Solar Thermal Market size is set to expand commendably over 2021-2027, on account of the shifting preference from fossil fuels to renewable energy sources to mitigate environmental impacts. Likewise, the emergence of solar power as the most sustainable source of renewable energy will also boost the installation of solar thermal power plants worldwide. A solar thermal system refers to an energy system that harnesses the sun’s energy and converts it into heat, to produce electricity during hours without sunlight. Solar thermal power or electric generation systems can collect and concentrate the sunlight to generate high-temperature heat that is required to produce electricity.
Rising prominence of solar space heating, coupled with the significant development of testing facilities for solar receiver tubes and other thermal components, will foster the solar thermal market trends. In addition, the introduction of favorable schemes to encourage the installation of solar water heaters and heat pump technologies is projected to further amplify industry expansion in the upcoming years. In 2021, Miriam Dalli, Minister for Energy, Enterprise and Sustainability in Malta, launched new schemes to encourage consumers to make a switch from conventional geysers to efficient solar water heaters.
Based on application, the global solar thermal market from the domestic hot water systems segment will hold a substantial share by 2027. This is a result of the mounting deployment of solar water heaters in residences due to myriad benefits, including high efficiency and reduced carbon footprint. Moreover, the requirement of less installation space and cost-effectiveness of the domestic hot water heaters as compared to the traditional solar PV panels will also drive the segmental growth in the years ahead.
North America solar thermal industry is poised to depict a high growth rate through 2027, due to the increasing generation of power from steam turbines using solar thermal energy in the U.S. Additionally, the significant initiatives taken by the U.S. government to reach its carbon-neutral target will also contribute to the rising popularity of the solar thermal technology across the region.
The competitive landscape of the solar thermal market comprises companies such as SEIA, SCHOTT (Carl-Zeiss-Stiftung), Directed Vapor, BrightSource Energy, Viessmann, Robert Bosch, Areva, Acciona, Abengoa, Siemens, Hitachi, and GE, among others. Innovative product launches, mergers, and acquisitions are some of the strategies being adopted by these companies to gain a competitive advantage over other companies in the global market.
The unprecedented challenges caused by the ongoing coronavirus pandemic have affected various business sectors, including swimming pool operations. In November 2020, the City of Albuquerque Parks and Recreation announced the temporary closure of the Highland Pool to limit the spread of the virus to employees. Such disruptions across the swimming pool facilities may create an indirect impact on the deployment of solar thermal heating systems, given the key role of solar thermal energy in swimming pool heating applications.
Despite the setbacks caused by the pandemic, the renewable energy sector observed commendable growth in 2020. Over 760-GW of solar power generating capacities were installed globally as of 2020, out of which, 6.2-GW were being generated through the concentration of solar thermal power stations. This steady surge in solar energy capacity may contribute to the steady expansion of the solar thermal industry over the forthcoming years.