The Global Solar Water Heater Market was worth US$ 5.85 billion in 2023 and is anticipated to reach a valuation of US$ 8.05 billion by 2029 and is predicted to register a CAGR of 5.6% during the forecast period 2024-2029.
Market Drivers:
The growing demand for cost-effective, dependable, and environmentally friendly solutions in both the residential and commercial sectors will propel the growth of the solar water heater market. It offers low operation expenses. During winter, the costs range from 25 to 40 percent, and 75 percent in summer.
The adoption of sustainable technology is further increased by government incentives such as tax breaks, subsidies, and tax credits. Governments around the world offer rebates and incentives for solar water heating system installation. For example, Australia offers up to 700 dollars in refunds based on system type and size. Furthermore, the market is anticipated to grow due to significant investments from both private and public organizations. The advancements in backup energy systems are anticipated to create significant commercial opportunities.
Moreover, rising infrastructure spending and awareness of sustainable technology are driving the need for energy-efficient solutions, which is eventually prompting the growth rate for the solar water heater market. Additionally, the depletion of non-renewable resources and increased measures to regulate energy consumption are increasing demand.
Regulations are set by the Environmental Protection Agency to assess the quality of solar water heaters. Additionally, it tries to create many financial and technical efforts to safeguard consumers from inferior products. The United States' industrial growth has been accelerated by these advancements over the past ten years, and it is anticipated that this trend will continue for further years.
Market Restraints:
Competition from established technologies is restricting the growth of the solar water heater market. Traditional water heaters have strong markets and infrastructure. This makes it challenging for solar options to compete on price and easy installation options. Water heaters have been dominated by electric and gas-powered options. It has the advantage of lower upfront costs due to economies of scale and existing production chains. On the other hand, Solar-based water heaters are a more environmentally friendly alternative.
Major traditional brands hold the majority market share due to their extensive marketing efforts and recognition. SBWH, on the other hand, has limited visibility, and marketing budgets restrict their appeal to consumers.
Market Opportunities:
There is huge potential for technological advancements in the solar water heater market. It can be easily incorporated into the increasingly popular smart home systems. With this connectivity, homeowners may optimize energy use and cut expenses by remotely monitoring and controlling their water heating system. Moreover, improving the functionality and dependability of solar water heaters will require the development of effective energy storage devices. For example, battery technology can store extra energy produced during the day to be used at night to provide a steady supply of hot water. Additionally, government support for the launch of innovative products is escalating the value of the solar water heater market.
To optimize the efficiency and aesthetics of solar water heating systems, architects and engineers are developing new approaches to integrate them into building designs. Apart from this, there are large market prospects for manufacturers and service providers in the solar water heating sector due to the rising demand for sustainable energy solutions.
Market Challenges:
The lack of knowledge and understanding is limiting the growth of the solar water heater market. Customers are less aware of the financial and environmental benefits of renewable energy. This is when it is not promoted and expanded to include solar power installations. Since solar power systems are still new, most consumers are unaware of how to use them. For example, people may assume that renewable energy solutions are unreliable because of the little sunshine. They might not realize that intermittent technologies can be just as trustworthy as traditional ones when combined with additional solutions like hybrid PV/thermal. Furthermore, private and public electricity providers may be uninformed about the benefits that solar power technology systems offer. Therefore, a major obstacle to market growth is ignorance.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 – 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 - 2029 |
|
CAGR |
5.6% |
|
Segments Covered |
By Collector, Location, Application, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
GE Appliances, A.O. Smith, Alternate Energy Technologies, LLC., Rheem Manufacturing Company, Viessmann, V-GUARD INDUSTRIES LTD., Racold, SunTank, Chromagen Australia Pty Ltd, Himin Solar Co., Ltd, SUNPAD, Bradford White Corporation, EMMVEE SOLAR, Bosch Thermotechnology, Rinnai, and Others. |
Market Segment Analysis:
The evacuated tube collector segment holds the maximum market share under this category. Low maintenance needs, a high energy conversion potential, and a minimal storage need are expected to propel the segment's market growth. Moreover, commercial and industrial applications in cold regions are the reason these systems are chosen. The flat plate collectors (FPC) sector is anticipated to rise significantly. The items gain popularity due to their user-friendly design, affordability, and ease of setup and operation. These units are in high demand in the smaller business and residential sectors.
The thermosiphon segment dominates this category. The system is popular due to its simple design, lower cost, and easy installation. This makes it suitable for regions with consistent sunlight and minimal roof space constraints. The demand for affordable and rural electrification is increasing, but limitations in hot water output and dependence on gravity flow limit market reach. Moreover, these systems are less expensive than their pumped equivalents. It opens up the market for larger, tight-budget buyers. Furthermore, innovations in materials like heat pipes and advanced coatings are enhancing efficiency and performance in colder climates.
The government segment is projected to grow during the forecast period. They are increasingly recognizing solar water heaters as strategic investments in environmental sustainability and energy security and not just as cost-saving measures. In addition, Public building installations of renewable energy can encourage public adoption and drive technological advancements. Furthermore, they can leverage their substantial purchasing power to promote manufacturers to create efficient and cost-effective solutions.
Market Regional Analysis:
Asia Pacific is expected to lead the global solar water heater market. There is a rising trend towards green energy like wind and solar for fossil fuels as the primary energy source. These sources are less expensive and more environmentally friendly than the energy they produce. The region's high adoption rate of these devices and huge population are expected to be the main factors propelling the market growth. Furthermore, China and India are predicted to have a major influence on the regional market expansion.
North America accounts for the largest solar water heater market share. The growth is driven by supportive government policies, high energy costs, and increasing environmental awareness. The region focuses on the smooth integration and efficiency of solar-based water heaters. There is a growing demand for smart controls and heat pipes and also integration with solar PV systems, among other modern technologies. Rheem and AO Smith are the dominant tech companies focusing on developing new products at affordable costs. But smaller tech-focused companies are slowly emerging. However, high initial costs and the need to rely on federal tax credits for affordability are among the challenges for the regional market growth.
Europe is anticipated to register a higher CAGR during the forecast period. The solar water heater market growth is propelled by aggressive goals for renewable energy, high fuel prices, and supportive laws in nations like Italy and Germany. There is an increasing demand for sustainability and aesthetics. Also, integrated systems and attractive designs are becoming more popular. The European market is diverse, with significant regional differences, with France and Germany leading while Eastern European nations are falling behind.
Latin America holds immense potential for solar water heater market growth due to abundant sunlight, rising energy demand, and government initiatives. While Chile and Argentina have encouraging possibilities, Brazil and Mexico dominate the region through government programs and raising awareness. However, the adoption is hampered by high upfront costs, little product awareness, and a shortage of qualified technicians for process execution.
Middle East and Africa are expected to have prominent growth opportunities in the coming years. The increasing energy cost is driving the regional market growth. Governments can unlock potential through financial incentives, awareness campaigns, and local production initiatives. In addition, through financial incentives, awareness campaigns, and local production initiatives, governments in the region can further boost SBWH adoption.
COVID-19 impacted the growth of the solar water heater market. Initially, lockdowns disrupted supply chains and installations, which hindered expansion. However, after the pandemic, rising energy costs along with an increased focus on clean energy have revitalized interest. Moreover, government incentives and sustainability concerns further fueled the demand for solar-based water heaters in developing countries. COVID-19 ultimately highlighted the value of solar alternatives, which provided the potential for long-term market expansion.
Market Key Players:
Market Key Developments:
Frequently Asked Questions
The Global Solar Water Heater Market is expected to grow with a CAGR of 5.6% between 2024-2029.
The Global Solar Water Heater Market size is expected to reach a revised size of US$ 8.05 billion by 2028.
Himin Solar Co., Ltd, SUNPAD, and Bradford White Corporation are the three Solar Water Heater Market key players.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region