Solar Thermal Market: Current Analysis and Forecast 2021-2027

Global Solar Thermal Market was valued at US$ XX billion in 2020 and is anticipated to reach US$ XX billion by 2027 displaying an elevated CAGR of XX% over the forecast period (2021-2027). Solar thermal energy is that form of energy and a technology for harnessing solar energy to generate thermal energy which is then used in various industries, in residential areas and commercial sector. Solar thermal collectors are basically known to collect heat by absorbing sunlight. Solar thermal power systems are those who collect and concentrate sunlight to produce high temperature heat required to generate electricity.
In 2020, the consumption of all other fuels declined while the only source which increased the demand for energy sources was renewables 2020. As the global economy recovers from the crisis, The renewable energy source witnessed an uptake, therefore, expand more quickly. As per International Energy Agency (IEA), in 2020, the annual renewable capacity additions increased witnessed the highest year-on-year increase since 1999 and increased by 45% or 280 GW. Furthermore, exceptionally high-capacity additions become the "new normal" in 2021 and 2022, with renewables accounting for 90% of new power capacity expansion globally. Owing to this wide adoption of renewables across the world due to the deteriorating environment is propelling the solar thermal market.
Another significant reason responsible for the growth of solar thermal market is the rising demand for energy and surge in solar thermal heat consumption across the globe. For instance, China leads in consumption of solar thermal heat accounting for nearly 25 PJ in 2020 and 44 PJ in 2021. Further, it is expected that the consumption of solar thermal heat will reach 45 PJ by 2022. Owing to the growing demand for solar thermal energy there has been rise in installed capacity additions of solar thermal energy globally. For instance, in 2018, China was leading in installing new capacity of solar thermal energy systems. The country installed around 24.8 gigawatts of solar thermal capacity in that year, representing almost 80% of the total solar thermal new capacity installed all over the world.
Siemens AG, SolarReserve, Sunrain, Photon Energy Systems Ltd, BTE Solar Co. Ltd, Sener, SCHOTT, ACCIONA, Greenonetec Solarindustrie GmbH, LINUO RITTER INTERNATIONAL CO. LTD. are some of the prominent players operating in the solar thermal market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
"Amongst Collector Type, evacuated tube collector segment holds the major share"
Based on collector type, the global solar thermal market is fragmented into evacuated tube collector, flat plate collector, unglazed water collector, air collector. The evacuated tube collector segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the forecast period. The growth of this segment is because of the advantages offered by these over flat plate collectors such as greater durability, less prone to corrosion and high efficiency for heat transfer. In turn, the sales of these are boosting across the world. For instance, in India, vacuum tube collectors again dominated sales, making up 87 % of new systems. However, Flat plate collector segment is also expected to grow at a CAGR of XX% during the analyzed period.
"Amongst Application, space heating system segment holds the major share"
Based on Application, the global solar thermal market is segmented into space heating system, domestic hot water systems, solar combi systems and others. The space heating segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the projected timeframe. Solar space heating is used to heat the space inside a building by deploying solar thermal energy. This can lead to decline in heating bills and cut down dependence on fossil fuels. These types of systems are commonly used in countries such as North America, Japan and Australia for various applications including residential & commercial buildings, schools and many more. Owing to its applications in varied segments and growing demand for renewable energy alternatives for conventional space heating systems the market is anticipated to grow. For instance, amongst all the solar thermal installations across the globe, more than 50% were deployed for space heating systems in 2019
"Asia-Pacific represents one of the largest markets of Solar Thermal market"
For a better understanding of the market dynamics of the solar thermal market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World has been conducted. Asia-Pacific dominated the market and generated revenue of US$ XX million in 2020 owing to the increasing adoption of solar thermal systems across countries such as China, Japan, India, etc.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive regional level analysis of the industry
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Solar thermal energy is that form of energy and a technology for harnessing solar energy to generate thermal energy which is then used in various industries, in residential areas and commercial sector. Solar thermal collectors are basically known to collect heat by absorbing sunlight. Solar thermal power systems are those who collect and concentrate sunlight to produce high temperature heat required to generate electricity.
In 2020, the consumption of all other fuels declined while the only source which increased the demand for energy sources was renewables 2020. As the global economy recovers from the crisis, The renewable energy source witnessed an uptake, therefore, expand more quickly. As per International Energy Agency (IEA), in 2020, the annual renewable capacity additions increased witnessed the highest year-on-year increase since 1999 and increased by 45% or 280?GW. Furthermore, exceptionally high-capacity additions become the "new normal" in 2021 and 2022, with renewables accounting for 90% of new power capacity expansion globally. Owing to this wide adoption of renewables across the world due to the deteriorating environment is propelling the solar thermal market.
Another significant reason responsible for the growth of solar thermal market is the rising demand for energy and surge in solar thermal heat consumption across the globe. For instance, China leads in consumption of solar thermal heat accounting for nearly 25 PJ in 2020 and 44 PJ in 2021. Further, it is expected that the consumption of solar thermal heat will reach 45 PJ by 2022. Owing to the growing demand for solar thermal energy there has been rise in installed capacity additions of solar thermal energy globally. For instance, in 2018, China was leading in installing new capacity of solar thermal energy systems. The country installed around 24.8 gigawatts of solar thermal capacity in that year, representing almost 80% of the total solar thermal new capacity installed all over the world.
Based on collector type, the global solar thermal market is fragmented into evacuated tube collector, flat plate collector, unglazed water collector, air collector. The evacuated tube collector segment of global solar thermal market dominated the market with around XX% market share in 2020 and generated the revenue of USD XX Mn in 2020. However, flat plate collector segment is also anticipated to grow at a highest CAGR of XX% during the forecast period.
Based on Application, the global solar thermal market is segmented into space heating system, domestic hot water systems, solar combi systems and others. The space heating systems segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the projected timeframe owing to its growing applications in varied segments and growing demand for renewable energy alternatives for conventional space heating systems.

For a better understanding of the market adoption of the solar thermal, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC), and Rest of World. Asia-Pacific constitutes a major market for the solar thermal industry and generated revenue of USD XX Million in 2020 due to the emerging demand for clean energy owing to the rising death due to pollution from fossil fuels. Also, the presence of well-established players in the region adding pace to the growth of the market in the region.

Some of the major players operating in the market are Siemens AG, SolarReserve, Sunrain, Photon Energy Systems Ltd, BTE Solar Co. Ltd, Sener, SCHOTT, ACCIONA, Greenonetec Solarindustrie GmbH, LINUO RITTER INTERNATIONAL CO. LTD, among others. Several M&As along with partnerships have been undertaken by these players to develop solar thermal systems.

This market is expected to witness a boost on account of the growing demand for energy and wide adoption of renewable energy sources across the globe. In addition to this, key players worldwide are introducing new and advanced technologies as well as applications to cater to the middle-income group propelling the growth of the solar thermal market across the globe.