The Solar Thermal Market size was estimated at USD 22 billion in 2023 and is projected to reach USD 45 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 11.00% during the forecast period (2024-2030).

Solar Thermal Market

Market Summary

The solar thermal market represents a critical segment within the renewable energy sector, focusing on harnessing solar energy to generate heat for various applications rather than electricity. This technology utilizes solar collectors to absorb sunlight and convert it into thermal energy, which is then used for water heating, space heating, industrial processes, and even power generation through concentrated solar power systems. The market is characterized by a diverse range of technologies, including evacuated tube collectors, flat plate collectors, and unglazed water collectors, each catering to specific temperature requirements and climatic conditions. Growing emphasis on reducing carbon emissions and enhancing energy security is driving adoption across residential, commercial, and industrial sectors globally. Key regions such as North America, Europe, and Asia-Pacific are witnessing significant investments and policy support aimed at promoting solar thermal solutions. Companies like Viessmann Group, Bosch Thermotechnology, and Greenonetec are leading innovation and deployment efforts, contributing to market maturation and technological advancements.

Key Highlights

The solar thermal market is distinguished by its ability to provide efficient and cost-effective heating solutions, reducing reliance on fossil fuels and lowering operational costs for end-users. A prominent highlight is the integration of solar thermal systems with existing heating infrastructures, enabling hybrid applications that enhance energy reliability. Technological innovations, such as advanced absorber coatings and heat storage solutions, are improving system efficiency and performance in diverse climatic conditions. The market is also benefiting from supportive government policies, including subsidies, tax incentives, and renewable energy targets, which encourage adoption in both developed and emerging economies. Additionally, growing awareness of environmental sustainability among consumers and corporations is fueling demand for clean heating technologies. The versatility of solar thermal applications, ranging from domestic hot water preparation to large-scale industrial process heat, underscores its broad market potential and adaptability across sectors.

Drivers, Opportunities & Restraints

Several drivers are propelling the growth of the solar thermal market, including increasing global energy demand, rising fossil fuel prices, and stringent environmental regulations aimed at reducing greenhouse gas emissions. Governments worldwide are implementing policies that promote renewable energy adoption, creating a favorable regulatory environment for solar thermal technologies. Opportunities abound in the expansion of applications beyond traditional residential uses, such as in district heating systems, agricultural drying processes, and industrial manufacturing, where high-temperature requirements can be met efficiently. The development of cost-effective and durable materials for solar collectors presents further opportunities for market penetration in regions with high solar insolation. However, the market faces restraints such as high initial installation costs, which can deter potential adopters despite long-term savings. Intermittency of solar radiation and the need for backup systems also pose challenges, particularly in regions with limited sunlight. Competition from alternative renewable technologies, like photovoltaic systems and heat pumps, may restrain market growth, necessitating continuous innovation and cost reduction efforts.

Concentration Insights

The solar thermal market exhibits a concentrated competitive landscape with a mix of established multinational corporations and specialized regional players dominating key segments. Companies such as Viessmann Group, Bosch Thermotechnology, and Rheem Manufacturing Company hold significant market shares, leveraging their extensive distribution networks and robust product portfolios. These players focus on technological innovation, strategic partnerships, and mergers and acquisitions to strengthen their market positions. Regional concentration is notable in Europe and Asia-Pacific, where supportive policies and high energy costs drive adoption. In emerging economies, local manufacturers are gaining traction by offering cost-effective solutions tailored to regional needs. The market is also witnessing increased collaboration between industry participants and research institutions to develop advanced materials and system designs, enhancing overall market competitiveness and product reliability.

Type Insights

Solar thermal systems are categorized based on collector types, with evacuated tube collectors, flat plate collectors, and unglazed collectors being the primary segments. Evacuated tube collectors are widely adopted for their high efficiency in converting solar radiation into heat, making them suitable for regions with colder climates and higher temperature requirements. These systems consist of multiple glass tubes with a vacuum layer that minimizes heat loss, ensuring optimal performance even in low ambient temperatures. Flat plate collectors, on the other hand, are commonly used for residential and commercial water heating applications due to their durability and cost-effectiveness. They feature an insulated box with a dark absorber plate that captures solar energy. Unglazed collectors, typically made from polymers, are employed for low-temperature applications such as swimming pool heating, offering an economical solution with minimal maintenance needs. Each type addresses specific market needs, influencing adoption patterns based on climatic conditions, application requirements, and budget constraints.

Application Insights

The application spectrum of solar thermal technology is broad, encompassing residential, commercial, and industrial sectors. In the residential segment, solar water heating systems are the most prevalent, providing households with an efficient means to reduce energy bills and environmental impact. These systems are often integrated with existing water heaters to ensure reliability. Commercial applications include heating for hotels, hospitals, and educational institutions, where large-scale hot water demand makes solar thermal solutions economically viable. Industrially, solar thermal systems are used for process heating in sectors such as food and beverage, textiles, and chemicals, where steam or hot water is required at various temperatures. Additionally, concentrated solar power plants represent a high-capacity application, generating electricity by using mirrors or lenses to focus sunlight onto a receiver. The diversity of applications highlights the technology's adaptability and potential to contribute significantly to energy diversification and sustainability goals.

Regional Insights

Regionally, the solar thermal market demonstrates varying levels of adoption and growth potential influenced by climatic conditions, energy policies, and economic factors. Europe is a leading market, driven by strong regulatory support, high energy costs, and widespread awareness of renewable energy benefits. Countries like Germany, Spain, and Austria have well-established solar thermal industries and high installation rates. The Asia-Pacific region is experiencing rapid growth, particularly in China and India, where government initiatives and increasing energy demand are fueling market expansion. China dominates both production and consumption, with extensive manufacturing capabilities and large-scale deployment in residential and industrial sectors. North America shows steady growth, with the United States and Canada focusing on technological advancements and incentive programs to promote solar thermal adoption. Emerging markets in Latin America and the Middle East are also gaining traction, supported by abundant solar resources and growing investments in renewable infrastructure.

Company Insights

Key players in the solar thermal market include Viessmann Group, Bosch Thermotechnology, Rheem Manufacturing Company, and Greenonetec, among others. Viessmann Group is renowned for its high-efficiency solar collectors and integrated system solutions, catering primarily to the European market. Bosch Thermotechnology offers a diverse range of products, including compact systems for residential use and large-scale solutions for commercial applications. Rheem Manufacturing Company focuses on water heating technologies, leveraging its expertise to develop reliable solar thermal systems for the North American market. Greenonetec is a leading manufacturer of large-scale solar thermal systems, specializing in turnkey solutions for district heating and industrial processes. These companies invest heavily in research and development to enhance product performance, reduce costs, and expand their global footprint. Strategic collaborations with installers, distributors, and policymakers are common, aimed at increasing market penetration and addressing region-specific challenges.

Recent Developments

Recent developments in the solar thermal market reflect ongoing innovation and strategic initiatives aimed at enhancing technology efficiency and expanding application scope. Advancements in heat storage solutions, such as phase change materials and improved insulation techniques, are addressing intermittency issues and increasing system reliability. Companies are also integrating smart controls and Internet of Things technologies to optimize performance and enable remote monitoring and maintenance. In terms of market expansion, there is a growing focus on hybrid systems that combine solar thermal with other renewable sources, such as heat pumps or biomass, to provide consistent energy supply. Policy developments, including updated building codes and increased renewable energy targets in various countries, are creating new opportunities for market growth. Additionally, partnerships between industry players and research institutions are accelerating the development of next-generation collectors and materials, promising higher efficiencies and lower costs in the near future.

Report Segmentation

This comprehensive market report on the solar thermal industry is segmented to provide detailed insights into various aspects influencing market dynamics. The segmentation includes analysis by type, covering evacuated tube collectors, flat plate collectors, and unglazed collectors, each examined for their market share, growth trends, and technological advancements. Application segmentation delves into residential, commercial, and industrial uses, highlighting specific demand drivers and adoption patterns across different sectors. Regional segmentation offers a granular view of market performance in key geographies such as North America, Europe, Asia-Pacific, and rest of the world, assessing factors like policy support, climate conditions, and economic indicators. The report also includes competitive landscape analysis, profiling major companies and their strategies, along with recent developments and innovation trends. This structured approach ensures a holistic understanding of the market, enabling stakeholders to make informed decisions based on thorough and segmented data.

FAQs

What are the key factors driving the growth of the solar thermal market? The growth of the solar thermal market is primarily driven by increasing energy costs, stringent environmental regulations, and government incentives promoting renewable energy adoption. Additionally, rising awareness about carbon footprint reduction and the need for energy independence are significant factors.

How does solar thermal technology compare to photovoltaic systems? Solar thermal technology is designed to capture heat from sunlight for direct use in heating applications, whereas photovoltaic systems convert sunlight into electricity. Solar thermal is generally more efficient for heating purposes, but photovoltaics offer versatility for power generation.

What are the main applications of solar thermal systems? Solar thermal systems are used for residential water heating, commercial space heating, industrial process heat, and power generation through concentrated solar power plants. They are also employed in swimming pool heating and agricultural drying processes.

Which regions are leading in solar thermal market adoption? Europe and Asia-Pacific are leading regions in solar thermal adoption, with countries like Germany, China, and Austria having high installation rates due to supportive policies, advanced infrastructure, and favorable climatic conditions.

What are the challenges faced by the solar thermal industry? Key challenges include high initial installation costs, intermittency of solar energy requiring backup systems, and competition from other renewable technologies. Additionally, lack of awareness and technical expertise in some regions can hinder market growth.

Who are the major companies in the solar thermal market? Major companies include Viessmann Group, Bosch Thermotechnology, Rheem Manufacturing Company, Greenonetec, and Solectrol. These players focus on innovation, strategic partnerships, and expanding their product portfolios to maintain competitive advantage.

Citius Research has developed a research report titled “Solar Thermal Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Solar Thermal Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Solar Thermal Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Solar Thermal Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Solar Thermal Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Solar Thermal Market
• Research Methodology
• Executive Summary
• Market Dynamics of Solar Thermal Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Solar Thermal Market
• Cost and Gross Margin Analysis of Solar Thermal Market
• Solar Thermal Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Solar Thermal Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Solar Thermal Market Key Stakeholders

Below are the key stakeholders for the Solar Thermal Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Solar Thermal Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Solar Thermal Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Solar Thermal Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Solar Thermal Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

Citius Research provides free customization of reports as per your need. This report can be personalized to meet your requirements. Get in touch with our sales team, who will guarantee you to get a report that suits your necessities.

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