Not advised. And here is why.
1. You're adding load to the original circuit, which was (hopefully) sized properly for the load of the water heater only.
2. Yes, adding a transformer would get you the 120volts. But, you would need to add more than the transformer. Fuses or circuit breaker for the 120volt load side, suitable enclosure, and what about switching to turn it on and off? The original wiring and breaker would need to be upsized to account for the new load. In the industrial systems you mention, everything is properly sized and engineered to do that from the beginning, including all necessary controls and safeties.
3. Somebody is likely to recommend using the ground as a neutral and deriving 120 volts that way. This is bad. It is against code and unsafe. You would be running current on the uninsulated ground conductor. Plus, you would no longer have a dedicated safety ground. Do NOT do it.
I would strongly recommend running a new circuit for your heat tape. Or, add it into an existing 120volt circuit that has little or no load on it, such as a guest bedroom receptacle circuit.