Delivering more actionable and strategically valuable research, The Business Research Company’s 2026 market reports feature market attractiveness analysis, total addressable market evaluation, company benchmarking matrices, interactive Excel dashboards, expanded supply chain intelligence, emerging startup coverage, and detailed product insights.
Solar Thermal For Domestic Hot Water (DHW) Market Growth Potential: How Will Market Size Change Through 2030?
The market size for solar thermal domestic hot water (DHW) systems has shown significant expansion in recent years. It is forecast to grow from $4 billion in 2025 to $4.33 billion in 2026, registering a compound annual growth rate (CAGR) of 8.2%. This historical growth can be attributed to declining solar collector manufacturing cost, rising fossil fuel dependency, government subsidy programs for solar water heating, increasing urban residential construction, and growing consumer awareness of renewable hot water solutions.
The market size for solar thermal systems used for domestic hot water (DHW) is anticipated to expand significantly over the next few years, projected to reach $5.98 billion by 2030, at a compound annual growth rate (CAGR) of 8.4%. This growth during the forecast period is driven by factors such as the increasing implementation of electrified heating systems in households, enhancements in thermal storage efficiency technologies, the integration of hybrid heating solutions within buildings, stricter energy efficiency regulations for residential infrastructure, and progress in next-generation evacuated tube collector performance. Noteworthy trends for this period encompass the hybrid integration of solar thermal systems with auxiliary heating technologies, a growing adoption of thermosiphon-based passive water heating systems in residential properties, an increase in rooftop retrofit installations for existing housing structures, advancements in high-efficiency vacuum tube collector technologies, and a rising demand for modular plug-and-play solar hot water kits designed for quick deployment.
Download A Free Sample Report For Comprehensive Market Insights:
https://www.thebusinessresearchcompany.com/sample_request?id=37394482&type=smp
Solar Thermal For Domestic Hot Water (DHW) Market Demand Drivers: What Is Fueling Industry Growth?
The increasing number of green building certifications is projected to stimulate the expansion of the solar thermal for domestic hot water (DHW) market. Green building certifications serve as formal acknowledgments for structures that comply with criteria for sustainability, energy efficiency, and reduced environmental impact. The surge in these certifications is a response to the escalating demand for sustainable, energy-efficient constructions, prompting developers to embrace environmentally friendly methods. Solar thermal for domestic hot water (DHW) contributes to achieving green building certifications by offering a renewable and energy-efficient solution for water heating, thereby lowering a building’s carbon footprint and energy use. A notable example is from July 2024, when the Green Building Council, a US-based non-profit organization, reported that more than 46,000 residential projects obtained LEED green building certification, indicating an approximate 5% increase in new registrations compared to 2023. Consequently, the uptick in green building certifications is propelling the growth of the solar thermal for domestic hot water (DHW) market.
Solar Thermal For Domestic Hot Water (DHW) Market Segment Analysis And Revenue Opportunities
The solar thermal for domestic hot water (dhw) market covered in this report is segmented –
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
Solar Thermal For Domestic Hot Water (DHW) Market Leading Players Shaping Industry Direction
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.
Access The Complete Solar Thermal For Domestic Hot Water (DHW) Market Report:
#Solar Thermal For Domestic Hot Water (DHW) Market Largest Region: Which Geography Holds The Highest Market Share?
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 the solar thermal for domestic hot water (DHW) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Get in touch with us:
The Business Research Company: https://www.thebusinessresearchcompany.com/
Americas: +1 310-496-7795
Asia: +44 7882 955267 & +91 8897263534
Europe: +44 7882 955267
Email us at: marketing@tbrc.info
Follow us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ
Global Market Model: https://www.thebusinessresearchcompany.com/global-market-model
Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
