Market Summary

The global Solar Water Heaters market size was valued at USD 5.6 billion in 2025 and is projected to reach USD 16.3 billion by 2033, growing at a CAGR of 13.30% from 2026 to 2033 The solar water heater industry is growing steadily owing to the increasing cost of electricity and mounting pressures to curb the dependence upon fossil fuels. These are the key factors driving the solar water heater market. Government incentives, renewable energy mandates, and carbon reduction goals set by developed as well as emerging countries are driving the installation base, mainly for residential and commercial purposes, resulting in CAGR growth during the forecast period.

Market Size & Forecast

• 2025 Market Size: USD 5.6 Billion
• 2033 Projected Market Size: USD 16.3 Billion
• CAGR (2026-2033): 13.30%
• North America: Largest Market in 2026
• Asia Pacific: Fastest Growing Market

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Key Market Trends Analysis

• North America is seeing good momentum on the back of favorable federal and state-level renewable energy incentives, increased awareness of energy-efficient housing, and a high rate of replacement of conventional electric and gas water heaters in both residential and commercial infrastructure.
• The suburban residential demand, increasing utility costs, and 'green' building standards drive United States adoption, while solar water heaters are increasingly integrated into commercial facilities as part of their sustainability goals and operational energy cost reduction.
• The Asia-Pacific remains the world's fastest-growing region, as rapid urbanization, population growth, and government-backed renewable programs in China and India accelerate large-scale residential and industrial solar water heater deployments.
• Evacuated Tube Collectors are the leading technology adopted because of the higher efficiency of the system in different climates, which helps to provide hot water all year round.
• Pumped Systems are currently the dominant system types because they enable management of water circulation, are quite flexible, and are suitable for larger residential areas, hotels, hospitals, and industry for providing unattended hot water supplies.
• The main driving force for residential use continues to be as consumers increasingly turn to long-term savings, sustainable, and energy-independent heating solutions, spurred by subsidies and awareness of alternatives to traditional heating methods.

So, The solar water heater market includes solar systems that use solar energy to heat water for Domestic, Commercial, as well as Industrial purposes by using collectors, tanks, and circulation systems that will decrease the use of electricity or fuel-based water heaters. The market is driven by the increasing demands for energy, rising prices for electricity, and growing concern about carbon emissions. Solar water heaters provide a cheaper and more sustainable source of solar energy, especially in areas that receive a lot of solar radiation. Advancements in technology, accompanied by the growing number of construction projects coupled with government-backed clean energy policies, contribute to improved market acceptance. With sustainability being a growing concern in various industries and households, solar water heating systems gradually become a part of sustainable infrastructure and efficient building designs

Solar Water Heaters Market Segmentation

By Technology

• Evacuated Tube Collector

Evacuated tube collectors work best in colder climates and regions receiving less sunlight. This is why they can be considered the best for commercial or residential purposes that involve constant water supply at high temperatures. They offer better heat retention because of the vacuum tube, which makes them ideal for colder climates.

• Flat Plate Collectors:

These collectors are very economical and popular due to their robust construction and ease of installation. They work well in places where there is moderate to intense sunlight.

• Unglazed Water Collector

Unglazed collectors are simple and less expensive, being applicable in the heating of swimming pools and the supply of warm water in warmer climates. They have less efficiency but are simple to maintain and handle.

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By Systems Type

• Thermosyphon

The thermosyphon system doesn’t require any pumping, as it depends on convection. The system requires very little maintenance. Thus, it can be used in many households as well as commercial setups. The fact that it doesn’t have moving parts makes it very dependable since it won’t break easily.

• Pumped

In a pumped system, the water can be made to flow by an electric or solar pump, and this offers fast and regulated heating. It would be ideal in a bigger installation or in a location with a shorter tilt of the roof and no reliance on gravity to heat the water through conduction.

By Application

• Residential

Residential solar water heaters have been designed for safe and efficient production of hot water that can be used domestically. They are being widely adopted in residential areas in order to realize reduced energy costs.

• Commercial

Applications of commercial solar collectors are in hotels, schools, and hospitals where a lot of hot water needs to be produced at the same time. Such systems employ the use of many collectors to increase their productivity

• Industrial

Industrial applications require high-capacity systems for applications such as manufacturing, food processing, or heating. In such applications, ruggedness and efficiency are imperative.

Regional Insights

The market in North America is an established one for solar water heaters, and it is led by the United States. The factors that are encouraging the use of solar water heaters in the United States are favorable incentives for renewable energy resources, increasing costs of electricity, and sustainable building codes. Canada is the other growing market in this region; Mexico is an emerging market in North America. The European sector is still quite mature and regulatory-driven, and this is mainly due to the adoption of strict carbon reduction targets and use of renewables for heating by leaders like Germany, the UK, France, and Spain, and partly due to government subsidies and consumer awareness in the remaining regions of Europe that drive growth by replacement sales. The Asia Pacific region is the most growth-oriented market, led by China and India, in which macro-scale residential implementations, urbanization, and government helmed solar initiatives drive the market. The importance in Japan, South Korea, Australia, and New Zealand is on high-efficiency and technology-smart solutions, and the remaining Asia Pacific countries are growing at an increasing pace with developing infrastructure and energy accessibility initiatives.

Emerging market for the industry: South America, primarily Argentina, is an emerging market, due to the preferential climate with growing residential awareness. The rest of South America has been experiencing slow market growth, due to the presence of small business installations and the emphasis on renewable energy diversification. The Middle East & Africa market has access to plenty of solar radiation, with Saudi Arabia, the UAE, and South Africa being the major drivers across residential, hotel, and industrial sectors. Other countries have also been gradually adopting solar water heating systems as infrastructure development advances with the focus on energy efficiency and sustainability goals.

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Recent Development News

• November 2025, Apparent, a pioneer in alternative energy solutions, recently introduced its revolutionary DC solar water heater. This device thinks of domestic appliances in entirely new terms in this case, those of a personal, appreciable energy resource that is designed to realize profits every single day. The Apparent water heater can pay back up to 100% of the associated cost of heating the water in the house, which can be up to 20-30% of the average monthly bill. Contrary to most other appliances, instead of costing money, Apparent’s system pays off in value as the price of utilities goes up.

(Source: https://www.prnewswire.com/news-releases/apparent-launches-revolutionary-solar-water-heater-that-acts-as-a-private-energy-asset-eliminating-water-heating-bills-302610276.html

• In May 2025, -Lennox, innovator of premium climate solutions to the HVACR industry, and Ariston Group (Bloomberg: ARIS IM), world-class leader of climate and water comfort solutions, have established a joint venture to provide consumers in the US and Canada with a strong product offer of residential water heaters.

(Source: https://www.prnewswire.com/news-releases/lennox-and-ariston-group-announce-joint-venture-to-launch-water-heaters-in-north-america-302466278.html?

Key Solar Water Heaters Company Insights

Rheem Manufacturing Company is one of the leading solar water heating system suppliers worldwide. Its key strength is the diverse range of solar water heaters available from Rheem, including active and passive systems. Rheem Manufacturing Company has given more emphasis to efficiency, durability, and the integration of supplementary heat sources to increase the efficiency and reliability of the systems. Rheem Manufacturing Company has strong distribution channels throughout North America and increasing presence throughout Asia Pacific and the Middle East, using the support of the regional headquarters and local associations.

Key Solar Water Heaters Companies:

• Onnit Labs
•  O. Smith Corporation
• Rheem Manufacturing Company
• Ariston Thermo SpA
• Himin Solar Energy Group
• Bosch Thermotechnology
• Tata Power Solar Systems Ltd.
• V‑Guard Industries Ltd.
• Racold Thermo Pvt. Ltd.
• Solahart Industries Pty Ltd
•  Viessmann Group
•  Alternate Energy Technologies, LLC
• SunRain Solar Energy Co., Ltd.
•  Helioakmi S.A.
• Jiaxing Jinyi Solar Energy Technology Co., Ltd.
•  Stiebel Eltron, Inc

Global Solar Water Heaters market Report Segmentation

By Technology

• Evacuated Tube Collector
• Flat Plate Collector
• Unglazed Water Collector

By Systems Type

• Thermosyphon
• Pumped

By Systems Type

• Residential
• Commercial
• Industrial

Regional Outlook

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • Australia & New Zealand
  • South Korea
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Rest of the Middle East & Africa