Solar Thermal Collector Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 33.64 Bn

Forecast Year, 2035

USD 76.05 Bn

CAGR, 2026 - 2035

8.50%

Report Coverage

Global

What is the Solar Thermal Collector Market Size in 2026?

The global solar thermal collector market size accounted for USD 33.64 billion in 2025 and is predicted to increase from USD 36.49 billion in 2026 to approximately USD 76.05 billion by 2035, expanding at a CAGR of 8.50% from 2026 to 2035. This market is growing due to the increasing demand for renewable energy solutions and the rising adoption of solar heating systems across residential, commercial, and industrial sectors.

Key Takeaways

• Asia Pacific dominated the market in 2025.
• North America is expected to grow at the fastest CAGR between 2026 and 2035.
• By type, the non-concentrating segment held the biggest market share in 2025.
• By type, the concentrating segment is expected to expand at the fastest CAGR between 2026 and 2035.
• By application, the commercial segment contributed the highest market share in 2025.
• By application, the industrial segment is expected to grow at a strong CAGR between 2026 and 2035.

What Drives the Growth of the Solar Thermal Collector Market?

The market is growing due to the growing need for energy-efficient and renewable heating options. Solar thermal collectors are extensively utilized in the commercial, industrial, and residential sectors for heating spaces and water. Their high adoption is being prompted by environmental regulations and government incentives. Ongoing technological advancements are also driving the market by increasing efficiency and lowering system costs.

How is AI Transforming the Solar Thermal Collector Market?

Artificial intelligence plays a crucial role in transforming the market by enhancing performance tracking and system efficiency using real-time data tracking. AI-based analytics optimize heat collection forecast maintenance requirements and improve energy output. AI-powered smart control systems are able to automatically modify operations in response to energy demand and weather. This improves the overall lifespan and dependability of the system while also lowering operating expenses.

What are the Major Trends Influencing the Solar Thermal Collector Market?

• Increasing adoption of solar water heating systems in residential buildings, driven by rising electricity costs and sustainability awareness, is driving the market.
• Growing integration of solar thermal systems with smart and AI-based energy management solutions to optimize energy efficiency and monitoring.
• Rising demand for evacuated tube collectors due to their higher efficiency and better performance in colder climates.
• Expansion of solar district heating projects in urban areas to support large-scale renewable heating networks.
• Hybrid systems combining solar thermal with heat pumps are gaining popularity for enhanced energy savings and reliability.
• Strong focus on energy-efficient green building construction aligned with global sustainability standards.
• Technological advancements are improving durability, thermal retention capacity, and overall system performance.
• Growing investments in renewable energy infrastructure worldwide are accelerating the clean energy transition.

Future Market Outlook

• Rising demand for solar thermal collectors in emerging economies with high solar potential and increasing urbanization.
• Government-backed renewable energy and net-zero emission programs are encouraging large-scale installations.
• Industrial process heating applications offer untapped growth potential across manufacturing sectors.
• Integration with smart grids and IoT-enabled monitoring systems to enhance operational efficiency.
• Rising need for sustainable solutions in hotels, hospitals, and institutions to reduce operating costs.
• Development of cost-effective and lightweight collector materials to simplify installation and transportation.
• Increasing awareness about reducing electricity and fuel bills through long-term renewable investments.
• Partnerships between manufacturers and construction companies promote green building projects.

How are Government Initiatives Supporting the Solar Thermal Collector Market?

Government initiatives are significantly contributing to the market through subsidies, tax benefits, and renewable energy targets. Solar water heating systems are being promoted by numerous nations as part of clean energy initiatives to lessen their reliance on fossil fuels and carbon emissions. Adoption of solar thermal collectors is being further stimulated by laws promoting energy efficiency, green building standards, and net-zero goals. In the commercial and residential sectors, financial incentives and awareness-raising initiatives are also assisting in the acceleration of installations.

What is Driving ROI in the Solar Thermal Collector Market?

Significant energy cost savings and reduced reliance on conventional fuels are the primary drivers of ROI in the market. Lower heating and electricity costs for residential, commercial, and industrial users can quickly offset initial installation expenses. Government subsidies, incentives, and tax breaks further enhance ROI by lowering upfront capital requirements. Additionally, longer system lifespans, reduced maintenance costs, and improved energy efficiency contribute to higher financial returns, making solar thermal collectors an attractive investment for both small- and large-scale installations as interest in sustainable energy solutions grows.

How Resilient is the Solar Thermal Collector Market?

The market is highly resilient because of its capacity to deliver dependable heating and hot water solutions even in areas with erratic energy supplies. Improved absorber coatings and hybrid systems are examples of technological developments that improve system performance in a range of weather conditions. Incentives, long-term renewable energy policies, and robust government support all help to stabilize market growth. Despite changes in the economy, the industry's flexibility in catering to residential, commercial, and industrial applications guarantees consistent demand. Global market resilience is being reinforced by growing awareness of sustainable solutions and energy efficiency.

Market Scope

Segment Insights

Type Insights

What Made Non-Concentrating the Dominant Segment in the Solar Thermal Collector Market?

The non-concentrating segment dominated the market with the largest share in 2025 because of the affordability, ease of installation, and extensive use of non-concentrating collectors across commercial and residential water heating applications. These collectors, such as flat plate and evacuated tube collectors, which don't require complex tracking systems, are particularly efficient and cost-effective for typical heating needs. Additionally, strong government incentives and support programs for small- to medium-sized installations further boosted adoption, cementing its position as the leading segment.

The concentrating segment is expected to grow at the fastest CAGR in the coming years because of the growing need for utility-based and large-scale industrial heating applications. Concentrating collectors are appropriate for power generation and industrial process heating because of their higher temperature output. The growth of the segment is also driven by rising investments in solar thermal power plants and renewable energy infrastructure.

Application Insights

Why Did the Commercial Segment Dominate the Solar Thermal Collector Market?

The commercial segment dominated the market in 2025 because of the high demand from establishments like hotels, hospitals, schools, and offices that need a steady supply of hot water. To meet sustainability goals and lower electricity costs, businesses are increasingly implementing solar thermal systems. Commercial installations benefit from economies of scale, reducing the per-unit cost of installation and operation, while government incentives and sustainability initiatives encourage adoption.

The industrial segment is expected to grow at the fastest CAGR in the coming years because manufacturing industries are increasingly using solar thermal systems for processing heat. To cut down on fuel dependence and carbon emissions, industries are looking for renewable alternatives. Rising awareness of the benefits of long-term cost savings and energy efficiency is driving the adoption of solar thermal collectors across industries, driving the growth of the segment.

Regional Insights

What is the Asia Pacific Solar Thermal Collector Market Size?

The Asia Pacific solar thermal collector market size is expected to be worth USD 33.84 billion by 2035, increasing from USD 14.80 billion by 2025, growing at a CAGR of 8.62% from 2026 to 2035.

What Made Asia Pacific the Dominant Region in the Solar Thermal Collector Market?

Asia Pacific dominated the solar thermal collector market, holding the largest share in 2025. The region's dominant position in the market is supported by government incentives promoting sustainable energy solutions and widespread adoption of solar energy in nations like China and India. Cost-effective manufacturing, rapid urbanization, and favorable solar radiation all contributed to the region's increased prominence. The region benefits from favorable climatic conditions for solar energy, strong government incentives and renewable energy policies, and a large base of residential, commercial, and industrial users adopting solar thermal systems. Additionally, cost-competitive manufacturing of collectors and increasing awareness of sustainable energy solutions have further strengthened the region's leading position in the market.

India Solar Thermal Collector Market Trends

India is a major contributor to the market within Asia Pacific. The market in India is growing because of increasing government initiatives, subsidies for solar water heating systems, and rising energy prices. Increasing adoption across small-scale industrial, commercial, and residential applications is further fueling demand. Nationwide market expansion is being accelerated by urbanization and rising awareness of renewable energy.

What Makes North America the Fastest-Growing Region in the Market?

North America is expected to grow at the fastest rate in the market throughout the forecast period, owing to its advanced infrastructure and widespread adoption of green energy solutions in commercial buildings. High awareness about energy efficiency, sustainability programs, and supportive regulatory frameworks is driving consistent demand in the region. Supportive policies, tax credits, and decarbonization targets in the U.S. and Canada are further encouraging installations.

U.S. Solar Thermal Collector Market Trends

The market in the U.S. is expanding due to rising investments in renewable energy projects and incentives for clean energy adoption. Expanding commercial installations and integration with smart energy management systems are key growth drivers. Additionally, heightened awareness of sustainability and advancements in solar thermal system efficiency are contributing to the rapid growth of the market across the country.

What Drives the Market within the Middle East & Africa?

The market within the Middle East & Africa (MEA) is gradually expanding, supported by the rising adoption of solar-based heating solutions in residential, hospitality, and healthcare sectors. Investments in renewable energy infrastructure are being made by nations like South Africa, the UAE, and Saudi Arabia, opening possibilities for both industrial and residential applications. The region's adoption is being fueled by government-backed programs and growing awareness of energy efficiency.

UAE Solar Thermal Collector Market Trends

In the UAE, the market is growing because of abundant solar resources and strong national sustainability initiatives. There is a high usage of solar thermal systems for processing heating, solar-assisted cooling, and water heating across commercial, industrial, and residential sectors. Major deployments are concentrated in cities such as Dubai and Abu Dhabi, driven by supportive regulations and green building standards. With rising demand for energy-efficient solutions, the market is expected to expand further, attracting both domestic and international solar technology providers to invest in new projects.

How is the Opportunistic Rise of Europe in the Solar Thermal Collector Market?

Europe is expected to expand at a significant rate in the market because of strict environmental laws and rewards. Adoption is most prevalent in Germany, Spain, and France for commercial, industrial, and residential applications. There is a widespread adoption of evacuated tube and flat plate collectors, driven by green building regulations, government subsidies, and the enthusiastic involvement of both domestic and foreign businesses.

Germany Solar Thermal Collector Market Trends

The market in Germany is well established, supported by widespread adoption across residential, commercial, and industrial sectors, along with stringent energy efficiency regulations and strong government incentives. Flat plate and evacuated tube collectors are commonly used for district heating, space heating, and water heating applications. Continued market expansion is reinforced by robust green building initiatives and active participation from both domestic and international solar technology providers.

Solar Thermal Collector Market Value Chain Analysis

Solar Thermal Collector Market Companies

• Viessmann Climate Solutions
• GREENoneTEC Solarindustrie
• Sunrain Group
• TVP Solar
• Himin Solar Energy Group
• Absolicon Solar Collector
• Naked Energy
• Aalborg CSP
• Ritter Solartechnik
• Wolf GmbH
• Emmvee Solar
• Tata Power Solar
• Ariston Group
• BDR Thermea Group
• Solahart Industries

Segment Covered in the Report

By Type

• Concentrating
• Non-Concentrating

By Application

• Commercial
• Residential
• Industrial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa