Solar Thermal Collectors Market

The solar thermal collectors market is on the rise with a strong growth which is driven by increasing demand for renewable energy and rising awareness of sustainable heating solutions. As the governments worldwide are promoting low-emission energy alternatives, solar thermal systems are gaining traction in residential, commercial, and industrial sectors.

The integration of solar thermal collectors in buildings used for water and space heating is one of the major trends. As building codes become stricter on energy efficiency, solar thermal technologies are being adopted more widely in green construction projects, especially in regions with high solar irradiation.

Many technological advancements are also taking place that plays a vital role in this system. For example, evacuated tube collectors and hybrid PV-thermal systems (PVT) are gaining popularity due to their higher efficiency and adaptability in various climates. With such rising innovations, energy companies and infrastructure developers are getting attracted for the investments. 

Europe, especially Germany and Spain, is leading the market of solar thermal collectors. Besides, Asia-Pacific—especially China and India—is also witnessing rapid adoption due to rising urbanization and government subsidies. The global solar thermal market is expected to maintain a steady growth trajectory, driven by climate goals and energy diversification efforts across regions.

Solar Thermal Collectors Market Trends

Growing awareness about renewable energy to boost market growth

The market is anticipated to grow more in the upcoming years due to rising demand for heating systems based on renewable energy in the residential and commercial sectors and the decrease in energy costs brought on by self-energy generation. However, it is anticipated that natural gas's competitiveness will soon constrain the district heating market. Due to the increase in the number of solar district heating plant installations worldwide, the residential segment is anticipated to dominate the market over the forecast period.

Solar heating solutions for industrial processes present a wealth of market expansion potential. Numerous businesses have successfully tested the commercial and industrial viability of solar heating systems in the commercial and industrial sectors. Introducing new technologies to improve the product's efficiency would open up promising opportunities for market expansion. Research and development investments are being made by several businesses and academic institutions to lower product costs and boost output.

However, increasing awareness about renewable energy is another factor driving the growth of the Solar Thermal Collectors market revenue.

The increasing global emphasis on renewable energy sources drives the Global Solar Thermal Collectors Market Industry. Governments worldwide are implementing policies and incentives to promote clean energy, aiming to reduce greenhouse gas emissions. For instance, the European Union has set ambitious targets for renewable energy, which includes solar thermal technologies. This shift towards sustainability is reflected in the projected market growth, with the industry expected to reach 29.3 USD Billion in 2024. The rising awareness among consumers regarding climate change and the need for energy independence further fuels this demand, indicating a robust future for solar thermal collectors.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Solar Thermal Collectors market accounted for USD 9.87 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The APAC's recent urbanization and population increase are attributed to the region's rising energy demand, which is fueling the region's development. Additionally, the rate of solar power installations in the region has quickened as governments pay greater attention to green energy targets.

It is projected that China would continue to dominate the global and local solar thermal energy markets as solar power investment rises. The regional solar thermal energy market will thrive with the participation of leading enterprises in the sector. Moreover, the China Solar Thermal Collectors market held the largest market share, and the India Solar Thermal Collectors market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Solar Thermal Collectors Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Solar Thermal Collectors market accounts for the second-largest market share. In European countries, the demand for solar district heating systems has accounted for the majority of the market's growth in the solar thermal sector. The market is expanding quickly due to the government's aspirations for renewable energy and the falling cost of technologies. The European Union could reach its 2020 objective by increasing its use of renewable energy from 19.7% of gross final energy consumption in 2019 to 21.3% in 2020. The EU Commission establishes increasingly difficult goals, such as increasing the ratio to 100% by 2050.

Further, the Germany Solar Thermal Collectors market held the largest market share, and the UK Solar Thermal Collectors market was the fastest-growing market in the European region.

The North America Solar Thermal Collectors Market is expected to grow at the fastest CAGR from 2022 to 2030. The heating of swimming pools and commercial use make up a sizable portion of the American market. The demand for solar thermal collectors in the United States is projected to increase as worry about the depletion of natural resources grows. In the upcoming years, further technological advancement in the area is projected to encourage the use of evacuated tube collectors in industrial applications. The demand is projected to increase due to major market participants in the U.S.

Moreover, the US Solar Thermal Collectors market held the largest market share, and the Canada Solar Thermal Collectors market was the fastest-growing market in the North America region.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will fuel further growth of the solar thermal collectors market. In addition, market participants are launching key developments, entering into contracts, acquiring companies, increasing investments, and working with other organizations, among other significant market changes, in an effort to expand their global footprint. In order to grow and thrive in a more cutthroat and competitive market climate, competitors in the solar thermal collectors industry must provide affordable products.

Manufacturing locally to save money on operational expenses is one of the main business strategies used by suppliers in the global solar thermal collectors industry to benefit customers and grow the market sector.In recent years, solar thermal collectors industry has provided with some of the most significant benefits. The solar thermal collectors market major player such Savosolar, and others are working to expand the market demand by investing in research and development activities.

Large solar thermal systems are designed and provided by Savosolar Plc, a Finnish public limited liability corporation, for use by industry and district heat generators. The systems are built on Savosolar's extremely effective solar heat collectors, with unique optically coated direct flow absorbers at their core. In March 2019, To sell and supply solar thermal systems in China using Savosolar's technology, the company inked an agreement with Jingsu Holly Corporation. The deal will broaden both businesses' reach and increase their revenue-leveraging potential.