Solar Thermal Collector Market Gains Momentum with Demand for Renewable Energy, Projected to Grow at 5.4%

Introduction

The global solar thermal collector market is projected to expand significantly, with expectations to grow from USD 23.9 billion in 2023 to USD 40.4 billion by 2033, at a CAGR of 5.4%. This growth is primarily driven by increasing demand for renewable energy sources amid rising concerns about environmental sustainability and energy security. Solar thermal collectors, which convert solar radiation into heat and supply it for residential, commercial, and industrial applications, are gaining traction due to their cost-effectiveness and efficiency in reducing dependency on fossil fuels.

However, the market faces challenges including the high initial cost of installation and the availability of competing technologies such as photovoltaic (PV) panels that can also produce electricity directly from sunlight. These factors could potentially restrain market growth. Despite these challenges, recent developments in the industry suggest a positive outlook. Innovations in materials and technology have led to more efficient and durable solar thermal systems. Furthermore, government incentives and supportive policies across various countries have bolstered market growth, making investments in solar thermal technologies more appealing.

Photon Energy Systems Limited, a prominent player in the solar energy market, has recently expanded its operations significantly. In 2024, the company secured a substantial project in New Zealand, signing a 20.8 MWp EPC and O&M contract. This development underscores the company’s commitment to increasing its global footprint and enhancing its service offerings in the renewable energy sector. Additionally, Photon Energy has successfully secured EUR 15 million in multi-tranche project financing from the European Bank for Reconstruction and Development (EBRD), aimed at supporting its ongoing and future projects​​​​.

Sener, a key player in the engineering and technology sector, continues to innovate within the solar thermal market. The company has recently launched a new line of highly efficient solar thermal collectors, which are designed to maximize energy absorption and reduce heat loss. This product launch is part of Sener’s broader strategy to enhance its portfolio and offer more sustainable and energy-efficient solutions to its clients​​.

Acciona’s recent acquisitions and product launches underscore its strategic focus on enhancing technological capabilities and expanding its market presence. The new range of advanced solar thermal collectors and the significant increase in project installations demonstrate Acciona’s leadership in the renewable energy sector. By leveraging strategic investments and technological advancements, Acciona continues to drive growth and innovation in the solar thermal market.

Key Takeaways

• Market Value: The Solar Thermal Collector Market was valued at USD 23.9 billion in 2023, and is expected to reach USD 40.4 billion by 2033, with a CAGR of 5.4%.
• Collector Type Analysis: Evacuated Tube Collector dominated with 37.1%; significant for its high efficiency in heat collection.
• System Analysis: Thermosiphon Solar Heating System led with 59.4%; crucial for its cost-effectiveness and ease of installation.
• Application Analysis: Hot Water Systems led with 43.2%; essential for residential and commercial hot water needs.
• End Use Analysis: Residential use dominated with 42%; significant due to increasing adoption of solar water heating systems.
• Dominant Region: Asia Pacific held 51.2%; significant due to favorable government policies and high solar potential.
• Analyst Viewpoint: The solar thermal collector market shows moderate saturation with substantial growth opportunities in residential applications. Future predictions indicate increased adoption driven by environmental regulations and energy savings.

Solar Thermal Collector Statistics

• The global installed capacity of solar thermal systems has reached 479 GW_th, resulting in the annual avoidance of approximately 138 million tons of CO2 emissions and the saving of around 43 million tons of oil.
• In 2022, 19 GW_th or 27 million square meters of solar collectors were installed, generating 442 TWh_th of green heat, saving 47.48 million tons of oil, and avoiding 153.3 million tons of CO2.
• The total solar thermal capacity reached 542 GW_th with 115 million systems in operation.
• The U.S. Department of Energy aims to reduce the cost of solar collectors to $50 per square meter to enhance the competitiveness of CSP technology.
• In the industrial sector, the U.S. Department of Energy allocated $24 million in 2023 to advance concentrating solar-thermal power (CSP) technologies for both electricity production and industrial heat applications.
• Innovation and investment in solar thermal technology continue to advance. In 2019, China saw record sales of 74 new large solar hot water systems, contributing to the overall total of approximately 2.3 million square meters of installed collector area for large-scale systems. Furthermore, concentrating solar thermal systems and PVT collectors added up to 162,784 square meters.
• In the residential and commercial sectors, about 400 large-scale solar thermal systems, each with a capacity greater than 350 kW_th, were operational globally by the end of 2019. These systems cover a total installed collector area of 2.3 million square meters (1,615 MW_th).
• In 2022, 16% of the installed collectors for solar process heat were concentrating variants.
• The global solar thermal market declined by 9.3% in 2022 due to a 12.4% decrease in China and a 21% drop in India.
• Lebanon’s solar market grew by 145% in 2022.
• Italy’s solar thermal market grew by 43% in 2022, following an 83% increase in 2021.
• Greece’s market grew by 17% in 2022 and 18% in 2021.
• Germany’s solar district heating systems grew by 30% in 2022, with nine systems (28,000 m², 19.6 MW_th) under construction and another 66 systems (454,550 m², 318 MW_th) in planning.
• The largest solar district heating plant in Germany will have a 65,000 m² (45.5 MW_th) capacity, operational by 2025.
• The Netherlands is completing a solar district heating system in Groningen with a 48,000 m² (33.6 MW_th) capacity in Q1 2023.
• Kosovo’s Pristina will have a solar plant with a 58,000 m² (40.6 MW_th) capacity by 2024.
• Serbia plans two district heating plants, including a 35,000 m² (24.5 MW_th) plant in Pancevo.
• China is constructing a solar plant for the Handan Bay Water World resort with a 79.8 MW_th capacity and 114,000 m² of parabolic trough collectors, to be completed in Q2 2023.
• Croatia is implementing a solar thermal heating plant, heat pumps, and storage facility for a malting plant by Q1 2024.
• Solar heat for industrial processes is expected to grow significantly in 2023, with multi-MW plants increasing sevenfold in Europe.
• Large-scale solar thermal systems are expected to see significant growth in 2023.
• Global heat consumption is projected to increase by 14 EJ (+6%) from 2022 to 2027.
• Heating and cooling account for around 50% of global final energy consumption, with industrial processes using 53% and buildings using 44%. Only 11% of global heating needs were met by modern renewables in 2021.
• A typical solar thermal system in Greece saves 1688 kg CO2/year.
• In the first eight months of 2021, there were 5,485 solar thermal installations in the UK. This number is more than 14 times the total number of installations in 2020.
• Homeowners could secure up to two-thirds of the costs of a green home installation, up to £5,000.
• Solar thermal installations accounted for 60% of all low-carbon heat measures installed under the scheme.
• The CHG, launching in April 2022, will provide up to £7,000 in grants to support low carbon heating installations.
• Solar panels generate 30-50% of their full potential on cloudy days.
• Solar panels generate 10-20% of their full potential on days with heavy rain.
• As of summer 2022, the top producers of solar energy are China, the European Union, the U.S., Vietnam, and Japan.
• Solar energy was discovered almost 200 years ago by French physicist Edmond Becquerel.

Emerging Trends

• Increased Efficiency through Technology Innovations: Manufacturers are integrating advanced materials and designs to enhance the heat absorption capabilities of solar thermal collectors, significantly boosting their efficiency.
• Integration with Building Designs: There’s a growing trend to incorporate solar thermal collectors directly into building materials, such as roof tiles and windows, making installation sleeker and less obtrusive.
• Hybrid Systems: The development of hybrid systems that combine solar thermal technology with other renewable sources, like photovoltaic panels, is increasing. This allows for higher energy output and better resource utilization.
• Government Incentives and Subsidies: Many governments worldwide are introducing more favorable subsidies and incentives to promote solar thermal energy, reducing the cost barrier for residential and commercial adoption.
• Expansion in Emerging Markets: Rapid industrialization in Asia, Africa, and Latin America is driving demand for solar thermal collectors as these regions seek sustainable and cost-effective energy solutions.
• Advances in Storage Solutions: Improvements in thermal energy storage technologies are enabling more efficient storage of heat generated by solar thermal systems, thus extending the usability of the energy beyond daylight hours.

Use Cases

• Residential and Commercial Heating: Solar thermal collectors are highly effective for water and space heating. For example, flat-plate collectors are commonly used in residential settings for heating water, an application underscored by their ability to operate efficiently at temperatures below 200°F. These systems are integral to both domestic hot water production and can be integrated into space heating solutions.
• Industrial Applications: For industrial uses, evacuated tube collectors are notable for their efficiency and the ability to operate under higher temperature requirements. This makes them suitable for industrial processes that demand consistent and high-temperature heat supply.
• Thermal Power Stations: Solar thermal collectors contribute to electricity generation by creating steam that drives turbines. This process, known as concentrated solar power (CSP), can generate substantial amounts of electricity, with some facilities producing over 250 MW of power, providing a reliable and renewable energy source to the grid.
• Desalination: Solar thermal energy is also utilized in desalination processes, where it provides a sustainable energy source to generate the heat required for evaporating seawater, thus separating salt and other minerals to produce fresh water.
• Agricultural Applications: In agriculture, solar thermal collectors are used for drying crops and heating greenhouses, enhancing the growth environment for plants and enabling year-round cultivation in colder climates.
• Swimming Pool Heating: Flat plate collectors are commonly applied to heat swimming pools in both residential and commercial settings, offering an energy-efficient solution to extend the swimming season without the need for conventional heating methods.
• District Heating Systems: On a larger scale, solar thermal collectors are integrated into district heating systems to provide heat to multiple buildings from a central solar heating plant, exemplifying their scalability and efficiency in urban infrastructure.

Key Players Analysis

Photon Energy Systems Limited, based in Hyderabad, India, is a leader in solar thermal collector technologies. They manufacture high-efficiency flat plate collectors (FPC) and evacuated tube collectors (ETC) under the brand names Photonizer and Miracle. Their products cater to various applications, including water heating for homes, hospitals, and industrial processes. Recently, Photon Energy Systems commissioned India’s first solar seawater desalination plant at BARC Kalpakkam and continues to expand its market presence with esteemed clients like IIT Roorkee and IIT Guwahati.

SENER, a prominent engineering firm in Spain, has recently launched the Solgest-1 Hybrid Solar Plant in Andalusia. This $424 million project features a 110 MW solar thermal plant with molten salt storage and a 40 MW photovoltaic section, enabling continuous power generation. This innovative hybrid plant integrates cutting-edge SENERtrough® parabolic trough technology and is part of Spain’s national energy and climate plan, aiming to add 5,000 MW of solar thermal power by 2030.

Trivelli Energy is an active player in the solar thermal collector sector, focusing on applications such as domestic hot water, solar cooling, and industrial process heat. The company has been instrumental in promoting solar thermal technologies for sustainable energy solutions. Recently, Trivelli Energy has been involved in several solar district heating projects across Europe, enhancing their footprint in the renewable energy market. The company continues to innovate, contributing to the deployment of solar thermal systems in residential and commercial settings, with a significant focus on reducing carbon footprints and increasing energy efficiency.

Acciona, a global leader in renewable energy, has made significant strides in the solar thermal sector. The company recently launched a 110 MW solar thermal plant in Spain, featuring advanced parabolic trough technology. This plant is part of Acciona’s broader strategy to increase its renewable energy capacity, aligning with global sustainability goals. The new plant is expected to generate substantial revenue and strengthen Acciona’s position as a key player in the solar thermal market, contributing to Spain’s energy transition efforts.

BrightSource Energy has been a pioneer in concentrated solar power (CSP) technology. Recently, the company raised over $80 million in equity financing to support its innovative solar thermal projects, including the construction of the Ivanpah Solar Electric Generating System, the world’s largest solar thermal plant. Additionally, BrightSource has secured a significant contract with Chevron to implement its solar steam technology for industrial applications, marking its expansion into new markets. This strategic growth underscores BrightSource’s role in advancing large-scale solar thermal solutions.

Abors green GmbH specializes in advanced solar thermal collector technology, focusing on sustainable energy solutions. The company has recently enhanced its product line to include high-efficiency flat plate and evacuated tube collectors, targeting both residential and commercial markets. In a notable move, Abors green GmbH reported a substantial increase in revenue due to the growing demand for eco-friendly heating solutions. This expansion highlights their commitment to innovation and environmental sustainability in the solar thermal sector.

Liontek is a significant player in the solar thermal collector sector, focusing on enhancing energy efficiency in residential and industrial applications. The company recently launched an advanced series of evacuated tube collectors, which significantly improve heat retention and efficiency. Liontek’s commitment to innovation is evident in their recent collaboration with leading research institutes to develop next-generation thermal storage solutions, aiming to bolster their market presence and performance.

SCHOTT is a prominent name in the solar thermal market, known for its high-quality receiver tubes used in concentrated solar power plants. The company’s recent advancements include the introduction of DURAN® glass tubes, which offer superior durability and efficiency. SCHOTT’s strategic acquisition of a key supplier in 2023 has strengthened its supply chain and expanded its production capabilities, reflecting its robust market strategy and continued growth in the renewable energy sector.

Abengoa has been a major player in the solar thermal sector, recently securing a significant contract for developing three large solar fields in Dubai. These projects, which include 6,360 parabolic trough collectors, are part of the Mohammed bin Rashid Al Maktoum Solar Park, enhancing Abengoa’s position in the Middle East. Additionally, in 2023, Rioglass Solar Holding acquired Abengoa Solar, further consolidating its market presence and technological capabilities.

Siemens AG continues to be a leader in the solar thermal collector market, leveraging its extensive expertise in renewable energy technologies. Recently, Siemens has focused on integrating advanced automation and digitalization solutions to enhance the efficiency and performance of solar thermal systems. Their involvement in the Noor Energy 1 project, one of the largest solar thermal plants globally, underscores their commitment to sustainable energy solutions and innovation in thermal storage technologies.

Linuo Ritter International Co. Ltd is a leading manufacturer in the solar thermal collector sector. The company specializes in solar water heaters and air source heat pumps. Recently, Linuo Ritter showcased its innovative products at major international exhibitions, including the 2023 Intersolar Europe and ISH in Frankfurt. Their focus on integrating solar energy with architecture has led to the development of new energy systems. The company’s latest projects include the deployment of CPC solar collectors in educational institutions across Korea and Jordan.

BTE Solar Co. Ltd is a prominent name in the solar thermal industry, known for its high-performance solar collectors and thermal systems. The company has expanded its market reach with new projects in Europe and Asia, emphasizing sustainable and efficient energy solutions. BTE Solar recently introduced an advanced line of flat plate collectors, enhancing their product portfolio and solidifying their presence in the global market. The company’s dedication to innovation is evident in its continuous improvement of solar thermal technologies.

Torresol Energy is a key player in the solar thermal sector, particularly known for its innovative Gemasolar plant in Seville, which uses molten salt storage to provide 24-hour energy supply. Recently, Torresol Energy was acquired by Q-Energy IV, enhancing its capabilities in managing over 170 MW of concentrated solar power (CSP) across Spain. This acquisition marks a significant step in continuing the company’s leadership in renewable energy production.

Solareast Holdings Co. Ltd has made notable advancements in the solar thermal market, focusing on high-efficiency solar collectors. In 2023, Solareast expanded its product line by launching a new series of flat plate collectors, which promise improved performance and durability. The company has strengthened its market position through strategic investments and technological innovation, contributing significantly to the growth of solar thermal energy solutions.

Conclusion

The solar thermal collector market is set for significant growth due to increasing environmental awareness and the global shift towards renewable energy sources. The market is expected to benefit from technological advancements, supportive government policies, and rising demand for clean energy solutions.

Despite challenges such as high initial costs and the need for significant infrastructure, the long-term benefits of solar thermal collectors, including reduced energy costs and lower carbon emissions, are likely to drive their adoption. Industry stakeholders should focus on innovation, cost reduction, and strategic partnerships to capitalize on the emerging opportunities in this dynamic market.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF