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

Solar Water Heater Market Size

The 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. Homeowners can choose energy-efficient heating systems, such as solar water heaters, as a long-term energy-saving alternative due to growing concerns about sustainability and energy costs. Significant product demand is fueled by growing public awareness of renewable energy sources and pro-renewable government initiatives.
 

Strict energy efficiency laws, growing climate goals, along with increasing emphasis on lowering carbon emissions, across the European nations including Germany, France, Spain, and Italy will augment the market growth. The European Union (EU) is required by the Renewable Energy Directive, updated in 2023, to consume at least 42.5% of its energy from renewable sources by 2030, with a target of 45%. Incentives such as energy efficiency standards and feed-in tariffs have made integration into buildings even easier, which has increased product growth.
 

Financial assistance across nations like China, India, and Brazil to promote the installation of solar water heaters, is increasing demand for the product. The Association of Southeast Asian Nations (ASEAN) has set goals to achieve a 23% share of renewable energy and a 35% installed power capacity in the total primary energy supply by 2025. In addition, extensive adoption in the commercial, industrial, and residential sectors has been fueled by government incentives, industrial growth, and fast urbanization.
 

SWH systems are becoming more affordable and efficient owing to growing innovations. Increasing dependability and ease of use, thermosyphon systems which use natural water circulation instead of mechanical pumps have become more and more popular, especially in residential settings. By cutting greenhouse gas emissions and dependency on fossil fuels, SWHs provide substantial environmental benefits that support market expansion.
 

Solar Water Heater Market Trends

• More and more hotels, hospitals, resorts, and enterprises are implementing larger systems, especially in areas with high levels of sun radiation. These systems are appealing to large-scale users because they provide notable cost reductions on water heating. In September 2024, for example, Cyprus became the world leader in solar thermal water heating, with 93.5% of households using the technology. The industry landscape was further enhanced by the extensive adoption of the technology in the hotel sector.
   
• To promote the use of solar water heating systems, governments in emerging nations are investing in solar energy infrastructure and offering tax breaks, subsidies, and other incentives. In India, for example, residents can install solar water heaters at a 60% discount, while businesses can receive a 30% subsidy. Further, some companies are innovating hybrid systems that combine solar water heating with other technologies such as conventional electric heating elements, expanding their appeal in various climates.
   
• 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. Improved manufacturing techniques and technological developments coupled with favorable government incentives, including tax credits, have made these products more affordable. For instance, the Italian company Sunerg Solar Srl introduced a 1,500 W water heater solution in June 2022 that can be powered by both solar energy and grid electricity at the same time.
   

Solar Water Heater Market Analysis

• Solar water heater industry size was valued at USD 2.6 billion, USD 2.7 billion and USD 2.9 billion in 2022, 2023 and 2024 respectively. Based on collector, the market is segmented into evacuated tube, flat plate, and unglazed water collector. The evacuated tube is projected to reach more than USD 1.5 Billion by 2034 on account of their ability to withstand harsh weather conditions and growing need for replacements.
   
• Companies and homeowners can lessen their dependency on traditional energy sources, which will result in lower utility costs and significant long-term savings. For example, according to DOE estimates, a solar water heater can reduce water heating expenses by 50-80%. Furthermore, the use of renewable energy technologies most notably solar water heaters has increased due to growing awareness and concern for environmental sustainability.
   
• The flat plate collector segment will cross more than USD 4 billion by 2034 on account of durability, efficiency, and cost-effectiveness. These systems are preferred for domestic water heating, hotels, hospitals, and low-temperature industrial applications. Fo citation, in April 2023, Green Innov Industry Investment announced the construction of Morocco's first solar water heater plant, producing 40,000 units annually, supporting the product demand.
   
• The unglazed water collector segment is set to grow at over 8.5% CAGR through 2034, owing to adoption in low-temperature applications such as swimming pool heating, aquaculture, and pre-heating processes in commercial and industrial settings. In September 2022, Tunisia's government distributed solar-powered water heaters to 4,000 under-served families, aimed to optimize the nation's energy consumption and reduce reliance on fossil fuels, aligning with Tunisia's goal to decrease fossil fuel usage by 30% by 2030.
   

• Based on application, the solar water heater market is segmented into residential, commercial and industrial. The residential segment held around  53.4% revenue share in 2024 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 consumer confidence, leading to a surge in the adoption of solar water heaters in residential settings.
   
• The commercial segment is likely to exceed USD 1.5 billion by 2034 owing to increasing adoption across industries such as hospitality, healthcare, food processing, and manufacturing. Hotels and resorts in regions like Europe, Latin America, and Asia-Pacific are leading adopters, leveraging solar thermal energy for hot water supply and heating pools. For instance, in January 2022, SunEarth partnered with Nyle Water Heating Systems, and introduced a scalable solar series heat pump water heater aimed at the commercial market.
   
• The industrial segment is set to register more than 9% CAGR through 2034 on account of decarbonization policies, rising energy costs, and the need for sustainable heat generation. Countries like China, India, Germany, and Mexico are leading in industrial solar thermal adoption along with new technological advancements in evacuated tube collectors (ETCs) and concentrating solar thermal (CST) systems will drive the business scenario.
   

• The U.S. solar water heater market size surpassed USD 40 million, USD 44 million and USD 47 million in 2022, 2023 and 2024 respectively. North America accounted for over 4% market share in 2024 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.
   
• Europe solar water heater market is set to reach USD 1 billion by 2034 because of government subsidies, decarbonization goals, and renewable energy legislation. The adoption of the product is fueled by the EU's Renewable Energy Directive and national targets, which promote solar thermal integration in the commercial, industrial, and residential sectors. Furthermore, improvements in hybrid solar systems and evacuated tube collectors (ETC) are increasing efficiency, which makes SWHs more appealing and supports market expansion.
   
• Asia Pacific solar water heater market is set to register more than 4.6% CAGR till 2034 on account of rising energy costs, government incentives, and increasing environmental awareness. Countries including China, India, and Australia are leading the market, with strong policy support and widespread use across residential, commercial, and industrial sectors. For citation, consumers in Taiwan, are eligible for a subsidy of USD 90 per unit on replacing old appliances with energy-saving models. Additionally, a commodity tax refund of up to USD 60 per appliance is available and is set to expire on June 14, 2025.
   
• Government subsidies, rising energy prices, and growing awareness of sustainable energy options are driving the solar water business in Latin America. Due to good solar irradiation levels and supportive legislation, countries like Brazil, Mexico, and Chile are leading the industry and contributing to its growth. For example, Brazil passed Law PL3492/2023 in late 2023, which required the Minha Casa, Minha Vida social housing program to incorporate solar water heaters in specific locations.
   

Solar Water Heater Market Share

• With 40.5% of the market, the top 4 companies in the solar water heater sector are Himin Solar, Bosch Thermotechnology, V-Guard, and Racold. There are both local and multinational firms in this fiercely competitive market. The dynamics of the sector are expected to change because of strategic acquisitions and innovative product developments targeted at affordable heating solutions.
   
• Many local and regional companies are joining the market with cutting-edge goods at affordable costs. Many of these businesses concentrate on regions where the use of solar energy is expanding quickly. To make their systems more appealing to companies and homeowners, solar water heater manufacturers are concentrating on making installation simpler and requiring less maintenance.
   

Solar Water Heater Market Companies

• Racold is an Indian brand that specializes in water heating solutions and is well-known for its innovative products that use less energy. It belongs to the Ariston Group, which is renowned for its expertise in water heating and environmental solutions. It has also been recognized as a superbrand for the years 2019, 2021, and 2023 in the water heating sector.
   
• V-Guard Industries is an established manufacturer and distributor of electrical and electronic products in India. The company has a wide distribution network with more than 100,000 retailers, 400 distributors, and 35 branches as of 2023. The company recorded USD 611.8 million in sales, USD 59.95 million in EBITDA, and USD 35.18 million in net income as of June 2024.
   

Eminent players operating in the solar water heater market 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 January 2024, the latest solar water heater from Sudarshan Saur was unveiled. It generates continuously hot water while significantly reducing carbon emissions and energy expenses by heating water using the sun's abundant energy. This product's unique features is its blue glass lining including advantages comprising of compatibility with all types of water, prevention of particles adhering, bonding, or reacting with the tank, and clean and sanitary water throughout the duration of the system's life, thereby augmenting the product adoption.
   
• In December 2023, Vaysunic unveiled new V series heaters that can be powered by the grid's AC or PV sources. It comes in four different variants with capacities of 100, 150, 200, and 300 liters. It is directly attached to the solar panel and may be switched on and off at any time. On sunny days, it is mostly powered by solar energy; on rainy days, it is powered by air conditioning. Additionally, the company emphasizes that users can remotely manage and monitor the water heater by using WiFi.
   
• In July 2023, Sudarshan Saur received the prestigious ISI mark from the Bureau of Indian Standards (BIS), India. The business received the coveted 3-Star Rating from the Bureau of Energy Efficiency (BEE) of the Ministry of Power. It also passes rigorous testing at the Regional Test Centre (RTC), Pune, and conforms with the BIS's stringent requirements.
   
• In May 2023, the Uttarakhand Renewable Energy Development Agency (UREDA) launched a solar water heater project in India for homes and businesses with capacities between 100 and 800 liters. This program provides discounts ranging from 30% to 60%. It further intends to build a 75,00 liter water heater facility, which will save about 1,500 units of electricity a year. This further intends to increase the use of renewable energy sources throughout the state in addition to reducing electricity costs.
   

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