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

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.