Solar Water Heaters Market 2030: Industrial Sectors Embrace Solar Efficiency

Global Solar Water Heaters Market Overview

The global solar water heaters market was valued at USD 3.57 billion in 2023 and is expected to reach USD 6.19 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.3% from 2024 to 2030. The market growth is primarily driven by the rising demand for sustainable, dependable, and cost-efficient water heating technologies across residential and non-residential sectors.

These systems significantly contribute to environmental sustainability by minimizing carbon emissions commonly associated with conventional water heating methods. Solar water heaters utilize the sun’s energy to heat water, which notably reduces dependency on electricity or gas, lowers energy consumption, and leads to long-term cost savings. As an eco-friendly and efficient solution, solar water heaters are widely adopted in both household and industrial applications to meet hot water demands while minimizing environmental impact.

Though the initial cost of installation may be high, the investment is generally recovered through reduced utility bills and energy savings over time. The technology proves to be a practical choice for those aiming to lower their carbon footprint and achieve long-term economic benefits. For instance, in January 2024, Malta’s Green Transition program supported over 3,800 families through government initiatives promoting renewable energy adoption. An investment of USD 11.5 million in clean energy infrastructure helped accelerate the country’s shift toward a more sustainable economy.

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Key Market Trends & Insights

• By Technology:
  The evacuated tube collector (ETC) segment dominated the market in 2023 with a 44.2% revenue share and is expected to grow at the fastest rate. This is due to rising demand for energy-efficient hot water distribution systems, particularly in industrial and commercial buildings.
• By Application:
  The residential segment held the largest market share at 39.54% in 2023. Solar energy allows households to reduce reliance on volatile energy markets, especially in regions with high energy costs or unreliable power infrastructure. It provides a cost-effective and stable alternative.
• By System:
  The thermosyphon segment accounted for the largest revenue share of 58.87% in 2023. These systems operate on the natural convection principle—hot water rises, cold water sinks—to circulate water without the need for mechanical pumps, making them an energy-efficient and reliable choice.

Market Size & Forecast

• 2023 Market Size: USD 3.57 Billion
• 2030 Projected Market Size: USD 6.19 Billion
• CAGR (2024–2030): 8.3%
• Largest Market (2023): Asia Pacific

Competitive Landscape & Company Insights

Key players in the solar water heaters market are expanding their portfolios with tailored products for various customer needs and climate conditions. These companies focus on innovation, offering different models based on collector type, system type, and capacity.

• V-Guard Industries LTD offers a wide range of models including evacuated tube collectors (ETC) and flat plate collectors, catering to diverse hot water demands and installation environments.
• Rheem Manufacturing Company provides both active (pumped) and passive (thermosyphon) systems, targeting various residential and commercial applications while optimizing for climate and energy efficiency.

Key Solar Water Heaters Companies

• A.O. Smith
• Bosch Thermotechnology
• Bradford White Corporation
• Eurostar Solar
• GE Appliances
• Kodsan
• Racold
• Rheem Manufacturing Company
• SunEarth
• SUNPAD, GREENoneTEC Solarindustrie GmbH
• SUNRAIN
• VaySunic
• V-Guard Industries LTD

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Conclusion

The global solar water heaters market is on a strong upward trajectory, driven by rising energy costs, growing environmental awareness, and supportive government initiatives promoting renewable energy solutions. Solar water heaters offer a clean, efficient, and cost-saving alternative to traditional heating systems. With a projected CAGR of 8.3% through 2030, the market is poised for significant growth, particularly in regions prioritizing energy independence and carbon reduction. Technological advancements, consumer incentives, and expanding applications across residential and commercial sectors will continue to drive adoption and innovation in this sustainable energy segment.