Solar water heaters provide a sustainable solution to meet global warming challenges by reducing carbon footprint at large scale. These systems utilize solar thermal collectors to absorb and convert sunlight into heat, which is transferred to water storage tanks for domestic or commercial use. The growing awareness about environmental protection and fiscal incentives by governments worldwide has significantly boosted the adoption of solar water heaters across residential and commercial & industrial sectors.
The solar water heaters market is estimated to be valued at USD 6.21 Bn in 2024 and is expected to reach USD 9.1 Bn by 2031. It is expected to grow at a compound annual growth rate (CAGR) of 5.61% from 2024 to 2031.
Key players operating in the solar water heaters market are Rheem Manufacturing Company, Rinnai Corporation, AJAY INDUSTRIES, BAJAJ ELECTRICALS LIMITED, Alternate Energy Technologies, LLC, V-Guard Industries Ltd., and SunTank.Surging government efforts to promote renewable energy utilization through subsidies and tax waivers coupled with rising public inclination towards energy conservation is fueling the Solar Water Heaters Market Demand globally. Technological advancements such as hybrid systems integration with photovoltaic panels and electric heaters are enhancing the efficiency and applicability of these systems.
Market Trends
The market is witnessing growing preference for unglazed solar collectors, as they are less expensive and can effectively perform in colder climates compared to glazed options. Manufacturers are also developing advanced thermosiphon systems without electricity requirement, making solar water heating viable for off-grid areas.
Market Opportunities
Favorable renewable portfolio standards and solar renewable energy certificate policies in many countries could further catalyze the deployment of these systems. Moreover, increasing adoption in the commercial sector like hotels, factories, and establishments bodes well for the market players.
Impact of COVID-19 on Solar Water Heaters Market Growth
The COVID-19 pandemic had a significant impact on the solar water heaters market. During the initial months of the pandemic, production and supply chains were disrupted globally as countries imposed lockdowns. This led to reduced production volumes and shortage of key components such as solar panels. With people urged to stay indoors, demand from the residential sector saw a steep decline. Projects in the commercial and industrial sectors were also delayed or postponed owing to halted construction activities and disrupted cash flows. However, with gradual lifting of lockdowns, production and supply chains are recovering. The demand is also picking up pace, especially in the residential sector as people focus more on energy savings and sustainability. The commercial sector is also witnessing signs of recovery with projects resume. Going forward, increased investments in renewable energy sectors by governments is expected to further aid the market's growth trajectory.The solar water heaters market in Asia Pacific region holds the largest value share globally. Countries like China, India, Japan and Australia have highly concentrated markets in terms of installation volumes. This is attributed to the massive population base and strong government support through incentives and policies promoting solar energy adoption. The residential sector accounts for the major share in the region owing to high space heating needs. Other factors like favorable climatic conditions and declining technology costs have further augmented the market growth. On the other hand, the market in Middle East & Africa region has emerged as the fastest growing. This is due to increased investments by GCC nations to diversify their energy portfolios and reduce dependency on oil & natural gas. The growing construction industry has also stimulated the demand, especially in the commercial sector.
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