SOLAR THERMAL COLLECTORS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The high initial installation costs involved in setting up solar thermal collectors are one of the key factors restraining the growth of the global solar thermal collectors market. Setting up an efficient solar thermal system requires significant capital investment which impacts its mass adoption. Solar thermal collectors need to be installed correctly to ensure optimal performance throughout their lifespan. This involves careful planning and installation of the collector panels, insulated hot water storage tanks, mounting structures, piping infrastructure for fluid circulation etc. Professional installation services further increase costs. According to the Joint Research Centre of the European Commission, installation and balance of system costs typically account for 40-60% of the total solar thermal system costs. The upfront costs discourage many homeowners and building owners to make the switch to solar thermal.

Market Opportunities: Development of CSP with thermal storage

The development of concentrating solar power (CSP) with thermal energy storage has huge potential to drive growth in the global solar thermal collectors market. CSP utilizes mirrors to concentrate sunlight to heat a working fluid which can be used to power a turbine and generate electricity. However, one limitation is that it only generates electricity when the sun is shining. Adding thermal energy storage overcomes this intermittency challenge by allowing the storage of heat for several hours and enabling the generation of power even when the sun is not out. This gives CSP with storage great flexibility to meet peak demand periods. With suitable incentives and cost reductions, it could replace conventional power plants that emit greenhouse gases.