Solar Water Heater

Solar Water Heater Market Growing Demand and Huge Future Opportunities by 2030

According to the Market Statsville Group (MSG), the global solar water heater market size was valued at USD 4.6 billion in 2021 and is projected to reach USD 7.8 billion by 2030, growing at a CAGR of 6.1% during the forecast period (2022-2030). An increase in demand for cost-effective energy solutions for water heating is expected to boost the market growth. Zero-emission from solar water heaters makes it a suitable choice over conventional gas water heaters. In addition, solar water heaters consume zero natural resources such as oil and gas. For instance, the sun shining on 1m² of roof replaces 100 liters of heating oil or 100m³ of natural gas.

Furthermore, the rise in concern from governments on installing solar products is anticipated to impact market growth positively. Governments across the globe implement new rebates and incentive schemes to attract new customer segments. For instance, depending on the type and size of the system installed, rebates of up to $700 are available in all residential and commercial areas of Victoria, Australia. Solar water heating, on the other hand, necessitates a large roof area and direct sunlight exposure, as it will not work on cloudy or foggy days.

Global Solar Water Heater Market Definition

A solar water heater is majorly used as a cost-effective way to generate hot water for commercial, industrial, and residential end-users. It is also known as solar domestic hot water systems. A solar collector and a water tank make up the system. There are two types of solar collectors: glazed and unglazed. Because of their high absorption efficiency, glazed solar collectors are frequently used for large applications.

Global Solar Water Heater Market Dynamics

Drivers: Surge in demand for cost-effective and eco-friendly energy solutions

A rise in demand for cost-effective energy solutions for water heating is expected to drive market growth. Solar water heaters work on zero-emission and zero consumption of natural resources (natural gas and oil). For instance, the sun shining on 1m² of roof replaces 100m³ of natural gas or 100 liters of heating oil. Additionally, applying a solar water heater can reduce monthly energy bills by up to 60-80%.

Restraints: Large roof area for solar water heating

Solar water heating used in residential and commercial areas needs a large roof area and direct exposure to sunlight. Availability of large roof area is a major issue for small & medium-sized residences. In addition, solar water heater may not function on cloudy or foggy days due to lack of sun’s radiation. Such factors may negatively impact market growth.

Opportunities: Advancements in energy backup systems for solar water heater

Lack of solar radiation and foggy weather may not be effective for solar water heaters. However, the backup system as part of the solar collector aids in the additional solar heat storage during foggy or cloudy weather. It maintains the same performance as solar water heater, even on cloudy days and foggy weather. Therefore, this creates lucrative opportunities for market growth.