Solar Water Heater Market Forecast: Rising Demand in Residential & Rural Areas Fuels Market Growth

Solar Water Heater Market to Reach $6.7 Billion by 2027 🚀 | Industry Growth Driven by Renewable Energy Adoption

WILMINGTON, DE, UNITED STATES, September 12, 2025 /EINPresswire.com/ -- According to a new report by Allied Market Research titled, “Solar Water Heater Market by Type, Capacity, and End User: Opportunity Analysis and Industry Forecast, 2020–2027,” the global solar water heater market size was valued at $4.7 billion in 2019 and is projected to reach $6.7 billion by 2027, registering a steady CAGR of 6.1% during the forecast period.

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A solar water heater is an energy-efficient system that captures sunlight to heat water. It utilizes a solar collector to absorb solar radiation and transfers this energy to the water tank via a circulating pump. Unlike conventional gas or electric water heaters, solar water heaters benefit from the free availability of solar energy, making them environmentally friendly and cost-effective in the long run.

Market Drivers Fueling Growth 🌞

The rising demand for water heating systems in isolated and rural areas significantly drives market expansion. Small-scale solar water heaters are extensively deployed in rural regions due to their low cost, easy installation, and adaptability in various climates. In China, over 5,000 small and medium-scale solar water heater manufacturers cater primarily to rural demands.

Government initiatives, including rebates and energy schemes, strongly support the adoption of solar water heaters, enhancing market penetration. These programs encourage residential and commercial customers to shift towards sustainable energy, which in turn boosts the market growth.

Market Segmentation: Type, Capacity, Application & Region 🧱

By Type: The glazed segment leads the market due to its high absorption efficiency compared to unglazed collectors. However, glazed solar water heaters come with a higher price tag, limiting their usage in smaller-scale setups.

By Capacity: The 100-liter capacity segment holds a significant share, driven by demand from residential sectors. A 100-liter solar water heater sufficiently meets the needs of a family of 2–3 members, offering an ideal balance of cost and functionality.

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By Application: The residential segment commands the largest market share, supported by ongoing investments in construction projects. Many new buildings are equipped with solar collectors installed on rooftops, connected to water tanks via circulating pumps, ensuring a sustainable water heating solution.

By Region: North America holds a significant market share thanks to favorable government policies promoting solar technologies for both residential and commercial use. Meanwhile, the Asia-Pacific region dominated the market in 2019, accounting for around 55% of total revenue share. The region's rapid urbanization and government-led renewable energy initiatives are key factors contributing to this leadership.

Impact of COVID-19 on Solar Water Heater Market 😷

The COVID-19 pandemic had limited direct impact on the solar water heater market compared to gas or electric water heaters. However, the global lockdown and social distancing norms delayed new solar collector and water tank installations. Supply chain disruptions, particularly due to high dependence on Chinese exports, affected production capacity and slowed down project rollouts. Moreover, labor shortages and border restrictions further hampered manufacturing activities.

Despite these challenges, the global shift toward decarbonization and the increasing demand for green energy solutions remain strong drivers for the market’s post-pandemic recovery.

Competitive Landscape & Key Players 🏢

Leading market players have adopted strategies such as product launches, business expansions, and acquisitions to remain competitive. Key companies profiled in the market 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

Alternate Energy Technologies

These players focus on offering innovative and efficient solar water heating systems to meet growing market needs.

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Future Outlook & Key Insights 🔮

The glazed solar water heater segment is projected to grow at a CAGR of 6.2% during the forecast period.

The “Others” capacity segment is expected to grow at a faster CAGR of 8.2% in terms of revenue.

Asia-Pacific will continue to dominate the market due to productivity improvements and favorable government policies supporting solar infrastructure.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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