Solar water heater market may grow to $3 bn by 2025

Growing demand for cost-effective, advanced, and energy-efficient water heating solutions would expand the solar water heater industry landscape in the forthcoming years

The solar water heater has ability to offer low running cost i.e. 25 per cent to 40 per cent in winter and 75 per cent in summer in comparison to conventional heating systems. Rising awareness toward the effective utilization of sustainable technologies along with increasing investments toward infrastructure sector are propelling the demand for energy efficient technologies.

According to a recent study from market research firm Global Market Insights, the solar water heater market is set to grow from its current market value of more than $1 billion to over $3 billion by 2025, gaining remarkable traction over period of 2020 to 2025.

Growing demand for cost-effective, advanced, and energy-efficient water heating solutions would expand the solar water heater industry landscape in the forthcoming years. Solar water heaters, also known as solar domestic hot water systems, are a cost-effective way to generate hot water in any climate. These solar water systems are comprised of two major components, which are storage tanks and solar collectors.

The installation of solar water heating systems usually costs more than conventional heating systems. However, incorporation of these systems in domestic and industrial settings minimizes fuel and gas bills by up to 50 per cent – 80 per cent and reduces carbon emission produced by other water heater systems.

Growing awareness towards sustainable sources of energy will substantially augment the adoption of solar water heaters. According to a Global Market Insights, Inc., forecast, the global solar water heater market size is estimated to surpass $3 billion by 2025.

Flat plate collectors are used to collecting solar energy, which is further used to heat water in the home for washing, bathing, and heating water pools and others. The benefits of the product such as low cost, simple design, and comparatively easier installation than other hot water heating systems will augment its demand for most residential and small commercial hot water applications.

Increasing demand for energy-efficient water heating systems in commercial and household settings would boost the adoption of flat plate collectors.

Evacuated tube collectors are comprised of transparent glass tubes and metal absorbers which increases absorption of solar energy and reduces heat loss. On account of such features, these collectors are broadly used in commercial applications across the US

The thermosyphon system is the commonly known solar-heated hot water system. These commercially available solar hot water systems work by combining a storage tanker and roof-mounted flat plate collector. Growing demand for cost-effective, nature-friendly, energy-efficient, and capacity solar water heater solutions from commercial establishments will increase their deployment in the coming years.

According to India Solar Water Heaters Market Overview, the market for solar water heaters in India is expected to reach Rs 1369 crore till 2021. ETC type solar water heaters are expected to have the largest share in the solar water heater market. Karnataka and Bangalore are having maximum share in India. The report reveals that Emmvee, TATA BP Solar and Anu Solar are the leading players in Indian solar water heater market and their revenue share is expected to grow over the forecasted period, owing to their expansion plans and widening of dealership networks.

India solar water heater market is forecast to surpass $180 million by 2023. Anticipated growth in the market can be attributed to growing consumer awareness regarding solar water heaters and their economic and environment-friendly benefits across residential and commercial sectors. Moreover, government's initiatives to promote solar products in India, rising technological advancements on the product side coupled with rapid urbanization are expected to further steer growth in India solar water heater market during the forecast period.

The total SWH market accounted by the Ministry of New and Renewable Energy (MNRE) was 65 crore in 2011. The market of solar water heater has been on an increasing trend since 2012 as India is participating in the UNDP's programme to increase the solar water heater market globally. In solar water heaters the residential sector is driving the market.

Residential sector has penetrated almost 80 per cent in the market. Industries and other commercial institutes are also picking up solar water heater as a better option. Electric water heaters are still dominating the market, but solar water heater is also growing rapidly to make a considerate share in the water heater market.