Market Overview

The global Solar Water Heater market was valued at USD 6.51 billion in 2022 and expected to grow at a CAGR of 10.6% during the forecast period. A solar water heater is a device that utilizes the energy from the sun to heat water for various purposes such as bathing, washing, and heating. The system consists of solar collectors that absorb sunlight and convert it into heat, which is then transferred to the water stored in a tank or reservoir.

There are two types of solar water heaters: passive and active. Passive solar water heaters rely on natural convection to circulate water, while active solar water heaters use a pump to move water through the system.

Solar water heaters are environmentally friendly and can significantly reduce energy costs. They are particularly popular in countries with abundant sunshine, such as Australia, India, and China. The market for solar water heaters has grown significantly in recent years, driven by rising energy costs, government incentives and subsidies, and increasing awareness of the environmental benefits of renewable energy sources.

The global solar water heater market is expected to continue to grow in the coming years, with technological advancements and increased adoption in both residential and commercial applications. The market is also expected to benefit from the growing demand for energy-efficient and sustainable solutions in the construction and building sectors.

The rising cost of traditional energy sources such as gas and electricity is driving the demand for alternative energy sources, such as solar water heaters. Solar energy is a free and renewable energy source, which can help reduce energy bills and save money in the long run.

Many governments around the world are offering incentives and subsidies for the installation of solar water heaters as part of their efforts to promote clean energy and reduce greenhouse gas emissions. These incentives make solar water heaters more affordable and attractive to homeowners and businesses.

The growing awareness of environmental issues and the need for sustainable solutions is driving the demand for solar water heaters. Solar energy is a clean and renewable energy source that does not produce greenhouse gas emissions or contribute to climate change.

While solar water heaters can save money in the long run, the initial cost of installation can be high, which can deter some consumers. The high initial cost of solar water heaters can be a major barrier, particularly in developing countries where the cost of energy is already relatively low.

Solar water heaters rely on sunlight to generate heat, which can limit their effectiveness in areas with limited sunlight or during periods of inclement weather. This can lead to reduced efficiency and increased reliance on backup heating sources, which can offset the cost savings of a solar water heater.

Many consumers are not aware of the benefits of solar water heaters and may not understand how they work. This can limit the demand for solar water heaters and slow market growth.

Report Scope

Impact of COVID

The COVID-19 pandemic has had a mixed impact on the solar water heater market. On one hand, the pandemic has caused disruptions to the supply chain and led to delays in project timelines. Many manufacturers faced production stoppages and reduced demand for their products as a result of the economic downturn.

On the other hand, the pandemic has also increased awareness of the importance of renewable energy sources and the need for energy-efficient solutions. Many governments around the world have announced stimulus packages to support the transition to clean energy and sustainable infrastructure, which could benefit the solar water heater market in the long term.

In some regions, the pandemic has also led to an increased demand for solar water heaters. With people spending more time at home and facing financial constraints, many have been looking for ways to reduce their energy costs. Solar water heaters offer an affordable and sustainable solution for heating water, which has led to increased demand in some markets.

Overall, the impact of COVID-19 on the solar water heater market has been mixed and varies by region. While the pandemic has caused some disruptions and challenges, it has also highlighted the importance of renewable energy sources and the need for sustainable solutions in the face of global challenges

Type Insights

In terms of type, the report segmented the market into glazed and unglazed solar water heaters. Among these, glazed solar water heaters accounted for the largest share of the market in 2022, followed by unglazed solar water heaters. The glazed solar water heaters segment is expected to continue dominating the market during the forecast period, owing to their higher efficiency and better performance in colder climates.

Glazed solar water heaters are generally more expensive than unglazed solar water heaters, but they are also more efficient, as they have a transparent cover that helps to trap heat and reduce heat loss. On the other hand, unglazed solar water heaters are typically less expensive and more suitable for warmer climates, as they don't have a transparent cover and are therefore less efficient at trapping heat.

End-user Insights

Residential: The residential segment accounted for the largest share of the solar water heater market in 2022, with a share of around 60%. The increasing adoption of solar water heaters in residential buildings, especially in developing countries, is driving the growth of this segment.

Commercial: The commercial segment accounted for around 25% of the solar water heater market share in 2022. Solar water heaters are widely used in commercial buildings such as hotels, hospitals, and offices, as they offer a cost-effective and environmentally friendly way to meet hot water demand.

Industrial: The industrial segment accounted for the smallest share of the market in 2022, with a share of around 15%. However, the demand for solar water heaters in industrial applications such as food processing, chemical, and textile industries is expected to increase in the coming years, due to the growing emphasis on sustainability and energy efficiency.

Regional Insights

Asia-Pacific: Asia-Pacific is the largest market for solar water heaters, accounting for over 70% of global sales. China is the largest market in the region and is expected to continue to drive growth in the coming years due to government subsidies and increasing demand for renewable energy.

Europe: Europe is a mature market for solar water heaters, with high levels of adoption in countries such as Germany, Greece, and Spain. However, the market has slowed in recent years due to the reduction of government incentives and low energy prices.

North America: The North American market for solar water heaters is relatively small compared to other regions, but it is growing due to the increasing demand for clean energy and energy-efficient solutions. The market is expected to continue to grow due to government incentives and the increasing awareness of environmental issues.

Latin America: The solar water heater market in Latin America is growing, driven by government incentives and increasing demand for renewable energy. Countries such as Brazil and Mexico are leading the growth in the region.

Middle East and Africa: The solar water heater market in the Middle East and Africa is growing due to the high cost of electricity and increasing demand for sustainable solutions. Countries such as South Africa and Egypt are leading the growth in the region.

Competitive Analysis

Some of the major companies operating within the market are Azure Power India, Central Electronics, Chemtrols Solar, Euro Multivision, Indosolar, Jupiter Solar Power, Lanco Solar Private, Mahindra Solar One, Moser Baer Photovoltaic, Photon Energy Systems, PLG Power, Surana Ventures, Tata Power Solar Systems, Vikram Solar, Websol Energy System, XL Energy, SunTank, A.O. Smith, Alternate Energy Technologies,  Rheem manufacturing,  Viessmann, Wagner Solar

Recent News

·         In February 2022, Italian Ariston Group has acquired Israeli solar thermal system pioneer manufacturer Chromagen Hot Water Solutions. The boiler manufacturer acquired 100 % of the shares and voting rights of the Israeli entity and paid, on an equity value basis, around New Israeli Shekel (NIS) 130 million in cash. This corresponds to USD 40.6 million. The brand name Chromagen and the factory will both remain the same, confirmed Ariston Group upon enquiry by solarthermalworld.org.

·         In January 2022, SunEarth, Inc. of Fontana, Ca has partnered with Nyle Water Heating Systems of Brewer, to bring a scalable solar water series heat pump water heater to the multi-family/commercial sector.

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

§  Company Share Analysis by Application/End Use

§  Company Share Analysis by Product/Specification

Frequently Asked Questions

·         What is the market size and growth projections?

·         What is the market size and growth projection for each of the market segments and sub-segments across Countries & Regions?

·         What are the top performing segments, and countries / regions of each of the markets?

·         What is the market size and growth rate across key countries / regions?

·         How big is the global & regional market in terms of revenue and volume?

·         How far market will grow in forecast period in terms of revenue and volume?

·         What factors will influence demand and supply trends across each markets during the forecast period?

·         What are the technology trends shaping various markets?

·         Which country / region has more opportunities?

·         What is the COVID-19 impact on the market and how long will it take to recover?

·         Who are the key competitors of market Players?

·         What are the market share (%) of Key Players?

·         What are the Merger & Acquisition, New Product Launch, Recent Development within each of the Markets?

·         What are PEST analysis, Ecosystem Analysis, Porter's Five Forecast Analysis, Ansoff Matrix, and SWOT Analysis among other analyses for diverse markets?