Solar Thermal Collectors Market Size, Share & Trends Analysis Report By Product (Concentrating, Non-Concentrating (Flat Plate, Evacuated Tube, Unglazed Water Collector, Air Collector)), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global solar thermal collectors market size was valued at USD 20.77 billion in 2016 in terms of revenue. Growing demand for solar thermal collectors from various commercial, residential and industrial applications is anticipated to provide positive scope for market growth over the forecast period.

Asia Pacific was the largest market in 2016 in terms of revenue. Rapid industrialization across the Asia Pacific is expected to drive the product demand. However, the high cost of the product is expected to restrain the growth over the forecast period

The development of new technologies to increase the efficiency of the product is anticipated to provide a positive scope for market growth. Various companies and educational institutes are investing in research and development to reduce the cost of the product and increase its output.

Fossil fuels are witnessing depletion owing to large-scale use of resources such as crude oil and coal for power generation. This, in turn, leads to increased environmental pollution. The demand for electricity is also witnessing growth owing to an improved standard of living. Therefore, the growing demand for power and the depleting fossil fuels have triggered the need to find alternatives to fossil fuels for power generation which is anticipated to drive product demand.

In terms of industrial application, solar thermal collectors are not widely used due to a shortage of skilled workers and installers. However, due to an increase in the construction sector and high electricity rates, the demand for the product in the domestic application is expected to increase.

South Korea is expected to show high growth in the construction industry owing to private and public investments in commercial, industrial, and infrastructure projects. Growth of the construction sector across Asia Pacific is anticipated to provide a positive scope for market growth over the forecast period.

Product Insights

Solar thermal collector is expected to grow at a CAGR of 8.1%. The initiatives taken by the government to reserve the natural resources coupled with growing awareness among people is anticipated to drive the market growth. 

Solar thermal collectors are of two types concentrating and non-concentrating out of which non-concentrating was the largest segment accounting for 89.6% of global volume in 2016. The segment is expected to witness the fastest growth on account of the increasing scope of the product in industrial applications.

The non-concentrating segment includes a flat plate, evacuated tube, unglazed water, and air collectors. Evacuated tube collector was the largest segment accounting for 67.3% of global volume in 2016. However, in Europe flat plate products were the largest sub-segment.

Flat plate collectors are typically utilized for residential water heating, drying, and for applications, which required liquid temperature that is less than 100 degrees centigrade. Increasing demand for the product for domestic purposes is likely to augment the flat plate collectors growth over the forecast period.

Application Insights

The applications of solar thermal collectors include commercial, residential, and industrial. Increase in conventional energy costs as a result of growing resources demand is likely to provide positive scope for market growth over the forecast period 

Utilization of the product in commercial constructions such as shopping malls and hotels is anticipated to provide a positive scope for market growth over the forecast period. However, the availability of PV with more efficiency is expected to restrain demand for the product across various regions.

Solar thermal collectors are used in water heating applications and other residential activities. The growing population along with other environmental challenges is overstraining the limited energy resources coupled with rising human needs is expected to increase the demand for a solar thermal collector for residential application over the forecast period.

The residential application has a market share of 20.6% in 2016 owing to cost reduction in energy bills followed by domestic application like car washes, Laundromats, and swimming pools. The recent developments in industrial heating and cooling application has fueled the market growth.

Regional Insights

The U.S. dominated the North America solar thermal collector market accounting for a volume share of 70.0% in 2016. Heating of swimming pools and commercial application account for a major market in the U.S. Rising concern regarding depletion of natural resources is likely to augment solar thermal collector demand in the U.S.

Increasing technology development in the region is likely to propel the utilization of evacuated tube collectors in industrial application over the coming years. The presence of key market players in the U.S. is likely to augment the demand.

Due to greater investment in the tourism sector by European government the solar thermal collector market is expected to witness growth over the forecast period. The European players are bringing different solutions for heating and cooling problems which will foster the growth of the solar thermal collector market.

Demand for the solar thermal collector is stagnant in the European region as the conventional heating systems in households are not being replaced. The consumers are not aware of the existence of solar thermal collectors and higher electricity rates and lower oil and gas prices have an adverse impact on investment.

Competitive Insights

The competitive rivalry in the market is expected to be moderate due to the presence of limited players. The competition is likely to be in terms of pricing and new & efficient products. The market is anticipated to be fragmented as no particular company holds a major share. 

The threat of substitutes is expected to be high in the market due to the high cost of the product and easily available substitute products such as photovoltaics and concentrated photovoltaics. However, intensive research and development to increase efficiency can reduce the risk of substitute products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the solar thermal collector market on the basis of product, application, and region:

• Product Outlook (Volume, Megawatts, Revenue, USD Million, 2014 - 2025)

  • Concentrating

  • Non-Concentrating

    • Flat Plate

    • Evacuated Tube

    • Unglazed Water Collectors

    • Air Collectors

• Application Outlook (Volume, Megawatts, Revenue, USD Million, 2014 - 2025)

  • Commercial

  • Residential

  • Industrial

• Regional Outlook (Volume, Megawatts, Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

  • Rest Of World