Solar Thermal Market Research, 2031
The global solar thermal market size was valued at $21.5 billion in 2021, and solar thermal industry is projected to reach $35.3 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
Solar thermal energy is a form of energy that is harvested from solar energy to generate thermal energy using various technologies for industrial use, and in residential and commercial sectors. Solar thermal is expected to witness growth at a gradual rate as direct heating and drying as well as water desalination have huge demand for solar heating systems. However, for generating electricity from solar energy, the photovoltaic generators are more suitable and they are already used to build Gigawatt photovoltaic power stations; hence, there will be a slight decline in the utilization of solar thermal system in power generation sector.
The growing integration of low carbon power generation technologies coupled with rising measures by national and international organizations & administrations is augmenting the growth of flat plate solar collector, which is a solar devices that uses solar energy to generate thermal energy. Furthermore, solar is the leading system among the green technologies that have witnessed huge investments from public & private companies, which have demonstrated significant untapped potential. The presence of its utilization to trap sun rays and generate energy for final usage will provide ample opportunities for the development of the solar thermal market growth.
Pumped solar heating systems are used to heat large scale of water through concentrated solar power system, this type of system is mostly used in the desalination plant where water is pumped from the sea to purify water and extract salt minerals from it. Furthermore, it is also used in the power generation industries as large scale of water is converted into steams which is sent to steam turbines and are converted into electricity. The increase in demand for power and decline of fresh water resource in developed and developing countries across the globe will drive the market growth. The increase in population has led to surge in demand for water and its utilization in agriculture, food processing and other various industries has led to construction of water desalination plan. Saudi Arabia is a water deficit country; hence, the government has invested in the construction of various desalination plants. The above mentioned factors will provide ample opportunities for the development of the market during the forecast period.
The global solar thermal market forecast is segmented on the basis of collector type, system, application, end use and region. On the basis of collector type, it is segmented into evacuated tube collector, flat plate collector, unglazed water collector, and air collector. On the basis of system, the market is segmented into thermosiphon solar heating system, and pumped solar heating system. On the basis of application, the market is segmented into hot water systems, solar combi systems, swimming pool heating, and others. Furthermore, hot water systems are bifurcated into domestic, and large. On the basis of end use, the global solar thermal market is segmented into residential, commercial and industrial.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest solar thermal market share, followed by Europe and North America.
The hot water heating system segment dominates the global solar thermal market. Hot-water systems typically have a central boiler, in which water is heated to a temperature from 140 to 180 °F (60–83 °C), and then circulated by means of pipes to some type of coil units, such as radiators, located in the various rooms. Increase in demand for hot water from various residential applications, including bathing, washing, cleaning, and cooking have driven the demand for sustainable and eco-friendly technologies, such as solar thermal systems. Green technologies and sustainability are becoming more significant as numerous states and cities around the country implement regulatory plans to minimize greenhouse gas emissions and energy use in buildings that are expected to provide ample opportunities for the development of the market.
The residential segment dominates the global solar thermal market. Residential utilization of solar thermal system is mostly in the production of hot water through domestic hot water system. Rise in investment in the construction sector in re-establishment and refurbishment of buildings will drive the market growth. The presence of new policies in regards with the launch of green building code, such as energy conservation building code in India, China, the U.S., and others, will further augment the market growth. The most highlighted driver of the residential solar thermal market is the growth in solar district heating projects across the globe. They play a crucial role in decarbonizing the heating sector and in responding to the increasing demand for an eco-friendly way of meeting the heating requirements, such as domestic water heating and space heating. The above mentioned factors will provide ample opportunities for the development of the market during the forecast period.
The evacuated tube collector segment dominates the global solar thermal market. The evacuated tube comprises of a smaller glass tube suspended within a larger glass tube. The air is then pumped out of the space between the small inner tube and the larger outer tube creating a vacuum thermal insulation layer. This vacuum layer is a key part of solar thermal systems as it reduces heat loss from the solar collector. Evacuated tubes collector has wide range of applications such as solar water heating, solar drying, solar air heating, and solar desalination. The rapid increase in demand for power and gradual decline of oil and gas reserves across the globe will drive the demand for solar thermal market. Furthermore, the enormous consumption of oil & gas has deteriorated the environment, which has led the oil & gas reserves on the brink of extinction. The gradual utilization of solar thermal power plants across the globe and ongoing investments in this sector has led to increase in demand for evacuated tube collector, which is vital in transforming solar radiation into heat and transfer heat to a medium. The presence of above-mentioned factors will provide ample opportunities for the development of the market.
The thermosiphon solar heating system reforming segment dominates the global solar thermal market. Thermosiphoning is used for circulation of liquids and volatile gases in heating and cooling applications such as heat pumps, water heaters, boilers and furnaces. Thermosiphoning also occurs across air temperature gradients such as those utilized in solar chimney. The increase in the demand for power from clean energy resources have led to increase in the demand for thermosiphon solar heating system. The above-mentioned factors will provide ample opportunities for the development of the market.
Asia-Pacific region consists of countries such as China, Japan, India, South Korea, Australia, and the Rest of Asia-Pacific. India and China are major players in this region majorly due to huge population and due to their demand for energy. Solar power in India is a fast-developing industry as a part of the renewable energy in India. Building energy consumption accounts for more than a third of India’s total energy consumption, hence in order to reduce the residential energy consumption the government is encouraging the people to shift towards solar thermal systems. India is expected to have the largest urban population by 2050.
In addition to this, the fact that more than 70% of the buildings that will stand in India in 2030 are yet to be built. Therefore, there will be increase in the demand for energy efficient residential and commercial building. Furthermore, surge in local producers of clean energy to tap the potential of the solar energy from buildings to meet the future demand for the energy is expected. The government of developing countries in this region has taken huge initiatives to develop sustainable solar energy power plants which will provide ample opportunities for the growth of the solar thermal market.
Impact of Covid-19 on Global Solar Thermal Market
The global COVID-19 pandemic had a negative impact on the solar thermal market. The major problems being it might be possible that companies may not be able to meet project delivery timelines that could alter tax treatment or eligibility for state incentives for such projects. In November 2020, the City of Albuquerque Parks and Recreation announced the temporary closure of the Highland Pool to limit the spread of the virus to employees. Such disruptions across the swimming pool facilities may create an indirect impact on the deployment of solar thermal heating systems.
Post pandemic outbreak, the gradual surge in the construction sector and tourism industry has led to increase in the demand for solar thermal systems. The government of various developing and developed countries has invested in the development of solar thermal power plants in order to reduce their imports of fossil fuels, and other energy resources. Furthermore, increase in awareness among people regarding the impact of conventional water heating systems in residential applications will drive the demand for solar thermal systems. The trend is expected to continue during the forecast period.
Competitive Landscape
The major companies profiled in this report include Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, BTE solar Co. Ltd, Linuo Ritter International Co. Ltd, Photon Energy Systems Limited., BrightSource Energy, Parvelon CSP Technologies, Abengoa Solar, Siemens AG, Acciona, SolarReserve, Torresol Energy, Trivelli Energy, Sener, Lointek, SCHOTT, Abors green GmbH, and Liontek. Due to rapid industrialization, urbanization and gradual increase in population has led to increase in the demand for power. The demand for power from clean energy resources has increased the demand for solar thermal system. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in new technologies related to solar thermal energy system have led to attain key developments in the global solar thermal market trends.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the solar thermal market analysis from 2021 to 2031 to identify the prevailing solar thermal market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the solar thermal market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global solar thermal market trends, key players, market segments, application areas, and market growth strategies.
Solar Thermal Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 35.3 billion |
 Growth Rate | CAGR of 5.1% |
 Forecast period | 2021 - 2031 |
 Report Pages | 456 |
 By Application |
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 By End Use |
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 By Collector Type |
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 By System |
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 By Region |
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 Key Market Players | BrightSource Energy, Torresol Energy, Abengoa Solar, Trivelli Energy, BTE solar Co. Ltd,, Abors green GmbH, SCHOTT, Photon Energy Systems Limited., Siemens AG, Lointek, Liontek, Acciona, Sener, Linuo Ritter International Co. Ltd,, SolarReserve, Greenonetec Solarindustrie GmbH,, Solareast Holdings Co. Ltd, |
Analyst Review
According to CXO perspective, the global solar thermal market is expected to witness increased demand during the forecast period, due to rise in demand for clean energy resources. The increase in awareness among people regarding the utilization of solar thermal energy is also driving the market growth.
Solar thermal is an energy source, which is free of emissions. Solar thermal systems use sunrays to produce heat, which is widely used to operate different systems, such as in water desalination, power generation, and others. They are usually composed of panels that absorb the sunrays. The panels utilized can be concentrating solar panels and are photovoltaic.
Increasing government initiatives to shift towards clean energy sources is another factor, which is expected to boost the market. However, factors such as high initial investment, inconsistency in the production of power, and immature technology related to energy storage produced through solar thermal systems are expected to hamper the development of the market. However, increase in government investments to innovate and develop various technologies to make the solar thermal energy production more efficient will have positive impact over the solar thermal market.
Increase in clean energy demand and rapid expansion of infrastructure industry are the key factors boosting the Solar thermal market growth.
Increasing government initiatives to shift towards sustainable energy sources is the Main Driver of Solar thermal Market.
Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, BTE solar Co. Ltd, Linuo Ritter International Co. Ltd, Photon Energy Systems Limited., BrightSource Energy, Parvelon CSP Technologies, Abengoa Solar, Siemens AG, Acciona, SolarReserve, Torresol Energy, Trivelli Energy, Sener, Lointek, SCHOTT, Abors green GmbH, and Liontek
Construction industry is projected to increase the demand for Solar thermal Market
The global solar thermal market is segmented on the basis of collector type, system, application, end use and region. On the basis of collector type, it is segmented into evacuated tube collector, flat plate collector, unglazed water collector, and air collector. On the basis of system, the market is segmented into thermosiphon solar heating system, and pumped solar heating system. On the basis of application, the market is segmented into hot water systems, solar combi systems, swimming pool heating, and others. Furthermore, hot water systems are bifurcated into domestic, and large. On the basis of end use, the global solar thermal market is segmented into residential, commercial and industrial. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The market value of Solar thermal in 2031 is expected to be $35.3 billion
Post pandemic outbreak, the gradual surge in the construction sector and tourism industry has led to increase in the demand for solar thermal systems. The government of various developing and developed countries has invested in the development of solar thermal power plants in order to reduce their imports of fossil fuels, and other energy resources. Furthermore, increase in awareness among people regarding the impact of conventional water heating systems in residential applications will drive the demand for solar thermal systems. The trend is expected to continue during the forecast period.
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