Research firm Global Market Insight predicts the solar water heater market size to reach over $3 billion by 2025.
Surging demand for cost-effective and sustainable water heating technology to reduce electricity bills will stimulate the solar water heater market share. Increasing purchasing power parity, improve in living standards, shifting population toward urban areas and ongoing spending toward the development of single and multi-family house are some of the key parameters fueling the energy efficient systems. Volatility in fossil fuel and electricity prices have also positively impacted the demand for energy efficient systems.
Increasing focus toward energy security, improved environmental performance along with growing initiatives to reduce heat consumption from conventional systems will propel the global solar water heater market size. The SWH reduces carbon emissions by about 400 kg annually. Moreover, introduction of green building codes and standard to reduce carbon emissions, enhancing the utilization of energy efficient solutions will further complement the industry growth.
China solar water heater market size is anticipated to expand over $600 million by 2025. Stringent regulations to reduce GHG emissions along with technological advancement in evacuated tube collector design to optimize efficiency will enhance product adoption. For instance, in 2018, China’s National Development & Reform Commission (NDRC) introduced policy to increase clean energy targets from 20% to 35% by 2030.
Thermosyphon installation accounted for over 55% of global solar water heater market share in 2018. The product finds wide application in residential and small commercial buildings on account of ease of installation, simple design and cost effectiveness features.
Commercial applications in 2018, contributed over 35% of global solar water heater volume market share. Growing investment from financial institution toward infrastructure development including educational institutes, shopping malls, hospitals and offices will stimulate the product deployment. Favourable measure to improve air quality coupled with growing awareness toward adoption of renewable solutions will further complement the industry outlook.
U.S. solar water heater market is projected to expand over 10% by 2025. Growing demand for replacement of conventional water heating systems along with ongoing investment toward infrastructure sector backed by rapid urbanization will enhance the product adoption.
Germany solar water heater market will grow on account of increasing spending toward renovation of existing building infrastructure along with stringent targets pertaining to clean energy generation. For instance, in 2018, European Commission introduced Renewable energy directive (2018/2001) with an aim to fulfil 38% of heat consumption from renewable resources by 2030.
Brazil solar water heater market will develop on account of introduction of social housing programme for low-income families. In August 2016, the Minha Casa, Minha Vida programme relaunched by the United Nation for low income families which mandated installations of solar system in new establishments.