Solar Thermal For Domestic Hot Water (DHW) Market Report 2026

Solar Thermal For Domestic Hot Water (DHW) Market Overview

• Solar Thermal For Domestic Hot Water (DHW) market size has reached to $4 billion in 2025 • Expected to grow to $5.98 billion in 2030 at a compound annual growth rate (CAGR) of 8.4% • Growth Driver: Rising Green Building Certifications Driving Growth Of The Market Due To Increasing Demand For Energy-Efficient And Sustainable Buildings • Asia-Pacific was the largest region in 2025 and Asia Pacific is the fastest growing region.

What Is Covered Under Solar Thermal For Domestic Hot Water (DHW) Market?

Solar thermal for domestic hot water (DHW) refers to systems that harness solar energy through collectors and storage tanks to heat water for household use. These systems convert sunlight into thermal energy and efficiently supply hot water for everyday activities such as bathing, cleaning, and cooking. Solar thermal for domestic hot water (DHW) to reduce dependence on conventional energy sources, lower energy costs, and minimize carbon emissions. The main components of solar thermal for domestic hot water (DHW) include solar storage tanks, heat exchangers, circulation pumps, system controllers, expansion tanks, anti-freeze solutions, and mounting structures and racking. Solar storage tanks refer to insulated containers used to store heated water generated from solar thermal energy systems for domestic use. These systems are categorized by system type including passive solar water heating systems, active closed-loop systems, active open-loop systems, drainback solar water heating systems, thermosiphon solar water systems, and forced circulation solar systems and are available in small capacity systems, medium capacity systems, and large capacity systems. They are distributed through direct sales, distributors, online sales, and other distribution channels, and they are used by several end users such as residential, commercial, and industrial.

What Is The Solar Thermal For Domestic Hot Water (DHW) Market Growth Forecast?

The solar thermal for domestic hot water (DHW) market size is expected to see strong growth in the next few years.It will grow to $5.98 billion by 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to expansion of electrified heating systems in households, improved thermal storage efficiency technologies, integration of hybrid heating solutions in buildings, tightening energy efficiency regulations in residential infrastructure, advancement in next-generation evacuated tube collector performance.Major trends in the forecast period include hybrid integration of solar thermal systems with auxiliary heating technologies, increasing adoption of thermosiphon-based passive water heating systems in residential buildings, growth in rooftop retrofit installations for existing housing infrastructure, advancements in high-efficiency vacuum tube collector technologies, rising demand for modular plug-and-play solar hot water kits for quick deployment.

Global Solar Thermal For Domestic Hot Water (DHW) Market Segmentation

1) By Component: Solar Storage Tanks, Heat Exchangers, Circulation Pumps, System Controllers, Expansion Tanks, Anti-Freeze Solutions, Mounting Structures And Racking 2) By System Type: Passive Solar Water Heating Systems, Active Closed-Loop Systems, Active Open-Loop Systems, Drainback Solar Water Heating Systems, Thermosiphon Solar Water Systems, Forced Circulation Solar Systems 3) By Capacity: Small Capacity Systems, Medium Capacity Systems, Large Capacity Systems 4) By Distribution Channel: Direct Sales, Distributors, Online Sales, Other Distribution Channels 5) By End User: Residential, Commercial, Industrial Subsegments: 1) By Solar Storage Tanks: Pressurized Solar Storage Tanks, Non Pressurized Solar Storage Tanks, Single Coil Solar Storage Tanks, Double Coil Solar Storage Tanks, Integrated Collector Storage Tanks 2) By Heat Exchangers: Shell And Tube Heat Exchangers, Plate Heat Exchangers, Coil Type Heat Exchangers, Double Wall Heat Exchangers, External Heat Exchangers 3) By Circulation Pumps: Single Speed Circulation Pumps, Variable Speed Circulation Pumps, High Efficiency Circulation Pumps, Direct Current Powered Pumps, Alternating Current Powered Pumps 4) By System Controllers: Differential Temperature Controllers, Programmable Logic Controllers, Smart Digital Controllers, Timer Based Controllers, Multi Function Controllers 5) By Expansion Tanks: Diaphragm Expansion Tanks, Bladder Expansion Tanks, Open Expansion Tanks, Closed Expansion Tanks, Vertical Expansion Tanks 6) By Anti Freeze Solutions: Glycol Based Solutions, Propylene Glycol Solutions, Ethylene Glycol Solutions, Corrosion Inhibited Solutions, High Temperature Resistant Fluids 7) By Mounting Structures And Racking: Roof Mounted Structures, Ground Mounted Structures, Tilted Mounting Structures, Adjustable Angle Racking Systems, Fixed Angle Mounting Systems

What Are The Drivers Of The Solar Thermal For Domestic Hot Water (DHW) Market?

The rising green building certifications are expected to propel the growth of the solar thermal for domestic hot water (DHW) industry going forward.Green building certifications are official recognitions for buildings that meet standards for sustainability, energy efficiency, and environmental impact reduction.Green building certifications are increasing as the growing demand for sustainable, energy-efficient buildings encourages developers to adopt eco-friendly practices.Solar thermal for domestic hot water (DHW) helps green building certifications by providing a renewable, energy-efficient way to heat water, reducing a building’s carbon footprint and energy consumption.For instance, in July 2024, according to the Green Building Council, a US-based non-profit organization, over 46,000 residential projects earned LEED green building certification, showing nearly a 5% rise in new registrations compared to 2023.Therefore, the rising green building certifications are driving the growth of the solar thermal for domestic hot water (DHW) industry. The rising energy costs are expected to propel the growth of the solar thermal for domestic hot water (DHW) industry going forward.Energy costs are the expenses associated with producing, purchasing, and consuming energy such as electricity, fuel, and gas.Energy costs are increasing due to rising global demand, which puts pressure on the limited supply and drives prices higher.Solar thermal for domestic hot water (DHW) helps reduce energy costs by using sunlight to heat water, thereby lowering the need for electricity or fuel consumption.For instance, in October 2023, according to Eurostat, a Luxembourg-based European Union agency, average household electricity prices in the EU rose to $31.21 (€28.9) per 100 kWh in the first half of the year, up from $27.32 (€25.3) per 100 kWh during the same period in 2022.Therefore, the rising energy costs propel the growth of solar thermal for the domestic hot water market. The rising disposable income is expected to drive the growth of the solar thermal for domestic hot water (DHW) industry going forward.Disposable income refers to the amount of money a person or household has available for spending or saving after taxes and mandatory deductions.Disposable income is increasing due to rising wages, enabling individuals to retain more income post-tax for discretionary use.Higher disposable income supports the adoption of solar thermal DHW systems, as consumers are better able to afford the initial installation costs, which enhances market uptake.For instance, in October 2024, according to Statistics Iceland, an Iceland-based government agency, household disposable income grew by 6.6% in the second quarter of 2024 compared to the same period the previous year.Therefore, the rise in disposable income is fueling the growth of the solar thermal for domestic hot water (DHW) industry.

Key Players In The Global Solar Thermal For Domestic Hot Water (DHW) Market

Major companies operating in the solar thermal for domestic hot water (dhw) market are Rheem Manufacturing Company, A. O. Smith Corporation, Ariston Holding N. V., Vaillant Group, Himin Solar Energy Group Co. Ltd, Solimpeks Solar Energy Corp., Racold Thermo Limited, Jiangsu Sunrain Solar Energy Co. Ltd, Inter Solar Systems Private Limited, GREENoneTEC Solarindustrie GmbH, SunEarth Inc., Sonnenkraft Solar Systems GmbH, Sunerg Solar S. r. l., Solar Therm UK Ltd, Termosolar Energia Solar S. A., Heliodyne Inc., Ritter Energie und Umwelttechnik GmbH & Co. KG, Solahart Industries Pty Ltd, Rinnai Corporation, Nobel International EAD, Dimas Solar S. A., Termicol Energia Solar S. L.

Regional Insights

Asia-Pacific was the largest region in the solar thermal for domestic hot water (DHW) market in 2025. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Solar Thermal For Domestic Hot Water (DHW) Market?

The solar thermal for domestic hot water (DHW) market consists of sales of flat plate collectors, evacuated tube collectors, solar storage tanks, heat exchangers, circulation pumps, and integrated solar water 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.

What is the Market Assessment and Strategic Outlook for the Solar Thermal For Domestic Hot Water (DHW) Industry?

The solar thermal for domestic hot water (dhw) market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the solar thermal for domestic hot water (dhw) industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

What is the Market Assessment and Strategic Outlook for the Solar Thermal For Domestic Hot Water (DHW) Market Report 2026?

The solar thermal for domestic hot water (DHW) market research report is one of a series of new reports from The Business Research Company that provides solar thermal for domestic hot water (DHW) market statistics, including solar thermal for domestic hot water (DHW) industry global market size, regional shares, competitors with a solar thermal for domestic hot water (DHW) market share, detailed solar thermal for domestic hot water (DHW) market segments, market trends and opportunities, and any further data you may need to thrive in the solar thermal for domestic hot water (DHW) industry. This solar thermal for domestic hot water (DHW) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.