Solar Water Heaters Global Market Report 2024

The solar water heaters market size has grown steadily in recent years. It will grow from $4.26 billion in 2023 to $4.63 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The growth observed in the historic period can be attributed to factors such as the rise in energy prices and volatility in fossil fuel markets, an increased focus on energy independence and security, and a growing consumer preference for sustainable and eco-friendly solutions. These factors collectively contributed to the adoption and growth of solar water heater systems during the historic period.

The solar water heaters market size is expected to see strong growth in the next few years. It will grow to $6.18 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. In the forecast period, the growth in the solar water heater market can be attributed to the rising demand for off-grid and decentralized energy solutions, an increasing adoption of hybrid solar water heating systems, and the continuation of government incentives and policies favoring renewable energy. Major trends expected in this period include the adoption of predictive analytics and artificial intelligence for system optimization, the emergence of new business models focused on energy-as-a-service and performance contracting, the development of standards and certifications to ensure product quality and safety, and collaborative partnerships between manufacturers and utilities to promote solar water heating. These trends are likely to shape the solar water heater industry in the coming years.

The anticipated increase in energy prices is poised to drive the growth of the solar water heater market. Energy, a fundamental entity of nature transferred for the production of usable power such as heat or electricity, is witnessing rising prices. This surge is attributed to factors such as heightened demand, supply constraints, geopolitical tensions, and the global transition to renewable energy sources. In response to escalating energy costs, solar water heaters emerge as a crucial and cost-effective alternative for water heating, contributing to sustainability. As of May 2023, reports from the U.S. Energy Information Administration (EIA) indicate a substantial 34% increase in the prices of fossil fuels supplied to U.S. power plants, including natural gas, coal, and petroleum, from $3.82 per million British thermal units (MMBtu) in 2021 to $5.13 per MMBtu in 2022. The upward trend in energy prices is a key driver behind the growth of the solar water heater market.

Prominent companies in the solar water heater market are actively focusing on the development of new products, exemplified by Eco Cute, to enhance their financial performance. Eco Cute is a comprehensive system encompassing an air-source heat pump system and a hot water storage unit. It seamlessly integrates with residential solar panels to utilize excess solar energy for water heating. In March 2022, Panasonic Corporation, a Japan-based electronic company, introduced the Eco Cute system. This system captures heat from the air to generate hot water for residential use, offering energy-efficient water heating by employing supercritical carbon dioxide as a refrigerant instead of conventional gases. Renowned for its environmental benefits, including energy conservation and reduced greenhouse gas emissions, the Eco Cute system incorporates a heat pump and hot water storage unit to maintain bathwater temperatures at a constant level, promoting energy savings and reduced water usage.

In January 2022, Ariston Holding N.V., an Italy-based company specializing in heating systems and related products, acquired Chromagen Ltd. for $35.84 million. This acquisition positions Ariston to enhance its competitive standing by leveraging Chromagen's expertise and market presence. It marks a significant step forward in advancing sustainable solutions within the solar water heater market. Chromagen Ltd., based in Israel, specializes in water heating, energy savings, and clean energy, offering solar water heaters for various applications.

Major companies operating in the solar water heaters market report 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 Isı 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 2023. 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.

Solar water heaters are systems designed to harness solar energy for the purpose of heating water used in domestic, commercial, and industrial applications. Typically, these systems comprise solar thermal collectors and a storage tank. By efficiently converting sunlight into heat, solar water heaters provide a sustainable means of generating hot water. One of the key advantages is the reduction in reliance on traditional energy sources, leading to lower energy costs and contributing to the decrease of greenhouse gas emissions.

The main types of solar water heater systems are thermosiphon and pumped systems. In a thermosiphon solar water heating system, the operation is based on the principle of natural convection. Cold water in the collector absorbs solar heat, becomes lighter, and naturally rises into the storage tank located above the collector. Various types of collectors can be used in thermosiphon systems, including evacuated tube collectors, flat plate collectors, and unglazed water collectors. These solar water heaters are available in different capacities, such as 100 liters, 150 liters, 200 liters, and others. They find applications in various settings, including residential, commercial, and industrial applications.

The solar water heaters market research report is one of a series of new reports that provides solar water heaters market statistics, including solar water heaters industry global market size, regional shares, competitors with a solar water heaters market share, detailed solar water heaters market segments, market trends and opportunities, and any further data you may need to thrive in the solar water heaters industry. This solar water heater market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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.

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