The solar water heater market size was roughly around US$5 Bn in 2021 and is poised to witness a healthy pace while it progresses. The report would uncover how the market growth will unfold in future.
Market Analysis in Brief
With the quick depletion of non-renewable resources, it is anticipated that every year there will be a sharp increase in the demand for energy-efficient water heaters. During the projection period, this is predicted to boost the growth of the solar water heater market. With their affordable pricing, these systems can serve a larger range of customers, depending on their financial situation. Solar energy is one of the cleanest energy sources currently on the solar water heater industry. The manufacturing, materials, use, shipping, and eventual disposal or recycling of solar water heaters all impact the environment. These interactions could result in eutrophication, acidification, the greenhouse effect, and the depletion of natural resources. These conclusions are based on the effects that a solar water heater system's GHG emissions have on the environment while it is in use. Over the projected period, widespread usage of solar water heaters is anticipated to significantly reduce the consumption of fossil fuels and electricity, lowering greenhouse gas emissions.
Key Report Findings
Rising Demand for Energy-efficient Water Heating Options
The solar water heater market is anticipated to develop rapidly owing to a significant increase in demand for energy-efficient, and environment-friendly water heating options. Solar water heaters operate under the tenet of zero emissions, and resource consumption. For instance, the sun can substitute nearly 100 liters of heating oil or 100 m3 of natural gas on a 1 m2 roof. The market for solar water heaters is also anticipated to expand as governments become more concerned about the effects of global warming, and place more emphasis on the renewables sector.
Governments in various nations offer incentives and rebates for installing solar water heating systems. For instance, depending on the kind and size of the installed system, refunds are available in all residential and business districts of Victoria, Australia, up to US$700. Industry expansion is predicted to be fueled by rising demand for solar water heating systems that consumers find more reliable, economical, and environmentally sustainable, particularly across residential and commercial sectors. It is anticipated that the system's ability to operate at lower costs—up to 75% lower in the summer and 30-40% lower in the winter—will encourage consumers to choose it over competing goods already on the solar water heater market.
Growing Demand for Eco-friendly, Energy-efficient Heating Options
The growing significance of energy-efficient heating solutions has been primarily setting the stage for the solar water heater market. Comparing solar water heaters to traditional water heaters, the former is said to be much more energy-efficient. The operating costs of solar water heaters are predicted to be between 25 and 50 percent lower than those of conventional water heaters, according to reports from the International Energy Agency (IEA).
In the upcoming years, demand for solar water heaters is anticipated to increase due to their zero carbon emission rate. The Kyoto Protocol, which was ratified by international governments, places restrictions on carbon emissions from each nation's commercial and industrial sectors. Solar water heaters are forcing the industry to abandon traditional water heaters in favour of their eco-friendly counterparts. Solar water heaters are becoming more widely accepted and used for domestic purposes in homes thanks to their energy and financial efficiency.
Supportive Government Initiatives
The market expansion for solar water heaters is also being boosted by the assistance provided by international governments and governmental organisations. The government must encourage and promote fewer carbon emission systems and devices due to the carbon limit assigned to each nation.
Government regulations requiring enterprises and manufacturing facilities to reduce their carbon emissions are driving up demand for solar water heaters for industrial uses. With more governments declaring funds for innovative projects, and research around renewable energy gains prominence, sales of solar-powered tools and appliances will be on an uptrend. This will bolster demand in the solar water heater market.
Lack of Awareness Regarding Benefits of Solar Water Heaters
All end-user categories have a low level of awareness regarding the energy efficiency, financial efficiency, and environmental benefits of solar water heaters. This is because their normal perceived price acts as a barrier to its penetration in solar water heater market across developing and undeveloped economies.
Also, there is a lack of knowledge regarding the prospects solar water heater offer for energy conservation and CO2 emission reduction. Therefore, a hurdle to adopting solar water heaters in poor and undeveloped nations is the lack of knowledge about solar water heater technology across the entire supply chain (technicians, consultants, engineers, contractors, and end users).
Overview of Key Segments
Glazed-type Heaters Dominate with Greater Efficiency of Capturing Sunlight
By transferring fluids, glazed collectors with heat exchangers can capture sunlight more efficiently than unglazed collectors in cooler climates. They can be utilised all year long and in a variety of climates. These collectors are appropriate for installations in homes and SMEs. For the product, simplicity of design, low cost, and simple installation are essential.
Ongoing technical developments will also aid the dissemination of the product in collector design that aims to boost efficiency. Flat plates, and evacuated tubes are the two main categories of glazed collectors. The evacuated collector often called a vacuum tube collector, is made up of several parallel rows of transparent glass tubes connected to a header pipe, where the heat transfer fluid circulates and absorbs the heat produced by the generator.
Residential Category Leads in Line with Increased Government Incentives on Solar Installations
The residential segment currently dominates the solar water heater market, followed by the commercial segment. The domestic end-use market for solar water heaters has not yet been fully penetrated, particularly in Asia. However, throughout the Asia Pacific, particularly in nations like China, India, Indonesia, Vietnam, and the Philippines, awareness of the usage of solar heaters for residential use is rising. The governments of these nations are taking several actions to encourage the usage of solar water heaters.
In the foreseeable future, it is anticipated that the residential end-use category will grow quickly. Small and large businesses, sports and medical facilities, transportation hubs, and educational institutions comprise the commercial sector. This segment's revenue is anticipated to grow through the projection period at a significant CAGR. Commercial construction is projected to rise dramatically, significantly contributing to industry growth.
Growth Opportunities Across Regions
Asia Pacific Spearheads as Expanse of Renewable Energy Picks Pace
Market growth for solar-powered water heaters is predicted to be primarily fueled by the region's huge population and rapid use of solar-powered devices. The economies of China, and India are also projected to significantly impact the growth of the solar water heater market in the Asia Pacific region.
The Asian Development Bank (ADB), and the Government of Mongolia agreed to a US$2 Mn grant in December 2022 to improve effective and renewable energy heating systems in Mongolia's rural regions. Yet, most Mongols continue to use coal as their main heat source, whether in their homes, stoves, boilers, or coal-fired power plants. These methods have resulted in significant levels of damaging air pollutants and greenhouse gas emissions. Therefore, the Asia Pacific region is anticipated to rule the solar water heater market over the forecast period based on the aforementioned aspects.
Another important market is North America. In this market, consumers' purchasing power and investments are higher. Also, there is a significant room for the expansion of the solar water heater market in the region. The United States market will grow due to continuous investments in infrastructure for multi- and single-family homes supported by rising purchasing power and expanding urbanisation. Furthermore, the industry landscape will be improved by supportive government initiatives to encourage the use of solar technologies and strict restrictions to lower carbon emissions.
To lower the cost of solar electricity by 75% through research and development efforts in partnership with corporate and public partners, the US Department of Energy developed the sun shot projects. Federal government of the United States has established a business tax credit system for the efficient adoption of solar products, including photovoltaic, thermal process heat, thermal electric, water heaters, and space heating. The program's validity is up until 2022, and the credit ceiling has been set at 30% of the production cost.
Global Solar Water Heater Market: Competitive Landscape
A few of the players in the solar water heater market include Himin Solar Energy Group, V-Guard Industries Ltd, Ariston Thermo SpA, KODSAN, Solav Energy, Zhejiang JiaDeLe Solar Energy Co., Ltd., Jiangsu Sunpower Solar Technology Co., Ltd., Solahart, Alternate Energy Technologies, and A. O. Smith India Water Products Pvt. Ltd.
Recent Notable Developments
Regional Classification of the Global Solar Water Heater Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Solar Water Heater Market
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