Solar Water Heater Market Size was valued at USD 4.01 billion in 2023. The Solar Water Heater market industry is projected to grow from USD 4.35 Billion in 2024 to USD 7.71 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.41% during the forecast period (2024 - 2032). Increasing measures to control energy consumption and availability in all parts of the world are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for solar water heater is being driven by the rising awareness among people about environment. As energy prices continue to rise, consumers are looking for ways to reduce their energy bills. Solar water heaters provide an excellent solution to this problem, as they use the power of the sun to heat water, which is a free and renewable energy source. Also, as more people become aware of the impact of traditional energy sources on the environment, they are looking for more sustainable alternatives. Solar water heaters are a great way to reduce carbon emissions and help protect the environment.
Additionally, many governments around the world are offering incentives and policies to encourage the adoption of solar water heaters. These incentives may include tax credits, rebates, or subsidies to help offset the cost of installation. In some cases, governments may even require the installation of solar water heaters in certain types of buildings. Advances in technology have made solar water heaters more efficient and affordable than ever before. New materials and manufacturing techniques have led to improvements in the design and performance of solar water heaters, making them a more attractive option for consumers.
The growing demand for sustainable and energy-efficient homes is driving the adoption of solar water heaters. Many homeowners are looking for ways to reduce their carbon footprint and lower their energy bills, and solar water heaters are a great way to achieve both of these goals.
For instance, China has been a leader in the promotion of solar water heaters. The government has implemented several policies to encourage the adoption of solar water heaters, including subsidies, tax incentives, and regulations requiring the installation of solar water heaters in new buildings. As a result, over 70% of households in China use solar water heaters. Thus, driving the Solar Water Heater market revenue.
The Solar Water Heater market segmentation, based on type includes Integral Collector Storage and Thermosyphon. The thermosyphon segment dominated the market, accounting for 30% of market revenue. In developing economies, Thermosyphon manufactured locally using readily available materials and basic tools. This means that they can be produced and installed by local craftsmen, creating local jobs and supporting the local economy.
Figure 1: Solar Water Heater Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Solar Water Heater market segmentation, based on collector type, includes Evacuated Tube Collector, Flat Plate Collector, Unglazed Water Collector. The evacuated tube collector category generated the most income. As high efficiency & longer Durability with modern appearance that may be more attractive to some consumers compared to other types of collectors.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific market area will dominate this market, owing to a high demand for energy, including hot water, which can be met through the use of solar water heaters. In addition, warm and sunny climate, which is ideal for solar water heaters boost market growth in this region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Solar Water Heater Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Solar Water Heater market accounts for the second-largest market share due to consumers awareness of the environmental benefits of renewable energy sources, such as solar water heaters. Further, the German Solar Water Heater market held the largest market share, and the UK Solar Water Heater market was the fastest growing market in the European region
The North America Solar Water Heater Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to offering incentives and subsidies to promote the use of renewable energy sources, including solar water heaters. Moreover, Canadian Solar Water Heater market held the largest market share, and the US Solar Water Heater market was the fastest growing market in the North America region.
For instance, American federal government offers a tax credit of up to 26% of the cost of a solar water heating system for residential and commercial properties. This credit is available until 2023. Also, Many states offer additional incentives for solar water heaters, such as rebates, tax credits, and performance-based incentives.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Solar Water Heater market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Solar Water Heater industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Solar Water Heater industry to benefit clients and increase the market sector. In recent years, the Solar Water Heater industry has offered some of the most significant advantages. Major players in the Solar Water Heater market, including Rheem Manufacturing , A.O.Smith , SunTank , Bradford White Corporation, and others, are attempting to increase market demand by investing in research and development operations.
Rheem Manufacturing Company is a leader in the manufacturing of heating, cooling, and water heating products. It was founded by brothers Richard and Donald Rheem in Emeryville, California. Today, Rheem is headquartered in Atlanta, Georgia, and has manufacturing facilities located throughout North America, South America, Europe, and Asia. Its product line includes a wide range of residential and commercial HVAC and water heating systems, including Water heaters, Air conditioners and heat pumps, Furnaces etc. It also committed to sustainability and has set goals to reduce its carbon footprint and promote energy efficiency. The company has received several awards and recognitions for its sustainability efforts, including the EPA's ENERGY STAR Partner of the Year Award.
Bradford White Corporation is a leading manufacturer of water heating, space heating, and combination heating equipment for residential, commercial, and industrial applications. Its product line includes a variety of water heaters, including tankless, hybrid, and traditional storage tank models. It also offers a range of space heating and combination heating products, including boilers and volume water heaters. In addition, it offers a variety of accessories and replacement parts for their products. It offers a variety of resources and support for its products, including technical support, warranty information, and product registration. It has a reputation for quality and reliability, and their products are often used in commercial and industrial applications where reliability is critical.
October 2022: Tata power deployed solar power cell in a decentralized manner that it has several applications including lighting, heating, water filtration, and productivity. Solar lighting, for instance, negates the use of kerosene lamps and all hazards associated with them.
June 2019: The Irish Government announced to retrofit around 500,000 homes to make them more energy efficient. The projected is expected to include renewable energy systems such as solar water heating panels, heat pumps, and solar photovoltaic panels.
February 2019: Environmental Court to the State of Hawai’i upheld the mandate for the usage of solar water heaters. This decision of the court is expected to promote the environment and climate safety.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 4.01 billion |
| Market Size 2024 | USD 4.35 billion |
| Market Size 2032 | USD 7.71 billion |
| Compound Annual Growth Rate (CAGR) | 7.41% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, collector type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Rheem Manufacturing, A.O. Smith, SunTank, Bradford White Corporation, Bosch, Honeywell Corporation, Alternate energy Technologies, Viessmann Manufacturing, Racold, Wagner Solar |
| Key Market Opportunities | Need for reducing energy bills Affordable source of electricity |
| Key Market Dynamics | Increasing measures to control energy consumption Cutting down the CO2 emissions |
Frequently Asked Questions (FAQ) :
The Solar Water Heater market size was valued at USD 4.01 Billion in 2023.
The market is projected to grow at a CAGR of 7.41% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the market
The key players in the market are Rheem Manufacturing, A.O. Smith, SunTank, Bradford White Corporation, Bosch, Honeywell Corporation, Alternate energy Technologies, Viessmann Manufacturing, Racold, Wagner Solar
The Thermosyphon category dominated the market in 2022.
The Evacuated Tube Collector had the largest share in the market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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