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

Solar Thermal Collectors Market Size and Trends

The solar thermal collectors market is estimated to be valued at USD 30.19 Bn in 2024 and is expected to reach USD 52.08 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

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Rising concerns over environmental pollution and the need to reduce dependence on fossil fuels are expected to drive significant demand for solar thermal collectors during the forecast period. The market is witnessing favoring trends such as growing emphasis on renewable energy resources and policy-level support through subsidies and incentives. Additionally, the falling prices of solar thermal collectors along with product innovation leading to higher efficiencies are increasing their affordability and adoption rates globally. However, high initial installation costs remain a major limiting factor for the market.

Growing concerns around climate change

As climate change concerns continue to dominate global discussions, the need for cleaner energy sources has become more imperative than ever. Solar thermal technology provides a sustainable solution to meeting rising energy demands while reducing carbon footprint. With temperature records being broken almost every year and extreme weather events occurring more frequently, many nations have pledged to transition to renewable resources as part of their commitment under the Paris Agreement. This has led various governments to offer fiscal incentives for installations of solar thermal collectors. Multiple studies have also highlighted how harnessing solar heat can help offset carbon emissions from fossil fuel-based water and space heating. The economic benefits of solar thermal are further driving its adoption. The overall market force of climate action and sustainability goals will remain a key propeller for greater installations of solar collectors globally in the years to come.

Affordability advantage over other clean alternatives

While solar photovoltaic remains the frontrunner in terms of overall investment in the renewables space, solar thermal technology offers a relatively more affordable solution for utilities and commercial establishments seeking to meet high hot water and process heat demands. Solar collectors provide heating at lower costs than wind or biomass projects of equivalent capacity. Even when compared to other solar technologies, solar thermal excels on the cost front for applications that require heat below 150°C. Recent technological enhancements have further narrowed the pricing gap with natural gas boilers and fuel oil-based systems. With raw material costs stabilizing and operational expenditures declining, solar thermal is increasingly completing on economics with conventional alternatives. This affordability aspect is convincing more industrial and commercial consumers who are looking to supplement their energy needs through renewable sources but on a tighter budget. As energy expenses continue their northward trend, solar thermal is poised to gain additional traction due to favorable life cycle cost profiling.