PUBLISHER: The Business Research Company | PRODUCT CODE: 1695076
PUBLISHER: The Business Research Company | PRODUCT CODE: 1695076
Solar water heaters are systems that utilize solar energy to heat water for domestic, commercial, and industrial use. They typically consist of solar thermal collectors and a storage tank, efficiently converting sunlight into heat to provide hot water. These systems reduce the reliance on traditional energy sources, lowering energy costs and decreasing greenhouse gas emissions.
The main solar water heater systems are thermosiphon and pumped. A thermosiphon solar water heating system operates on the principle of natural convection, where cold water in the collector absorbs solar heat, becomes lighter, and naturally rises into the storage tank located above the collector. They use various collectors, such as an evacuated tube collector, a flat plate collector, and an unglazed water collector. They are available in different capacities, such as 100 liters, 150 liters, 200 liters, and others. They are used for various applications, such as residential, commercial, and industrial.
The main solar water heater systems are thermosiphon and pumped. A thermosiphon solar water heating system operates on the principle of natural convection, where cold water in the collector absorbs solar heat, becomes lighter, and naturally rises into the storage tank located above the collector. They use various collectors, such as an evacuated tube collector, a flat plate collector, and an unglazed water collector. They are available in different capacities, such as 100 liters, 150 liters, 200 liters, and others. They are used for various applications, such as residential, commercial, and industrial.
The solar water heaters market size has grown strongly in recent years. It will grow from $4.63 billion in 2024 to $5.03 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to rising energy prices and volatility in fossil fuel markets, increasing focus on energy independence and security, growing consumer preference for sustainable and eco-friendly solutions.
The solar water heaters market size is expected to see strong growth in the next few years. It will grow to $6.61 billion in 2029 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to rising demand for off-grid and decentralized energy solutions, increasing adoption of hybrid solar water heating systems, continuation of government incentives and policies favoring renewable energy. Major trends in the forecast period include adoption of predictive analytics and artificial intelligence for system optimization, emergence of new business models focused on energy-as-a-service and performance contracting, development of standards and certifications to ensure product quality and safety, collaborative partnerships between manufacturers and utilities to promote solar water heating.
The increasing energy prices are expected to drive significant growth in the solar water heater market. Rising energy prices are primarily due to factors such as increased demand, supply constraints, geopolitical tensions, and the ongoing transition to renewable energy sources. In this context, solar water heaters offer a cost-effective and sustainable alternative for heating water, helping reduce dependence on conventional energy sources and mitigate the impact of high energy costs. For instance, in October 2024, Eurostat, a Luxembourg-based government agency, reported that in the first half of 2024, household electricity prices in the EU saw their largest increase in Ireland, rising by 37% compared to the same period in 2023. As energy prices continue to climb, the demand for solar water heaters, which can lower long-term energy costs, is expected to grow.
Major companies operating in the solar water heater market are increasing their focus on developing new products, such as Eco Cute, to elevate their financial performance in the market. This system, which encompasses an air-source heat pump system and a hot water storage unit, seamlessly integrates with residential solar panels to harness excess solar energy for water heating. For instance, in March 2022, Panasonic Corporation, a Japan-based electronic company, launched Eco Cute. The eco cute system captures heat from the air to create hot water for residential use. It offers energy-efficient water heating and supply by utilizing supercritical carbon dioxide as a refrigerant instead of conventional gases like ammonia or haloalkanes. The system is known for its environmental benefits, including energy conservation and reduced greenhouse gas emissions. It includes a heat pump and hot water storage unit that helps maintain bathwater temperatures at a constant level, saving energy and reducing water usage.
In January 2022, Ariston Holding N.V., an Italy-based company that provides heating systems and related products, acquired Chromagen Ltd. for $35.84 million. Through this acquisition, Ariston strengthens its competitive position by leveraging Chromagen's expertise and market presence, marking a notable progression in advancing sustainable solutions in the solar water heater market. Chromagen Ltd. is an Israel-based company that specializes in water heating, energy savings, and clean energy, including solar water heaters for various applications.
Major companies operating in the solar water heaters market are Robert Bosch GmbH, Hubbell Incorporated, Viessmann Manufacturing, Ariston Group, Rheem Manufacturing Company, Stiebel Eltron Inc., Tata Power Solar Systems Limited, V-Guard Industries Ltd., Bradford White Corporation, Himin Solar Energy Group, Photon Energy Systems Ltd., A. O. Smith, Central Electronics Limited, Alternate Energy Technologies LLC, Kodsan IsI Teknolojileri, SunEarth Inc., Apricus Solar Co. Ltd., Jupiter Solar Power Limited, SunTank, Solav Energy, Ferroli S.p.A., FAFCO Inc., Wagner & Co Solartechnik GmbH, Chemtrols Solar Pvt. Ltd., Nihon Itomic Co. Ltd.
North America was the largest region in the solar water heaters market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the solar water heaters market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the solar water heaters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The solar water heater market consists of sales of products such as solar collectors, storage tanks, circulation systems, controllers, and backup heating systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Solar Water Heaters Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on solar water heaters market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for solar water heaters ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The solar water heaters market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.