North America Commercial Heat Pump Water Heater Market – By Capacity, By Temperature, By Application and Forecast, 2025 – 2034

North America Commercial Heat Pump Water Heater Market Size

The North America commercial heat pump water heater market was valued at USD 549.3 million in 2024 and is estimated to grow at a CAGR of 11.3% from 2025 to 2034. The continued deployment and adoption of clean energy systems with a low carbon footprint to reduce environmental harm will drive the widespread use of these systems. For instance, the investments toward the development of commercial spaces witnesses a growth of about 2% in 2023 across Canada.
 

A heat pump water heater is a type of water heater that uses a heat pump to transfer heat from the surrounding air or ground to heat water for domestic use, rather than directly generating heat like traditional electric or gas water heaters. This process relies on heat transfer principles for efficiency. Increasing concerns about the environmental impact of greenhouse gas emissions have driven the shift toward the adoption of clean and sustainable energy system, accelerating the business potential.
 

North America Commercial Heat Pump Water Heater Market Trends

The heat pump water heater market will see consistent growth owing to the rising demand for clean energy sources driven by regional commitments to renewable deployment goals. Governments have introduced supportive policies including financial assistance, renewable heat incentives, tax credits and subsidies, to promote the integration of clean energy. Furthermore, the enactment of major policies supporting the adoption of renewable technologies is set to drive the industry prospects.
 

North America Commercial Heat Pump Water Heater Market Analysis

The > 100 - ≤ 200 gallons capacity of commercial heat pump water heater market will exceed USD 550 million by 2034. These systems are set to observe significant adoption owing to the rapid growth of multi-family apartments, educational institutions, and hotels. Additionally, increased financial support from national governments to reduce reliance on fossil fuels and replace traditional heating systems will benefit the industry scenario. The rising installation of advanced units to meet high water demand in commercial facilities will further boost the product demand.
 

The ≤ 140°F temperature of commercial heat pump water heater market is anticipated to grow at a CAGR of over 11.5% till 2034. The industry will gain an appreciable momentum on account of increasing consumer interest in sustainable and eco-friendly technologies along with stronger government efforts to curb carbon emissions. The shift toward energy-efficient solutions aimed at reducing operating costs and environmental impact will positively influence the industry. In addition, these systems provide key advantages including remote monitoring, mobile app control and integration with automation systems, offering users enhanced control, convenience and the potential for energy savings, accelerating the product deployment.
 

The office heat pump water heater market will witness an upsurge on account of increasing replacement of traditional heating systems and government initiatives promoting energy-efficient systems. These technologies are gaining popularity as both primary and secondary heating solutions in regions with mild to colder climates. Additionally, factors such as cold weather conditions, strict building energy efficiency standards, and financial support programs including subsidies, tax incentives, and low-interest loans from federal and state regulatory bodies are set to further drive the growth of the industry.
 

The U.S. commercial heat pump water heater market is set to surpass USD 1.2 billion by 2034. The industry is set for significant growth driven by a positive outlook on low carbon alternatives and supportive regulatory policies for heat pump systems. Additionally, the rapid transition to low-carbon technologies, strict emissions regulations, stringent building energy efficiency standards and shifting consumer preferences bolstered by appealing financial incentives will further stimulate the industry growth.
 

North America Commercial Heat Pump Water Heater Market Share

The manufacturers in the market adopt several key strategies to stay competitive and meet the growing demand for energy-efficient water heating solutions. These include leveraging advanced technologies including variable-speed compressors and smart control systems, to enhance energy efficiency and performance. Additionally, the companies emphasize sustainability by incorporating eco-friendly refrigerants and adhering to stringent regulatory standards, including Energy Star certifications. 
 

North America Commercial Heat Pump Water Heater Market Companies

Major players operating in the North America commercial heat pump water heater industry are:

• A.O. Smith
• American Water Heaters
• Ariston Holding
• Bradford White Corporation
• Colmac Industries
• Daikin Industries
• Hubbell Heaters
• INTELLIHOT
• LG Electronics
• Lochinvar
• Lync
• Nyle Systems
• Panasonic Holdings Corporation
• Rheem Manufacturing Company
• Trane
   

North America Commercial Heat Pump Water Heater Industry News

• In November 2024, A.O. Smith introduced the EMERGE-i heat pump water heater (HPWH) to offer enhanced efficiency and cost savings for light-duty commercial applications. It has a 3.88 Uniform Energy Factor (UEF) and EMERGE-i system helps reduce annual energy costs affordable for building owners. The unit operates at a whisper-quiet 45 dBA and features integrated ducting adapters for easy installation in smaller spaces. Its zero-clearance design, top and back water connections.
   
• In August 2023, Lochinvar has launched the Veritus Air Source HPWH, featuring cutting-edge components such as fans, ECM pumps, and a scroll compressor, all meticulously engineered to optimize heat transfer efficiency and minimize emissions. Its sleek design and adaptable structure make it perfect for a wide range of sectors, including fitness centers, healthcare facilities, multi-unit housing, and other commercial establishments. This high-efficiency heat pump water heater technology emphasizes its pivotal role and value in the modern business landscape.
   

The North America commercial heat pump water heater market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in (Units) & revenue in (USD Million) from 2021 to 2034, for the following segments:

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Market, By Capacity

• ≤ 50 gallons
• > 50 - ≤ 100 gallons
• > 100 - ≤ 200 gallons
• > 200 - ≤ 500 gallons
• > 500 gallons

Market, By Temperature

• ≤ 140°F
• > 140°F - 160°F
• > 160°F - 180°F
• > 180°F

Market, By Application

• Multi-family apartments
• Offices
• Warehouse & storage
• Retail
• Education
• Lodgings
• Public assembly
• Healthcare
• Others

The above information has been provided for the following countries:

• U.S.
• Canada