SOLAR THERMAL COLLECTORS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Solar Thermal Collectors Market Size and Forecast – 2025 to 2032

The solar thermal collectors’ market is estimated to be valued at USD 32.70 Bn in 2025 and is expected to reach USD 57.18 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.3% from 2025 to 2032.

Key Takeaways

• By Type, Evacuated Tube hold the largest market share of 31.0% in 2025 owing to the Rising Demand for Renewable & Sustainable Heating Solutions.
• By Application, Residential expected to hold largest market share of 62.2% in 2025 owing to its reduction in household energy costs.
• By Region, North America dominates the overall market with an estimated share of 37.2% in 2025 owing to the supportive government policies & financial incentives.

Market Overview

The Solar Thermal Collectors Market continues to grow as consumers increasingly demand renewable and energy-efficient heating solutions. Growing environmental awareness, along with government policies and incentives, drives adoption across residential, commercial, and industrial sectors. Technological advancements, including enhanced collector designs and higher system efficiency, improve performance in a variety of climates. Rising energy costs and the pursuit of energy independence encourage consumers and businesses to replace conventional heating systems with solar thermal solutions

Current Events and Its Impact on the Solar Thermal Collectors Market

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Segmental Insights

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Solar Thermal Collectors Market Insights, By Type - Evacuated Tube contribute the highest share of the market owing to its growing residential & commercial adoption

Evacuated Tube hold the largest market share of 31.0% in 2025. Consumers and businesses increasingly choose evacuated tube solar thermal collectors for their high efficiency and reliable performance in varied weather, including low sunlight and cold climates. Their durability, excellent heat retention, and low maintenance appeal to a wide range of users. Advances in technology, such as enhanced vacuum insulation and optimized absorber coatings, boost system performance. At the same time, rising focus on sustainable energy, supportive government policies, and higher conventional fuel costs drive the adoption of evacuated tube systems in residential and commercial settings. For instance, in August 2025, Ray Tubes has made SELECT 5U4 vacuum tubes available through its global retail network. The 5U4, a full-wave rectifier tube, uses a twin-diode design to convert AC to DC.

Solar Thermal Collectors Market Insights, By Application - Residential contribute the highest share of the market owing to its rising demand for renewable & sustainable heating solutions

Residential expected to hold largest market share of 62.2% in 2025. Homeowners are increasingly adopting solar thermal collectors to lower energy bills and achieve long-term savings on water and space heating. Growing environmental awareness prompts households to choose cleaner, renewable energy solutions. Government incentives, rebates, and supportive policies reduce installation costs, while improvements in system design enhance efficiency and reliability for everyday use. Rising energy prices and the desire for energy independence drive homeowners to transition from conventional heating systems to sustainable solar thermal solutions. For instance, in September 2024, the Jordanian Ministry of Energy and Mineral Resources has launched a rebate program covering up to 30% of the purchase and installation costs for residential rooftop PV systems and solar thermal collectors.

Regional Insights

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North America Solar Thermal Collectors Market Trends

North America dominates the overall market with an estimated share of 37.2% in 2025. The North American market is increasingly adopting energy-efficient and environmentally sustainable solar thermal heating solutions. Investors and governments are driving growth through renewable energy infrastructure projects and supportive federal and state policies, boosting uptake across residential, commercial, and industrial sectors. Innovations in collector technologies, such as evacuated tubes and hybrid systems, enhance performance and reliability in varied climates. Meanwhile, rising energy costs and the pursuit of energy independence motivate homeowners and businesses to replace conventional heating systems with solar thermal solutions across the region. For instance, Orlando-based iAIRE has launched its patented Solar HVAC for homes and businesses across the USA, offering high-quality, energy-saving solutions.

Asia Pacific Solar Thermal Collectors Market Trends

Countries in the Asia Pacific region are rapidly expanding their use of solar thermal collectors to meet increasing residential and industrial heating demands with sustainable energy solutions. Governments are promoting adoption through initiatives, subsidies, and renewable energy policies. Advances in technology, such as high-efficiency evacuated tube collectors and integrated hybrid systems, enhance performance even in areas with inconsistent sunlight. At the same time, rising energy costs and growing environmental awareness are motivating consumers to replace conventional heating methods with solar thermal systems in both urban and rural areas. For instance, in September 2025, Coal India Ltd has issued tenders for 3 GW of solar and 2 GW of wind power, inviting turnkey bids for design, construction, commissioning, and O&M.

United States Solar Thermal Collectors Market Trends

Homeowners and businesses in the United States are increasingly adopting solar thermal collectors to achieve energy-efficient and sustainable heating. Federal and state incentives, combined with renewable energy initiatives, are promoting wider use across residential, commercial, and industrial sectors. Advances in technology, such as high-performance evacuated tube and hybrid collector systems, improve reliability and efficiency in varied climates. At the same time, rising energy costs and the pursuit of energy independence drive users to replace conventional heating methods with solar thermal solutions, reinforcing the nation’s focus on clean energy. For instance, AGP Sustainable Real Assets and Hartree Partners are forming a joint venture to develop a 5GW utility-scale solar platform in the US.

India Solar Thermal Collectors Market Trends

India is rapidly expanding its use of solar thermal collectors as the country focuses on renewable energy to meet growing residential, commercial, and industrial heating needs. The government promotes adoption through initiatives, subsidies, and favorable policies. Advances in high-efficiency evacuated tube collectors and hybrid systems improve performance even in areas with inconsistent sunlight. At the same time, rising energy costs, environmental concerns, and the pursuit of energy self-sufficiency are driving consumers and businesses to replace conventional heating methods with sustainable solar thermal solutions across urban and rural regions. For instance, in July 2025, Spanish renewables company Zelestra has launched its 435-MWdc Gorbea solar project in Rajasthan, India, supported by a 25-year PPA with SECI.

End-user Feedback and Unmet Needs in the Solar Thermal Collectors Market

• Efficiency and Performance Concerns: Many end-users report that system efficiency can drop during cloudy or cold conditions. They seek collectors that maintain consistent heat output year-round and perform reliably in diverse climates. Users desire improved vacuum insulation, better absorber coatings, and optimized designs that maximize thermal retention without increasing costs.
• High Initial Investment: Homeowners and businesses often find upfront costs for solar thermal systems prohibitive. Despite long-term savings, many users struggle with financing or limited access to affordable installation options. There is a strong need for flexible payment plans, leasing models, and government-backed financial support to make adoption easier.
• Maintenance and Durability Issues: End-users express concerns about long-term maintenance, component wear, and system longevity. Collectors that require frequent servicing or replacement of parts deter adoption. Users are looking for low-maintenance, corrosion-resistant systems with durable materials that can withstand harsh weather conditions over many years.

Solar Thermal Collectors Market Trend

Shift Toward High-Efficiency Collectors

The market is moving toward advanced collector designs, including evacuated tube and hybrid systems, which provide higher thermal efficiency and reliability. Manufacturers are focusing on improving heat retention, absorber coatings, and vacuum insulation to maintain performance in diverse climates. This trend addresses the demand for consistent energy output, even in low-sunlight or cold regions, and reflects growing user preference for systems that reduce energy waste while maximizing renewable heat production for residential, commercial, and industrial applications.

Integration with Smart and Hybrid Systems

Solar thermal collectors are increasingly being integrated with smart technologies and hybrid energy systems, such as combining solar thermal with heat pumps or thermal storage units. This trend enhances system versatility, allowing users to optimize energy use according to demand patterns. Smart monitoring and control systems also improve operational efficiency, reduce maintenance requirements, and offer real-time performance feedback, attracting both residential and commercial consumers who seek reliable, intelligent, and adaptable heating solutions.

Solar Thermal Collectors Market Opportunity

Residential Market Expansion

Growing energy costs and increasing awareness of sustainable living create significant opportunities in the residential sector. Homeowners are seeking energy-efficient water and space heating solutions, driving demand for compact, high-performance solar thermal systems. Developers can target new housing projects and retrofit solutions, offering modular and aesthetically adaptable collectors. By providing financing options, maintenance support, and smart system integrations, manufacturers can attract a wider customer base while helping households reduce utility bills and carbon footprints.

Market Report Scope

Solar Thermal Collectors Market News

• In June 2025, Octopus Energy has launched a pioneering initiative to fast-track rooftop solar and battery storage installations across Ukraine’s public and private sectors.

Analyst Opinion (Expert Opinion)

• The Solar Thermal Collectors market is at a strategic inflection point, shaped by differentiated regional dynamics and application‑specific performance realities rather than broad “renewables growth” narratives. Asia Pacific’s dominance is not incidental: China alone accounts for over 70 % of global solar thermal collector capacity, reflecting deliberate industrial policy and localized manufacturing scale that few competitors can match. Residential demand continues to lead adoption in this segment, with evacuated tube systems capturing a disproportionate share due to their ability to maintain high output in variable climatic conditions, a practical advantage over flat plates that is often under‑emphasized in mainstream coverage.
• In contrast, North American uptake — particularly in the U.S. — remains selective and incentive‑dependent, with federal tax credits and state rebates materially improving the economics for homeowners but still facing competition from heat pump solutions that have achieved stronger integration into building electrification strategies. Export‑oriented supply chains from Asia have also reshaped competitive pressures, forcing OEMs in Europe and North America to innovate on durability and hybrid integration rather than cost alone. The industry’s most striking opportunity lies in industrial process heat and district energy systems, where large‑scale installations — such as the more than 1,200 solar heats for industrial processes (SHIP) systems worldwide — demonstrate compelling operating cost reductions and decarbonization value that residential applications have thus far struggled to match.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2020 - 2032)
• Concentrating
• Non-Concentrating
• Flat Plate Collector
• Evacuated Tube
• Unglazed Water Collector
• Air Collector
• Application Insights (Revenue, USD Bn, 2020 - 2032)
• Residential
• Commercial
• Industrial
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• GCC Countries
• Israel
• Rest of Middle East & Africa
• Key Players Insights
• Alternate Energy Technologies LLC.
• TVP Solar
• Ouraset
• SunEarth
• Greenonetec Solarindustrie GMBH
• Absolicon Solar Collector AB
• Sunerg Solar s.r.l.
• Solimpeks
• Heliodyne Inc.
• HTP Comfort Solutions LLC
• Photon Energy Systems Limited
• Solareast Holdings Co Ltd.
• Greenonetec Solarindustrie GmBH
• BTE Solar Co Ltd.
• Linuo Ritter International Co. Ltd

Sources

Primary Research interviews

• Industry experts and engineers from solar thermal manufacturing companies
• Project developers and EPC contractors involved in residential and commercial solar thermal installations
• Facility managers using solar thermal systems in industrial and institutional applications

Databases

• International Energy Agency (IEA) – Solar Heating and Cooling Programme
• National Renewable Energy Laboratory (NREL) Data Portal
• World Bank Energy Data

Magazines

• Solar Today
• Renewable Energy World
• Energy Engineering

Journals

• Solar Energy Journal
• Renewable and Sustainable Energy Reviews
• Journal of Solar Energy Engineering

Newspapers

• The Times of India – Energy Section
• The Guardian – Renewable Energy Section
• The New York Times – Climate & Energy Section

Associations

• International Solar Energy Society (ISES)
• Solar Heating & Cooling (SHC) Programme – IEA
• Solar Heat Europe

Public Domain sources

• Government policy documents and subsidies notifications (e.g., U.S. DOE, MNRE India)
• UN Sustainable Energy for All (SEforALL) Reports
• Academic theses and conference proceedings available online

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years