Global Solar Thermal Panels Market Size By Type (Flat, Tubular), By Application (Water Heating, Air Conditioning), By Region, And Segment Forecasts, 2023 to 2032

The Global Solar Thermal Panels Market, valued at USD 5.2 billion in 2023, is expected to reach USD 10.4 billion by 2031, growing at a CAGR of 9.0% from 2023 to 2031. Solar thermal panels, a sustainable energy solution, capture sunlight to generate heat for residential, commercial, and industrial applications. Increasing global demand for renewable energy, combined with government initiatives and incentives supporting solar energy adoption, drives market growth. Solar thermal panels offer an eco-friendly alternative to fossil fuels, providing cost savings and reducing greenhouse gas emissions.

Drivers

Growing Adoption of Renewable Energy: Governments worldwide are encouraging renewable energy sources, which significantly boosts the demand for solar thermal panels. Solar thermal systems reduce dependency on non-renewable resources, aligning with global climate targets.

Technological Advancements in Solar Thermal Technology: Innovations in materials, efficiency, and storage systems are making solar thermal panels more effective, cost-efficient, and suitable for diverse climates.

Government Policies and Incentives: Various subsidies, tax incentives, and grants offered by governments are helping accelerate the adoption of solar thermal panels in both developed and developing economies.

Restraints

High Initial Installation Costs: Although solar thermal panels offer long-term savings, the initial installation cost can be prohibitive, especially for small and medium-sized enterprises and households.

Dependency on Weather Conditions: Solar thermal panels' efficiency heavily relies on consistent sunlight exposure, limiting their effectiveness in regions with low sunlight or high cloud cover.

Opportunity

Growing Demand in Emerging Economies: Rapid urbanization and industrialization in regions like Asia-Pacific and Latin America create a substantial opportunity for solar thermal solutions as these areas strive for cleaner energy alternatives.

Hybrid Energy Systems: The integration of solar thermal panels with other renewable energy sources, such as wind or photovoltaic systems, offers enhanced efficiency and energy reliability, paving the way for innovation in hybrid energy solutions.

Market by System Type Insights

The Evacuated Tube Collectors segment dominated the market in 2023, attributed to their high efficiency in low-sunlight regions and increased adoption in residential applications. These collectors are expected to maintain their lead due to their superior performance and durability, especially in colder climates. The Flat Plate Collectors segment also shows steady growth, favored for their cost-effectiveness and simplicity, making them ideal for regions with ample sunlight.

Market by End-use Insights

The Residential sector emerged as the largest revenue contributor in 2023, driven by the rising adoption of solar thermal systems in households for water heating and space heating. The Industrial sector is expected to witness significant growth, as industries increasingly turn to renewable energy solutions to reduce operational costs and meet sustainability goals.

Market by Regional Insights

North America held the largest market share in 2023, benefiting from supportive government policies and a strong push toward renewable energy. However, the Asia-Pacific region is anticipated to register the highest growth rate during the forecast period, fueled by rapid urbanization, a high population base, and substantial investments in clean energy across countries like China and India.

Competitive Scenario

Key players in the Global Solar Thermal Panels Market include Ritter Group, Viessmann Group, Bosch Thermotechnik GmbH, GreenOneTec, Ariston Thermo Group, and Solimpeks Solar Energy Corp. These companies focus on developing innovative and efficient solar thermal technologies, forming strategic partnerships, and expanding into emerging markets to strengthen their market presence.

Scope of Work – Global Solar Thermal Panels Market

Key Market Developments

2023: Viessmann Group introduced a new line of high-efficiency solar thermal panels tailored for colder climates, enhancing performance and lifespan.

2024: Ritter Group announced a strategic partnership with an energy provider in Asia-Pacific to expand its presence in the residential solar thermal market.

2025: Bosch Thermotechnik launched a solar thermal panel integrated with AI-based monitoring systems, allowing real-time efficiency tracking and remote control for commercial applications.

FAQs

What is the current market size of the Global Solar Thermal Panels Market?

The market was valued at USD 5.2 billion in 2023.

What is the major growth driver of the Global Solar Thermal Panels Market?

The primary driver is the increasing global adoption of renewable energy sources.

Which is the largest region during the forecast period in the Global Solar Thermal Panels Market?

North America held the largest market share in 2023, with Asia-Pacific anticipated to grow the fastest.

Which segment accounted for the largest market share in Global Solar Thermal Panels Market?

The Evacuated Tube Collectors segment accounted for the largest share due to its efficiency and adaptability in various climates.

Who are the key market players in the Global Solar Thermal Panels Market?

Leading players include Ritter Group, Viessmann Group, Bosch Thermotechnik, GreenOneTec, and Ariston Thermo Group.