Based on the 2030 Egyptian vision to move towards clean and renewable energy instead of fossil fuels, which are considered the main power source in Egypt. Utilizing solar energy in this transformation is essential as Egypt is awarded high solar radiation intensity. So, moving towards solar water heating is essential at this stage. In this research paper, the current market for water heating in Egypt is displayed. The Solar Water Heating (SWH) market is divided into three segments according to different end users’ applications. The three segments are residential, commercial, and industrial applications. To evaluate the Egyptian market readiness, the SWH Tech-Scope readiness tool is used concerning an international comprehensive benchmark framework. The SWH Tech-Scope readiness tool focuses on four main parameters: SWH support framework, national conditions, financing, and business climate. Moreover, the opportunities and the challenges of the SWH market in Egypt for different usages are identified and evaluated. The SWH market readiness is calculated on a scale of 0 – 5. The calculated overall score of the Egyptian SWH market readiness for the residential, commercial, and industrial sectors is 1.91, 2.05, and 2.14 respectively. Considering the residential, commercial, and industrial markets together, Egypt’s SWH market readiness can be seen as “emerging.” To improve the score, specific actions should be taken. Such as establishing a subsidy program for SWH installations, designing SWH loan programs, setting SWH targets on the national level, designing national outreach campaigns, setting building mandates in all sectors, developing system installer certification.