of continuing growth into 2026, the effect of the pandemic on US market growth remains unclear. The general market for capital investment including wholesale HVAC upgrades has diminished, however increased urgency around reducing energy costs and upgrading infrastructure is an offsetting dynamic. Retrofit will become even more popular than replace.
Heat-Timer® feels well positioned for these changing market dynamics given that our products almost wholly reside in the energy efficiency space and can be retrofitted easily to existing buildings through use of wireless and mobile connectivity built into our Platinum series products. In a market that may be retracting slightly due to the pandemic, our product offering is ideally positioned to allow energy managers to move ahead with efficiency and energy goals, with minimal up-front or ongoing investment.
For more information, visit our website at https://heat-timer.com