A. O. Smith
Through A. O. Smith University, professionals can access live training courses that allow them to stay up-to-date on changing technology.

Water Heating Innovation: Meeting Customer Demands in a Changing Industry

May 21, 2025
With shifting industry trends comes an investment in technological innovation to meet the changing needs of contractors.

Customer and homeowner demands are driving the water heating industry to advance water heating technology to both fulfill their needs and meet the industry-wide shift toward more sustainable technology. These changes are reshaping how manufacturers design, produce and market their products—ultimately impacting both industry professionals and customers.

With efficiency and sustainability at the forefront of customer needs, manufacturers are focused on developing technology that meets these demands. This shift has resulted in the introduction of more decarbonized water heating solutions than ever before. These products are specifically designed to meet the needs of environmentally conscious customers. One of the best examples of this is the ongoing expansion and adoption of heat pump water heaters (HPWH). Heat pump water heaters are seeing a significant rise in demand over recent years. In 2022, sales of HPWHs grew by 26% and are projected to continue to increase in the coming years as HPWHs become more widely accessible.

Responding to Demand

Along with shifting industry trends comes an investment in technological innovation that meets the ever-changing needs of contractors and homeowners. Companies that are investing in developing new technologies can offer customers enhanced features that not only meet new standards but also make installation, service and use of the units easier. 

New products from A. O. Smith and Lochinvar showcase the technological advancements shaping the industry. A. O. Smith recently launched the Voltex® MAX Smart Hybrid Electric Heat Pump Water Heater, which combines sustainable water heating solutions with user-friendly features and delivers homeowners up to 40% more hot water than similarly sized electric water heaters and heat pump water heaters. The unit features A. O. Smith’s leak detection technology that detects, alerts and notifies when there is a leak. The Voltex MAX HPWH is also equipped with A. O. Smith’s iCOMM™ Smart Connectivity to give the ability to monitor or adjust their water heater remotely via the A. O. Smith app.

Commercial heat pump water heaters are not only sustainable, high efficiency solutions, but they also provide customer-forward features that make installation and servicing simple. Lochinvar’s Veritus® Air Source Commercial Heat Pump Water Heater features a high coefficient of performance, a modular design and the SMART TOUCH™ operating system, simplifying unit control and monitoring. To support larger commercial water demands, up to 64 Veritus HPWHs can be banked together to match the capacity to the demand. Additionally, the control box can be installed in one space while the heat pump units are installed elsewhere, providing installers with control accessibility and installation flexibility—a must-have for commercial applications where space is limited.

Emerging HPWHs offer solutions for a wide range of applications. Interest in this technology has only continued to increase in recent years, with many building managers and homeowners adopting the technology to meet their decarbonization goals while still providing the necessary hot water output. 

Supporting Customers

Manufacturers must remain committed to providing customers with a wide range of options to meet their needs and preferences. This includes offering products in various sizes, configurations and efficiency levels, ensuring that there is a solution for every application and budget. To stay ahead of the curve, companies should monitor industry trends, participate in regulatory discussions and invest in the research and development of new products and features. This approach allows manufacturers to anticipate future needs of their customers and develop products that meet the evolving demands of the market.

The commitment to customer support also extends beyond product development as manufacturers continue to provide technical support, training and educational resources. By empowering industry professionals with the knowledge and tools they need, manufacturers can ensure that their products are installed and maintained correctly, maximizing performance and customer satisfaction.  

Through A. O. Smith University, professionals can access live training courses that allow them to stay up-to-date on changing technology. Similarly, LochinvarU offers on-demand educational resources for both in-depth training and in-the-field quick tips. The mission of educational offerings like these is to equip HVAC professionals with the expertise to understand, install and maintain the latest water heating technologies.

Looking to the Future

The water heating industry will continue to change, driven by customer demand, technological advancements, shifting market trends and more. Manufacturers must remain at the forefront of these developments with a common goal of supporting industry professionals and consumers as they navigate this evolving landscape.

About the Author

Megan Konieczka Darr

Megan Konieczka Darr is Product Manager, Residential Heat Pump Water Heaters for A. O. Smith.

About the Author

Rhea-Anne Pedley

Rhea-Anne Pedley is Senior Product Manager, Commercial Water Heating for Lochinvar.

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