USD 19.96 billion
Solar Thermal Market Size, Share, Growth Analysis, By Collector Type(Evacuated Tube Collector, Flat Plate Collector, Unglazed Water Collector, Air Collector), By System(Thermosiphon Solar Heating Systems, Pumped Solar Heating systems), By Application(Residential, Commercial, Industrial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG10B2038 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|Tables:
90
|Figures:
76
Solar Thermal Market Insights
Global Solar Thermal Market size was valued at USD 19.96 billion in 2019 and is poised to grow from USD 20.94 billion in 2023 to USD 30.24 billion by 2031, growing at a CAGR of 4.7% in the forecast period (2024-2031).
The heat from the sun is collected into solar thermal energy for human use. It differs from photovoltaic (PV) energy, which transforms some of the electromagnetic radiation from the sun directly into electrons and electricity. Since the sun's heat can be captured and transmitted in a medium, solar thermal technology has a broad spectrum of applications than PV. This energy can be used to heat and cool a home, heat water, cook food, or generate electricity.
In recent years, there has been increased adoption of solar thermal. For instance, the European market returned to growth post COVID-19 in 2019. Preliminary estimates point to an installation level of as much as 2,146,901 m sq, or 8.0% growth compared to 2020 (1,987,345 m. sq.). The year’s newly installed surface equates to about 1,502.8 MWth of thermal capacity (up from 1,391.1 MWth in 2019)
The emergence of solar power as the most sustainable source of renewable energy will also boost the installation of solar thermal power plants worldwide. Solar thermal power or electric generation systems can collect and concentrate the sunlight to generate high-temperature heat that is required to produce electricity. The most rising trend in the solar thermal market is the solar district heating system coupled with seasonal storage. The most classic example is the solar district heating system recently established by Savosolar Oyj company in Cadaujac, France, in December 2021.
The incentives offered by the government can propel the market to the greatest extent. For instance, in March 2021, Danish gas transmission system operator Evida decided to exempt those households who want to use renewable energy for heating instead of gas supplied through the grid from paying grid disconnection fees. Evacuated tube collectors feature thin, copper tubes filled with a fluid, such as water, housed inside larger vacuum-sealed clear glass or plastic tubes.
US Solar Thermal Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Residential
Fastest Growth
Residential
Growth Rate
4.7% CAGR
Global Solar Thermal Market 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
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Solar Thermal Market Segmental Analysis
Solar Thermal Market is segmented on the basis of Collector Type, System, Application, and Region. Based on Collector Type the Solar Thermal Market is segmented into Evacuated Tube Collector, Flat Plate Collector, Unglazed Water Collector, and Air Collector. Based on System the Solar Thermal Market is segmented into Thermosiphon Solar Heating Systems and Pumped Solar Heating systems. Based on Application the Solar Thermal Market is segmented into Residential, Commercial, and Industrial. Based on the region, the global Solar thermal market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Solar Thermal Market Analysis by Collector Type
Based on collector type the market is segmented into evacuated tube collector, flat plate collector, unglazed water collector, and air collector. Among these segments, the Evacuated tube collector segment is growing at a higher rate of 4.5% followed by the segment of Flat plate collectors which is growing due to increasing demand for solar thermal in Europe whereas Air collectors stand at the bottom because of their low rate of operational efficiency.
Solar Thermal Market Analysis by System
Based on the system the market is segmented into thermosiphon solar heating systems and pumped solar heating systems. For the last few years, the Thermosiphon Solar Heating Systems over the Pumped Solar Heating system due to its efficiency of usage in multiple combinations with flat plate collectors for hot water purposes in various countries. Thermosiphon solar heating systems accounted for 57.9% in 2021 followed by pumped solar heating systems with more than 40% in 2021.
Solar Thermal Market Analysis by Application
Based on application the market is segmented into residential, commercial, and industrial. Among all these segments, the segment of Residential is held to grow at a faster rate due to the increasing district solar heating projects worldwide. They are essential to decarbonizing the heating industry and addressing the rising demand for environmentally benign methods of providing heating services like residential water heating and space heating. The solar district heating system combined with seasonal storage is the market's fastest-growing trend in solar thermal technology.
Global Solar Thermal Market by Application, 2021 (%)
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Solar Thermal Market Regional Insights
In terms of market share, the Asia Pacific region dominated the Global Solar Thermal Market in the year 2021 with more than 50% market share, due to increasing electricity demand, Rising standards of living, and suitable solar irradiance. The European region held the second most dominating share in the market with more than 20% share. The solar thermal market has grown considerably in the European nations, with solar district heating systems accounting for the majority of demand. As an example, in January 2020, the European Parliament adopted the resolution on the European Green Deal, which focuses on the importance of decarbonizing the energy sector as the topmost priority for a net-zero greenhouse gas emissions economy by 2050.
The government-set renewable energy goals and the falling cost of technology are the driving forces behind the market's rapid expansion. Lastly, the Middle East and Africa are stepping into competition slowly due to government initiatives like PV projects that are yet to be completed in the region. Hence, such factors will significantly drive the regional growth of the market in the upcoming years.
Global Solar Thermal Market By Geography, 2021 - 2028
- Largest
- Fastest
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Solar Thermal Market Dynamics
Solar Thermal Market Driver
Growing Adoption of Green Energy Will Cater to Solar Thermal Market Growth
- Adoption of clean fuels and increasing environmental awareness which is aimed at reducing carbon footprints is driving the growth of the market. While reducing dependency on fossil fuels in combination with economic advantages for consumers as well as service providers are the factors driving the growth of the market. Further, government initiatives regarding increasing the usage of renewable sources in energy generation are likely to propel the growth of the market. The government is providing incentives based on the targets for the generation of electricity from conventional sources, and the installation of solar thermal plants in various countries like China, it is believed to show significant market growth in nearby future.
- Numerous goals have been set by governments and international organizations to be accomplished by the years 2030, 2040, and 2050. These goals place a strong emphasis on raising the proportion of renewable energy sources in energy production. This is likely to increase investments in the solar industry, along with the government incentives offered to accomplish the same. As a result, the market has become more fragmented and more open to new competitors. During the forecast period, it is projected that these factors will work together to grow the solar thermal market overall.
- For instance, renewable energy now accounts for 20% of the US electrical generation, up from 10% in 2010 in just 10 years. Solar and wind energy have witnessed robust growth, with rates of 84% and 15%, respectively, during the past ten years. Despite these remarkable developments, the pace will need to pick up considerably if the United States is to meet its clean energy targets. The nation has more than 100 gigawatts (GW) of solar power capacity and 122.5 GW of wind power capacity at the end of 2020, however, to decarbonize the power industry between 2035 and 2050, up to 70- 100 GW each of solar and wind will need to be added annually. This thus is likely to create a wide scope for the market growth in the upcoming years.
Solar Thermal Market Restraint
Higher installation Costs of Solar Systems
- High installation and maintenance costs of solar thermal power plants, utilization of large lands for the plant setup as well as instability, and low accessibility of finding land exposed to greater solar radiation are some of the factors that are limiting the growth of the global solar thermal market.
- For instance, A rooftop solar PV system costs approximately $2500 per kWp (kilowatt peak) including installation charges. The average household needs a solar panel to provide around 3kW. Solar panels cost ranges from $4000 to $6000 and will cover almost 21 square meters of roof. The more electricity a solar system can generate, it will increase the initial installation cost too. High installation cost is the limiting factor to the growth of the global market. Nevertheless, solar systems have a one-time installation cost, which is now decreasing due to government initiatives and support for a shift towards the adoption of renewable and green energy.
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Solar Thermal Market Competitive Landscape
The Global Solar thermal market is consolidated in nature, with a limited number of players operating in the market. These industry leaders are focusing on developing strategies that would help them in their sustainable growth. Companies are focusing on investments in the research and development field and developing solutions to utilize maximum solar radiation. Companies are experimenting with solutions in underdeveloped countries and remote areas.
Solar Thermal Market Top Players Company Profiles
- Abengoa
- Acciona Energía
- BrightSource Energy
- Cobra Energy
- Enel Green Power
- Fichtner Solar
- GE Energy
- GDF SUEZ
- Heliostat SA
- NextEra Energy Resources
- Novatec Solar
- SCHOTT Solar
- Solar Millennium AG
- SolarReserve
- Solargenix Energy
- Sopogy
- SunEdison
- SunPower Corporation
- Torresol Energy
- Trivelli Energia
Solar Thermal Market Recent Developments
- In June 2022, Kenya is using solar concentrators to heat industrial operations as fuel prices increase. After the successful commissioning of a 330 m2 solar installation made by Absolicon and Nairobi-based partner Ariya Finergy, which included Absolicon solar collectors T160, Iberafrica Power (E.A.) Limited in Nairobi, one of Kenya's leading Independent Power Producers (IPPs), has been taking advantage of solar heating since the beginning of May.
- In May 2022, Waree Energies, a solar module manufacturer, announced the approval to acquire solar cell manufacturer Indosolar. This acquisition will help Waree Energies to enhance its Solar Cell manufacturing capacity from the currently planned 4 GW to 5.4 GW and will further cater to the company’s expansion strategies of Solar module manufacturing.
Solar Thermal Key Market Trends
- Increasing number of industries adopting the solar thermal is likely to positively influence the market. Dairy Food processing and beverages, automotive components, textiles and chemicals, and pharmaceuticals are some of the sectors which are in the surge to use the industrial heat generated through solar thermal projects. Renewable solutions can reduce fossil fuel consumption and carbon dioxide (CO2) emissions in process heating. Because process heating supplies account for almost two-thirds of the total final energy demand from a manufacturing site, there is huge room for improvement in the industry. Major pharmaceutical businesses all around the world have set ambitious goals for their energy usage in the future, and this industry is predicted to adopt solar process heating more frequently.
- Promoting industrial catalysis consumes a large amount of artificial energy, such as electricity and fossil-derived energy, which need artificial conversion and input for their final usage. Therefore, constructing artificial-energy-input-free catalysis is the key to human sustainable development. Solar-heating catalysis has the potential to realize zero artificial energy consumption. It is restricted by the low ambient solar heating temperatures of photothermal materials such as the concept of using heterostructures of black photothermal materials (such as Bi2Te3) and infrared insulating materials (Cu) to elevate solar heating temperatures is the ongoing market trend.
Solar Thermal Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, based on the collector type segmental analysis, the evacuated tube collector segment is growing at a higher rate followed by the segment of flat plate collector due to increasing demand for solar thermal in Europe, whereas air collectors stand at the bottom because of their low rate of operational efficiency. Further, the adoption of clean fuels and increasing government policies toward renewable sources of energy are also driving the segmental growth of the market. Furthermore, based on the geographical analysis, the Asia Pacific region dominated the global solar thermal market in the year 2021 due to increasing electricity demand, rising standards of living, and suitable solar irradiance.
| Report Metric | Details |
|---|---|
| Market size value in 2019 | USD 19.96 billion |
| Market size value in 2031 | USD 30.24 billion |
| Growth Rate | 4.7% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Solar Thermal Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Solar Thermal Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Solar Thermal Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Solar Thermal Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Solar Thermal Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Solar Thermal Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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