Solar Water Heater Market Size - By Collector (Evacuated Tube, Flat Plate, Unglazed Water), By System (Thermosiphon, Pumped), By Application (Residential, Commercial, Industrial), 2025 – 2034

Solar Water Heater Market Size

The global solar water heater market was valued at USD 2.9 billion in 2024 and is estimated to grow at a CAGR of 5.7% from 2025 to 2034. A solar water heater (SWH) harnesses solar energy to heat water for various applications, including domestic, commercial, and industrial use. Typically, it comprises a solar collector, a storage tank, and essential components such as pipes and pumps. These elements work in unison to efficiently capture solar energy for water heating. The fundamental principle of an SWH is to utilize sunlight for heating water, significantly diminishing reliance on conventional energy sources like electricity or gas.
 

Growing concern over energy costs and sustainability enables homeowners to opt for solar water heaters as a long-term energy-saving solution. increasing awareness of renewable energy, and supportive government policies contribute to significant demand in Asia Pacific. European countries including Germany, France, and Greece have well-established solar water heater markets, driven by stringent energy efficiency regulations and the focus on reducing carbon footprints. In addition, countries such as China, India, and Brazil provide financial support to encourage the installation of solar water heaters, which boosts the product demand.
 

Larger systems for hotels, hospitals, resorts, and factories are increasingly being adopted, particularly in regions with high solar irradiation. These systems offer significant savings in water heating costs, making them attractive to large-scale consumers. Further, governments in emerging economies, are investing in solar energy infrastructure, providing subsidies, tax credits, and incentives to encourage the use of solar water heating systems.
 

Solar Water Heater Market Trends

Growing demand for hot water be it for bathing, laundry, dish cleaning, or other daily tasks owing to growing population will surge the market growth. Technological advancements and refined manufacturing processes have made these products more affordable coupled with favorable government incentives, like tax credits, are set to bolster the industry statistics. Some companies are innovating with hybrid systems that combine solar water heating with other technologies such as heat pumps or conventional electric heating elements, expanding their appeal in various climates.
 

Solar Water Heater Market Analysis

Based on collector, the evacuated tube is projected to surpass USD 1.3 billion by 2034, owing to their ability to function in extreme climates and a growing demand for replacements. Both homeowners and businesses can reduce their reliance on conventional energy sources, by harnessing free solar energy, leading to decreased utility bills and significant long-term savings. For instance, the Department of Energy projects that a solar water heater can cut water heating costs by 50-80%. Furthermore, heightened awareness and concern for environmental sustainability have spurred the adoption of renewable energy technologies, notably solar water heaters.
 

Based on application, the residential segment is set to grow at a CAGR of over 5% through 2034, driven by a rising global population and surging energy demands, there's a pronounced shift towards sustainable and decentralized energy solutions. Consumers are increasingly favoring unconventional water heating systems along with significant technological advancements, enhancing both their efficiency and reliability will stimulate the product demand. Key upgrades encompass superior insulation, high-performance collectors, sophisticated control systems, and integrated backup heating options. These enhancements have bolstered the consumer confidence, leading to a surge in the adoption of solar water heaters in residential settings.
 

The U.S. solar water heater market is likely to exceed USD 11 million by 2034, on account of environmental awareness, government incentives, and the decline in the cost of solar energy technologies. Stringent government rules and regulations for greenhouse gas emission along with development of smart city projects will stimulate the business outlook. Surge in eco-friendly and reliable products due to extreme weather conditions coupled with increasing emphasis on reducing carbon footprints will drive the business scenario. Furthermore, active implementation of efficient systems for secure heating services, along with ongoing investments in green building infrastructure, is set to shape the industry landscape
 

Solar Water Heater Market Share

The global solar water heater industry is highly competitive, with a mix of multinational corporations and regional players. Innovative product developments and strategic acquisitions aimed at cost-effective heating solutions are set to reshape industry dynamics. Numerous regional and local players are entering the market, offering innovative products at competitive prices. Many of these companies focus on specific geographies where solar energy adoption is growing rapidly. Solar water heater manufacturers are focusing on reducing installation complexity and ensuring that the systems require minimal maintenance, increasing their appeal to homeowners and businesses.
 

Solar Water Heater Market Companies

Eminent players operating in the solar water heater industry are:

• A.O. Smith
• Alternate Energy Technologies
• Bosch Thermotechnology
• Bradford White Corporation
• Chromagen Australia
• EMMVEE SOLAR
• GE Appliances
• Himin Solar
• Racold
• Rheem Manufacturing Company
• SUNPAD
• SunTank
• Viessmann
• V-Guard Industries
   

Solar Water Heater Industry News

• In December 2023, Vaysunic launched new V series heaters that can use either PV or AC grid power. It comes in four versions with capacities of 100 liters, 150 liters, 200 liters, and 300 liters. It is directly connected to the solar panel, powered by solar mainly on sunny days and AC on rainy days, and can be automatically switched. The company also emphasizes that users can remotely monitor and set the water heater via WiFi.
   
• In May 2023, the Uttarakhand Renewable Energy Development Agency (UREDA) launched a solar water heater initiative in India. This program offers subsidies ranging from 30% to 60% for the installation of water heaters, with capacities between 100 to 800 liters, in both residential and commercial properties. Additionally, the initiative plans to establish a water heater plant with a capacity of 75,000 liters, projected to save approximately 1,500 units of power annually. This government-backed initiative not only aims to lower electricity bills but also seeks to bolster the adoption of renewable energy across the state.
   

This solar water heater market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue & volume in “USD Million & ‘000 Units” from 2021 to 2034, for the following segments:

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Market, By Collector

• Evacuated Tube
• Flat Plate
• Unglazed Water

Market, By Product

• Thermosiphon
• Pumped

Market, By Application

• Residential
• Commercial
• Industrial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • Italy
  • Austria
  • Spain
  • Denmark
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Kuwait
  • Oman
• Latin America
  • Brazil
  • Chile