Market Forecast by Countries (China, India, Japan, Australia, Indonesia, Philippines, Thailand, Malaysia, Singapore, Rest of Asia), By Technology (Evacuated Tube Collector, Flat Plate Collector, Unglazed Water Collector), By Application (Residential, Commercial, Industrial), By System (Thermosyphon, Pumped) And Competitive Landscape
Product Code: ETC056807 | Publication Date: May 2021 | Updated Date: Mar 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 30 | |
Report Name | Asia Pacific Solar Water Heater market |
Forecast period | 2025-2031 |
Forecast Size | USD 11 Billion – USD 16 Billion |
CAGR | 7.2% |
Growing Sector | Renewable Energy |
The Asia Pacific Solar Water Heater market report thoroughly covers the market by technology, by application, by system and by countries. The report provides an unbiased and detailed analysis of the on-going market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
The Asia Pacific (APAC) Solar Water Heater Market is projected to reach approximately $ 16 billion by 2031, growing at a compound annual growth rate (CAGR) of around 7.2% from an estimated $ 11 billion in 2025. The Renewable Energy sector holds the highest market share in the region.
The Asia Pacific solar water heater market is experiencing steady growth, driven by increasing demand for renewable energy solutions, rising electricity costs, and government incentives promoting solar energy adoption. Countries like China, India, Japan, and Australia are at the forefront, with strong investments in solar thermal technology to support energy-efficient water heating systems for residential, commercial, and industrial applications. The market is also benefiting from technological advancements, including vacuum tube collectors, flat plate collectors, and hybrid solar water heaters, which improve efficiency and performance. Additionally, growing environmental awareness and carbon reduction targets are encouraging consumers and businesses to shift toward solar-powered alternatives. The increasing availability of affordable solar water heating solutions and improved government policies supporting clean energy adoption are expected to drive further market expansion across the Asia Pacific region.
According to 6Wresearch, the Asia Pacific Solar Water Heater market size is projected to grow at a CAGR of 7.2% during 2025-2031. The Asia Pacific solar water heater market is driven by several key factors, including the rising demand for renewable energy, increasing electricity costs, and government incentives promoting solar adoption. Many countries, such as China, India, Japan, and Australia, are implementing subsidies, tax benefits, and regulatory policies to encourage the use of solar water heaters in residential, commercial, and industrial applications. Additionally, advancements in solar thermal technology, such as vacuum tube collectors and hybrid systems, are improving efficiency and making solar water heating a more attractive option. Growing environmental awareness and carbon reduction goals are also fueling market growth, as consumers and businesses seek sustainable energy solutions. However, the market faces challenges such as high initial installation costs, space constraints in urban areas, and dependence on sunlight availability, which can limit efficiency in regions with inconsistent solar exposure. Additionally, a lack of consumer awareness and slow adoption rates in certain developing markets may hinder growth. Despite these challenges, ongoing technological advancements, coupled with government support and declining costs, are expected to drive further expansion in the solar water heater market across the Asia Pacific region.
Investment Opportunities in the Asia Pacific Solar Water Heater Market
The Asia Pacific solar water heater market is bolstered by several key companies driving innovation and expansion across the region. Prominent players include China Hitek Solar Co. Ltd., Azuma Solar Co. Ltd., and EMMVEE Solar Systems, which offer a diverse range of solar water heating solutions tailored for residential, commercial, and industrial applications. Companies like Jinyi Solar and Chromagen are recognized for their advanced technologies and efficient systems. Global manufacturers such as Rheem Manufacturing and A. O. Smith have also established a strong presence in the Asia Pacific market, providing high-quality, energy-efficient water heating products. Additionally, regional firms like GreenTek India Pvt. Ltd. and Photon Energy Systems contribute significantly to market growth by delivering cost-effective and sustainable solutions. Additionally, some of these players hold majority of the Asia Pacific Solar Water Heater market share. Moreover, the competitive landscape is further enriched by companies like Solahart PV, Inter Solar Systems, and Chiryu Heater, which focus on innovation and customer-centric offerings, thereby enhancing the adoption of solar water heaters
The Asia Pacific solar water heater market is significantly influenced by government regulations and policies aimed at promoting renewable energy adoption. Countries like China, India, Japan, and Australia have implemented subsidies, tax incentives, and mandates to encourage solar water heating in residential, commercial, and industrial sectors. China, the largest market, has strict renewable energy targets under its Five-Year Plans, while India promotes solar thermal adoption through the Jawaharlal Nehru National Solar Mission (JNNSM) and various state-level incentives. Japan supports energy efficiency through the Top Runner Program, and Australia provides Small-Scale Technology Certificates (STCs) and rebates to reduce installation costs. Many governments have also introduced building codes and green certification programs requiring new constructions to integrate solar heating solutions. Further, these initiatives have further boosted the Asia Pacific Solar Water Heater market revenues. Moreover, some regions are offering zero-interest loans and grants to encourage businesses and households to switch to solar water heating. Despite these efforts, lack of uniform policies, inconsistent enforcement, and financial constraints in certain developing nations remain challenges for widespread adoption. However, with increasing climate commitments, net-zero targets, and international collaborations, regulatory support for solar water heaters is expected to strengthen across the Asia Pacific region.
The Asia Pacific solar water heater market is poised for steady growth driven by increasing renewable energy adoption, supportive government policies, and technological advancements. Rising electricity costs and growing awareness of carbon footprint reduction will continue to push residential and commercial consumers toward solar-based heating solutions. Innovations such as smart solar water heaters with IoT-enabled monitoring, improved thermal storage, and hybrid solar-electric models are expected to enhance efficiency and adoption rates. Expanding urbanization and infrastructure development in emerging economies like India, China, and Southeast Asian nations will further fuel demand. Additionally, declining costs of solar components and stronger public-private partnerships will make solar water heaters more accessible across various sectors. However, challenges such as high initial costs and space constraints in urban areas may slow adoption, but solutions like compact rooftop solar systems and financing options will help overcome these barriers. With increasing climate commitments, net-zero targets, and stricter energy efficiency regulations, the Asia Pacific solar water heater market is set to witness sustained growth and broader penetration in the coming years.
According to Ravi Bhandari, Research Head, 6Wresearch, China remains the dominant player in the Asia Pacific solar water heater market, accounting for a significant share due to its strong government support, large-scale manufacturing capacity, and high consumer adoption. The country’s commitment to renewable energy expansion under its Five-Year Plans has led to widespread deployment of solar water heating systems in both urban and rural areas. With policies like subsidies, tax incentives, and mandatory solar integration in new buildings, China continues to drive innovation and affordability in the market. The presence of leading domestic manufacturers and advancements in vacuum tube and flat plate collector technologies further bolster growth. Additionally, rising environmental concerns, stringent carbon reduction targets, and increasing energy costs are pushing both residential and commercial sectors to shift towards sustainable heating solutions. Despite facing challenges such as seasonal efficiency variations and competition from other renewable energy technologies, China's investments in smart solar water heating systems and export-driven production are expected to sustain its leadership in the APAC market for years to come.
The commercial sector in the Asia Pacific solar water heater market is experiencing significant growth, driven by rising energy costs, sustainability commitments, and government incentives. Industries such as hospitality, healthcare, education, and manufacturing are increasingly adopting solar water heating solutions to reduce operational expenses and meet carbon emission reduction targets. Countries like China, India, Japan, and Australia are implementing renewable energy mandates, tax benefits, and rebate programs that encourage businesses to integrate solar water heaters into their infrastructure. The demand is particularly strong in hotels, hospitals, and commercial complexes, where consistent hot water supply is essential. Advancements in large-scale solar thermal systems, hybrid models, and IoT-enabled monitoring are further enhancing efficiency and adoption rates. However, challenges such as high initial installation costs and space constraints in urban areas remain barriers to widespread deployment. Despite this, increasing public-private partnerships, financing options, and technological innovations are expected to drive steady growth in the commercial sector, making it a key contributor to the expansion of the solar water heater market in the Asia Pacific region.
The Asia Pacific Solar Water Heater market report provides a detailed analysis of the following market segments -
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Asia Pacific Solar Water Heater Market Overview |
3.1 Asia Pacific Regional Macro Economic Indicators |
3.2 Asia Pacific Solar Water Heater Market Revenues & Volume, 2021 & 2031F |
3.3 Asia Pacific Solar Water Heater Market - Industry Life Cycle |
3.4 Asia Pacific Solar Water Heater Market - Porter's Five Forces |
3.5 Asia Pacific Solar Water Heater Market Revenues & Volume Share, By Countries, 2021 & 2031F |
3.6 Asia Pacific Solar Water Heater Market Revenues & Volume Share, By Technology, 2021 & 2031F |
3.7 Asia Pacific Solar Water Heater Market Revenues & Volume Share, By Application, 2021 & 2031F |
3.8 Asia Pacific Solar Water Heater Market Revenues & Volume Share, By System, 2021 & 2031F |
4 Asia Pacific Solar Water Heater Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Asia Pacific Solar Water Heater Market Trends |
6 Asia Pacific Solar Water Heater Market, 2021 - 2031 |
6.1 Asia Pacific Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
6.2 Asia Pacific Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
6.3 Asia Pacific Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
7 China Solar Water Heater Market, 2021 - 2031 |
7.1 China Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
7.2 China Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
7.3 China Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
8 India Solar Water Heater Market, 2021 - 2031 |
8.1 India Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
8.2 India Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
8.3 India Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
9 Japan Solar Water Heater Market, 2021 - 2031 |
9.1 Japan Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
9.2 Japan Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
9.3 Japan Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
10 Australia Solar Water Heater Market, 2021 - 2031 |
10.1 Australia Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
10.2 Australia Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
10.3 Australia Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
11 Indonesia Solar Water Heater Market, 2021 - 2031 |
11.1 Indonesia Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
11.2 Indonesia Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
11.3 Indonesia Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
12 Philippines Solar Water Heater Market, 2021 - 2031 |
12.1 Philippines Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
12.2 Philippines Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
12.3 Philippines Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
13 Thailand Solar Water Heater Market, 2021 - 2031 |
13.1 Thailand Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
13.2 Thailand Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
13.3 Thailand Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
14 Malaysia Solar Water Heater Market, 2021 - 2031 |
14.1 Malaysia Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
14.2 Malaysia Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
14.3 Malaysia Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
15 Singapore Solar Water Heater Market, 2021 - 2031 |
16 Rest of Asia Solar Water Heater Market, 2021 - 2031 |
16.1 Rest of Asia Solar Water Heater Market, Revenues & Volume, By Technology, 2021 - 2031 |
16.2 Rest of Asia Solar Water Heater Market, Revenues & Volume, By Application, 2021 - 2031 |
16.3 Rest of Asia Solar Water Heater Market, Revenues & Volume, By System, 2021 - 2031 |
17 Asia Pacific Solar Water Heater Market Key Performance Indicators |
18 Asia Pacific Solar Water Heater Market - Opportunity Assessment |
18.1 Asia Pacific Solar Water Heater Market Opportunity Assessment, By Countries, 2021 & 2031F |
18.2 Asia Pacific Solar Water Heater Market Opportunity Assessment, By Technology, 2021 & 2031F |
18.3 Asia Pacific Solar Water Heater Market Opportunity Assessment, By Application, 2021 & 2031F |
18.4 Asia Pacific Solar Water Heater Market Opportunity Assessment, By System, 2021 & 2031F |
19 Asia Pacific Solar Water Heater Market - Competitive Landscape |
19.1 Asia Pacific Solar Water Heater Market Revenue Share, By Companies, 2024 |
19.2 Asia Pacific Solar Water Heater Market Competitive Benchmarking, By Operating and Technical Parameters |
20 Company Profiles |
21 Recommendations |
22 Disclaimer |