Abstract
Demand for Water Heating Equipment Boils Over with Emergence of New
Technologies
The water heating equipment market is poised for a new wave of growth as
consumers adopt the most recent technologies that provide more heated water than
conventional equipment. Modern technology products such as tankless water
heaters and gas boilers are being put into service by various sections of the
market. Even developed products have fine-tuned burner metallurgy, ignition,
spent gas exhaust, and insulation to scale a higher level of efficiency. From
radiant and hydronic heating to in-door whirlpools, the market is witnessing an
upsurge in demand for hot, potable water.
This Frost & Sullivan research examines the U.S. Water Heating Equipment
Markets. It offers revenue forecasts by market segments and covers key drivers
and restraints affecting market growth. It also provides strategic
recommendations so that manufacturers might prepare for the next significant
change in consumers' need for water heating equipment. This market is segmented
into three primary sectors: standard tank-type, emerging tankless, and
copper-finned boilers.
Replacement Drives the Residential Water Heating Equipment Market
Replacement is by far the largest revenue earner in the residential and
commercial water heater segments, outdoing new installments in current or latest
constructions. "The typical replacement habits of substituting unit A with
another unit A are likely to prevail," notes the analyst. This is the
fastest, easiest, and most economical solution for replacing old tanks. Rough
usage, such as refilling an empty hot home tank with cold water, stress it and
cause failure. Hard water, high temperatures, and very frequent refilling cycles
also accelerate deterioration of tank parts.
Due to the increasing awareness of good living, luxury technologies with
collateral positive health benefits such as hydronic home heating are gaining
popularity. These products require significantly more hot water than the average
tank-type home water heater produces. Houses are also increasing in size, with
bathrooms offering whirlpool baths and multiple shower nozzles within a single
shower enclosure. These gradually evolving consumer demands are pressuring
traditional tank manufacturers to provide water heaters that increase the
quantity of hot water supply while being cost effective.
New Market Interest in Old Technology Holds Water
After dominating the European and Asian markets for decades as the standard
water heating system, tankless water heaters have caught the fancy of American
consumers with its assurance of continuous supply of hot water. Instantaneous
water heating equipment, demand water heater or tankless, regardless of what it
is called, is available in every major consumer retail center. These heaters
also come with long warranties, although they do not usually cover the expensive
electronic parts beyond 12 months. If consumers look beyond the high initial
cost of purchase and installation, tankless systems could make incursions into
the tank-type heaters market.
Also potentially entering a golden age is boiler technology. These systems
have come a long way since the 1800s and can easily, efficiently, and reliably
heat all the water that an American household might need, including other fluids
for hydronic heating. The water heater market grows slowly but surely. If the
few major participants in this market adapt to the trends, they could last for a
very long time. "Stability, consistency, and quality are the three legs
which keep the market stable," states the analyst.
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