Solar Water Heater Market Statistics - 2027
The global solar water heater market was valued at $4.7 billion in 2019, and is projected to reach $6.7 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027. Solar water heater is a device, which captures sunlight to heat water. It collects heat with the help of solar collector, and the heat is passed to water tank with the help of a circulating pump. It helps in energy consumption as solar power is free in contrast to natural resources such as natural gas or fossil fuels. However, a back-up heating system is required when there is insufficient luminosity. The cost of solar water heater is around $3,000 to $7,000 for a fully-integrated system. This is widely used in residential, commercial, and industrial areas.
Significant surge in demand for eco-friendly and cost-effective energy solutions for water heating is expected to drive the market growth. Solar water heaters work on the principle of zero emission and zero consumption of natural resources. For instance, the sun shining on 1m² of roof replaces 100 liters of heating oil or 100m³ of natural gas. In addition, rise in concern from governments on increased global warming issues is expected to further enhance the demand for solar water heaters. Governments across different countries offer rebate and incentive schemes on installation of solar water heating systems. For instance, all residential and commercial areas in Victoria, Australia rebates are worth up to $700 depending on the type and size of the system installed. Furthermore, robust investments from industry players in solar water heater business are expected to propel the market growth over the forecast timeframe. However, solar water heating needs large roof area and direct exposure to sunlight as it may not function on cloudy or foggy days. Nonetheless, advancements in back up energy systems maintaining performance on cloudy days are projected to create lucrative opportunities in the market.
The global solar water heater market is segmented on the basis of type, capacity, and end user. On the basis of type, it is divided into glazed and unglazed. Based on capacity, it is categorized into 100 liter, 150 liter, 200 liter, and others. Based on end user, it is segmented into residential, industrial, and commercial. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA, with country level analysis of each region.
Major players have adopted product launch, business expansion, and acquisition to sustain the intense market competition. The key players profiled in the report include Himin Solar Energy Group, V-Guard Industries Ltd, Ariston Thermo SpA, KODSAN Company, Solav Energy, Zhejiang JiaDeLe Solar Co., Ltd., SunPower Corporation, A.O. Smith, and Alternate Energy Technologies.
LAMEA exhibits CAGR of 8.0% during 2020-2027
Global Solar Water Heater Market, By Region
Asia pacific accounted for highest revenue share and highest market growth, owing to favorable government measures and policies to promote solar power technologies for residential and commercial places.
Glazed Solar Water Heater is projected as the most lucrative segment
Global Solar Water Heater Market, By Type
The glazed water heater segment accounted for significant market share, owing to high efficiency of glazed collectors. Glazed water heater can absorb much sunlight than unglazed water heater, which makes it suitable for different climates throughout the year.
Others segment is projected as the most lucrative segment
Global Solar Water Heater Market, By Capacity
Solar water heater of 200 liter capacity accounted for highest market share. This is attributed to rise in demand from the residential sector for various small scale applications in household. Solar water heater of 200 liter capacity is sufficient for a family of 3 members in residential buildings.
Industrial end-user is projected as the most lucrative segment
Solar Water Heater Market, By End User
The residential solar water heater segment accounted for significant market share, owing to rise in investment in the construction sector in re-establishment and refurbishment of buildings. The commercial solar water heater segment is expected to witness steady growth. This is attributed to increase in investments in the development of shopping centers and education institutions with solar roof panels. In addition, launch of new green building codes, such as Energy Conservation Building Code (ECBC), in India is anticipated to further complement the business growth.
COVID-19 scenario analysis:
- The global solar water heater market has no immediate impact unlike other conventional electric or gas water heaters.
- However, shortage of manpower and social distancing norms delayed new installations.
- In addition, the sharp decline in consumer expenditure highly affected the demand. Reduced expenditure of consumers during the lockdown highly impacted the market for solar products, including various solar panels and solar collectors.
- Moreover, the upstream and downstream channels have been affected due to restrictions on movement, which lead to increase in the amount of inventories.
- Furthermore, high dependency on Chinese exports for solar cell and solar module negatively impacted the market. India imports around 80% of its solar cells and modules from China. Since the manufacturing firms in China were idle for the last 6-7 months, it highly impacted the production process in India.
Key benefits for stakeholders:
- The global solar water heater market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global solar water heater market for the period 2020–2027.
- The report outlines the current solar water heater market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- Key drivers, restraints, & opportunities and their detailed impact analysis of the global solar water heater market are explained in the study.
Global Solar Water Heater Market Report Highlights
Key Market Players
Solav Energy, Zhejiang JiaDeLe Solar Energy Co., Ltd., Solahart, V-Guard Industries Ltd, Alternate Energy Technologies, Jiangsu Sunpower Solar Technology Co.,ltd, KODSAN, Himin Solar Energy Group, A. O. Smith India Water Products Pvt. Ltd., Ariston Thermo SpA
The solar water heater market is expected to witness steady growth. This is attributed to a significant surge in demand from residential and commercial end users. Solar water heater is often used in hospitals, hotels, hostels, schools, educational institutions, and restaurants for washing and cleaning purposes. In addition, rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero emission norms is expected to drive the market growth. Governments across different countries implement new rebate and energy schemes on excess amount of energy for residential as well as commercial users. This is expected to enhance the market penetration in new customer segments.