In the spring of 2024, the Northwest Energy Efficiency Alliance (NEEA) contracted with Lieberman Research to conduct a market research study to better understand gas and electric water heating systems across a selection of commercial buildings in the Northwest, with particular focus on the gas market. These buildings included restaurants, lodging facilities and non-mixed use multifamily buildings. The key objectives of the study were to:
- Identify and understand water heating purchase processes across these building types,
- Identify key supply chain market actors who engage with end-use purchasers or decision makers to understand their sales process, and;
- Identify and/or confirm any barriers to the purchase and adoption of new water heater systems in the target building types.
Study activities included web-enabled 60-minute telephone interviews with twenty-four market actors and water heater system decision makers, which included building managers, manufacturer representatives, operations managers and water heating installers. High level findings indicate that decision makers tend to trust products that have performed well with minimum upkeep. System failure is often the first trigger for purchase consideration and is usually on an urgent need basis. Thus, decision makers prefer to consider systems that are affordable, ensure good performance, are dependable and easily available for installation. Most see gas heat pumps as an exciting new option and are impressed with their features, such as good ROI and low operating costs. Findings from the research will inform NEEA’s Market Transformation program planning and help identify key target markets for possible inclusion in future program efforts.
