Solar Thermal Market Updates

Solar Thermal Market size was valued at USD 20.94 Billion in 2023 and is poised to grow from USD 21.92 Billion in 2024 to USD 31.66 Billion by 2032, growing at a CAGR of 4.7% during the forecast period (2025-2032).

The Global Solar thermal market is consolidated in nature, with a limited number of players operating in the market. These industry leaders are focusing on developing strategies that would help them in their sustainable growth. Companies are focusing on investments in the research and development field and developing solutions to utilize maximum solar radiation. Companies are experimenting with solutions in underdeveloped countries and remote areas. 'Abengoa (Spain) ', 'Acciona Energía (Spain) ', 'BrightSource Energy (United States) ', 'Cobra Energy (Spain) ', 'Enel Green Power (Italy) ', 'Fichtner Solar (Germany) ', 'GE Energy (United States) ', 'GDF SUEZ (France) ', 'Heliostat SA (South Africa) ', 'NextEra Energy Resources (United States) ', 'Novatec Solar (Germany) ', 'SCHOTT Solar (Germany) ', 'Solar Millennium AG (Germany) ', 'SolarReserve (United States) ', 'Solargenix Energy (United States) ', 'Sopogy (United States) ', 'SunEdison (United States) ', 'SunPower Corporation (United States) ', 'Torresol Energy (Spain) ', 'Trivelli Energia (Italy)'

Adoption of clean fuels and increasing environmental awareness which is aimed at reducing carbon footprints is driving the growth of the market. While reducing dependency on fossil fuels in combination with economic advantages for consumers as well as service providers are the factors driving the growth of the market. Further, government initiatives regarding increasing the usage of renewable sources in energy generation are likely to propel the growth of the market. The government is providing incentives based on the targets for the generation of electricity from conventional sources, and the installation of solar thermal plants in various countries like China, it is believed to show significant market growth in nearby future.

Increasing number of industries adopting the solar thermal is likely to positively influence the market. Dairy Food processing and beverages, automotive components, textiles and chemicals, and pharmaceuticals are some of the sectors which are in the surge to use the industrial heat generated through solar thermal projects. Renewable solutions can reduce fossil fuel consumption and carbon dioxide (CO2) emissions in process heating. Because process heating supplies account for almost two-thirds of the total final energy demand from a manufacturing site, there is huge room for improvement in the industry. Major pharmaceutical businesses all around the world have set ambitious goals for their energy usage in the future, and this industry is predicted to adopt solar process heating more frequently.

In terms of market share, the Asia Pacific region dominated the Global Solar Thermal Market in the year 2021 with more than 50% market share, due to increasing electricity demand, Rising standards of living, and suitable solar irradiance. The European region held the second most dominating share in the market with more than 20% share. The solar thermal market has grown considerably in the European nations, with solar district heating systems accounting for the majority of demand. As an example, in January 2020, the European Parliament adopted the resolution on the European Green Deal, which focuses on the importance of decarbonizing the energy sector as the topmost priority for a net-zero greenhouse gas emissions economy by 2050.