Solar Water Heater Market Analysis and Global Forecast 2023-2033

Solar Water Heater Market Overview

The Solar Water Heater Market Size is expected to reach USD 6.36 Billion by 2033. The Solar Water Heater Market industry size accounted for USD 2.78 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 6.14% from 2023 to 2033. The Solar Water Heater Market refers to the global industry involved in the production, distribution, and sale of solar water heating systems. These systems use solar energy to heat water for residential, commercial, and industrial purposes. The market encompasses a variety of technologies, including flat plate collectors, evacuated tube collectors, and other solar thermal systems designed to capture and convert sunlight into heat energy.

The Solar Water Heater Market is driven by the increasing demand for sustainable energy solutions and the ongoing development of more efficient and cost-effective solar technologies.

Global Solar Water Heater Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the Solar Water Heater Market. Lockdowns and restrictions led to temporary shutdowns of manufacturing facilities, causing delays in production and delivery of solar water heaters. Many residential and commercial solar water heater projects were postponed or canceled due to uncertainties in the market and financial constraints faced by consumers and businesses. Restrictions on movement and safety concerns led to a shortage of labor, impacting the installation and maintenance of solar water heating systems. The economic downturn caused by the pandemic led to reduced consumer spending on non-essential items, including solar water heating systems, especially in residential sectors. The pandemic accelerated the adoption of digital technologies and remote monitoring solutions, leading to advancements in solar water heater technology and smart home integration. With more people working from home, there is a growing interest in reducing household energy costs, potentially increasing demand for residential solar water heaters.

Solar Water Heater Market Dynamics

The major factors that have impacted the growth of Solar Water Heater Market are as follows:

Drivers:

Ø  Technological Advancements

Continuous improvements in solar thermal technology, such as enhanced efficiency and performance of solar collectors and storage systems, are making solar water heaters more attractive to consumers. Increasing electricity and fuel prices are motivating consumers and businesses to invest in solar water heaters as a cost-effective alternative to traditional water heating methods. There is a growing demand for clean and renewable energy sources as part of global efforts to transition away from fossil fuels and reduce carbon footprints. Rapid urbanization and infrastructure development in emerging economies are increasing the demand for energy-efficient and sustainable building solutions, including solar water heaters.

Restraint:

• Perception of High Initial Costs and Dependence on Sunlight

The upfront cost of purchasing and installing solar water heaters can be significant compared to conventional water heating systems, which may deter potential buyers despite long-term savings. Solar water heaters are highly dependent on solar radiation, making them less effective in regions with low sunlight or during cloudy and rainy seasons. This variability can affect their reliability and efficiency. Solar water heating systems, especially those with flat plate or evacuated tube collectors, require adequate roof or ground space for installation, which may not be feasible for all properties.

Opportunity:

⮚     Integration with Smart Home Technology

The growing trend of smart homes and the Internet of Things (IoT) presents opportunities for integrating solar water heaters with smart systems, allowing for enhanced control, monitoring, and optimization of energy usage. Continuous innovation in solar thermal technology, such as improved collector designs and energy storage solutions, can enhance the efficiency and appeal of solar water heaters, expanding their market potential. As energy costs continue to rise, the economic benefits of solar water heaters become more attractive, offering long-term savings and energy independence to consumers and businesses.

Solar Water Heater Market Segment Overview

By Type

Based on Type, the market is segmented based on Glazed, Unglazed and Others. The glazed segment dominant the market, owing to the increase in solar efficiency provided by these heaters. Apart from these, glazing reduces the amount of heat absorbed by water by decreasing water temperature difference between inlet and outlet of absorber, which is also predicted to boost the growth of the market segment in the future.

By Capacity

Based on Capacity, the market segment has been divided into 100L, 150L, 200L and Others. The 200L segment dominant the market.

By End User

Based on End User, the market segment has been divided into Residential, Industrial, Commercial and Others. The residential segment dominant the market. This can be accounted to the growing construction of green residential buildings, and rising investments towards refurbishment and re-establishment of existing residential establishments to incorporate sustainable techniques.

Global Solar Water Heater Market Regional Analysis

Based on region, the global Solar Water Heater Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Solar Water Heater Market followed by the Asia-Pacific and Europe regions.

Solar Water Heater North America Market

North America holds a dominant position in the Solar Water Heater Market. The North American market is experiencing moderate growth, driven by increasing environmental awareness and supportive government policies. The United States and Canada are the primary markets, with a focus on residential and commercial installations. Rising energy costs and the desire for energy independence are key factors. Government incentives and tax credits also encourage adoption. The high initial cost of systems and competition from alternative technologies like heat pumps can be barriers to growth.

Solar Water Heater Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Solar Water Heater Market industry. The Asia-Pacific region holds the largest share of the solar water heater market, driven by rapid urbanization, growing population, and increasing demand for energy-efficient solutions. China and India are the leading countries in this region, with strong government support, favorable policies, and significant investments in renewable energy infrastructure. Rising energy costs, environmental concerns, and government incentives are driving the adoption of solar water heaters. The region’s abundant sunlight is also a favorable factor.

Competitive Landscape

The global Solar Water Heater Market is highly competitive, with numerous players Offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Himin Solar Energy Group
• V-Guard Industries Ltd
• Ariston Thermo
• KODSAN Company
• Solav Energy
• Zhejiang JiaDeLe Solar Co
• SunPower Corporation
• O. Smith
• Solahart
• Alternate Energy Technologies

Key Development

In January 2022, SunEarth, Inc. of Fontana, California, teamed up with Nyle Water Heating Systems of Brewer, Maine, to provide a scalable solar water series heat pump water heater to the multi-family/commercial market

In June 2022, an Italian solar module manufacturer Sunerg Solar Srl launched a 1,500 W water heater solution that can potentially be powered by both solar power, and grid electricity

Scope of the Report

Global Solar Water Heater Market, by Type

• Glazed
• Unglazed
• Others

Global Solar Water Heater Market, by Capacity

• 100L
• 150L
• 200L
• Others

Global Solar Water Heater Market, by End User

• Residential
• Industrial
• Commercial
• Others

Global Solar Water Heater Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 6.36 Billion
CAGR (2023-2033)	6.14%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Capacity, End User
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	Himin Solar Energy Group, V-Guard Industries Ltd, Ariston Thermo, KODSAN Company, Solav Energy, Zhejiang JiaDeLe Solar Co, SunPower Corporation, O. Smith, Solahart and Alternate Energy Technologies.
Key Market Opportunities	·       Integration with Smart Home Technology ·       Innovation and Product Development
Key Market Drivers	·       Technological Advancements ·       Growing Demand for Clean Energy

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Solar Water Heater Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Solar Water Heater Market historical market size for the year 2021, and forecast from 2023 to 2033
• Solar Water Heater Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Solar Water Heater Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product Offering, recent developments, SWOT analysis, and key strategies.