Solar Thermal Market Size (2024 - 2029)

The solar thermal market is projected to expand steadily, driven by increasing demand for renewable heating solutions in residential and industrial sectors, which contribute to reduced energy costs. Despite potential challenges from natural gas competition in district heating, the market's capacity has been bolstered by the resilience shown during the COVID-19 pandemic. The residential segment is anticipated to lead the market, supported by the rise in solar district heating installations. Additionally, the industrial sector presents significant growth opportunities through the adoption of solar heating systems. The European region is expected to experience the most substantial growth, aided by decreasing costs of solar heating technologies.

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Market Size of Solar Thermal Industry

Solar Thermal Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 4.50 %
Fastest Growing Market Europe
Largest Market Asia Pacific
Market Concentration Low

Major Players

Solar Thermal Market Key Players

*Disclaimer: Major Players sorted in no particular order

Solar Thermal Market Analysis

The solar thermal market is expected to witness a CAGR of around 4.5% during the forecast period. The COVID-19 pandemic did not have a visible impact on the solar thermal market. On the contrary, the installed capacity for solar thermal systems increased in 2020 at the global level. The global installed capacity for solar thermal systems was recorded at 6,479 MW in 2020, which was 6,384 MW in 2019. The market is expected to flourish more in the coming years due to the growing demand for renewables-based heating applications in residential and industrial sectors and the reduction in energy bills due to self-energy generation. However, the competition from natural gas as in district heating is expected to restrain the market in the near future.

  • The residential segment is expected to dominate the market during the forecast period due to the growth in solar district heating plant installations in many parts of the world.
  • The introduction of solar heating systems for industrial processes places tremendous opportunities for market development. Many companies have successfully experimented with the commercial viability of solar heating systems in the commercial and industrial sectors. The best example is the Solar Payback Project initiated by Bundesverband Solarwirtschaft e. V., the German solar association, recently promoted the use of Solar Heat for Industrial Processes (SHIP) in four countries, namely India, Brazil, Mexico, and South Africa.
  • The European region is expected to witness the highest growth during the forecast period due to the falling cost of solar heating technologies in European countries.

Solar Thermal Industry Segmentation

The solar thermal market report includes:

Collector Type
Glazed Collector
Unglazed Collector
Application
Residential
Commercial
Industrial
Geography
North America
Europe
Asia-Pacific
South-America
Middle-East and Africa
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Solar Thermal Market Size Summary

The solar thermal market is poised for significant growth, driven by increasing demand for renewable energy-based heating solutions in both residential and industrial sectors. The market's resilience was evident during the COVID-19 pandemic, which did not adversely affect its growth trajectory. The residential segment is anticipated to lead the market, fueled by the expansion of solar district heating projects worldwide. These projects are instrumental in reducing carbon emissions and meeting the rising demand for sustainable heating options. The introduction of solar heating systems for industrial processes presents substantial opportunities for market expansion, with successful initiatives like the Solar Payback Project demonstrating the commercial viability of these systems in various countries.

Europe is expected to experience the highest growth in the solar thermal market, attributed to decreasing costs of solar heating technologies and supportive government policies aimed at achieving renewable energy targets. The European Union's ambitious goals, including the European Green Deal and the mission for climate-neutral cities, are set to further accelerate the adoption of solar thermal solutions. The market is characterized by fragmentation, with key players such as Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, and Photon Energy Systems Limited leading the charge. Developments like the establishment of a Concentrated Solar Thermal testing facility in India highlight the ongoing efforts to enhance the capabilities and performance of solar thermal components, supporting the sector's growth.

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Solar Thermal Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Solar Thermal Installed Capacity and Forecast in GW, till 2027

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

      2. 1.6.2 Restraints

    7. 1.7 Supply Chain Analysis

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Suppliers

      2. 1.8.2 Bargaining Power of Consumers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitutes Products and Services

      5. 1.8.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Collector Type

      1. 2.1.1 Glazed Collector

      2. 2.1.2 Unglazed Collector

    2. 2.2 Application

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

      3. 2.2.3 Industrial

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 South-America

      5. 2.3.5 Middle-East and Africa

Solar Thermal Market Size FAQs

The Solar Thermal Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

Photon Energy Systems Limited, Solareast Holdings Co Ltd., Greenonetec Solarindustrie GmBH, BTE Solar Co Ltd. and Linuo Ritter International Co. Ltd are the major companies operating in the Solar Thermal Market.

Solar Thermal Market Report Snapshots

Solar Thermal Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)