Solar Water Heaters Market Size, Share & Trends Analysis Report, By Technology (ETC, FPC, UWC), By Application (Residential, Commercial, Industrial), By System, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The solar water heaters market size was valued at USD 2.05 billion in 2016 and is predicted to exhibit a CAGR of 8.1% by 2025. This can be attributed to increasing energy prices, growing global population, and rising demand for energy-efficient water heaters. Strict government regulations to curb greenhouse gas emissions, along with growing demand for water heating systems - especially in colder regions, are predicted to augment the adoption of these systems and boost industry growth.

Demand for efficient water heaters is expected to witness rapid growth every year, along with increasing measures to control energy consumption owing to the fast depletion of non-renewable resources. This is expected to augment market growth over the forecast period. These systems are reasonably priced to cater to a wider spectrum of consumers based on their economic condition. Increasing ecological awareness in developed as well as developing regions is also expected to result in industry growth.

Growing demand for eco-friendly, dependable, and affordable technologies to heat water, especially in residential and industrial sectors, is anticipated to drive industry growth. The system’s capability to function at lower costs, 30% to 40% lower in winters and up to 75% lower in summer, is expected to spur their adoption over other products currently available in the market.

The Environment Protection Agency (EPA) has introduced regulatory standards to effectively assess the quality of solar water heaters manufactured. It also aims to implement several technical and financial plans to protect consumers against substandard products that can be potentially dangerous to use. These trends have augmented industry growth in the U.S. over the past decade and are expected to continue over the forecast period.

The introduction of stringent regulations, coupled with government incentives such as tax rebates, tax credit, and financial subsidies, will boost the adoption of these systems. The U.S. federal government has introduced a corporate tax credit system for the effective adoption of solar products, including space heat, thermal electric, water heater, photovoltaic, and thermal process heat. The credit limit has been ascertained at 30% of the production cost and the program validity is up till 2022. Technological advancements in the design of thermal energy collectors to boost efficiency and curb costs will further augment industry growth.

Technology Insights

Modest storage requirement, coupled with low maintenance requirements and high energy conversion potential, is expected to drive demand for evacuated tube collectors (ETC). In 2016, the segment was valued at USD 886.9 million and these systems are preferred for industrial and commercial applications across frigid regions.

In terms of volume, flat plate collector (FPC) is expected to reach 863.6 thousand units by 2025. The simplistic design coupled with affordable price and convenience in installation and usage is among the important attributes like to boost the adoption of these products. FPC units are highly preferred in smaller commercial and residential sectors.

System Insights

Thermosyphon systems were valued at USD 1.22 billion in 2016 and the segment is predicted to expand at a CAGR of 7.8% over the forecast period. It accounts for the largest share in the solar water heaters market by volume as well as revenue. This is primarily owing to affordable pricing and convenient installation and usage of the product. Thermosyphons are preferred with liquid-based, preferably water-based, solar water heating systems.

Pumped systems have witnessed large-scale adoption in Europe and North America, chiefly due to the effective functioning of these systems, coupled with adaptability to frigid weather conditions in countries. The segment was pegged at 676.9 thousand units in 2016.

Application Insights

By application, the market can be segregated into residential, commercial, and industrial. The residential segment was pegged at 651.0 thousand units in 2016 and is expected to contribute over 1.16 million units by 2025. The recovery of the construction sector in developed economies is expected to bore well for the growth of this segment.

The commercial segment comprises small and large commercial institutions, sports and healthcare facilities, transportation facilities, and educational institutions. In terms of revenue, this segment is expected to exhibit a CAGR of 9.1% through the forecast period. Substantial growth in commercial construction is anticipated to contribute significantly to industry growth.

Regional Insights

Asia Pacific is predicted to lead the global industry, in terms of revenue, over the forecast period. High growth rate, coupled with positive economic performance, is predicted to propel China over the next decade, as large investments in research and development are expected to augment growth. The country is introducing extensive changes to its energy policy and shifting its dependence from fossil fuels to renewable fuels in a bid to curb pollution and maintain ecological balance.

The European market held the second-largest share of 26.41% by revenue in 2o16, fueled by demand for reliable and superior quality systems from numerous end users, predominantly industrial and commercial sectors.

Solar Water Heaters Market Share Insights

Several solar water heater manufacturers are training their focus on developing new technologies and systems that can function with more efficiency and can be made available even to remote areas. Multinational companies with global presence control a substantial part of the market and are concentrated in Europe and North America. Top global manufacturers account for over 60.0% of the global revenue, with China and the U.S. holding significant production and export volumes. Pricing strategies and other market programs and initiatives are swayed by the conglomerates.

Manufacturers closely follow developments in the industry to formulate new strategies to strengthen their market position in terms of volume and revenue. They have been making heavy investments to boost research and development and present pioneering product designs with enhanced features.

Report Scope

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global solar water heaters market report on the basis of technology, application, system, and region.

• Technology Outlook (Volume, Thousand Units; Revenue, USD Million, 2014 - 2025)

  • Evacuated Tube Collector

  • Flat Plate Collector

  • Unglazed Water Collector

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2014 - 2025)

  • Residential

  • Commercial

  • Industrial

• System Outlook (Volume, Thousand Units; Revenue, USD Million, 2014 - 2025)

  • Thermosyphon

  • Pumped

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • The U.K.

    • Spain

    • Italy

    • France

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

  • Central & South America

    • Brazil

    • Paraguay

    • Colombia

  • The Middle East and Africa

    • UAE

    • South Africa

    • Egypt

    • Saudi Arabia