Ask manufacturers what’s shaping their water heating products and the same words keep coming up: efficiency, flexibility, simplify, easier, serviceable, feedback. Water heater manufacturers are navigating a market shaped by two powerful forces: contractors who want equipment that’s simpler to install and service, and a regulatory landscape pushing hard toward electrification and higher efficiency.
To find out more, we sent out a questionnaire to manufacturers asking them about company innovations, market trends and industry challenges.
Manufacturers responding to this year’s survey include: A. O. Smith; AERCO, a Watts Brand; Chronomite Laboratories; Diversified Heat Transfer, Inc.; ECR International, Inc.; Essency; GE Appliances Air & Water Solutions; Lochinvar; Lync by Watts; Navien Inc.; PVI, a Watts Brand; Rinnai America Corp.; and Stiebel Eltron, Inc.
A. O. Smith
Matt Baranuk, Portfolio Director
A. O. Smith is focusing on making its commercial water heaters easier to install, service and specify as customers navigate changing efficiency requirements.
“Our goal is simple: reduce complexity while delivering dependable performance and long-term value,” Baranuk says.
For example, the company’s new Cyclone Flex water heater, “is designed to simplify installation, improve serviceability and give contractors and facility owners greater flexibility,” he adds.
While A. O. Smith has also expanded its portfolio of other high-efficiency commercial solutions, the work goes well beyond beefed-up product lines.
“Beyond products, we’ve invested in digital tools, training and customer support resources to make selection, installation, startup and service easier,” Baranuk says.
Much of the company’s actions comes straight from listening to contractors in the field.
“Customers consistently tell us they want products that are easier to install, simpler to service and more reliable throughout the life of the equipment,” Baranuk explains. “That feedback directly influences our development process.”
Besides helpful product benefits for a jobsite, Baranuk adds customers expect strong support from A. O. Smith along the way.
“Customers also value clear technical support and training resources, so we’ve expanded investments in education and service tools to support contractors in the field,” he says.
That two-way relationship, Baranuk says, is what makes the feedback loop work.
“By maintaining close relationships with distributors, contractors, engineers, and end-users,” he says, “we can turn real-world feedback into meaningful product improvements that solve practical challenges.”
Meanwhile, regulation remains another significant influence on A. O. Smith’s commercial market.
“While the Department of Energy’s regulatory timeline for the commercial ruling continues to evolve, we remain focused on helping customers prepare for future efficiency requirements,” Baranuk adds.
That means keeping all A. O. Smith’s channel partners in the loop, he says.
“We are also working closely with contractors, engineers, and distributors to help them understand changing requirements and make informed equipment decisions as the regulatory path continues to develop,” Baranuk explains.
AERCO, a Watts Brand
Mark Croce, Senior Product Manager
AERCO is expanding its commercial water heating portfolio around two themes customers increasingly need: First, higher capacity solutions that minimize footprint and simplify installation, and second, better visibility into system performance to make informed operational decisions.
“Our focus is helping them optimize the entire plant,” he adds, “not just individual pieces of equipment, while providing pathways to improve efficiency and reduce emissions.”
To that end, Croce says the company has expanded its Innovation water heater lineup with larger-capacity models and introduced high-flow SmartPlate EV indirect water heaters to meet demand for these higher-capacity systems, providing greater capacity without requiring multiple smaller units.
And to stay on top of overall performance, AERCO also continues to invest in controls and connectivity, including monitoring and management capabilities through sister Watts brand, Nexa. Croce says customers increasingly want more information about what their systems are doing rather than simply equipment that delivers a particular efficiency rating.
That shift is also reflected in customer feedback.
“Customers want more than efficiency,” Croce explains. “They want actionable information that helps them manage performance over the life of the system. That feedback continues to influence our investments in controls, connectivity and digital capabilities.”
The most significant regulations continue to be the DOE water heating efficiency requirements.
“While enforcement timelines have shifted,” Croce says, “the underlying regulations remain in place and are influencing equipment selections today. We’re helping customers evaluate the full range of options available to them, reviewing long-term and short-term considerations.”
He adds that the rules are having a secondary effect, beneficial to hydronics manufacturers: “We also see regulations accelerating interest in reducing carbon footprints, which has increased demand for indirect water heating solutions in facilities that already have available boiler capacity.”
Overall, AERCO’s job, Croce says, is “helping customers identify the most practical and efficient path for their specific application.”
Chronomite Laboratories
Edward Fabrizio, Vice President and General Manager
Chronomite Laboratories is addressing applications where a conventional 480V instantaneous water heater can provide more capacity than necessary.
“Typically, 480V instantaneous water heaters start at 20 kW,” Fabrizio says, “which is sometimes too large for the energy required on smaller tasks.”
Chronomite’s new R480 Series Mighty-Mite Instantaneous Water Heater uses 4.3 to 19.2 kW in a single heater module and is designed to provide rapid heat exchange while maintaining temperature within ±1 degree.
The smaller capacity range is particularly suited to applications such as hand lavatory sinks.
For example, a 1.0-gpm flow rate with a 49-degree temperature rise requires approximately 7 kW.
Chronomite’s R-27L/480 model is designed to meet that requirement in a compact package measuring 9-7/8 inches high by 10-5/8 inches wide by 4-1/4 inches deep.
“This allows the heater to be close to the fixture and reduces the water volume between heater and fixture providing rapid response compared to larger heaters mounted further away from the fixture,” Fabrizio explains.
Fabrizio says Chronomite has not been affected by upcoming regulations.
“All Chronomite Instantaneous Heaters with our compact heat exchanger design exceed the latest Department of Energy EF and UEF standards required for electric instantaneous water heaters,” he adds.
Diversified Heat Transfer Inc.
Christopher Bove, National Sales Manager
Diversified Heat Transfer has expanded its commercial water heating offerings with an emphasis on packaged solutions, higher capacity and faster recovery.
Bove cites the SPM Series indirect-fired water heater, which combines a high-efficiency double-wall heat exchanger, digital mixing valve and PID controls in a single package.
“Additionally, we expanded the standard SP Series plate and frame water heater capacity to 200 gpm,” Bove says. “And we expanded the ST Series semi-instantaneous water heater line with a High Output Double Wall option across all shell sizes in its ST Series, delivering greater capacity and faster recovery within the same footprint.”
Customer demand for packaged equipment was a primary driver behind designing and implementing the SPM Series.
“The SPM allows the customer to free up mechanical room space, reduces the amount of equipment needed, simplifies installation and maintenance, improvise accuracy and safety, as well as reducing the total cost to the owner,” Bove explains.
Bove adds that energy regulations and decarbonization mandates also influenced the SPM design in three ways.
“First, its compatibility with condensing boilers,” he explains. “The SPM was engineered to operate efficiently with low-temperature condensing systems to meet modern energy standards.”
Additionally, its instantaneous design eliminates storage tanks, significantly reducing standby energy losses and footprint penalties.
“Lastly, it features native BACnet/ModBus IP connectivity and data logging to satisfy strict building management and green certification tracking requirements,” Bove adds.
ECR International, Inc.
Bob Shea, Executive Director of Sales
ECR International, and in particular its brand Utica Boilers, markets an indirect water heater. As a result Shea outlined how the company is responding to multiple fuel requirements with an emphasis on flexibility.
“We have introduced biofuel-certified burners to our oil boiler products to cover the increasing demand for products that can perform well on multiple fuel requirements,” Shea says.
Customer feedback also continues to influence ECR’s approach to installation. The company says it looks for opportunities to provide flexible piping and venting options that can simplify installations and reduce labor hours.
“When ECR introduces new products, we seek to address unmet needs or offer unique benefits that will provide our customers flexible piping and venting options to simplify installations, limiting labor hours,” Shea adds.
Regulatory requirements are another reason flexibility has become important. Shea points to differences in biofuel requirements across the United States as a factor behind ECR’s decision to offer biofuel options on a range of products.
Essency
Scott Isaksen, National Sales Director
Essency is putting customer feedback at the center of its latest product and software updates.
“In the last 12 months, we’ve focused on product and software upgrades to simplify installs and reduce callbacks,” Isaksen says.
On the product side, Isaksen says the company introduced the smart-grid-ready EXR-D (Demand Response Model), developed for markets such as Washington, Oregon, Colorado and California with tougher energy requirements.
On the software side, Essency’s Pro App now provides real-time installation feedback, “letting our tech support team review photos in seconds and call our Pro League partners live to resolve wiring, recirc configuration, or expansion tank support concerns,” he adds.
Isaksen is forthright about where all these product development originate.
“That’s an easy one,” he explains. “Nearly every upgrade on our latest EXR came straight from Pro League Partners in the field. Installers told us what they needed for a better setup, and we built it.”
Specifically, Isaksen says Essency added a second set of side-grip handles for a true solo lift, redesigned the connection box for extra hand room, added a swing-door access panel, and “put the ‘Perfect Strip’ wire gauge in every box so installers can make a perfect electrical connection every time.”
Meanwhile, regulations also are driving product development. Essency describes the changing requirements as an opportunity to balance consumer choice with regional energy needs and efficiency goals.
“These regulations are a massive opportunity for us,” he says. “From the DOE to the Bay Area Air District, we’ll continue to balance consumer choice with regional needs and efficiency. We’re an innovation company leaning into renewables, so adapting to these changes is right up our alley.”
For example, in markets with fossil fuel restrictions or with strict demand-response requirements, the company’s CTA-2045-compliant EXR-D provides an available option. Essency also says it has plans to introduce a heat pump water heater based on its existing 30-year unpressurized polymer tank platform.
GE Appliances Air & Water Solutions
Dan Capelle, Director, Product Management
GE Appliances Air & Water Solutions is targeting the practical challenges associated with heat pump water heater adoption, namely installation flexibility, serviceability and electrical requirements.
Capelle, director of product management cites the company’s new GE Profile GEOSPRING Heat Pump Water Heater, “combining high efficiency and strong first-hour delivery with installer- and homeowner-focused features.”
The lineup includes FlexCAPACITY models with integrated electronic mixing valves, wireless leak detection with automatic shutoff, quiet operation as low as 41 dBA and low-global-warming-potential R-1234yf refrigerant.
“Its serviceable sealed design helps professionals repair the unit instead of replacing the entire water heater,” Capelle says.
In colder climates, he adds, “select models automatically increase compressor speed to support recovery and hot-water availability.”
Capelle says installers and homeowners alike are asking for HPWHs that are easier to install, repair and adapt to real-world replacement conditions.
“We also addressed emergency gas-to-electric replacements where 240V service may not be immediately available,” Capelle explains. “Select 120V models can plug into a standard 15-amp shared outlet for faster installation, then be converted to 240V when electrical service can be upgraded — allowing the same unit to deliver stronger performance without a second replacement.”
According to Capelle, regulatory changes are also accelerating the shift toward higher-efficiency, lower-impact water heating.
“Beginning May 6, 2029, new federal energy-conservation standards will require most electric storage water heaters above 35 gallons to achieve efficiency levels generally met with heat pump technology.”
Meanwhile, state refrigerant policies also are influencing product development.
“GE Appliances is well positioned for both shifts,” Capelle explains. “GEOSPRING expands our heat pump water heater portfolio and uses R-1234yf refrigerant, which has a GWP of 4 under the EPA’s current reference table.”
Lochinvar
Dustin Wiggins, Portfolio Director
Lochinvar recently entered the commercial tankless water heating market with its Regent platform, designed for applications with variable and high-volume hot water demand.
“Lochinvar is focused on practical innovation and meaningful technology that solves real application challenges for contractors, engineers, facility owners and channel partners,” Wiggins says. “It’s not just about adding features. The goal is to deliver better responsiveness, efficiency, usability and flexibility in commercial water heating applications.”
Wiggins says the Regent combines up to 97% thermal efficiency with a 25:1 turndown ratio, RealTime O2 Trim, an ultrasonic flow sensor, cascade capability, compact installation and SMART TOUCH controls.
That emphasis reflects the type of equipment PHCPPros increasingly need to navigate changing efficiency expectations, installation constraints and local decarbonization policies.
“Customers need practical innovation and solutions that excel in mechanical rooms, adapt to changing demand and simplify long-term planning,” he explains.
Regulation remains an important part of that planning. At the federal level, DOE commercial water heater standards remain a key influence, while enforcement flexibility through October 2027 adds to uncertainty in the short term.
In addition, local requirements also have a significant impact. Lochinvar points to New York City’s Local Law 97, which is driving building owners toward progressively lower emissions.
“As regulations evolve, we remain dedicated to supporting our customers through expert education, application guidance and transparent communication,” Wiggins says.
Lync by Watts
Jacob Bucklin, Product Manager
“Lync’s focus has been on improving how complete heat pump water heating systems operate,” Bucklin says.
For example, new firmware for the Aegis heat pump and Aegis Sequencer adds Tank Temperature Maintenance and Backup Heat functionality. Tank Temperature Maintenance is designed to sustain storage temperatures during extended periods of low demand, including in critical environments such as hospitals and laboratories. And Backup Heat provides redundancy based on tank temperature, outdoor temperature, scheduling or a heat pump alarm.
“The result is a more resilient, flexible and cost-effective path to electrification,” Bucklin explains.
Customer feedback led to the development of the Bolt Mini, a compact, wall-mounted instantaneous electric water heater that can provide supplemental heat without the footprint of a storage tank.
“Customers have emphasized the need to make heat pump water heating systems simpler, more compact and more cost-effective,” he explains.
In many applications, Bucklin says the Bolt Mini can replace a traditional electric recirculation tank, reducing installation cost as well simplifying the system.
The company also has improved wiring in its heat exchanger modules based on field feedback to simplify installation and service.
“These changes reflect our broader focus on refining the entire system around the heat pump,” he adds.
On regulation, Bucklin says Lync looks to connect the dots between energy efficiency policy and practical installations.
“Many of today’s regulations are tied to decarbonization and building electrification goals,” he says. “While those objectives continue to drive interest in heat pump water heating, we’re also seeing customers navigate practical considerations such as electrical infrastructure, available power and project economics.”
Lync’s role, Bucklin says, “is to help customers translate those goals into successful system designs. That includes looking beyond the heat pump equipment itself and helping optimize storage, controls, electrical requirements and system integration.”
Navien Inc.
Chia Lin, Product Manager
Navien is expanding its heat pump water heating portfolio with a focus on efficiency, connectivity and reduced maintenance.
The company’s newest addition to its water heater lineup is the NWP500-series heat pump water heater. The unit uses an anode-free, corrosion-resistant stainless-steel tank designed to reduce weight and maintenance.
“It delivers ultra-quiet operation, high efficiency up to 4.05 UEF, built-in Wi-Fi, and an EcoPort for smart-grid demand response,” Lin adds.
Lin says the company continues to incorporate feedback from contractors and homeowners into product development, particularly around installation matters, serviceability and performance.
For example, Lin says the NWP500, “incorporates all the latest features based on feedback gathered, including durable stainless-steel tank, advanced energy savings, smart connectivity, multiple operating modes, easy-to-use LED display, and flexible installation with both top and side connections.”
From the homeowner perspective, Navien says smart connectivity and energy-saving capabilities have become increasingly important features across its newer products.
Regulatory changes are pushing the market toward higher efficiency models and electrification, and Lin says Navien’s portfolio is well positioned for both trends.
“Navien’s condensing NPE-2 tankless water heaters fully meet all the upcoming requirements of the new efficiency standards for water heaters,” Lin explains, “while Navien’s NWP500-series heat pump water heaters continue to make an impact in the push for electrification and heat pump technology.”
PVI, a Watts Brand
Helen Ringle, Product Manager
“PVI continues to focus on delivering solutions that match the unique needs of each application,” Ringle says.
One recent example is Durawatt Mini, a compact, wall-mountable electric water heater that provides customers with “an additional electrification option when space constraints or project requirements make larger systems impractical,” she says.
Beyond new products, Ringle says PVI continues to expands its engineered-to-order capabilities in response to growing demand for customized solutions.
“Building owners and engineers increasingly need equipment that fits specific site conditions, energy strategies and operational requirements,” Ringle explains. “Our focus remains on combining flexibility, durability and application expertise to deliver water heating solutions that address those diverse needs.”
Most of the company’s product improvements come from listening to the “service technicians and customers who work with our products every day,” she says.
One example involved the placement of pumps and serviceable components.
“Feedback from the field highlighted opportunities to improve accessibility and simplify maintenance,” Ringle explains.
The payoff, she says, is real even when the changes are modest.
“Those types of improvements may seem small, but they have a meaningful impact on the customer experience over the life of the equipment,” she explains.
As for regulatory matters, Ringle says DOE requirements remain the “primary driver” affecting product development and customer conversations.
“While enforcement deadlines have been adjusted, customers still need to prepare for long-term compliance,” she explains.
PVI’s approach, Ringle adds, is to help customers evaluate replacement strategies and understand available options, including high-efficiency, condensing and electric technologies, while continuing to prepare for future requirements, including upcoming pump efficiency regulations.
“The goal is to give customers flexible solutions that work today and position them well for tomorrow’s regulatory environment,” she explains.
Rinnai America Corp.
David Federico, Senior Director of Marketing
Rinnai America is expanding its product line all while keeping in mind the “PROS,” the professional installer.
“Over the past year, Rinnai continued expanding its portfolio with solutions designed around performance, efficiency and the needs of PROs,” Frederico says.
New introductions include the RCET Series commercial electric tank water heaters, available in 50- and 80-gallon models with flexible electrical and element configurations, and the RHPC Rinnai Heat Pump Companion Kit, “an industry-only solution that helps improve heat pump performance in cold climates,” he adds. “Together, these additions give customers more choices across residential and commercial applications.”
Offering more choices is exactly what installers ask for, according to Federico.
“PROs consistently tell us they value products that are simple to install, service and maintain,” he says. “That feedback continues to shape our product development. Across our portfolio, we focus on intuitive controls, simplified setup, easier service access and features that help streamline installation and maintenance.”
By listening to trade professionals, Frederico adds “we’re able to develop solutions that address real-world jobsite needs while delivering the performance and reliability customers expect.”
As for the regulatory environment, Federico says Rinnai’s wide variety of choices offers solutions.
“As codes and efficiency requirements continue to evolve, Rinnai remains focused on providing a broad portfolio of high-efficiency water heating solutions that help customers meet current and future requirements,” Federico adds. “Maintaining both gas and electric solutions gives customers greater choice while allowing us to remain focused on performance, reliability and long-term value.”
Stiebel Eltron Inc.
Jonathan Walsh, President
Stiebel Eltron is continuing to perfect its electric tankless water heating technology.
For example, Walsh, cites the recently launched DHC-E 12/15 Plus, which incorporates the company’s Direct Coil heating and Advanced Flow Control technologies.
“Direct Coil technology offers fast, efficient heat transfer along with scale resistance, while Advanced Flow Control automatically adjusts flow to help maintain consistent outlet temperatures during demand changes, offering performance beyond self-modulation,” Walsh explains.
He adds that “the DHC-E Plus series also offers exceptional installation flexibility, each model is convertible between high and low output settings,” and that “the DHC-E 12/15 Plus is the most powerful electric tankless water heater that can operate on a single breaker.”
Customer feedback has centered on misconceptions about electric tankless technology, particularly concerning whole-house applications and electrical requirements.
For example, Walsh says the company has addressed reliability concerns with its proprietary Direct Coil technology, including air-detection technology designed to protect the unit from dry-fire conditions and element-related failures.
The system is built for real-world water conditions too, he says.
“Direct Coil is also engineered to be self-cleaning in hard water environments, reducing scale buildup and supporting long-term performance,” Walsh explains. “We continue to educate contractors and consumers that properly sized electric tankless systems can successfully deliver whole-house hot water while providing the efficiency and space-saving benefits customers expect.”
Regulations also are influencing Stiebel Eltron’s product development. For example, its DHC-E Trend and DHC-E Plus electric tankless water heaters are undergoing ASSE 1084 certification, with additional models expected to follow. The certification work is intended to help address evolving safety and code requirements for applications involving scald protection and handwashing.
Looking ahead, Walsh adds that DOE NAECA 4 requirements taking effect in 2029 will require most electric storage water heaters above 35 gallons to use heat pump technology.
As a result, Walsh sees a big opening for his products.
“We believe whole-house electric tankless water heaters are a viable solution in multifamily, assisted living, dormitory, apartment, and space-constrained applications where heat pump water heaters may not be practical.”
