Solar Thermal Collectors Market Size & Share 2025 - 2034

Solar Thermal Collectors Market Size

The solar thermal collectors market size was valued at more than USD 4.9 billion in 2024. The market is expected to grow from USD 5.3 billion in 2025 to USD 9.9 billion by 2034, at a CAGR of 7.2%, according to Global Market Insights, Inc.

• Adoption of solar thermal collectors is steadily gaining traction driven by accelerating decarbonization efforts in the heating sector, supportive government policies, and technological advancements in collector efficiency and system integration. Unprecedented growth in the renewable energy sector, with solar thermal playing a critical role in decarbonizing heat demand across residential, commercial, and industrial applications will drive the market growth.
   
• Hybrid renewable systems combining solar thermal collectors with heat pumps and thermal energy storage are emerging as optimal solutions for industrial and commercial applications, leading to the product adoption. Ongoing integration of photovoltaic-thermal (PVT) collectors with ground-source heat pumps with proven COPs ranging from 3.5 to 4.0 in real-world applications, is set to augment the business landscape. These hybrid configurations enable higher renewable energy fractions while reducing auxiliary energy consumption and operational costs.
   
• Material innovations in selective coatings have achieved absorption rates exceeding 95% with emittance below 5%, significantly improving collector efficiency across diverse climatic conditions. Recent innovations include evacuated flat-plate collectors with enhanced thermal performance contribute to the business momentum.
   
• Solar thermal collectors provide cost-effective renewable heat for buildings, district heating networks, and low-to-medium temperature industrial processes. For instance, in 2024, the European Union's Energy Performance of Buildings Directive introduced a solar mandate requiring member states to optimize buildings for solar energy deployment, with phased implementation deadlines from 2026 to 2030, stimulating the product demand.
   
• Various government policies and financial incentives are accelerating the solar thermal collector’s deployment globally. For instance, the European Union's Renewable Energy Directive (RED) establishes binding targets for renewable energy in heating and cooling, with Article 23 specifically addressing renewable heating obligations. Additionally, the Net Zero Industry Act includes solar thermal in its scope, providing streamlined permitting, priority project status, and public procurement preferences, leading to market growth.
   
• International commitments through the UN Energy Compacts include specific targets such as reaching 1 million m2 of solar collectors in residential, commercial, health, and industrial sectors by 2050, augmenting the business landscape. Furthermore, increasing recognition of solar thermal technology as a cost-effective solution for decarbonizing heating demand across the end use sectors is anticipated to contribute to the market growth.
   
• Enhancing investments including the IRENA's 1.5°C scenario which requires approximately USD 5.7 trillion per year in energy transition investments through 2030, with significant allocations to building energy efficiency and renewable heating technologies including solar thermal will enhance the collector’s demand. Shifting focus on combined energy efficiency improvements and renewable heating deployment will lead to market growth.
   
• Ongoing decarbonization of heating represents the most significant long-term trend driving the solar thermal collector deployment. Heating and cooling account for nearly half of global final energy use, with the heating sector remaining heavily dependent on fossil fuels. According to the International Energy Agency, renewable heat consumption will expand by more than 50% during 2024-2030 to align with climate targets, representing 2.4 times the increase achieved in the previous period, complementing the market growth.
   
• Rapid innovation across system design, materials, and manufacturing processes, will drive substantial cost reductions and performance improvements. Modern technological advancements including the evacuated flat-plate collectors incorporating higher vacuum levels between the glass cover and absorber plate achieve measurably improved thermal efficiency compared to conventional designs, influencing the business statistics.
   

Solar Thermal Collectors Market Trends

• Introduction of mandatory building standards driving residential adoption, carbon pricing mechanisms improving solar thermal competitiveness, and industrial decarbonization commitments will spur solar heat for industrial processes (SHIP) deployment. The trend is particularly pronounced in Europe, where the Emissions Trading System expansion to buildings (ETS 2) creates direct carbon costs for fossil heating from 2027.
   
• Accelerating commercialization of advanced collector types and hybrid configurations and increased share of evacuated tube collectors driven by superior performance in cold climates and higher efficiency at elevated operating temperatures globally will lead to market growth. Further, expanding addressable markets as the costs decline, improved competitiveness against alternative heating technologies, and enhanced performance enabling deployment in previously marginal climatic and application conditions will stimulate the product demand.
   
• Expanded addressable markets for hybrid systems which can serve applications where standalone solar thermal is insufficient, improved economics owing to optimized system sizing and operation reduces lifecycle costs and enhanced value propositions will influence the business statistics. Pronounced shift toward larger-scale applications, particularly solar district heating and solar heat for industrial processes is set to drive the market growth. For instance, according to IEA 2025, by 2023 end, 598 large-scale solar thermal systems were operational globally, with a combined capacity of 2.285 GW.
   

Solar Thermal Collectors Market Analysis

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• Based on product type, the market is segmented into water and air collectors. The water collectors dominates the market with 93.9% share in 2024, growing at over 6% CAGR through 2034. These further include both evacuated tube, flat plate and unglazed water collectors.
   
• Evacuated tube collectors (ETCs) utilize vacuum-sealed glass tubes containing absorber elements and heat pipes, with the vacuum insulation dramatically reducing convective and conductive heat losses. This design enables ETCs to achieve superior thermal efficiency compared to flat-plate alternatives, particularly in cold climates and applications requiring elevated operating temperatures. In addition, increasing deployment in cold-climate regions where ETCs' vacuum insulation provides decisive performance advantages, and ongoing material innovations extending operational lifetimes and reducing manufacturing costs will contribute to the segment growth.
   
• Flat plate collectors (FPCs) are the established technology for solar water heating and space heating applications in moderate climates, offering advantages in ease of manufacture, lower cost, and ability to collect both beam and diffuse radiation without tracking. Moreover, the segment benefits from high recyclability (up to 90% aluminum, 41% copper, 62% steel, 62% glass), established certification frameworks through Solar Keymark, along with strong European manufacturing capacity.
   
• Unglazed collectors are simple, low-cost systems without glazing, operating at relatively low temperatures due to higher heat losses but offering economic advantages for applications not requiring high temperatures. It maintains niche advantages in pool heating (where low operating temperatures are acceptable), agricultural drying processes, and building-integrated ventilation air preheating
   
• Air collectors market will cross USD 1.4 billion by 2034 and is primarily driven by rising demand for low-cost renewable heating solutions, particularly in space heating, agricultural drying, and ventilation pre-heating applications. Governments in Europe and North America are increasingly promoting solar air heating as an efficient decarbonization pathway for buildings, warehouses, and livestock farms, which will augment the market growth.
   
• Unglazed air collectors on account of low installation cost, simple design, and fast payback period and rapid uptake in agricultural and industrial drying, such as grain drying, lumber processing, and crop dehydration especially in emerging economies with growing food processing sectors will lead to product penetration. In addition, increased awareness of the high energy cost of conventional drying systems is driving their deployment as fuel-saving retrofits for existing systems.

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• Based on type, the solar thermal collectors market is segmented into concentrating and non concentrating collectors. The non concentrating segment dominated with 61.5% market share and is anticipated to register over 6.5% CAGR through 2034. encompassing evacuated tube, flat-plate, and unglazed collectors that operate as stationary installations that collect both direct and diffuse solar radiation without tracking mechanisms.
   
• Growing utilization in largest application segments including domestic hot water, space heating, and low-temperature process heat will supplement the product uptake. Expanding residential deployment driven by building codes and solar mandates, increasing integration with heat pump systems for space heating, and growing adoption in commercial and institutional sectors (hotels, hospitals, schools) where domestic hot water and space heating represent significant energy loads will enhance the thermal collector installation.
   
• Concentrating solar thermal collectors utilize reflective surfaces to focus solar radiation onto a small receiver area, enabling much higher operating temperatures and will grow more than USD 2.5 billion by 2034. Key features comprising ability to integrate thermal energy storage, suitability for regions with high direct normal irradiance, and capability to serve processes up to 400°C that are difficult to electrify, will institute a favorable business momentum.

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• The U.S. solar thermal collectors market recorded a valuation of USD 180 million in 2022, reached USD 120 million in 2023 and will reach to USD 140 million by 2024. The North America accounted for 4.8% of the global market share in 2024 characterized by diverse applications spanning residential solar water heating, commercial installations in hotels and institutional buildings, industrial process heat.
   
• The region benefits from strong research and development capabilities, advanced manufacturing capacity, and established installation and maintenance workforce. Introduction of federal Investment Tax Credits for solar thermal installations (with phased rates 26% through 2022, 22% through 2025, then 10% baseline), state-level renewable portfolio standards and clean energy mandates, and corporate sustainability commitments driving commercial and industrial adoption, and high energy costs in certain markets will support to improve the solar thermal economics.
   
• Europe maintains 9.6% market share in 2024 and is anticipated to grow to more than 8.5% CAGR, supported by aggressive policy framework. The Energy Performance of Buildings Directive, in 2024, introduced a solar mandate under Article 10 requiring member states to optimize buildings for solar energy with phased implementation deadlines from 2026-2030. Similarly, the Renewable Energy Directive establishes binding targets for renewable energy in heating and cooling under Article 23.
   
• Asia Pacific represents the fastest-growing region with 7.2% CAGR anticipated by 2034 on account of rapid urbanization increasing demand for modern heating and hot water systems, rising middle-class incomes enabling investment in renewable technologies, abundant solar resources across much of the region, and government policies supporting renewable energy deployment as part of broader decarbonization strategies. The region's manufacturing dominance positions it to supply both domestic and export markets as global demand expands, leading to global market expansion.
   
• The Middle East and Africa region has a steady increase in the thermal collector adoption, driven by excellent solar resources, expanding economies, and increasing focus on economic diversification and renewable energy deployment. Several African countries including South Africa, Tunisia, and Jordan have developed local solar thermal industries, with Tunisia's Prosol program providing 20% subsidies and consumer lending, and South Africa's Eskom utility offering rebates for solar water heater installation, contributing to the business momentum.
   

Solar Thermal Collectors Market Share

• The top five players operating in the industry include GREENoneTEC, Viessmann Werke, Solimpeks, Bosch Thermotechnology and Sunrain Group. The market includes numerous significant competitors with regional or technology-specific strengths. The market consolidation is occurring as larger players acquire regional manufacturers to expand geographic presence and technology portfolios. The technology diversification is intensifying, with traditional solar thermal manufacturers adding photovoltaic-thermal (PVT) hybrid products to address competition from pure PV systems.
   
• Growing vertical integration strategies are emerging, with manufacturers expanding into system design, installation services, and operation & maintenance to capture greater value-chain margins and ensure quality control. Energy service company (ESCO) business models are gaining traction for large-scale commercial and industrial installations, with manufacturers partnering with or establishing ESCO subsidiaries to address upfront capital barriers.
   
• Companies investing in research and development, including advanced selective coatings, evacuated flat-plate designs, and PVT integration, position for premium market segments. Cost leadership strategies pursue manufacturing scale economies, supply chain optimization, and process automation to compete in price-sensitive residential markets, particularly important in emerging economies. Companies providing integrated packages combining solar thermal with heat pumps, conventional boilers, thermal storage, and advanced controls capture higher margins and address customer preferences for turnkey solutions.
   
• Himin Solar stands as the pioneering force in evacuated tube collector technology and maintains market leadership in China and broader Asia Pacific markets. The company's technology portfolio encompasses evacuated tube collectors with advanced selective coatings (achieving absorption rates exceeding 95% with emittance below 5%), integrated thermosyphon systems, and large-scale solar heating installations. The companies strategic focus emphasizes on continued technology innovation, manufacturing scale advantages, and expansion into international markets while maintaining dominance in the Chinese residential and commercial segments..
   

Solar Thermal Collectors Market Companies

Eminent players operating in the solar thermal collectors industry are:
 

• Absolicon Solar Collector AB 
• Archello
• Arctic Solar
• Ariston Thermo
• BDR Thermea
• Ecotherm
• GREENoneTEC
• Hewalex
• Himin
• Photon Energy Systems
• Solimpeks
• Solarus
• Solahart
• Sunrain
• Sunmaster
• TVP Solar
• Thermomax Group
• Viessmann Group
• Vela Solaris AG
• WOLF
  
   
• Viessmann Group represents European market leadership with comprehensive renewable heating solutions spanning solar thermal collectors, heat pumps, biomass boilers, and integrated control systems. The company's solar thermal product line emphasizes flat-plate collectors with high-quality selective coatings, vacuum tube collectors for higher-temperature applications, and system packages integrating solar thermal with conventional and renewable heating technologies. Further, The company benefits from strong brand recognition, extensive professional installer networks across Europe, and Solar Keymark certification providing quality assurance and market access.
   
• Bosch Thermotechnology leverages the Bosch Group's global presence and manufacturing expertise to compete across residential and commercial solar thermal segments. The company's product portfolio includes flat-plate and evacuated tube collectors, solar thermal packages with integrated storage and controls, and hybrid systems. The company's recent initiatives include development of photovoltaic-thermal hybrid collectors and enhanced digital connectivity enabling remote monitoring and predictive maintenance.
   
• SunRain Group ranks among China's largest solar thermal manufacturers with substantial production capacity in evacuated tube collectors and complete solar water heating systems. The company serves domestic Chinese markets and growing export markets across Asia Pacific, Africa, and Latin America. The competitive advantages include manufacturing scale enabling cost leadership, established supply chains for components including glass tubes and selective coatings, and product designs optimized for diverse market segments from rural residential to urban commercial applications.
   
• GREENoneTEC Solarindustrie GmbH represents flat-plate collector manufacturing leadership with focus on large-scale applications including solar district heating and commercial installations. The company operates one of Europe's largest solar thermal collector manufacturing facilities and emphasizes high-efficiency collectors, custom system designs for large projects, and technical support for system integrators and engineering firms. Its strategic positioning targets the growing solar district heating segment, industrial process heat applications, and export markets where European quality standards provide competitive differentiation.
   

Solar Thermal Collectors Industry News

• In April 2025, a study published in Energy Science & Engineering analyzed hybrid solar systems integrating photovoltaic-thermal collectors, flat-plate solar thermal collectors, and ground-source heat pumps across four Iranian climate zones. The research demonstrated system COPs ranging from 4.0 to 5.1 and identified optimal collector areas varying by climate, providing manufacturers and system designers with performance benchmarks for hybrid configuration.
   
• In July 2024, Viessmann Germany built the third largest solar thermal plant which will generate over 11 GWh per year. It will have a collector field with a total area of 24,361 square meters. The plant is expected to be fully operational in May 2025 and contribute to a significant reduction in CO2 emissions in Stralsund.
   
• In May 2024, a research published in Renewable Energy journal presented a holistic methodology for designing novel evacuated flat-plate solar thermal collectors, demonstrating that increasing vacuum levels between the glass cover and absorber plate enhances thermal efficiency. The peer-reviewed study provided experimental validation of improved energy performance for low-cost evacuated flat-plate designs, offering manufacturers a transferable research and development methodology.
   

This solar thermal collectors market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Million, Million m² and MW” from 2021 to 2034, for the following segments:

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Market, By Product Type

• Water Collectors
  • Evacuated tube collectors
  • Flat plate collectors
  • Unglazed collectors 
• Air Collectors
  • Glazed Collectors
  • Unglazed Collectors

Market, By Type

• Concentrating
• Non concentrating

Market, By Application

• Residential
• Commercial
• Industrial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • Austria
  • Greece
  • Italy
  • Turkey
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Rest of World