Solar Water Heaters Market Report 2026

The solar water heaters market size has grown strongly in recent years. It will grow from $4.95 billion in 2025 to $5.28 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to early adoption of solar heating in residential sectors, government incentives for renewable heating, rising energy cost mitigation needs, advancements in evacuated tube and flat plate collectors, increasing awareness of environmental sustainability.

The solar water heaters market size is expected to see strong growth in the next few years. It will grow to $6.81 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to growing demand for low carbon heating technologies, expansion of commercial solar water heating installations, integration of smart monitoring systems, technological improvements in high efficiency solar collectors, increasing focus on reducing fossil fuel dependency. Major trends in the forecast period include rising demand for energy efficient water heating solutions, increasing adoption of advanced solar collector technologies, growing shift toward residential solar heating systems, expansion of commercial and industrial solar heating applications, improved thermal storage and system durability enhancements.

The increasing energy prices are expected to drive significant growth in the solar water heater market. Rising energy prices are primarily due to factors such as increased demand, supply constraints, geopolitical tensions, and the ongoing transition to renewable energy sources. In this context, solar water heaters offer a cost-effective and sustainable alternative for heating water, helping reduce dependence on conventional energy sources and mitigate the impact of high energy costs. For instance, in October 2024, Eurostat, a Luxembourg-based government agency, reported that in the first half of 2024, household electricity prices in the EU saw their largest increase in Ireland, rising by 37% compared to the same period in 2023. As energy prices continue to climb, the demand for solar water heaters, which can lower long-term energy costs, is expected to grow.

Major companies operating in the solar water heaters market are focusing on developing innovative solutions such as photovoltaic (PV) direct-drive water heating to enhance energy efficiency, reduce dependence on conventional electricity, and enable seamless integration of solar power for residential and commercial water heating applications. Photovoltaic (PV) direct-drive water heating refers to systems where solar PV panels directly power a water heating element or pump without the need for batteries or inverters, allowing sunlight to be converted directly into heat for water, thereby increasing efficiency and reducing energy losses. For instance, in November 2025, Apparent Inc., a US-based solar company, launched a DC-powered solar water heater designed for residential use that operates entirely off-grid using low-voltage direct current from conventional solar panels. This system features a patented Advanced Alloy Heating Element that provides 30% greater heat storage capacity and retains temperature longer. It can offset 100% of a home's water heating costs, which typically account for 20-30% of monthly energy bills. The product also includes an AI-driven control platform called igOS for real-time energy management through a smartphone app, optimizing performance even under low-light conditions.

In December 2023, Leminar Global, an India-based solar solutions provider, partnered with Calpak to expand its solar project offerings and accelerate the adoption of advanced solar technologies in India. This partnership aims to strengthen the deployment of high-efficiency solar systems, boost renewable energy adoption, and promote sustainable, clean energy solutions across the Indian market. Calpak is a US-based solar thermal technology company specializing in manufacturing and supplying comprehensive solar system solutions.

Major companies operating in the solar water heaters market are Robert Bosch GmbH, Hubbell Incorporated, Viessmann Manufacturing, Ariston Group, Rheem Manufacturing Company, Stiebel Eltron Inc., Tata Power Solar Systems Limited, V-Guard Industries Ltd., Bradford White Corporation, Himin Solar Energy Group, Photon Energy Systems Ltd., A. O. Smith, Central Electronics Limited, Alternate Energy Technologies LLC, Kodsan Isı Teknolojileri, SunEarth Inc., Apricus Solar Co. Ltd., Jupiter Solar Power Limited, SunTank, Solav Energy, Ferroli S.p.A., FAFCO Inc., Wagner & Co Solartechnik GmbH, Chemtrols Solar Pvt. Ltd., Nihon Itomic Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on solar thermal components such as collectors, storage tanks, and mounting systems have increased procurement and installation costs for solar water heaters, affecting residential, commercial, and industrial segments. Regions dependent on imported solar equipment, especially in Asia Pacific, Europe, and North America, face higher project expenses and slower market expansion. However, tariffs have encouraged domestic manufacturing, stimulated innovation in high efficiency systems, and reduced long term reliance on foreign imports, creating selective growth opportunities.

The main solar water heater systems are thermosiphon and pumped. A thermosiphon solar water heating system operates on the principle of natural convection, where cold water in the collector absorbs solar heat, becomes lighter, and naturally rises into the storage tank located above the collector. They use various collectors, such as an evacuated tube collector, a flat plate collector, and an unglazed water collector. They are available in different capacities, such as 100 liters, 150 liters, 200 liters, and others. They are used for various applications, such as residential, commercial, and industrial.

Solar water heaters are systems that utilize solar energy to heat water for domestic, commercial, and industrial use. They typically consist of solar thermal collectors and a storage tank, efficiently converting sunlight into heat to provide hot water. These systems reduce the reliance on traditional energy sources, lowering energy costs and decreasing greenhouse gas emissions.

The main solar water heater systems are thermosiphon and pumped. A thermosiphon solar water heating system operates on the principle of natural convection, where cold water in the collector absorbs solar heat, becomes lighter, and naturally rises into the storage tank located above the collector. They use various collectors, such as an evacuated tube collector, a flat plate collector, and an unglazed water collector. They are available in different capacities, such as 100 liters, 150 liters, 200 liters, and others. They are used for various applications, such as residential, commercial, and industrial.North America was the largest region in the solar water heaters market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the solar water heaters market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar water heaters market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar water heater market consists of sales of products such as solar collectors, storage tanks, circulation systems, controllers, and backup heating systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.