As the global energy transition accelerates, solar technologies are evolving beyond electricity generation alone. Solar thermal collectors—systems designed to capture sunlight as usable heat—are gaining renewed attention in 2025 as governments, industries, and households look for efficient, low-carbon heating solutions. From domestic hot water systems to large industrial heat applications, solar thermal technology provides a practical and often cost-effective pathway to reduce dependence on fossil fuels.
For deeper market sizing, trends, and forecasts, refer to the Solar Thermal Collectors Market report available here:
What Are Solar Thermal Collectors and Why Do They Matter?
Unlike solar photovoltaic (PV) panels that convert sunlight into electricity, solar thermal collectors convert solar radiation directly into heat. This heat is then used for applications such as water heating, space heating, industrial process heat, and district heating systems. Because thermal energy accounts for a significant share of global energy consumption—particularly in buildings and industry—solar thermal collectors play a critical role in decarbonization strategies.
In many regions, solar thermal systems deliver higher overall energy efficiency than PV when the end use is heating. These systems are thus especially attractive where electricity costs are high or grid capacity is limited.
Key Technology Types in the Market
Solar thermal collectors are available in several technology configurations; each designed for specific temperature ranges and use cases:
Flat Plate Collectors
Flat plate collectors are the most widely deployed technology, especially in residential and small commercial applications. They consist of an insulated box with an absorber plate beneath a transparent cover. These systems are reliable, affordable, and well-suited for domestic hot water and space heating in moderate climates.
According to the Solar Heating & Cooling Programme International Energy Agency, flat plate solar thermal collectors accounted for a significant share of solar thermal installations in Europe in 2022. Around 72% of all solar thermal capacity installed that year consisted of flat plate systems, primarily used for building heating and domestic hot water applications.
Evacuated Tube Collectors
Evacuated tube collectors are among the most efficient solar thermal technologies available today. Each tube is vacuum-sealed to reduce heat loss, allowing the system to perform well even in colder or cloudy conditions. Due to their higher temperature output and efficiency, evacuated tube collectors dominate demand in regions with variable climates and are widely used in residential, commercial, and institutional buildings.
In December 2025, research on Renovated Evacuated Tube Collectors (RETCs) with passive components demonstrated advanced performance and economic feasibility improvements. Such studies point to how evacuated tube technology continues evolving to deliver better efficiency, particularly under variable weather conditions.
Unglazed and Air Collectors
Unglazed collectors are commonly used for low-temperature applications such as swimming pool heating. Air collectors, which use air instead of liquid as the heat transfer medium, are applied in space heating, ventilation pre-heating, and agricultural drying. While simpler in design, these systems offer cost advantages in niche applications.
(Source: Solar Heating & Cooling Programme International Energy Agency and Science Direct)
Applications Across Residential, Commercial, and Industrial Sectors
The residential sector remains a major driver of solar thermal adoption, particularly for water heating. Homeowners benefit from lower energy bills, long system lifetimes, and reduced exposure to fuel price volatility.
In the commercial and institutional segment, solar thermal collectors are widely used in hotels, hospitals, universities, and public buildings where hot water demand is continuous and predictable. These installations offer attractive payback periods and contribute directly to sustainability targets.
The industrial sector represents a growing opportunity. Industries such as food processing, textiles, chemicals, and mining require large volumes of low-to-medium temperature heat. Solar thermal systems help offset natural gas or diesel consumption, reducing operating costs and emissions over time.
What’s Driving Market Expansion in 2025?
Several structural factors are supporting the expansion of the solar thermal collectors market:
- Rising energy costs are pushing consumers and businesses toward long-term, predictable heating solutions.
- Government incentives and mandates in Europe, Asia, and parts of Latin America encourage solar thermal adoption through subsidies, building codes, and renewable heat targets.
- Decarbonization pressure on buildings and industry is accelerating the shift away from fossil-fuel-based heating.
- Technology improvements, including better absorber coatings and system integration, are improving efficiency and durability.
While upfront installation costs remain a consideration, declining system prices and improved financing options are steadily improving adoption economics.
Final Thoughts
Solar thermal collectors are no longer a niche renewable technology—they are a proven, scalable solution for meeting global heating demand sustainably. With diverse technology options, broad application potential, and strong policy support, the solar thermal collectors market is well-positioned for steady growth. As energy systems continue to evolve, solar thermal collectors will remain a critical complement to solar PV and other renewable technologies in the global clean-energy mix.
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