Asia Pacific Solar based Water Heater Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
The Asia-Pacific solar based water heater market size was estimated at USD 6.1 billion in 2019 and is expected grow with a CAGR of 8.7% over the forecasted period of 2022 to 2032. The Asia-Pacific market is experiencing enormous growth rate primarily driven by less maintenance required by solar based water heater.
Solar based water heaters absorbs and converts sunlight into heat and store it. Moreover, this heat energy is used to heat the water. Such heaters are perfect solutions for water heating in the situations where electricity is not available.
The Asia-Pacific solar based water heater market is mainly propelled by efforts of the governments in Asia Pacific region to encourage populations to adopt renewable energy technologies such as solar water heater. The solar-based water heater's ability to offer renewable water heating and environment friendly properties drives growth of the Asia-Pacific market. In addition, an increase in awareness about the use of green energy is expected to fuel the market's growth. However, the factors such as the requirement of favorable weather conditions and an ineffectiveness at night hampers growth of the market. On the contrary, technological innovations and advancements in solar energy use are anticipated to create lucrative opportunities for the Asia-Pacific solar-based water heater market.
The Asia-Pacific market is observing extensive consolidations, geographical expansions, new product launches, and acquisitions by the key market players. The market players embrace these strategies to enhance their product portfolio, expand the reach, and generate new revenue streams. For instance, recently Ferroli, the Italian heating and air-conditioning products entered into the Indian market with electric water heaters, and announced to launch solar & gas power-backed products in the country.
China is estimated to possess the largest market share Asia-Pacific solar based water heater market. This is mainly attributed to the fact that China is the biggest user and producer of solar water heating systems in Asia-Pacific region. In addition to this, strict government regulations to reduce GHG emissions significantly enhance product adoption. For example, in 2018, National Development & Reform Commission (NDRC), the China’s a macroeconomic management agency announced the policy to increase clean energy targets from 20% to 35% by 2030.
On the other hand, India is expected to observe highest growth rate in the forecast period. This country offers lucrative growth opportunities for the market. This is mainly attributed to the efforts of the Indian government to encourage populations to adopt renewable energy technologies such as solar water heater. For instance, in January 2017, the Agency for Non-conventional Energy and Rural Technology (Anert), the Indian government organization for renewable energy projects, has been flooded with applications to gain subsidy for setting up the solar water heaters. Such a high demand for solar based water heaters in India is due to an emerging need to beat the power crisis as well as to save electricity.
On the basis of type, the market is segmented into indirect solar water heating systems, direct solar water heating systems, active solar water-heating systems, and passive solar water heating systems. As per the estimation, direct solar water heating systems segment observed the biggest portion, regarding income in 2019 and may rule the innovation field, as far as size, by 2025. Direct solar water heating systems are the most efficient and simple type of solar heating system and more cost effectiveness. The factor as mentioned earlier primarily fuels growth of this segment.
On the contrary, indirect or closed loop systems segment is projected to observe impressive development and rule the market (regarding development rates) over the conjecture time frame.
Consolidations and acquisitions, to generate new revenue streams and to expand the geographical presence have advanced as a significant piece of the current solar based water heater industry.
End Use Insights
On the basis of end use, the market is divided into residential, commercial, and industrial. The residential segment is estimated to hold largest share of the Asia-Pacific solar based water heater market in 2019. This is attributed to the increasing investments in the construction sector for refurbishment and re-establishment of residential buildings across the region.
The commercial portion may witness highest growth rate during the forecast period. This may be due to rise in investments in the development of education institutions as well as shopping centers with solar roof panels several emerging countries such as China, India, and Indonesia. Furthermore, introduction of of green building codes, such as Energy Conservation Building Code (ECBC), in India is projected to supplement the market growth.
Competitive Market Insights
The key business members of the market are China Hitek Solar Co. Ltd., SunPower, Inter Solar System, Azuma Solar Co. Ltd., Photon Energy Systems, Chiryu Heater, GreenTek India Pvt. Ltd., EMMVEE, CHOFU Seisakusho Co. Ltd. and Solahart PV. among others. These market players are adopting various strategies such as product launches and strategic collaboration to enhance their product portfolio, expand the reach, and generate new revenue streams.