Global Solar Thermal Collector Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Solar Thermal Collector Market Size

• The global solar thermal collector market size was valued at USD 33.22 billion in 2024 and is expected to reach USD 90.71 billion by 2032, at a CAGR of 13.38% during the forecast period
• The market growth is largely fuelled by the rising global emphasis on renewable energy adoption, increasing investments in clean heating technologies, and supportive government incentives aimed at reducing carbon emissions
• The increasing adoption of solar water heating systems in both urban and rural areas, particularly in regions with high solar irradiance, is further contributing to the market's expansion by lowering energy costs and reducing reliance on fossil fuels

Solar Thermal Collector Market Analysis

• The solar thermal collector market is witnessing significant expansion due to increasing demand for sustainable and cost-efficient energy solutions across residential, commercial, and industrial sectors
• Growing urbanization, rising electricity prices, and awareness regarding environmental sustainability are accelerating the deployment of solar thermal systems, especially in emerging economies
• Asia-Pacific dominated the solar thermal collector market with the largest revenue share of 45.3% in 2024, driven by strong government support for renewable energy, high solar irradiation levels, and increasing energy demand
• Europe region is expected to witness the highest growth rate in the global solar thermal collector market, driven by strict environmental regulations, growing demand for sustainable building heating systems, and the increasing adoption of solar thermal systems in residential and industrial applications across countries such as Germany, Spain, and France
• The non-concentrating segment dominated the market with the largest market revenue share in 2024, primarily due to its widespread use in residential water heating applications and cost-effective installation. These systems are preferred for their simplicity, ease of integration with existing infrastructure, and effectiveness in low to moderate temperature ranges. The market continues to see robust demand from households and small commercial buildings adopting basic solar thermal solutions for energy savings

Report Scope and Solar Thermal Collector Market Segmentation     

Solar Thermal Collector Market Trends

“Increasing Integration of Solar Thermal Collectors in Industrial Process Heating”

• Industrial sectors such as food and beverage, chemicals, and textiles are increasingly integrating solar thermal systems to meet medium-to-high temperature heating needs, replacing conventional fossil fuel-based systems
• The trend is largely driven by the need to reduce carbon emissions and comply with energy efficiency mandates across multiple industries
• In 2023, a textile manufacturer in Gujarat, India installed a solar thermal collector system to reduce its reliance on diesel boilers, cutting fuel costs by 40%
• Governments and environmental agencies are offering specific subsidies and incentives for industrial process heat applications, further encouraging market adoption
• Manufacturers are developing custom solar thermal solutions tailored for industrial operations, supporting higher temperatures and continuous heat supply for process-driven environments

Solar Thermal Collector Market Dynamics

Driver

“Government Incentives and Policy Support for Renewable Heating Solutions”

• Governments across the globe are offering subsidies, grants, and low-interest financing options to support the adoption of solar thermal collectors in both residential and industrial sectors
• EU countries, under the Renewable Energy Directive, are mandating higher renewable shares in heating systems, pushing regional growth in solar thermal installations
• In Germany, the Market Incentive Program (MAP) has successfully increased solar thermal collector installations by offering up to 30% capital cost coverage for qualified systems
• National solar programs such as India’s Jawaharlal Nehru National Solar Mission (JNNSM) aim to promote large-scale deployment through policy support and funding
• Tax rebates and carbon credit schemes are also helping reduce payback periods and increase consumer confidence in adopting solar thermal solutions

Restraint/Challenge

“High Initial Costs and Seasonal Efficiency Variations”

• The high capital expenditure involved in purchasing and installing solar thermal systems, especially with storage and hybrid backup components, can discourage adoption among cost-sensitive users
• Seasonal sunlight variation, particularly in regions with long winters or overcast climates, impacts the efficiency and consistency of solar thermal systems
  • For instance, residential users in Ontario, Canada often experience up to 40% efficiency loss during the winter months, leading to increased dependency on conventional heating systems
• Backup systems such as electric or gas boilers are often needed, which add to the total installation and maintenance costs
• In regions lacking strong financial incentives, such as parts of Southeast Asia or Africa, the absence of affordable financing models slows down broader market adoption

Solar Thermal Collector Market Scope

The market is segmented on the basis of product, application, collector type, and types of system.

• By Product

On the basis of product, the solar thermal collector market is segmented into concentrating and non-concentrating. The non-concentrating segment dominated the market with the largest market revenue share in 2024, primarily due to its widespread use in residential water heating applications and cost-effective installation. These systems are preferred for their simplicity, ease of integration with existing infrastructure, and effectiveness in low to moderate temperature ranges. The market continues to see robust demand from households and small commercial buildings adopting basic solar thermal solutions for energy savings.

The concentrating segment is expected to witness the fastest growth rate from 2025 to 2032, driven by increasing deployment in industrial process heating and power generation. Concentrating collectors are capable of achieving high temperatures, making them suitable for large-scale thermal applications. With rising investment in solar industrial projects, this segment is expected to benefit from technological advancements and government-backed energy transition programs.

• By Application

On the basis of application, the solar thermal collector market is segmented into residential, commercial, and industrial. The residential segment held the largest market share in 2024, owing to rising awareness about renewable energy, supportive incentives, and the growing need for water heating in domestic households. Residential users continue to adopt solar collectors to reduce energy bills and lower environmental impact.

The industrial segment is expected to witness the fastest growth rate from 2025 to 2032, propelled by the need for clean energy in manufacturing processes. Industries such as food and beverage, textiles, and chemicals are investing in solar thermal systems to meet heating requirements, aligning with sustainability goals and reducing reliance on fossil fuels.

• By Collector Type

On the basis of collector type, the solar thermal collector market is segmented into evacuated tube collector, flat plate collector, unglazed water collector, and air collector. The flat plate collector segment held the dominant market share in 2024 due to its extensive usage in domestic water heating applications and favorable performance in moderate climates. These systems are highly reliable, easy to install, and cost-effective, making them suitable for mass adoption.

The evacuated tube collector segment is expected to witness the fastest growth rate from 2025 to 2032, as it offers better performance in colder climates and applications requiring higher temperatures. Its superior heat retention and operational efficiency in low sunlight conditions make it increasingly attractive for both residential and industrial applications across diverse geographies.

• By Types of System

On the basis of types of system, the solar thermal collector market is segmented into thermosiphon solar heating system and pumped solar heating system. The thermosiphon solar heating system segment led the market in 2024 due to its passive operation, low maintenance, and affordability, particularly in small-scale residential installations. These systems are popular in tropical and subtropical regions where consistent solar radiation allows for efficient heating without mechanical components.

The pumped solar heating system segment is expected to witness the fastest growth rate from 2025 to 2032, driven by its scalability and higher efficiency. Pumped systems allow for greater design flexibility and are widely used in multi-story buildings, commercial establishments, and industrial processes, supporting broader adoption in advanced solar heating applications.

Solar Thermal Collector Market Regional Analysis

• Asia-Pacific dominated the solar thermal collector market with the largest revenue share of 45.3% in 2024, driven by strong government support for renewable energy, high solar irradiation levels, and increasing energy demand
• Countries in the region are rapidly adopting solar thermal technologies for both residential and industrial heating applications, spurred by urbanization, population growth, and favorable policy incentives
• Widespread installations of solar water heaters, particularly in countries such as China and India, along with cost-effective manufacturing capabilities, further strengthen the region’s leadership in the market

China Solar Thermal Collector Market Insight

The China solar thermal collector market held the largest share within Asia-Pacific in 2024, supported by robust government initiatives promoting renewable heating systems and massive deployment of solar water heaters across residential and rural areas. China’s focus on reducing carbon emissions and transitioning away from coal-based heating systems continues to drive demand for solar thermal solutions. The presence of a strong manufacturing base also enables cost competitiveness and large-scale implementation.

Japan Solar Thermal Collector Market Insight

The Japan solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, supported by the country’s energy diversification goals and efforts to reduce dependence on fossil fuels. Increasing focus on sustainable residential and building infrastructure, along with the adoption of solar-assisted heating systems, is enhancing market penetration. Government policies encouraging zero-energy buildings and technological innovation in compact solar thermal solutions are also driving demand in Japan’s residential and commercial sectors.

Europe Solar Thermal Collector Market Insight

The Europe solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, driven by stringent climate policies, decarbonization targets, and increasing awareness of sustainable energy. The region’s emphasis on improving building energy efficiency and replacing fossil-fuel-based heating systems supports the widespread deployment of solar thermal systems. Countries such as Germany, Spain, and Austria are leading adopters, with robust regulatory frameworks and support mechanisms in place.

Germany Solar Thermal Collector Market Insight

The Germany solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, underpinned by strong climate policy commitments and rising investments in energy-efficient heating systems. Government programs, including subsidies for solar thermal installations under the Market Incentive Program (MAP), play a critical role in driving adoption. The German market benefits from well-developed infrastructure, innovative technology providers, and increasing residential retrofitting activities.

U.K. Solar Thermal Collector Market Insight

The U.K. solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, driven by rising awareness of green energy alternatives and government incentives promoting renewable heating technologies. The Renewable Heat Incentive (RHI) scheme has played a vital role in encouraging solar thermal adoption in homes and small businesses. Growing emphasis on decarbonizing the heating sector and meeting carbon neutrality targets is expected to support the continued uptake of solar thermal systems, particularly in residential retrofits and district heating projects.

North America Solar Thermal Collector Market Insight

The North America solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, supported by the rising interest in renewable heating systems and growing awareness of sustainable energy practices. While the region is more focused on photovoltaic solutions, solar thermal is gaining traction in specific applications such as pool heating, industrial process heat, and residential hot water. Policy support in select states of the U.S. and Canada further strengthens market expansion.

U.S. Solar Thermal Collector Market Insight

The U.S. solar thermal collector market is expected to witness the fastest growth rate from 2025 to 2032, driven by demand for low-carbon heating solutions in commercial and industrial sectors. Incentives such as the Investment Tax Credit (ITC), rising energy costs, and increasing interest in energy independence are key factors influencing adoption. Niche applications such as solar pool heating and large-scale industrial heating contribute to market growth, particularly in sunbelt states with high solar availability.

Solar Thermal Collector Market Share

The Solar Thermal Collector industry is primarily led by well-established companies, including:

• TVP Solar (Switzerland)
• Sunmaster (U.K.)
• Solar Solutions LLC (U.S.)
• Thermomax Marketing Group (Austria)
• Suncor Energy Inc. (Canada)
• Solarus (Sweden)
• Absolicon Solar Collector AB (Sweden)
• Solarkilns Pty Ltd (Australia)
• Sunplate Corporation (U.S.)
• Artic Solar (Sweden)
• Boen Solar Energy (China)
• Trevi Systems (U.S.)
• SUNRAIN (China)
• Greenonetec Solarindustrie GmbH (Austria)
• Linuo Ritter International Co., Ltd (China)
• Photon Energy Systems Limited (India)

Latest Developments in Global Solar Thermal Collector Market

• In May 2023, The Bulgarian government introduced a EUR 123 million subsidy scheme aimed at boosting solar technology adoption in households. The Ministry of Energy is responsible for managing the grant process, which will support the installation of solar systems over the coming years
• In May 2022, Inaventa Solar partnered with Solvay to develop the BI70 solar collector, enhancing solar thermal technology. This innovative product replaces metal with Solvay's Ryton PPS1, offering benefits such as greater design flexibility, automated production, easier handling, improved integration, and a reduced carbon footprint
• In July 2021, A Concentrated Solar Thermal (CST) testing facility was established in Hyderabad to advance India’s solar sector. This facility enables the evaluation of solar thermal components, including receiver tubes, heat transfer fluids, and concentrating mirrors, aiming to enhance performance and capabilities in solar energy applications

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