Global Solar Water Heater Market Assessment, By System [Active Solar Water Heating Systems, Passive Solar Water Heating Systems], By Collector Type [Glazed, Unglazed], By End-user [Residential, Commercial, Industrial] By Region, Opportunities and Forecast, 2018-2032F

Global solar water heater market is projected to witness a CAGR of 5.58% during the forecast period 2025-2032, growing from USD 4.07 billion in 2024 to USD 6.28 billion in 2032. 

Solar Water Heater Market Size, Share and Forecast 2032

Global solar water heater market is projected to witness a CAGR of 5.58% during the forecast period 2025-2032, growing from USD 4.07 billion in 2024 to USD 6.28 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
The demand for solar water heaters is growing at a rapid pace in the global market due to a combination of environmental, economic, and technological factors. As global awareness of climate change intensifies, consumers and governments alike are seeking sustainable and eco-friendly solutions for energy consumption. Solar water heater product function on the principle of capturing solar energy to heat water without emitting greenhouse gases which makes the product an attractive alternative solution to traditional heating methods.
In addition, increasing energy costs and the potential for significant savings on utility bills are driving the demand for solar water heaters in residential applications. Incentive programs and rebates from governments across various regions are also promoting the use of solar technologies, creating substantial opportunities for the solar water heater market in commercial and industrial applications. As technology continues to advance, solar water heaters are becoming more efficient and reliable, and they are expected to grow strongly in the market as more consumers recognize the long-term benefits of investing in renewable energy solutions. Companies are launching innovative solar water heaters to capture a larger share of the water heater market across different geographies.
For instance, in December 2024, Panasonic Corporation decided to launch a new version of Eco Cute CO2 heat pump. The device is equipped with solar radiation which helps in the production of hot water for domestic use in households. This development will help the company to increase revenue and market share in the industry.
For instance, in March 2022, Panasonic Corporation decided to launch a solar heat pump solution for water heating named Eco Cute. The solution includes a heat pump and hot water storage unit which saves energy and generates hot water at cost cost-effective rate. This development helped the company to increase revenue.
<h2>The Increasing Emphasis on Environmentally Friendly and Energy-Efficient Technologies is Driving Market Growth</h2>
The growing focus on renewable energy sources to address global warming and decrease carbon emissions has spurred investment in renewable energy technologies, including solar water heaters. Solar water heaters are seen as eco-friendly options that help reduce carbon footprints by harnessing renewable energy. Changes in the energy sector, driven by increased investments in renewable energy sources across various regions, have led to a surge in the production of solar water heaters. Moreover, regions are setting ambitious targets such as net-zero emissions and reduced carbon emissions, which have encouraged people to adopt energy-efficient technologies. This shift is raising the demand for high-quality solar water heaters in the market to achieve these objectives.
Residential and commercial sectors are seeking sustainable solutions to control environmental degradation. Solar water heaters utilize clean energy sources that significantly reduce carbon footprints. The residential sector is adopting efficient technologies, which help facilitate the transition toward renewable energy sources. Governments and higher authorities are encouraging the installation of renewable energy technologies by offering incentives such as tax breaks, rebates, and subsidies, making these options attractive for both residential and commercial sectors.
In addition, solar water heaters save a significant amount on energy bills as the running cost is reduced by 25% to 40% during winter and by up to 75% during summer. The cost and energy efficiency feature appeals to both residential and commercial users to opt for solar water heaters which drive its demand in the market.
For instance, in November 2023, a new residence hall at Creighton University in the United States decided to opt for the solar water heater to make a transition away from burning fossil fuels for heating. The project is a carbon-free system for heating water. This development showcases the adoption of solar water heaters in commercial applications which will help increase market growth in coming years.
<h2>Rapid Urbanization and Economic Growth Augmenting Market Size</h2>
The growing trend of urbanization demands more hot water in the residential, industrial, and commercial sectors. Solar water heaters provide an efficient solution to the increasing demand for hot water, as they offer a sustainable and reliable supply without relying on additional energy sources. Rapid urbanization often coincides with significant investments in infrastructure development, including the construction of residential buildings, commercial complexes, and industrial facilities that are looking to adopt integrated solar water heating systems. Moreover, newly constructed buildings adhere to green building codes and standards that promote energy-efficient technologies, driving the demand for solar water heaters in the market.
The residential sector is seeking cost-effective alternatives to traditional water heating methods. There is a high demand for hot water in residential premises due to changing lifestyles and increased usage for bathing, cooking, and other purposes. Solar water heaters are ideal for meeting this growing demand while being both sustainable and efficient. Many households have the option to use solar water heaters, especially in regions with high energy costs. The construction industry is also looking to invest in energy-efficient technologies and has gained momentum in green building practices, which are driving demand for solar water heaters in the market.
For instance, in November 2024, the United States Green Building Council have pushed for expansion of tax credits for energy-efficient building retrofits. The incentives will cover new and retrofit building energy efficiency investments for building envelope improvements and upgrades to HVAC, water heating and energy management systems. This development will increase the demand for the solar water heaters in green building construction in the coming years.
<h2>Upcoming Improvements in Design and Solar Technology Create Opportunities for the Market</h2>
The ongoing improvements in technology have enhanced the efficiency and reliability of solar water heaters. Several manufacturers are looking to adopt improved designs and solar technologies, which could drive demand for solar water heaters in the market. The adoption of upcoming innovations in technology and materials has led to better performance of these heaters.
In addition, manufacturers are seeking to implement efficient circulation systems that could improve pump designs and control mechanisms in solar water heaters. Solar water heaters include active systems with smart controls that can adjust flow rates, thereby enhancing their performance. Advanced technology ensures optimal water flow and temperature maintenance, which will create opportunities for the solar water heater market.
Furthermore, improvements are being made in backup energy systems for solar water heaters, significantly driving the adoption of these heaters in residential applications. Advances in heat storage technologies and materials have enhanced the ability of solar water heaters to store energy for later use. Using superior insulation materials for storage tanks and piping can minimize heat loss during the storage and transport of hot water. The upcoming designs of solar water heating systems are equipped with advanced digital controllers that can optimize the operation of both solar collectors and backup heating systems, further boosting the adoption of solar water heaters in the market.
For instance, in September 2022, as per IEA Solar Heating and Cooling (SHC), 290 million new solar thermal systems need to be installed using emerging technologies will need to be installed by 2030 to achieve the set target of net zero emission. This development highlights the adoption of the emerging technology which will increase the demand for the solar water heaters in the market.
<h2>Active Solar Water Heating Systems to Dominate the Market</h2>
Active solar water heating systems hold the largest market share and dominate the market. These systems utilize solar energy to heat water through a network of collectors and pumps, making them an attractive option for both residential and commercial applications. The system is capable of fulfilling 50% to 80% of a household's hot water needs while reducing reliance on conventional energy sources such as electricity or gas, which boosts the demand for active solar water heaters in the market.
Active solar water heating systems are poised to adopt upcoming advancements in solar technology that will improve the efficiency and reliability of these systems in the coming years. In addition, innovations in solar collector designs, materials, and integration with smart home systems enable better optimization, driving demand in new residential building construction. Furthermore, the transition to renewable energy sources, along with significant savings on energy bills, fuels the demand for active solar water heating systems in the market.
Asia-Pacific Leads the Solar Water Heater Market
Asia-Pacific has dominated the solar water heater market and is expected to continue during the forecast period. The Asia-Pacific region has become a leader in global solar water heaters due to the presence of major countries such as India, China, and Japan as countries are experiencing significant economic growth and urbanization. In addition, these countries mainly invest in adopting renewable energy production technologies that help reduce the greenhouse gas emissions in that region. Furthermore, the governments also encourage the residential and commercial sector to adopt solar water heaters to increase the market size.
Furthermore, some financial institutions in developing countries offer financial assistance to the residential sector for installing solar water heaters. In recent years, the solar sector has witnessed robust growth in these countries due to the increasing adoption of a renewable energy mix and solar technology for generating hot water for various applications.
Additionally, countries in the Asia-Pacific region are primarily focusing on setting ambitious targets related to decarbonization and sustainability goals, which enhances the demand for solar water heaters in the Asia-Pacific region. Moreover, the rising demand for hot water in Southeast Asian countries creates opportunities for the solar water heater market during the forecast period.
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Future Market Scenario (2025 &ndash; 2032F)
<ul>
<li>Ongoing improvement in technology and design of solar water heaters will improve efficiency, which will enhance the productivity of hot water from the systems.</li>
<li>As environmental concerns push for the adoption of sustainable technological solutions for energy generation which creates the opportunity for solar water heater in the market.</li>
<li>The residential sector heavily investing in rooftop solar water heaters to ensure a reliable hot water supply for household work.</li>
<li>Supportive government policies and financial incentives for deploying rooftop solar water heaters, in the developing countries will continue to play a significant role in driving the demand for solar water heaters in the market.</li>
</ul>
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Report Scope
&ldquo;Solar Water Heater Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global solar water heater market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2024
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Historical Period
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2018-2023
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Forecast Period
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2025-2032
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Projected Growth Rate
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CAGR of 5.58% between 2025 and 2032
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Revenue Forecast in 2032
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USD 6.28 billion
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Segments Covered
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System, Collector Type, End-user
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Regions Covered
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North America, Europe, South America, Asia-Pacific, Middle East and Africa
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Key Companies Profile
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Himin Solar Co., Ltd, V-Guard Industries Ltd., Solahart Industries Pty Ltd, Ariston Thermo SpA, Rheem Manufacturing Company, Kodsan Isı Teknolojileri San. Tic. A.S, SunEarth Inc., Stiebel Eltron, Inc., Jiaxing Jinyi Solar Energy Technology Co., Ltd., Helioakmi S.A.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;global solar water heater market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By System
<ul>
<li>Active Solar Water Heating Systems
<ul>
<li>Direct Circulation Systems</li>
<li>Indirect Circulation Systems</li>
</ul>
</li>
<li>Passive Solar Water Heating Systems
<ul>
<li>Integral Collector-Storage Passive Systems</li>
<li>Thermosyphon Systems</li>
</ul>
</li>
<li>By Collector Type
<ul>
<li>Glazed
<ul>
<li>Evacuated Tube</li>
<li>Flat Plate</li>
</ul>
</li>
<li>Unglazed</li>
</ul>
</li>
<li>By End-user
<ul>
<li>Residential</li>
<li>Commercial</li>
<li>Industrial</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Continuous innovation characterizes the landscape of solar water heaters globally, as the companies compete in terms of energy efficiency, product life, and unique features. The market outlook remains positive, owing to increased demand for renewable energy for heating water and adoption of innovative solar technologies. Manufacturers of solar water heaters are focused on supply chain, energy efficiency, and environmental practices, which will drive the market in coming years. Product launches, agreements, business expansions, collaborations, and the development of new technologies are projected to increase competition in this fast-paced market.
For instance, in January 2022, SunEarth Inc. has partnered with Nyle Water Heating Systems to launch scalable solar water series which include the heat pump water heater for residential and commercial sector. This development helped the company to increase revenue and customer base in the country.
Key Players Operating in Global Solar Water Heater Market are:
<ul>
<li>Himin Solar Co., Ltd</li>
<li>V-Guard Industries Ltd.</li>
<li>Solahart Industries Pty Ltd</li>
<li>Ariston Thermo SpA</li>
<li>Rheem Manufacturing Company</li>
<li>Kodsan Isı Teknolojileri San. Tic. A.S</li>
<li>SunEarth Inc.</li>
<li>Stiebel Eltron, Inc.</li>
<li>Jiaxing Jinyi Solar Energy Technology Co., Ltd.</li>
<li>Helioakmi S.A.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul>
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
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Global Solar Water Heater Market Assessment, Opportunities and Forecast, 2018-2032F

The global solar water heater market is expected to experience growth due to the increasing demand for hot water in the residential and commercial sector coupled with rising trend toward the adoption of renewable energy technologies to reduce carbon footprints.

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