Solar Thermal Collectors Market (2024 - 2030) Size, Share & Trends Analysis Report By Type (Concentrating, Non-Concentrating), By Application (Commercial, Residential, Industrial), By Region (North America, Europe), By Region, And Segment Forecasts

Solar Thermal Collectors Market Trends

The global solar thermal collectors market size was valued at USD 28.6 billion in 2023 and is projected to grow at a CAGR of 8.1% from 2024 to 2030. The market is experiencing a surge in demand, driven by the growing adoption of solar thermal systems in residential and commercial sectors. Rising energy costs, environmental awareness, and increasing recognition of renewable energy solutions are key factors contributing to this growth.

Industry growth worldwide is fueled by the growing adoption of solar thermal systems in both residential and commercial sectors. The European Union’s renewable energy directive has been a key catalyst for this growth, particularly in countries such as Germany and Spain. Moreover, the trend towards lower energy costs and the emphasis on reducing carbon emissions have become major driving forces behind the solar thermal collector market.

The market is also being driven by rising global energy costs, which have been exacerbated by geopolitical crises and scarcity of resources. Technological advances in the application of thermal solar energy solutions have also contributed to the market’s growth. Furthermore, the increasing concern over environmental issues such as global climate change and decreasing carbon footprints has necessitated the adoption of cleaner sources of energy, which has created a dual pressure on consumers and producers to adopt sustainable solutions.

The anticipated market growth in the coming years is driven by increased demand for renewable energy-based heating systems. There is significant market growth potential for solar heating solutions in industrial processes, with many companies having successfully tested the feasibility of solar heating systems in commercial and industrial areas. The introduction of innovative technologies to enhance product effectiveness could create promising opportunities for increasing market reach. As a result, businesses and academic institutions are investing in research and development to reduce costs and increase production, further driving the growth of the solar thermal collector market.

Type Insights

The non-concentrating segment dominated the market and accounted for a share of 76.2% in 2023, owing to the superior heat retention and efficiency of evacuated tube collectors. These collectors, featuring multiple tubes with evacuated space and solar absorber-coated inner tubes, effectively reduce heat loss by 90% in colder regions.

The concentrating segment is expected to register the fastest CAGR of 8.6% during the forecast period.Concentrated solar collectors harness sunlight through mirrors or lenses to focus energy on a smaller surface, elevating the working fluid’s temperature. This boosts energy conversion efficiency, making them suitable for high-temperature applications such as industrial process heat, power generation, and desalination. Focused collectors reduce fossil fuel reliance.

Application Insights

Commercial segment accounted for the largest market revenue share of 44.8% in 2023.Solar thermal systems are widely employed in the commercial sector, particularly in hotels, hospitals, and large facilities that require high volumes of hot water. Industrial applications focus on heat-intensive processes, such as manufacturing and agriculture, necessitating larger, customized systems that cater to specific demands, diverging from residential needs.

Industrial segment is projected to grow at the fastest CAGR of 8.5% over the forecast period. Governments are incentivizing the adoption of renewable energy sources, such as solar thermal, in industrial settings through financial assistance. Advancements in solar thermal collector technology have enhanced efficiency and reliability, making them an attractive investment for industrial companies. Seamless integration into existing processes minimizes disruptions and boosts adoption.

Regional Insights

Asia Pacific solar thermal collectors market dominated the global solar thermal collectors market in 2023, accounting for a revenue share of 44.4%. Governmental support, including incentives and regulations, is driving the adoption of solar thermal technology in major economies such as China and India. The demand for sustainable energy solutions is surging due to rapid industrialization and urbanization, making solar thermal a popular choice for these countries.

China Solar Thermal Collectors Market

The solar thermal collectors market in China dominated the Asia Pacific solar thermal collectors market in 2023. The Chinese government has a strategic vision for renewable energy development, prioritizing solar thermal technology. To support its adoption, the government offers incentives such as cash grants, tax credits, and low-interest loans. Moreover, clear policies, guidelines, and regulations have created a favorable environment for the solar thermal industry to thrive.

North America Solar Thermal Collectors Market

The North America solar thermal collectors market was identified as a lucrative region in 2023 due to the rising demand for solar thermal systems in pool heating and commercial applications. The increasing adoption of renewable energy and cutting-edge technology is further fueling market expansion, as traditional energy sources decline, resulting in increased revenue and profitability.

The U.S. solar thermal collectors market is expected to grow rapidly in the coming years.The Investment Tax Credit (ITC) provides significant economic incentives for installing solar thermal systems. Moreover, many states and municipalities offer rebates, grants, and policies to further encourage adoption. By utilizing solar thermal collectors, energy consumption is reduced, resulting in decreased greenhouse emissions and a reliance on non-renewable energy sources.

Europe Solar Thermal Collectors Market

The Europe solar thermal collectors market is anticipated to witness significant growth, driven by the growth of solar district heating systems and government support for renewable energy. Germany leads the market in terms of market share, while the UK exhibits the highest growth rate. Decreasing technology costs and government incentives are key drivers of this expansion.

The solar thermal collectors market in the UK held a substantial market share in 2023, fueled by the Renewable Heat Incentive (RHI) and Feed-in Tariffs (FiTs). Although FiTs are no longer available for new installations, existing systems still benefit from this incentive. As such, solar thermal technology is poised to play a crucial role in achieving the UK’s renewable energy targets.

Key Solar Thermal Collectors Company Insights

Some key companies in the solar thermal collectors market include TVP Solar; Alternate Energy Technologies; SunEarth; GREENoneTEC Solarindustrie GmbH; and others. The market exhibits moderate competitive rivalry, driven by a limited number of players, with pricing and innovative product offerings being key differentiators.

• Alternate Energy Technologies develops solar power solutions, including flat-plate solar thermal collectors, commercial solar water heating systems, and pre-engineered residential packages. Its primary market focus is on clients in Florida.

• TVP Solar is a manufacturer of high-vacuum flat solar thermal panels, catering to large-scale industrial applications. Its products provide process heat, steam, and other services, enabling clients in oil and gas, district heating, and other industries to reduce emissions, costs, and ensure a stable energy supply.

Recent Developments

• In June 2024, Alternate Energy Technologies launched its updated Morningstar MSC-V frame, featuring high-quality attributes and value. This innovative introduction revolutionized industry benchmarks in the solar energy sector.

• In March 2024, Absolicon and Nett Zero Heat Pty Ltd collaborated produce Absolicon’s solar thermal concentrators in Australia, generating medium temperature steam.

Solar Thermal Collectors Market Report Scope

Global Solar Thermal Collectors Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global solar thermal collectors market report based on type, application, and region.

• Type Outlook (Volume, Megawatts; Revenue, USD Million, 2018 - 2030)

  • Concentrating

  • Non-Concentrating

• Application Outlook (Volume, Megawatts; Revenue, USD Million, 2018 - 2030)

  • Commercial

  • Residential

  • Industrial

• Regional Outlook (Volume, Megawatts; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE