Solar Thermal Market: Innovative Energy Technologies in Solar Thermal to Boost the Solar Thermal Market Growth

The Solar Thermal Market size was valued at USD 21.55 Billion in 2022 and is expected to grow by 5.29% from 2023 to 2029, reaching nearly USD 30.91 Billion.

Solar thermal systems utilize the sun's rays to create heat that powers a variety of devices. They mostly consist of solar-absorbing panels. The panels used can be concentrated solar panels or photovoltaic panels. Concentrating solar panels are the most popular panels for solar thermal systems as they can produce more energy than photovoltaic panels, which can therefore be utilized to power more people. In addition, the market for solar thermal has grown as a result of the recent trend toward sustainable energy sources. The infrastructure needed for solar thermal has been constructed in both industrialized and developing countries, as well as in those that already have it for capacity additions.

At the end of 2021, 522 GWth of solar thermal capacity was installed in solar heating and cooling systems, saving 45.7 million tonnes of oil and 147.5 million tonnes of CO2. Small-scale solar water heating systems make up around 60% of all solar installed systems, with the global solar thermal market experiencing 3% growth in 2021 compared to 2020.

China, the world's largest market by a large margin, stabilised and had a modest growth of 1% contributed to the growth of the solar thermal market across the world in 2021. Market developments were quite encouraging, with Italy taking the lead with a strong growth rate of 83 percent, followed by Brazil (28 percent), the United States (19 percent), Greece (18 percent), Poland (17 percent), and India (16 percent).To know about the Research Methodology :- Request Free Sample Report

Solar Thermal Market Trends in 2021

Small-Scale Solar Thermal Heating Systems

About 60% of all solar thermal installations around the world each year are small-scale solar water heating systems and, to a lesser extent, solar combi-systems for combined hot water preparation and space heating in single-family homes, apartment buildings, multi-family homes, hotels, and public buildings. Solar water heating applications have recently lost market dominance in major portions of Europe and China as a result of growing competition from photovoltaic systems and heat pumps. Pumped systems are the most common, and they frequently employ complicated system technology.

Large-Scale Solar Thermal Heating Systems

Large solar thermal plants are installed on large homes, businesses, and public buildings. For almost ten years, Denmark controlled the market for large-scale systems, particularly for solar district heating. The Danish solar district heating industry, however, failed in 2020 as a result of a significant change in funding requirements and energy technology legislation. As a result, only one new system with an 8,013 m2 collector area was put into service in Denmark in 2021, while only one new solar district plant and three extensions were constructed in 2020. Denmark fell from first to third among newly installed large-scale plants in 2021 as a result of changes in policy and funding.

China estimated installing 20 systems in 2021, which accounted for 75% of the global market sector and had a collector area of around 151,000 m2 for district heating and large-scale building applications. With 10,600 m2 erected in the cities of Narbonne, Pons, and Creutzwald, France came in second place to China. 530 large-scale documented solar thermal systems (>350 kWth, 500 m2) were in use by the end of 2021. These systems' combined installed capacity was 1,970 MWth, or 2.8 million m2 of collector area.
Solar Thermal Market Dynamics:
Rapid Technological Advancements and Growing Investment in Solar Energy

The market is growing as a result of solar energy's rapid technological development, rising government and private sector investments, and to access of solar thermal applications in the building sector. For instance, Chinese manufacturers of flat plate collectors increased their production volume by 21% in response to rising demand from the country's construction industry for both external building integration and central collector fields, despite the fact that the global solar thermal market declined in 2019.

Incentives and Potential for Solar Heat

The Conto Termico program in Italy has promoted renewable heat technologies since 2013. Gestore degli Servizi Energetici, the organization in charge of administering the subsidy program, was represented by Energy Services Manager Alessandro Pellini. T the final gross consumption of renewable sources today accounts for about 19% of the heating industry. Around USD 1.04 billion in incentives were given out as part of the program between 2013 and 2021, of which 270 million euros—or roughly 125,000 installations—were spent on solar thermal systems.




Amount of subsidy spent between 2013 and 2021
Number of applications submitted between 2013 and 2021
The average amount of subsidy per application


Solar Thermal
621.93 million USD
270,000
2303.23 USD/application



For instance, In Germany, there have been many advancements since the beginning of 2019/2020 from the standpoint of households interested in solar heating: The Market Incentive Program's (MAP) solar heating system subsidy rates were dramatically raised, especially for older buildings, in addition to the whole new tax incentives for heating replacement. With the tax benefits, consumers receive 20% of the state's investment in their new solar heating system back, conveniently and without the need for an application or energy consultation. The subsidy amount is subtracted from the taxable income.

With higher subsidy rates, the revised MAP of the Federal Office for Economic Affairs and Export Control (BAFA) is even more appealing. Investors receive a subsidy of up to 45 percent in place of tax benefits in this case, depending on the other heat source they combine solar collectors with. The same as before, consumers can choose whether they want to receive the subsidy as a grant or a loan from the federally owned KfW banking group, which will cover the whole investment amount and from which they would receive the subsidy as an amortisation subsidy.

Governmental Renewable Target Rollouts to Support the Growth of the Solar Thermal Market

A number of targets have been set by governments and international organizations to be accomplished by the years 2020, 2030, 2040, and 2050. These goals place a strong emphasis on 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 more open to new competitors. During the forecast period, it is expected that these factors boost the solar thermal market growth across the world.

Contribution to the Energy Supply and CO2 Reduction

At the end of 2020, all water-based solar thermal systems for the simulated applications includes swimming pools, domestic hot water for single-family homes, domestic hot water for multi-family homes, and solar combi-systems in the primary countries had an annual collector yield of 406 TWh. As a result, 43.6 million tonnes of oil and 137.9 million tonnes of CO2 in total energy were saved. Around 108 million solar thermal systems were estimated to be in use. Around 138 million t/a, or 3.2 times Switzerland's CO2 emissions, were prevented by thermal solar systems in use in 2020. As a result, these factors are driving the Solar Thermal Market growth across the world.
Solar Thermal Market Segment Analysis:
By Collector Type, the Solar Thermal Market is segmented into Evacuated Tube Collector, Flat Plate Collector, Unglazed Water, Air Collector, and Others. The Evacuated Tube Collector segment accounted for the largest market share in 2022. A smaller glass tube makes up the evacuated tube. Thanks to its capability to lower heat loss from the solar collector, this vacuum layer is a crucial component of solar thermal systems. Sun water heating, solar drying, solar air heating, and solar desalination are just a few uses for evacuated tube collectors.

In addition, the massive consumption of oil and gas has damaged the ecosystem, putting the world's oil and gas reserves in danger of running out. The need for evacuated tube collectors, which are essential for converting solar radiation into heat and transferring heat to a medium, has increased as a result of the progressive implementation of solar thermal power plants around the world and continued investments in this industry. These factors are expected to present several prospects for the market's growth.

By Application, the Solar Thermal Market is segmented into Domestic Hot Water Systems, Large DHW Systems, Solar Combi Systems, Swimming Pool Heating, and Others. The Domestic Hot Water Systems segment held the largest market share accounting in 2022. The segment’s growth is attributed to the result of the increasing use of solar water heaters in homes thanks to their numerous advantages, including their high efficiency and low carbon footprint. In addition, home hot water heaters' ability to be installed with less space and lower cost than conventional solar PV panels are expected to boost segment growth during the forecast period.
Solar Thermal Market Regional Insights:
Asia Pacific held the largest market share of the global Solar Thermal Market in 2022. The APAC’s growth is attributed to the region's rising energy demand, which is also linked to the region's recent urbanization and population growth. Additionally, the region's pace of solar power deployment has increased as a result of governments' attention to green energy targets. China now leads the market both locally and worldwide for solar thermal power, and this market trend is expected to continue as solar power investment increases. The growth of the regional solar thermal energy market will benefit from the presence of leading industry players.

China accounted for 83% or 18 GWth installed capacity in 2022. Small thermosiphon systems, which were installed in their thousands on both single-family homes and urban apartment buildings, accounted for 75% of these installations. Pumped systems are becoming more and more prevalent. This is a result of financial incentives that have encouraged northern towns to switch from traditional fossil fuels to renewable energy sources for space heating in order to lower carbon emissions. A number of trustworthy and efficient solar district heating demonstration projects have also been constructed in recent years. For instance, just 26% of all newly installed systems in China in 2021 were thermosiphon systems, whereas 74% were pumped systems.

Europe is expected to grow at a significant growth rate through the forecast period. The solar thermal market has grown significantly in European countries, with solar district heating systems accounting for the majority of demand. The government-set renewable energy goals and the declining cost of technology are the driving Solar Thermal Market growth in the region. By increasing its use of renewable energy from 19.7% of gross final energy consumption in 2019 to 21.3% in 2020, the European Union was able to meet its 2020 goal. The EU Commission sets more challenging objectives, like raising the percentage to 100% by 2050.

The government's incentives have the biggest impact on market growth. For instance, the Danish gas transmission system operator Evida decided in March 2021 to eliminate the grid disconnection fees for homes who choose to heat with renewable energy rather than gas from the grid. Such advances are expected to support the growth of the solar thermal market during the forecast period.
Solar Thermal Market Competitive Landscape
Attributed to the prevalence of regional and international producers of solar power at various locations and at various production rates, the market for solar thermal technology has become fragmented. Key solar thermal market players are putting more of an emphasis on investing in R&D efforts to increase efficiency and make the best use of sunlight. Major market participants are eager to launch new projects and venture into uncharted territories.

The demand for energy has been positively impacted by the rapid growth in the power generation share of renewable energy resources around the world and the government's rising investment in solar and wind power plants. In addition, growth strategies, such as increasing storage capacities, acquiring companies, forming partnerships, and conducting research and development for solar thermal systems, have helped to achieve significant advancements in the global Solar Thermal Market trends.



The Largest Solar District Heating Systems


Installation
Solar District Heating Project
Country
Installed Collector Area m²
Installed Capacity MWth


2016
Silkeborg
Denmark
156,694
110


2016
Inner Mongolia
China
93,000
65


2015
Vojens stage 2
Denmark
52,492
37


2014
Dronninglund
Denmark
37,573
26


2011
Rhiad
Saudi Arabia
36,305
25



One of the most cheap alternatives for producing sustainable energy, solar thermal has competitive life-cycle prices that can also aid in eradicating energy poverty. Surprisingly, European companies are setting the pace for innovation in this sector, particularly with regard to large systems like district heating or solar heat for industrial processes. It is a well-established pan-European industry, primarily supported by SMEs, that generates jobs in manufacturing, distribution, marketing, and maintenance, adding value regionally. By utilizing solar heating and cooling, society would decrease their reliance on fossil fuels and decentralize our energy supply, allowing customers to generate their own heat for domestic, commercial, and industrial uses.

The major companies profiled in this report are Siemens AG, Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, BTE solar Co. Ltd, Linuo Ritter International Co. Ltd, Acciona, SolarReserve, Torresol Energy, Trivelli Energy, Sener, Lointek, SCHOTT, Abors green GmbH, Liontek Photon Energy Systems Limited., BrightSource Energy, and Abengoa Solar. The demand for energy has increased as a result of rising urbanization, industrialization, and population growth. The market for solar thermal systems has increased as a result of the rising demand for power from renewable energy sources. Additional growth tactics, including the expansion of production capabilities, acquisition, collaboration, and research & innovation in new solar thermal energy system technologies, have helped to achieve significant advancements in the market trends for solar thermal energy systems around the world
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Solar Thermal Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 21.55 Bn.


Forecast Period 2023 to 2029 CAGR:
5.29%
Market Size in 2029:
US $ 30.91 Bn.


 Segments Covered:
by Collector Type
1.Evacuated Tube Collector
2.Flat Plate Collector
3.Unglazed Water Collector
4.Air Collector
5.Others


by Applications
1.Domestic Hot Water Systems
2.Large DHW Systems
3.Solar Combi Systems
4.Swimming Pool Heating
5.Others


by Type of System
1.Thermosiphon Solar
2.Heating Systems
3.Pumped Solar Heating System



Solar Thermal Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Solar Thermal Market, Key Players are:
1.Siemens AG
2.Solareast Holdings Co. Ltd
3.Greenonetec Solarindustrie GmbH
4.BTE solar Co. Ltd
5.Linuo Ritter International Co. Ltd
6.Acciona
7. SolarReserve
8.Torresol Energy
9.Trivelli Energy
10.Sener
11. Lointek
12.SCHOTT
13. Abors green GmbH
14. Liontek Photon Energy Systems Limited.
15.BrightSource Energy
16. Abengoa Solar

FAQs:

1. What was the global market size of the Solar Thermal Market in 2022?
Ans. The Global Solar Thermal Market size was valued at USD 21.55 Billion.

2. What is the study period for the Solar Thermal Market?
Ans. 2017-2029 is the study period for the Solar Thermal Market.

3. What is the growth rate of the Solar Thermal Market?
Ans. The Solar Thermal Market is growing at a CAGR of 5.29% over forecast the period.

4. What are the major key players in the Global Solar Thermal Market?
Ans. The major key players in the Global Solar Thermal Market are Siemens AG, Solareast Holdings Co. Ltd, Greenonetec Solarindustrie GmbH, BTE solar Co. Ltd, Linuo Ritter International Co. Ltd, Acciona, SolarReserve, Torresol Energy, Trivelli Energy, Sener, Lointek, SCHOTT, Abors green GmbH, Liontek Photon Energy Systems Limited., BrightSource Energy, and Abengoa Solar.

5. What is the forecast period for the Solar Thermal Market?
Ans. The forecast period for the Solar Thermal Market is 2023-2029.