The global solar water heaters market size was estimated at USD 5.57 billion in 2022 and is projected to hit around USD 9.56 billion by 2032 with a registered CAGR of 5.6% during the forecast period 2023 to 2032.
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Solar water heaters are electrical devices that help heat water for both domestic and commercial usage. In contrast to traditional warmers, solar water heaters run on solar power. The solar thermal energy that is harvested from the sun is used to heat water as it flows through a solar water heater.
The global solar water heater market size will be driven by rising demand for eco-friendly, dependable, and affordable technology for water heating solutions across residential and non-residential sectors. In comparison to traditional heating systems, the solar water heater has the capacity to provide low operating costs, or 25% to 40% in winter and 75% in summer. The demand for energy-efficient solutions is being driven by a growing understanding of how to use sustainable technologies effectively and rising infrastructure expenditure. The implementation of incentives like tax breaks, subsidies, and tax credits will also help to promote the use of sustainable technology, which will improve the outlook for the company. The need for energy-efficient water heaters is anticipated to expand every year as a result of the increasing depletion of non-renewable resources, together with greater efforts to control energy use. This should accelerate market growth during the timeframe of the projection. In order to appeal to a wider spectrum of clients, regardless of their financial status, these systems are priced inexpensively. It is anticipated that greater environmental awareness would spur industry expansion in both developed and emerging countries.
Market growth is anticipated to be fueled by rising demand for reliable, affordable, and environmentally friendly water heating technologies, notably in the residential and industrial sectors. It is anticipated that the system's capacity to operate at reduced costs—up to 75% cheaper in the summer and 30% to 40% lower in the winter—will encourage consumers to choose it over competing goods already on the market. For the installation of solar water heating systems, governments all over the world offer rebates and incentives. For instance, depending on the kind and size of the installed system, reimbursements of up to $700 are possible in Victoria, Australia's residential and commercial districts. On the other hand, solar water heating requires a large roof area and exposure to direct sunlight because it could not function on overcast or foggy days. However, improvements in backup energy systems that function even on cloudy days are anticipated to create profitable economic opportunities.
Report Scope of the Solar Water Heaters Market
|Market Size in 2023
|USD 5.85 Billion
|Market Size by 2032
|USD 9.56 Billion
|Growth Rate from 2023 to 2032
|CAGR of 5.6%
|2023 to 2032
Key Market Drivers
Key Market Challenges
Key Market Opportunities
In 2022, installations of flat plate collectors made up more than 71% of the solar water market heaters worldwide. During the projected period, the flat plate collectors (FPC) market is anticipated to expand significantly at a CAGR of 6.5%. One of the essential elements that will help these devices gain popularity is their straightforward design, which is paired with a low price and ease of installation and usage. FPC units are highly wanted in the smaller business and residential sectors. Such collectors are suitable for home and SMEs installations. Cost efficiency, straightforward design, and easy installation are critical factors for the product. Additionally, continual technical advancements in collector design that aim to increase efficiency will encourage the spread of the product.
The evacuated tube collectors market will increase as a result of the rising need for hot water distribution systems in industrial and commercial buildings that are energy efficient. Fewer space requirements, high conversion efficiency, and low maintenance costs are some of the key qualities that will promote product acceptance. The product will be preferred above alternatives because of its capacity to considerably limit the loss of heat to the surrounding environment, whether by convection or radiation.
Due to their low space requirements, thermosiphon solar water heaters are suitable for hot climates in countries like Australia, Japan, Israel, and India. This will propel the industry's expansion. The capability to circulate flammable liquids as well as gases in heating and cooling applications without the need for mechanical pumps would further improve the market environment.
In 2018, the pumped installations made up over 30 percent of the global market. Some of the key advantages that will promote product acceptance are ease of system connection, and reduced heat loss.
The assistance of public and private financial institutions for the creation of infrastructures, such as governmental offices, educational institutions, and retail centers, will increase product uptake. By promoting the adoption of green technology and reducing carbon emissions, green building norms and standards will further improve the business environment.
Due to expanding investments in building repair and remodeling as well as rising disposable income, the market for solar water heaters in residential areas will develop. Due to its capacity to interact with traditional units in both newly established and existing organizations, its adoption is favored above those of its rivals. Increased awareness of energy savings and the rising need to replace old systems will further boost product uptake.
The United States market will grow as a result of constant investments in infrastructure for single and multi-family homes supported by growing purchasing power and expanding urbanization. Furthermore, the industry landscape will be improved by supportive government initiatives to encourage the use of solar technology and strict restrictions to lower carbon emissions. The continued transition toward the use of clean and renewable energy sources and technological advancement to attain energy efficiency at a cheap cost are a few variables that will affect the size of the Indian market.
Due to rising demand for water heating solutions in both commercial and residential settings as well as rising living standards, the German market will expand. The OECD estimates that in 2016, 15% of all domestic energy consumption was used for water heating. Increasing emphasis on reducing import dependence and higher taxes on fossil fuels are two important factors that have a beneficial impact on product uptake. The market for solar water heaters in South Africa will expand as a result of rising solar technology adoption in residential buildings and escalating need for energy-efficient systems to take the place of high-pressure electric systems.
Key Market Players
Segment Covered in the Report
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