Solar water heater Market Report 2025 (Global Edition)

Global Solar water heater Market Report 2025 Market Size Split by Collector (Evacuated Tube, Flat Plate, Unglazed), by System (Thermosiphon, Pumped), by Application (Residential, Commercial, Industria...

Solar water heater Market Report Description

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Imapct of Trumph Tariff on Electronics and Electrical Industry

In 2025, global trade has entered a period of renewed volatility as the U.S., under President Donald Trump, introduced sweeping tariffs known as the Liberation Day Tariffs. Aimed at addressing trade imbalances and foreign supply chain dominance, the tariffs range from 10% on allies like Australia and the UK to 46% on Vietnamese goods and 34% on Chinese imports. A 25% universal tariff on steel, aluminum, and auto parts has further strained global trade ties. The electronics sector is among the hardest hit, particularly due to the escalating U.S.China trade war. Tariffs on Chinese goods now reach up to 145% in sectors like semiconductors and consumer electronics, while China has retaliated with up to 125% duties and restrictions on critical mineral exports. This has disrupted just-in-time supply chains and increased component costs.

Specific tariffs include 25% on semiconductors, 20% on lithium-ion batteries, and 10–15% on consumer electronics like laptops and tablets, leading to higher retail prices and reduced consumer demand. Sub-sectors such as home automation, computer hardware, communication electronics, medical devices, and industrial electronics are all under pressure due to rising input costs and supply chain delays. Companies are revisiting suppliers, shifting sourcing to countries like India, Mexico, and Vietnam, and redesigning products to avoid high-tariff components.

China remains a key player, contributing USD 119 billion in electronics exports to the U.S. in 2023. Even components routed through countries like Malaysia and Vietnam often rely on Chinese subparts, making the ripple effect of tariffs widespread. U.S. electronics firms operating on thin margins are seeing input costs rise 18–25%, with contract manufacturers in alternative regions facing capacity constraints.

Market research is now critical. It helps companies identify new suppliers, analyze cost trends, optimize product design, forecast demand shifts, and track regulatory changes. Tools like supplier mapping, BOM optimization, and scenario planning support strategic responses to ongoing disruptions. Leading firms like Apple and Dell are expanding production outside China, while others invest in digital supply chain tools and redesign products for cost resilience. In this evolving trade environment, firms that leverage research-driven strategies are better positioned to adapt and thrive.

Competitive Landscape of the Solar Water Heater Market

The competitive landscape of the solar water heater market is characterized by a diverse array of players, including both established manufacturers and emerging startups, competing based on product innovation, pricing strategies, and geographic reach. Key players in the market continually invest in research and development to enhance efficiency, durability, and cost-effectiveness while also leveraging partnerships and strategic alliances to expand their market presence.

 

Top Companies Market Share in Solar water heater Industry: (In no particular order of Rank)

• Azure Power India
• Central Electronics
• Chemtrols Solar
• Euro Multivision
• Indosolar
• Jupiter Solar Power
• Lanco Solar Private
• Mahindra Solar One
• Moser Baer Photovoltaic
• Photon Energy Systems
• PLG Power
• Surana Ventures
• Tata Power Solar Systems
• Vikram Solar
• Websol Energy System
• XL Energy
• SunTank
• Confidential Data
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• Data Hidden

*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of Solar Water Heater Market

Which Region Dominates the Solar Water Heater Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue. North America dominates the solar water heater market as the region has a high level of consumer awareness regarding environmental issues and a growing preference for sustainable energy solutions. Additionally, government incentives and policies promoting renewable energy adoption, such as tax credits and rebates, have stimulated market growth. Moreover, the technological advancements in solar water heating systems, coupled with a mature market infrastructure and distribution network, have contributed to the widespread adoption of these systems in North America. Furthermore, increasing concerns about energy security and the desire for energy independence have further fueled the demand for the solar water heaters in region. Overall, these factors combined have positioned North America as a dominant market player in the solar water heater industry.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific stands out as the fastest-growing region in Solar Water Heater market due to the region's high population density and increasing urbanization have led to a surge in demand for hot water, particularly in residential and commercial sectors. Secondly, governments across the Asia Pacific are implementing ambitious renewable energy targets and offering incentives, subsidies, and favorable regulatory frameworks to promote solar water heater installations. Additionally, the declining costs of solar technology, coupled with rising awareness of environmental sustainability, are driving adoption rates. Furthermore, the region's abundant sunlight resources make it highly conducive to solar energy generation. As a result, Asia Pacific is emerging as a hub for solar water heater production and innovation, attracting investments from both domestic and international manufacturers and contributing significantly to the global expansion of the market.

The current report Scope analyzes Solar water heater Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Solar water heater Market Analysis

According to Cognitive Market Research, the global Solar Water Heater market size was estimated at USD 2851.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 1140.48 million in 2024 and will grow at the compound yearly growth rate (CAGR) of 4.2% from 2024 to 2031. In North America, the Solar Water Heater market exhibits a promising landscape characterized by surging awareness of environmental sustainability and the demand to reduce carbon footprints propel the demand for renewable energy solutions, including solar water heaters. Further, government incentives, tax credits, and rebates at federal, state, and local levels encourage consumers and businesses to invest in solar technologies. Thirdly, rising energy costs and the desire for energy independence further boost the adoption of solar water heaters. Among various segments, residential installations emerge as the primary driver of the market, fueled by homeowners seeking to lower utility bills and reduce reliance on conventional energy sources. In conclusion, the North American market for solar water heaters is experiencing significant growth driven by increasing environmental consciousness, supportive government policies, and a growing demand for energy-efficient solutions, with residential installations leading the market's expansion. According to Cognitive Market Research, the US had a major share in the Solar Water Heater market with a market size of USD 899.84 million in 2024 and is projected to grow at the CAGR of 4.0% during the forecast years. The demand is amplified due to the rising government incentives, tax credits, and rebates, along with increasing awareness of environmental sustainability. The Canada Solar Water Heater market had a market share of USD 136.86 million in 2024 and is projected to grow at the CAGR of 5.0% during the forecast years due to the government incentives and rebates, coupled with rising energy costs and environmental awareness. The Mexico Solar Water Heater market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 103.78 million in 2024.

Europe Solar water heater Market Analysis

According to Cognitive Market Research, the global Solar Water Heater market size was estimated at USD 2851.2 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 855.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031. In Europe, the Solar Water Heater market presents a dynamic landscape due to stringent environmental regulations and commitments to reduce carbon emissions incentivize the adoption of renewable energy technologies, including solar water heaters. The increasing energy costs and the desire for energy independence prompt consumers and businesses to seek alternative, sustainable heating solutions. Thirdly, government support in the form of subsidies, feed-in tariffs, and tax incentives encourages investment in solar water heating systems. Among the segments, residential installations emerge as the primary driver of the market, as homeowners prioritize energy efficiency and seek to lower utility bills. In conclusion, the European market for solar water heaters is buoyed by stringent environmental regulations, government support, and a growing demand for sustainable heating solutions, with residential installations leading the market's expansion. The United Kingdom Solar Water Heater market had a market share of USD 143.70 million in 2024 and is foreseen to rise at the CAGR of 5.3% during the forecast period. In the UK, Solar Water Heater sales witness an upswing due to the government incentives, such as the Renewable Heat Incentive (RHI) scheme. The France Solar Water Heater market is projected to witness growth at the CAGR of 3.7% during the forecast period with the market size of USD 78.69 million in 2024. According to Cognitive Market Research, the Germany Solar Water Heater market size valued at USD 169.36 million in 2024 and is projected to rise at a CAGR of 4.7% during the forecast period. In Germany, Solar Water Heater sales surged due to strong government incentives, favorable feed-in tariffs, and stringent environmental regulations. The Italy Solar Water Heater market is projected to witness growth at the CAGR of 3.9% during the forecast years with the market size of USD 73.56 million in 2024. The Russia Solar Water Heater market is projected to witness growth at the CAGR of 3.5% during the forecast period with the market size of USD 132.58 million in 2024. The Spain Solar Water Heater market is projected to witness growth at the CAGR of 3.6% during the forecast years, with a market size of USD 70.14 million in 2024. The Luxembourg Solar Water Heater market is projected to witness growth at the CAGR of 4.6% during the forecast period with the market size of USD 26.52 million in 2024. The Portugal Solar Water Heater market is projected to witness growth at CAGR of 4.3% during the forecast period with the market size of USD 17.96 million in 2024. The Greece Solar Water Heater market is foreseen to experience growth at the CAGR of 4.8% during the forecast period with the market size of USD 10.26 million in 2024. The rest of Europe's Solar Water Heater market is foreseen to experience growth at the CAGR of 3.2% during the forecast period, with a market size of USD 132.58 million in 2024. .

Asia Pacific Solar water heater Market Analysis

According to Cognitive Market Research, the global Solar Water Heater market size was estimated at USD 2851.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 655.78 million in 2024 and will grow at a compound yearly growth rate (CAGR) of 8.0% from 2024 to 2031. In the Asia Pacific region, the Solar Water Heater market exhibits robust growth prospects driven by the high population density and rapid urbanization of region contributes to a significant demand for hot water in both residential and commercial sectors. Secondly, government initiatives promoting renewable energy adoption, such as subsidies, incentives, and favorable regulatory frameworks, stimulate market growth. Thirdly, the abundant sunlight resources in many countries in the region make solar water heaters a viable and attractive option for energy generation. Among various segments, residential installations emerge as the dominant driver of the market, fueled by increasing household incomes and a growing awareness of environmental sustainability. In conclusion, the Asia Pacific market for solar water heaters is experiencing robust growth due to a combination of population growth, government support, and favorable environmental conditions, with residential installations leading the market's trajectory. According to Cognitive Market Research, the China Solar Water Heater market size valued at USD 295.10 million in 2024 and is foreseen to rise at the CAGR of 7.5% throughout the forecast years. Solar Water Heater sales surged in China due to government mandates, subsidies, and incentives aimed at promoting renewable energy adoption and reducing dependence on fossil fuels. The Japan Solar Water Heater market is projected to experience growth at a CAGR of 6.5% during the forecast period, with the market size of USD 90.50 million in 2024. The India Solar Water Heater market had a market share of USD 78.69 million in 2024 and is foreseen to rise at the CAGR of 9.8% during the forecast period. The demand is augmented by government incentives, favorable policies, and increasing awareness of energy sustainability. The South Korea Solar Water Heater market is foreseen to experience growth at the CAGR of 7.1% during the forecast period with a market size of USD 65.58 million in 2024. The Australia Solar Water Heater market is projected to witness growth at the CAGR of 7.7% during the forecast period with the market size of USD 34.10 million in 2024. The South East Asia Solar Water Heater market is foreseen to experience growth at the CAGR of 9.0% during the forecast period with a market size of USD 45.25 million in 2024. The Rest of the Asia Pacific Solar Water Heater market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 46.56 million in 2024. .

South America Solar water heater Market Analysis

According to Cognitive Market Research, the global Solar Water Heater market size was estimated at USD 2851.2 Million, out of which Latin America market of more than 5% of the global revenue with a market size of USD 142.56 million in 2024 and will grow at the compound yearly growth rate (CAGR) of 5.4% from 2024 to 2031. In Latin America, the Solar Water Heater market showcases promising growth prospects driven by the region's abundant sunlight and favorable climatic conditions, making solar energy practical and an attractive solution for meeting hot water needs. Secondly, rising energy costs and limited access to conventional energy sources in some areas incentivize consumers and businesses to adopt renewable energy technologies like solar water heaters. Thirdly, government initiatives, such as subsidies, tax incentives, and renewable energy targets, encourage the widespread adoption of solar technologies. Among different segments, residential installations emerge as the primary driver of the market as homeowners seek to reduce energy bills and environmental impact. In conclusion, the Latin American market for solar water heaters is experiencing significant growth propelled by favorable climatic conditions, increasing energy costs, government support, and a growing awareness of the benefits of renewable energy, with residential installations leading the market's expansion. According to Cognitive Market Research, the Brazil Solar Water Heater market size valued at USD 61.02 million in 2024 and is foreseen to rise at the CAGR of 6.0 % during the forecast years. Solar Water Heater sales flourish in Brazil due to government incentives, favorable regulatory policies, and the country's abundant solar resources. The Argentina Solar Water Heater market had a market share of USD 23.95 million in 2024 and is foreseen to grow at the CAGR of 6.3% during the forecast period. The demand is augmented by government incentives, favorable regulatory policies, and a growing focus on renewable energy adoption. The Colombia Solar Water Heater market is projected to witness growth at the CAGR of 5.2% during the forecast period, with the market size of USD 12.69 million in 2024. The Peru Solar Water Heater market is projected to witness growth at the CAGR of 5.6% during the forecast period with the market size of USD 11.69 million in 2024. The Chile Solar Water Heater market is projected to witness growth at the CAGR of 5.7% during the forecast period, with the market size of USD 10.26 million in 2024. The Rest of the Latin America Solar Water Heater market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 22.95 million in 2024. .

Middle East Solar water heater Market Analysis

According to Cognitive Market Research, the global Solar Water Heater market size was estimated at USD 2851.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 57.02 million in 2024 and will grow at a compound yearly growth rate (CAGR) of 5.7% from 2024 to 2031. MEA, the Solar Water Heater market, showcases promising growth prospects driven by the region's abundant solar resources and the growing need to address energy security and sustainability challenges. Government initiatives promoting renewable energy adoption, coupled with favorable regulatory frameworks and subsidy programs, incentivize the deployment of solar water heating systems. Additionally, the increasing cost competitiveness of solar technologies compared to conventional energy sources further fuels market growth. Among various segments, the residential sector emerges as a key driver as homeowners seek to reduce reliance on expensive and unreliable grid electricity for water heating. In conclusion, the MEA market for solar water heaters is experiencing significant growth propelled by abundant solar resources, supportive government policies, and a growing demand for sustainable energy solutions, with residential installations leading the market's expansion. The GCC Countries Solar Water Heater market is projected to witness growth at a CAGR of 6.5% during the forecast period with the market size of USD 24.41 million in 2024. Solar Water Heater sales flourish due to the region's abundant solar resources, coupled with government initiatives promoting renewable energy adoption to reduce reliance on fossil fuels. The Egypt Solar Water Heater market is projected to witness growth at the CAGR of 6.0% during the forecast period with a market size of USD 5.99 million in 2024. The South Africa Solar Water Heater market is foreseen to witness growth at a CAGR of 6.7% during the forecast period with the market size of USD 9.01 million in 2024. Solar Water Heater sales flourish in the South Africa due to the country's abundant sunlight resources and government initiatives promoting renewable energy adoption. The Turkey Solar Water Heater market is projected to witness growth at the CAGR of 5.2% during the forecast period with the market size of USD 4.90 million in 2024. The Nigeria Solar Water Heater market is projected to witness growth at the CAGR of 4.8% during the forecast period with the market size of USD 5.99 million in 2024. The Rest of the MEA Solar Water Heater market is foreseen to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 6.73 million in 2024. .

Solar water heater Market Analysis

Solar Water Heater Market Collector Segment Analysis

According to Cognitive Market Research, flat plate collectors dominate the segment due to their versatility, efficiency, and reliability. These collectors consist of a flat, rectangular panel containing an array of absorber plates covered by a transparent cover. They are well-suited for a wide range of climates and applications, offering consistent performance in various environmental conditions. Additionally, flat plate collectors are relatively cost-effective to manufacture and install when compared to other types of solar collectors, making them a popular choice for residential, commercial, and industrial water heating systems worldwide. Their proven track record and widespread availability further contribute to their dominance in the market.

Evacuated tube collector emerges as the fastest-growing category in the Solar Water Heater market due to its superior efficiency and performance, particularly in colder climates or areas with inconsistent sunlight. Compared to flat plate collectors, evacuated tubes can capture solar energy more effectively, even in diffuse or low-light conditions. Additionally, their modular design allows for scalability and easier maintenance. As the demand for reliable and efficient hot water solutions increases globally, evacuated tube collectors are gaining traction for both residential and commercial applications, driving their rapid growth in the solar water heater market.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Solar water heater Industry. Request a Free Sample PDF!

Solar Water Heater Market System Segment Analysis

According to Cognitive Market Research, the dominating category is thermosiphon solar water heater due to its simplicity, reliability, and cost-effectiveness. This passive system relies on natural convection to circulate water through collectors and storage tanks, eliminating the need for pumps or controllers and thus reducing maintenance requirements and operational costs. Its straightforward design makes it suitable for a wide range of applications, particularly in regions with abundant sunlight and moderate climate conditions. Additionally, the thermosiphon system's ease of installation and low upfront investment make it highly appealing to both residential and commercial customers, driving its widespread adoption and market dominance.

The fastest-growing category in the Solar Water Heater market is pumped systems due to their efficiency and versatility. This system utilizes a pump to circulate water between the solar collectors and storage tank, allowing for greater control over water flow and temperature regulation. Compared to passive systems, pumped systems are better suited for areas with colder climates or varying weather conditions, ensuring a consistent hot water supply. Additionally, advancements in pump technology, coupled with increasing demand for reliable and high-performance solar water heating solutions, are driving the accelerated adoption of pumped systems in both residential and commercial applications.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Solar water heater Application Segment Analysis

According to Cognitive Market Research, the dominating category is residential due to the increasing demand for sustainable and cost-effective hot water solutions among homeowners. Solar water heaters offer significant energy and cost savings over conventional water heating systems, making them highly attractive for residential use. Moreover, government incentives, tax credits, and rebates further incentivize homeowners to invest in solar water heating technology. Additionally, growing environmental consciousness and a desire for energy independence are driving residential consumers to adopt renewable energy solutions like solar water heaters, further bolstering their dominance in the market.

The fastest-growing category in the Solar Water Heater market is commercial application. Businesses are increasingly emphasized on the sustainability and minimizing their carbon footprint, making solar water heaters an attractive option for meeting hot water needs while demonstrating environmental responsibility. Secondly, rising energy costs and volatile fuel prices are incentivizing commercial entities to invest in renewable energy solutions like solar water heaters to achieve long-term cost savings. Moreover, government incentives and rebates aimed at promoting clean energy adoption further encourage commercial establishments to embrace solar technology, driving significant growth in this segment of the market.

• Residential
• Commercial
• Industrial

Author's Detail

Kalyani Raje

Senior Research Analyst at Cognitive Market Research

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ResearchGate Profile: https://www.researchgate.net/profile/Kalyani-Raje

An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile and transportation vertical.

Author's Conclusion