Solar Thermal Market: Current Analysis and Forecast (2021-2027)

Report Description

Solar Thermal Market was valued at ~US$ 25 billion in 2020 and is expected to grow at a CAGR of ~8% over the forecast period (2021-2027). Solar thermal energy is that form of energy and a technology for harnessing solar energy to generate thermal energy which is then used in various industries, in residential areas and commercial sector. Solar thermal collectors are basically known to collect heat by absorbing sunlight. Solar thermal power systems are those who collect and concentrate sunlight to produce high temperature heat required to generate electricity.

In 2020, the consumption of all other fuels declined while the only source which increased the demand for energy sources was renewables 2020.  As the global economy recovers from the crisis, The renewable energy source witnessed an uptake, therefore, expand more quickly. As per International Energy Agency (IEA), in 2020, the annual renewable capacity additions increased witnessed the highest year-on-year increase since 1999 and increased by 45% or 280 GW. Furthermore, exceptionally high-capacity additions become the “new normal” in 2021 and 2022, with renewables accounting for 90% of new power capacity expansion globally. Owing to this wide adoption of renewables across the world due to the deteriorating environment is propelling the solar thermal market.

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Another significant reason responsible for the growth of solar thermal market is the rising demand for energy and surge in solar thermal heat consumption across the globe. For instance, China leads in consumption of solar thermal heat accounting for nearly 25 PJ in 2020 and 44 PJ in 2021. Further, it is expected that the consumption of solar thermal heat will reach 45 PJ by 2022. Owing to the growing demand for solar thermal energy there has been rise in installed capacity additions of solar thermal energy globally. For instance, in 2018, China was leading in installing new capacity of solar thermal energy systems. The country installed around 24.8 gigawatts of solar thermal capacity in that year, representing almost 80% of the total solar thermal new capacity installed all over the world.

Cumulative Capacity of Solar Thermal Energy Worldwide, 2009 to 2018 (in gigawatts thermal)

Siemens AG, SolarReserve, Sunrain, Photon Energy Systems Ltd, BTE Solar Co. Ltd, Sener, SCHOTT, ACCIONA, Greenonetec Solarindustrie GmbH, LINUO RITTER INTERNATIONAL CO. LTD. are some of the prominent players operating in the solar thermal market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Collector Type, evacuated tube collector segment holds the major share”

Based on collector type, the global solar thermal market is fragmented into evacuated tube collector, flat plate collector, unglazed water collector, air collector. The evacuated tube collector segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the forecast period. The growth of this segment is because of the advantages offered by these over flat plate collectors such as greater durability, less prone to corrosion and high efficiency for heat transfer. In turn, the sales of these are boosting across the world. For instance, in India, vacuum tube collectors again dominated sales, making up 87 % of new systems. However, Flat plate collector segment is also expected to grow at a CAGR of XX% during the analyzed period.

“Amongst Application, space heating system segment holds the major share”

Based on Application, the global solar thermal market is segmented into space heating system, domestic hot water systems, solar combi systems and others. The space heating segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027 growing with a CAGR of XX% over the projected timeframe. Solar space heating is used to heat the space inside a building by deploying solar thermal energy. This can lead to decline in heating bills and cut down dependence on fossil fuels. These types of systems are commonly used in countries such as North America, Japan and Australia for various applications including residential & commercial buildings, schools and many more. Owing to its applications in varied segments and growing demand for renewable energy alternatives for conventional space heating systems the market is anticipated to grow. For instance, amongst all the solar thermal installations across the globe, more than 50% were deployed for space heating systems in 2019

“Asia-Pacific represents one of the largest markets of Solar Thermal market”

For a better understanding of the market dynamics of the solar thermal market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World has been conducted. Asia-Pacific dominated the market and generated revenue of US$ XX million in 2020 owing to the increasing adoption of solar thermal systems across countries such as China, Japan, India, etc.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global Solar Thermal Market were the three major steps undertaken to create and analyze the adoption of Solar Thermal in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Global Solar Thermal Market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the solar thermal through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the solar thermal market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as collector type, applications, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of solar thermal in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of solar thermal. Further, we conducted factor analysis using dependent and independent variables such as increasing global temperature and increasing adoption of renewable energy. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the solar thermal sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the solar thermal market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of solar thermal across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the solar thermal market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the solar thermal market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of collector type, applications, and end-users of the solar thermal market.

The main objective of the Solar Thermal Market Study

The current & future market trends of solar thermal were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of solar thermal in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of collector types and applications
• Define and analysis of the regulatory framework for the solar thermal industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the solar thermal market for the major region
• Major regions studied in the report include North America, Europe, Asia-Pacific, and Rest of the world
• Company profiles of the solar thermal market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry