Solar Water Heater Market Size, Share, By Product, Material, Capacity, Application, and Region - Trends, Analysis, and Forecast till 2035

• Forecasts suggest that the solar water heater market size will expand to USD 7.3 billion by 2035.
• As of 2024, the solar water heater market reached USD 4.2 billion in value.
• The market demonstrates an annual growth rate of 6.3%.

Solar water heater is a device designed to harness solar energy for heating water. It typically consists of a solar collector that captures sunlight and a storage tank where the heated water is stored for use. The system operates by circulating water through the collector where is absorbs heat from the sun before being transferred to the storage tanks.   

For instance, in March 2022, Panasonic has unveiled a new product in Japan with a PV-based charging function that uses a heat pump and hot water storage unit to save energy by maintaining bathwater temperatures at constant levels. The product features a solar charging function that uses surplus electricity generated and stored from PV sources. It can use electricity to boil water during the night or day.

Key Takeaways:

• Asia Pacific held the largest share of the market in 2024 many governments in this region are implementing policies and incentives to encourage the adoption of solar technologies across the region.
• North America is expected to be the fastest-growing market during the forecast period as it is propelled by rising environmental consciousness and stringent energy efficiency regulations in the region.
• By product, the flat plate solar water heaters segment is expected to account for the largest share of the solar water heater market in the upcoming years as it encompass a range of offerings designed to facilitate the conversion of physical properties into digital tokens, enhancing accessibility, liquidity and efficiency in real estate investments.

Key Drivers of Target Market:

Growing Demand for Eco-Friendly Solutions is Expected to Boost Market Growth

The growing global emphasis on sustainability and lowering carbon footprints is driving up demand for solar water heaters as an environmentally benign alternative to existing water heating techniques. This tendency is especially strong in locations with ample sunlight and high energy costs where solar solutions provide large economic benefits.     

• For instance, in April 2024, EcoFlow presented new solar-to-heat smart heating solutions, the PowerHeat Air-to-Water Heat Pump and the PowerGlow Smart Immersion Heater, at Solar Solutions Bremen 2024. The company said its smart solar-to-heat solutions are designed to integrate into the EcoFlow Residential Smart Energy Ecosystem, offering users energy independence and reduced energy expenses.

Government Incentives and Support is expected to Speeding up Market Expansion

Many governments are implementing policies, tax breaks, subsidies, and incentives to promote the adoption of renewable energy technologies, including solar water heaters. These initiatives make solar systems more affordable and attractive to consumers, further boosting market growth.  

• For instance, in September 2024, the Minister of Energy and Mineral Resources, announced the launch of a new phase of Jordan’s solar energy support program, aimed at reducing household electricity bills by 30%. This initiative includes the installation of 4,000 solar cell systems and 5,000 solar water heater systems across the country, with total investments amounting to 8 million and 3 million Jordanian dinars, respectively. 

Restraints:

High Initial Installation Costs Restrict Target Market Growth

Despite long-term savings on energy bills, the upfront investment required for purchasing and installing solar water heating systems is a barrier for many consumers. This initial cost deters potential buyers especially in price-sensitive industry, further hampering the solar water heater market.

• Counterbalance Statements: Installing a solar water heater can enhance the value of a property. Prospective buyers often view homes with renewable energy systems as more attractive investments, which can lead to higher resale values compared to conventional homes. 

Opportunities & Market Trends:

Rising Demand of Renewable Energy Solutions to Propel Market Expansion

• As the demand for renewable energy solutions, such as solar water heaters rises there is a growing global emphasis on sustainability and lowering carbon footprints. Additionally, this element offers producers a significant advantage in terms of innovation and product diversification to satisfy environmentally sensitive consumer demands.  
• For instance, in November 2024, TRUZON SOLAR, a new brand by Suntek Energy Systems Pvt. Ltd., a leader in solar energy solutions, is set to redefine the renewable energy landscape in India. The company has already made a significant impact with over 200,000 installations of various solar products including rooftop and ground mounted solar power systems, on grid and hybrid solar systems and solar water heaters.

The solar water heater market is classified into product, material, capacity, application, and region.

Product:

Solar water heater market by product is categorized into thermosiphon systems, evacuated tube solar water heaters, flat plate solar water heaters, and other products). The flat plate solar water heaters segment is expected to dominate over the forecast period as this is indicated by multiple sources, which highlight that flat plate collectors are widely used due to their cost-effectiveness, simplicity of design and ease of installation.

• For instance, in October 2024, The MNRE has issued an important order concerning solar thermal systems, devices, and components. According to the order, certain solar thermal products must meet specific Indian standards. These products include solar flat plate collectors for solar water heating systems, all-glass evacuated tube solar water heating systems, and storage water tanks for evacuated tube systems.

Material:

By material, the solar water heater market is segmented into copper based systems, aluminum-based systems, and others. The copper based systems segment dominates the focused market share as it is widely recognized for its excellent thermal conductivity, corrosion resistance and durability which makes it a preferred material for solar water heating systems.

Capacity:

Solar water heater market by capacity is categorized into (100 liter, 150 liter, 200 liter, and others). The 200 liter segment is expected to dominate over the forecast period due to the increasing demand from the residential sector, where a 200-liter solar water heater is typically sufficient for a family.

• For instance, in February 2023, South Korea's LG Electronics has presented a new line of water heating heat pumps for residential applications. They can be installed in garages, kitchens, laundry rooms, or bathrooms. The Therma V comes in two versions, with the capacity to heat 200 liters or 270 liters of water. The 200-liter model has a COP of 3.30 at 7 C and 3.50 at 15 C. The 270-liter model has a COP of 3.45 at 7 C and 4.45 at 15 C.

Application:

By application, the solar water heater market is segmented into residential, commercial, industrial, and other applications. The residential segment dominates the focused market share due to the increasing adoption of solar water heating systems by homeowners seeking to reduce energy costs and carbon footprints. 

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This region is expected to dominate the target market share as driven by its vast population, increasing energy needs, and strong governmental emphasis on renewable energy adoption.  

• For instance, in December 2024, Daikin Europe NV, a subsidiary of Japanese heating system manufacturer Daikin, has introduced a new residential air-to-water heat pump line for single-family homes. The systems use propane (R290) as the refrigerant and have outdoor unit dimensions of 1,122 mm x 1,330 mm x 600 mm. Their output ranges from 6 kW to 14 kW and their seasonal coefficient of performance (SCOP) spans from 3.6 to 5.5.

North America: This is largest and fastest-growing region in target market as the increasing cost of conventional energy sources is prompting consumers to seek alternative solutions for water heating. Solar water heaters offer significant savings on energy bills, especially in this region with abundant sunlight.

Solar Water Heater Market Report Scope:

Segmentation:

By Product:

• Thermosiphon Systems
• Evacuated Tube Solar Water Heaters
• Flat Plate Solar Water Heaters
• Other Products

By Material:

• Copper Based Systems
• Aluminium-Based Systems
• Others 

By Capacity:

• 100 Litre
• 150 Litre
• 200 Litre
• Others

By Application:

• Residential
• Commercial
• Industrial
• Other Applications 

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the solar water heater market include Bosch Thermotechnik GmbH, STIEBEL ELTRON GmbH & Co. KG, Ariston Thermo, Alfa Solar, and among others. The focused market with established companies leveraging innovation and strategic partnerships to enhance their market presence. As demand for sustainable energy solutions continues to grow, players must navigate challenges while capitalizing on opportunities presented by changing consumer preferences and supportive government policies. 

• For instance, in June 2024, Tata Power Solar Systems Limited (TPSSL), India's No. 1 Rooftop Solar company and a wholly owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has launched its '#GharGharSolar, Tata Power ke Sangh' national campaign from Jodhpur, Rajasthan.

List of Key Players in the Market:

• Bosch Thermotechnik GmbH
• Nuetech Solar Systems Pvt. Ltd.
• Tata Power Solar Systems Ltd.
• Solahart Industries
• Soleos Solar  

• In September 2024, Energy and Mineral Resources Minister launched a new phase of a programme to subsidise installing solar panel systems and water heaters for homes, covering 30 per cent of the cost. The phase includes the installation of 4,000 solar panel systems, with a total cost of some JD8 million, funded by a grant from the ministry. Also, 5,000 solar water heater systems will be installed, with a total cost of around JD3 million, to ease the burden of household electricity bills, according to a ministry statement.
• In September 2024, Schneider Electric, announced its artificial intelligence-powered feature is now live on the Wiser Home app. Recently recognized as the world’s most sustainable company, Schneider Electric continues to lead in smart home energy management with cutting-edge solutions to support homeowners, homebuilders and electrical installers. Schneider’s new feature is a market first, providing AI-optimized energy management of two of the biggest power loads in the home – water heaters and electric vehicle chargers - via a single app, Wiser Home.
• In July 2024, Xiaomi has unveiled a new bathroom heater and shower set under its Mijia brand, aiming to provide a comfortable and convenient showering experience. The “Mijia Smart Bathroom Heater + Shower N1 Set” boasts features, such as rapid heating, independent temperature control, and antibacterial properties. The heater component of the set promises quick warmth with its 2800W PTC ceramic heating module. This technology claims to raise the bathroom temperature by 10°C in just one minute.
• In April 2024, KTS has announced the new release of Solahart’s new storage water heater system, the Solahart Storage Heater SC-30 and SL-30. In a statement, KTS Group of Companies deputy managing director Temenggong Dato Vincent Lau expressed his gratitude and excitement over the group’s remarkable 42-year partnership with Solahart.

Analyst View:

Solar Water Heater presents significant growth factors which is driven by environmental awareness, government incentives, technological advancements and rising energy costs in upcoming years. As more people and organizations realize the advantages of switching to solar energy solutions for water heating the general prediction is still favorable despite obstacles like early investment prices and dependence on sunlight.

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