Solar Water Heater Market size was valued at USD 2.87 billion in 2023 and is likely to reach USD 5.97 billion by 2036, expanding at around 5.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of solar water heater is estimated at USD 3 billion. The growth of the market can be attributed primarily to the growing demand for environment-friendly and cost-effective energy solutions for water heating in order to reduce carbon footprint. Along with these, increasing usage of solar heaters as a result of declining prices is also expected to bolster the progress of the market in the upcoming years. In 2018, China alone had a cumulative solar water heating capacity of approximately 338 gigawatts, making up for about 70 percent of the global capacity. Furthermore, rising number of government initiatives about reducing emissions and attaining renewable targets, and surge in investments in the infrastructure sector are projected to offer abundant growth opportunities to the solar water heater market in the near future.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
5.8% |
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Base Year Market Size (2023) |
USD 2.87 billion |
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Forecast Year Market Size (2036) |
USD 5.97 billion |
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Regional Scope |
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The market is segmented by end user into residential, commercial, and industrial, out of which, the residential segment is anticipated to hold the largest share in the global solar water heater market. This can be accounted to the growing construction of green residential buildings, and rising investments towards refurbishment and re-establishment of existing residential establishments to incorporate sustainable techniques. Additionally, on the basis of type, the glazed segment is assessed to acquire the largest share during the forecast period owing to the increase in solar efficiency provided by these heaters. Apart from these, glazing reduces the amount of heat absorbed by water by decreasing water temperature difference between inlet and outlet of absorber, which is also predicted to boost the growth of the market segment in the future.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Capacity |
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By End User |
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On the basis of geographical analysis, the global solar water heater market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific industry is likely to account for largest revenue share by 2036, backed by technological innovations to achieve energy efficiency at limited costs, and transition towards the use of clean and renewable energy in the region. In 2020, China headed the consumption of renewable energy in the Asia Pacific region, accounting for about 8 exajoules of energy. Moreover, the market in the Middle East & Africa is also projected to occupy a significant share during the forecast period, which can be credited to the trend of replacement of fossil fuel as a primary energy source with alternative fuels. In addition, escalating usage of solar energy for water heating purposes is also anticipated to accelerate the solar water heater market growth in the region in the near future.
The annual installations of solar water heaters in Gujarat more than doubled, up to 250,000 square meters from 100,000 square meters in March 2020.
The states now account for about 20 percent of the estimated 1.2 million total installations of solar water heaters in the country.
Author Credits: Dhruv Bhatia
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