Solar Thermal Market to Reach Valuation of USD 26.7 Billion by 2028 – Rise in Adoption of Clean Fuel Alternatives Drives the Market

In terms of revenue, the Global Solar Thermal Market is expected to reach USD 26.7 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 4.70% from 2022 to 2028.

Due to the movement in consumer preference from fossil fuels to renewable energy sources to reduce environmental impacts, the size of the Solar Thermal market is anticipated to grow commendably throughout the forecast period. The construction of Solar Thermal power plants will also increase as solar energy becomes known as the most environmentally friendly renewable energy source. An energy system known as a Solar Thermal system utilizes the sun's energy and transforms it into heat to generate electricity during times of darkness. Solar Thermal power or electric generating systems can gather and focus sunlight to produce the high-temperature heat needed to make electricity.

Additionally, the market trends for Solar Thermal products will be aided by the growing importance of solar space heating and the considerable advancement of testing facilities for solar receiver tubes and other thermal components. Additionally, implementing advantageous programs to promote the installation of heat pumps and solar water heater technologies would significantly accelerate market expansion in the future.

Key Highlights from Report

• Among Applications, the Hot Water Systems segment is anticipated to dominate the Solar Thermal market with the highest market share during the forecast period. This is mainly because there is a significant demand for hot water across various residential, commercial, and industrial industries.
• By Collector Type, the Evacuated Tube Collector segment accounted for the highest CAGR in the forecast period owing to their extensive installed capacity and affordability.
• Geographically, Asia Pacific held the largest market share and is likely to be the most profitable market in the forecast period owing to the demand for energy and the economic development of rising nations like China and India.

Market Dynamics

One of the main factors propelling the growth of the Solar Thermal market is the growing emphasis on using clean fuel alternatives to reduce carbon emissions. Solar Thermal systems can be used for various purposes, reducing our reliance on fossil fuels. The operational and financial benefits for both the user and the service provider will also propel the expansion of the Solar Thermal market.

Furthermore, several goals have been set by the governments of numerous nations and international organizations to be accomplished by the end of 2020, 2030, 2040, and 2050. These goals strongly emphasize raising the proportion of renewable energy sources in energy production. This reason is causing investments in the solar business to increase, along with the government incentives offered to accomplish the same. As a result, the market has become more fragmented and open to new competitors. It is projected that these factors will work together during the forecast period to grow the Solar Thermal market overall.

In 2021, the most significant market share in the world's Solar Thermal market belonged to Asia Pacific. The increasing energy demand in the APAC, related to the region's recent urbanization and population expansion, is credited with driving the region's growth. In addition, as governments pay more attention to green energy targets, the pace of solar power installations in the area has accelerated. As solar power investment rises, it is anticipated that China will continue to dominate the global and local Solar Thermal energy markets. The presence of top companies in the industry would help the regional Solar Thermal energy market flourish.

Moreover, in 2021, China contributed 83 percent of all installed capacity or 18 GWth. Seventy-five percent of these installations were small thermosiphon systems, thousands of which were installed on both metropolitan apartment buildings and single-family homes. System pumps are being used more and more frequently. This is a consequence of the financial incentives that northern communities have used to persuade residents to convert from conventional fossil fuels to renewable energy sources for space heating to reduce carbon emissions. Some reliable and effective solar district heating demonstration projects have also been built recently. For example, in China in 2021, only 26 percent of all newly installed systems were thermosiphon systems, while 74 percent were pumped ones.

The Global Solar Thermal Market is Segmented as follows

• Applications
  • Hot Water Systems
  • Solar Combi Systems
  • Swimming Pool Heating
  • Other Applications
• End Uses
  • Residential
  • Commercial
  • Industrial
• Collector Types
  • Evacuated Tube Collector
  • Flat Plate Collector
  • Unglazed Water Collector
  • Air Collector System
  • Thermosiphon Solar Heating System
  • Pumped Solar Heating System
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Solar Thermal Market is

Solareast Holdings Co. Ltd. (China), Greenonetec Solarindustrie GmbH (Austria), BTE Solar Co. Ltd (China), Linuo Ritter International Co. Ltd. (China), Photon Energy Systems Limited (India), BrightSourcEnergy (US), Abengoa Solar (Spain), Siemens AG (Germany), Acciona (Spain), SolarReserve (US), Torresol Energy (Spain), Trivelli Energy (Italy), Sener (Spain), Lointek (Spain), SCHOTT (Germany), Abors Green GmbH (Germany), Liontek (US)

The Global Solar Thermal Market Scope can be Tabulated as below