Solar Thermal Market Expected to Reach $35.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Solar Thermal Market," The solar thermal market size was valued at $21.5 billion in 2021, and solar thermal industry is estimated to reach $35.3 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.

Solar thermal systems collect energy from sun and transform it into heat which is used to raise the temperature of a heat transfer fluid. This fluid can be air, water or specially designed fluid which can be directly used for hot water or space heating and cooling. Solar thermal power or electric generation systems can collect and concentrate the sunlight to generate high-temperature heat that is required to produce electricity. Gradual shift of the consumer preference from fossil fuels to renewable energy sources for various applications coupled with increasing awareness among people in regards with environmental impacts of conventional resources is expected to drive the solar thermal market opportunities. Likewise, the emergence of solar power as the most sustainable source of renewable energy will also boost the installation of solar thermal power plants worldwide.

Rise in prominence of solar space heating coupled with significant development of testing facilities for solar receiver tubes and other thermal components, will foster the solar thermal market trends. In addition, the introduction of favorable schemes to encourage the installation of solar water heaters and heat pump technologies is projected to further amplify industry expansion in the upcoming years. In 2021, Miriam Dalli, Minister for Energy, Enterprise and Sustainability in Malta, launched new schemes to encourage consumers to make a switch from conventional geysers to efficient solar water heaters.

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 system is combined with a seasonal borehole thermal storage from AbSOLAR for supplying heat and domestic hot water to around 67 single-family houses connected to the network. 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. Such developments are expected to boost the development of the solar thermal market growth.

The global solar thermal market forecast is segmented on the basis of collector type, system, application, end use and region.On the basis of collector type, it is segmented into evacuated tube collector, flat plate collector, unglazed water collector, and air collector. On the basis of system, the market is segmented into thermosiphon solar heating system, and pumped solar heating system.

On the basis of application, the market is segmented into hot water systems, solar combi systems, swimming pool heating, and others. Furthermore, hot water systems are bifurcated into domestic, and large. On the basis of end use, the global solar thermal market is segmented into residential, commercial and industrial. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest solar thermal market share, followed by Europe and North America.

Key findings of the study

• Asia-Pacific is expected to exhibit CAGR of 5.5% during 2022-2031.
• As per global solar thermal market analysis, by collector type, the evacuated tube collector segment accounted for the largest share in 2021.
• By system, thermosiphon solar heating system reforming was the leading segment in 2021.
• By application, hot water system segment accounted for the largest market share in 2021.
• By end use, residential had the largest market share in 2021.

Impact of Covid-19 on Global Solar Thermal Market

The global COVID-19 pandemic had a negative impact on the solar thermal market. The major problems being it might be possible that companies may not be able to meet project delivery timelines that could alter tax treatment or eligibility for state incentives for such projects. In November 2020, the City of Albuquerque Parks and Recreation announced the temporary closure of the Highland Pool to limit the spread of the virus to employees. Such disruptions across the swimming pool facilities may create an indirect impact on the deployment of solar thermal heating systems.

Post pandemic outbreak, the gradual surge in the construction sector and tourism industry has led to increase in the demand for solar thermal systems. The government of various developing and developed countries has invested in the development of solar thermal power plants in order to reduce their imports of fossil fuels, and other energy resources. Furthermore, increase in awareness among people regarding the impact of conventional water heating systems in residential applications will drive the demand for solar thermal systems. The trend is expected to continue during the forecast period.

Competitive Landscape

The major companies profiled in this report include Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, BTE solar Co. Ltd, Linuo Ritter International Co. Ltd, Photon Energy Systems Limited., BrightSource Energy, Parvelon CSP Technologies, Abengoa Solar, Siemens AG, Acciona, SolarReserve, Torresol Energy, Trivelli Energy, Sener, Lointek, SCHOTT, Abors green GmbH, and Liontek. Due to rapid industrialization, urbanization and gradual increase in population has led to increase in the demand for power. The demand for power from clean energy resources has increased the demand for solar thermal system. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in new technologies related to solar thermal energy system have led to attain key developments in the global solar thermal market trends.