Solar Water Heater Market Size

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.

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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.