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

Regional Analysis

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North America has been the dominant region in the global solar thermal collectors market. The region is expected to account for 36.7% of the market share in 2024, owing to strong industry presence and supportive government policies for solar energy adoption. The U.S. market in particular has seen sizable investments from major players to ramp up manufacturing capabilities in order to cater to the growing demand. With California leading the solar thermal installations in the country, the U.S. accounts for the largest market share in the region.  Strong initiatives by governments to incentivize the use of renewable energy sources have led to significant growth of the residential solar thermal segment. Rebates and tax credits on collectors and systems have encouraged homeowners to switch to solar in states with high insolation levels. Rising environmental consciousness coupled with reduced payback periods have further boosted installations across residential and commercial spaces.

On the other hand, the Asia Pacific region has emerged as the fastest growing regional market for solar thermal collectors. China, being the world's largest solar PV panel manufacturer, has massively scaled up its solar thermal capacity over the past decade to meet growing heating needs in the country. Its strategic emphasis on developing domestic renewable suppliers has benefited local collector manufacturers as well.  Rising demand from other Asian nations has encouraged Chinese manufacturers to increasingly focus on exports. India and Japan too have demonstrated encouraging market potential via supportive net metering programs and fiscal incentives for industrial process heating applications. With improving living standards raising energy consumption, other developing countries in Southeast Asia and the Middle East are also embracing solar thermal as a cost-effective alternative. The presence of major international brands and export-oriented local manufacturers have made the Asia Pacific market extremely cost-competitive. This is attracting customers across smaller commercial and residential segments in the region. Cheaper system costs encourage higher adoption rates compared to other parts of the world. With strong government directives, solar thermal looks poised to scale further heights in Asia Pacific.