Solar Thermal Collectors Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The total solar energy market is estimated to be worth around $ 25.84 billion in 2022 and is expected to reach $ 44.73 billion by 2030, growing at a CAGR of 8.15 % during the forecast period. The high growth of the market is a result of the growing trend towards the use of renewable energy sources, the growing need for sustainable energy and the need to combat climate change. The trend towards the use of solar energy is gaining momentum, and with the rising focus on energy efficiency and carbon reduction by governments and industries, solar thermal energy is gaining momentum as a viable alternative for heating in the residential, commercial and industrial sectors. This trend is supported by a number of factors, such as the advancement of solar thermal technology, such as improved collector efficiency and the integration of smart grids. In addition, the rising cost of energy and the favourable government policies, such as subsidies and tax benefits, are driving the demand for solar energy. Also, the key players in the solar thermal energy market, such as Viessmann, Solarpack and Bosch Thermotechnology, are constantly launching new products and entering into new strategic alliances to take advantage of emerging opportunities. These efforts are expected to make a significant contribution to the market growth and to the overall energy transition towards a more sustainable energy landscape.

Regional Market Size

Regional Deep Dive

The solar collectors market is booming across the globe, driven by the increasing energy demand, shift in focus to sustainable energy sources, and supportive government policies. Each region is characterized by unique factors that influence the market, such as technological advancements, regulatory framework, and cultural attitudes towards environmentalism. This market is particularly bolstered by innovations in collector efficiency and storage solutions, which have made solar thermal systems more viable for both commercial and residential applications.

Europe

• The European Union's Renewable Energy Directive mandates a significant increase in the share of renewable energy, which has spurred investments in solar thermal technologies, particularly in countries like Germany and Austria.
• Innovations in solar thermal technology, such as the development of vacuum tube collectors, are being spearheaded by companies like Viessmann and Solar-Log, enhancing efficiency and expanding market applications.

Asia Pacific

• China remains a global leader in solar thermal collector production, with companies like Haier and Sunrain dominating the market, driven by government incentives and a strong domestic demand for renewable energy.
• India's National Solar Mission aims to install 100 GW of solar power by 2022, which includes significant investments in solar thermal technologies, fostering collaborations between local and international firms.

Latin America

• Brazil's government has implemented policies to encourage the use of solar thermal systems, particularly in residential applications, supported by organizations like the Brazilian Association of Solar Energy.
• Chile's solar thermal market is growing rapidly, with projects like the Cerro Dominador concentrating solar power plant setting a precedent for large-scale solar thermal installations in the region.

North America

• The U.S. Department of Energy has launched initiatives to promote solar thermal technologies, including funding for research and development projects aimed at improving collector efficiency and reducing costs.
• California's ambitious renewable energy goals have led to increased adoption of solar thermal systems, with companies like SolarReserve and BrightSource Energy leading large-scale projects that integrate solar thermal with energy storage.

Middle East And Africa

• The UAE's Masdar initiative is promoting solar thermal projects, including the Mohammed bin Rashid Al Maktoum Solar Park, which aims to diversify energy sources and reduce reliance on fossil fuels.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has attracted investments in solar thermal projects, with companies like Abengoa Solar leading the way.

Did You Know?

“In 2020, China accounted for over 70% of the global solar thermal collector production, showcasing its dominance in the market.” — International Energy Agency (IEA)

Segmental Market Size

The solar thermal collectors segment plays an important role in the development of the alternative energy market, which is experiencing steady growth due to increasing energy needs and a shift towards sustainable solutions. In this context, the segment is supported by growing public awareness of energy efficiency, supportive government policies such as tax incentives and the introduction of renewable energy quotas in Europe and North America, and technological developments such as the increasing efficiency of solar thermal collectors. The market is also bolstered by technological developments that facilitate the integration of collectors into existing heating systems. The market for solar thermal collectors is currently in the growth stage of its development, with notable examples of large-scale implementations in countries such as Germany and China, where Viessmann and SolarPack are the leading companies. The most common applications are water heating in residential buildings, heating of commercial premises and industrial processes, which illustrates the flexibility of the solution. In addition, trends such as government initiatives to promote sustainable development and the worldwide drive towards carbon-neutrality are boosting growth. The development of solar collectors such as the use of evacuated glass tubes and hybrid solutions is also shaping the evolution of the segment.

Future Outlook

The Solar Thermo Electricity Collectors Market is anticipated to show a steady growth from 2022 to 2030. The market is expected to grow at a CAGR of 8.15% from 2022 to 2030. The growth is attributed to the increasing focus on renewable energy sources, which is driven by the need for energy independence and the need for a cleaner environment. As governments worldwide have been imposing stringent regulations on carbon emissions and promoting sustainable energy solutions, the adoption of solar thermal technology is expected to increase, especially in the residential and commercial sectors. The solar collectors have a potential to be integrated with smart grids, which will further enhance the market growth. Also, the increasing availability of solar technology along with supportive government policies and subsidies will increase the penetration rate of the technology. By 2030, it is expected that the penetration of solar thermal collectors in the global heating market will reach a level of 15% to 20% in regions with a favorable climate. Also, hybrid systems, which combine solar thermal with other forms of energy, will further shape the market and ensure that solar collectors are a key component of the future energy mix.