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Europe Solar Thermal Market Size 2025-2029

The Europe solar thermal market size is forecast to increase by USD 1.55 billion, at a CAGR of 10.2% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. The increasing demand for concentrated solar power (CSP) systems is a major driving factor, as these systems provide consistent and reliable energy output even during peak sunlight hours and can store energy for use during off-peak hours. Additionally, the emergence of smart cities is leading to increased adoption of technology for heating and cooling applications. However, the intermittency of the solar resource remains a challenge for the market, requiring advancements in energy storage and grid integration solutions. Overall, the market is poised for growth as these challenges are addressed and the benefits of this clean and renewable energy source become more widely recognized.

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The market encompasses the production of thermal energy through the use of solar power. These systems absorb electromagnetic radiation from the sun and convert it into heat, which can be utilized for various applications, including industrial processes such as direct heating, drying, and water desalination. The technology is distinct from photovoltaic energy, which generates electricity. These systems consist of glazed and unglazed collectors, with the former being more efficient at producing high-temperature heat.
The industrial segment is a significant contributor to the market's growth, as businesses seek to reduce energy bills and decrease reliance on natural gas. These systems are also employed in district heating networks and residential applications, providing cost-effective and renewable alternatives to traditional heating sources. The market is expected to continue expanding, driven by advancements in technology and increasing global awareness of the importance of renewable energy sources.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Technology

  L and M temperature
  High temperature


Application

  Heat generation
  Power generation


Collector Type

  Evacuated Tube Collector
  Flat Plate Collector
  Unglazed Water Collector
  Air Collector


Geography

  Europe

    Germany
    France
    Italy
    Spain

By Technology Insights

The I and M temperature segment is estimated to witness significant growth during the forecast period.

Solar thermal energy, derived from sun rays, is utilized for various applications, including industrial processes, direct heating, drying, water desalination, and power generation. Solar heating systems encompass hot water systems, solar combi systems, and solar air heating. Industrial sectors, such as power generation industries, employ the technology for steam turbines to generate electricity. Solar thermal systems are also integrated into desalination plants for fresh water resource production, particularly In the sea water desalination sector. In the residential and commercial segments, solar thermal technology is applied for water heating, space heating, and solar desalination. Solar water heating systems consist of solar collectors and storage tanks, which capture solar radiation and transfer thermal energy to heat transfer fluids, subsequently heating water in a heat exchanger. Common types of solar collectors include evacuated tube collectors, flat plate collectors, unglazed water collectors, and air collectors. The technology offers numerous advantages, including reducing greenhouse gas emissions, contributing to renewable energy targets, and mitigating climate change.

The technology is also utilized in agriculture, food processing, and the tourism industry for drying and heating applications. The power generation sector, particularly In the form of photothermal materials and infrared insulating materials, benefits from thermal technology. Solar thermal systems can be integrated with heat pumps, water heaters, boilers, furnaces, and solar chimneys. Additionally, the technology is employed in swimming pool facilities and for heating greenhouse structures. Solar thermal systems offer cost savings through reduced energy bills, as an alternative to fossil fuels and natural gas. Government incentives and regulatory plans further support the adoption of the technology. The solar industry continues to innovate, with advancements in energy storage, collector surface, and solar panels.

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Market Dynamics

Our Europe Solar Thermal Market researchers an

The European solar thermal market, valued at €5.76 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.81% from 2025 to 2033. This expansion is driven by several key factors. Increasing concerns about climate change and the urgent need for renewable energy sources are fueling significant government incentives and subsidies for solar thermal technology adoption across Europe. Furthermore, rising energy prices and the desire for energy independence are making solar thermal solutions increasingly attractive to both residential and commercial consumers. Technological advancements, such as improved efficiency in high-temperature systems and the development of more cost-effective low and medium-temperature options, are further bolstering market growth. The market is segmented by technology (low/medium temperature, high temperature) and application (heat generation, power generation), with heat generation currently dominating, driven by its application in domestic water heating and space heating. Key players in the market, such as Aalborg CSP, Abengoa SA, and others are strategically positioning themselves through innovation, mergers and acquisitions, and expansion into new geographical areas to capitalize on this growth. Growth is particularly strong in countries like Germany, the UK, and Spain, which have established robust renewable energy policies and a significant existing infrastructure for solar energy integration. However, market expansion faces certain challenges. High initial investment costs for solar thermal systems can be a barrier to entry for some consumers. Moreover, the intermittent nature of solar energy, dependent on weather conditions, necessitates efficient energy storage solutions for consistent performance. Despite these restraints, the long-term outlook for the European solar thermal market remains highly positive, fueled by supportive government policies, escalating energy costs, and continued technological improvements leading to increased affordability and efficiency. The market's steady growth trajectory is anticipated to continue well into the next decade, presenting substantial opportunities for industry participants.

The molten salt solar energy thermal storage and concentrated solar power (CSP) market is experiencing robust growth, projected to reach a market size of $10,760 million in 2025, expanding at a Compound Annual Growth Rate (CAGR) of 19.9%. This significant expansion is driven by several key factors. Firstly, the increasing global demand for renewable energy sources and the urgent need to reduce carbon emissions are fueling investments in CSP technology. Secondly, advancements in molten salt technology, enhancing energy storage capabilities and efficiency, are making CSP a more economically viable option. Furthermore, supportive government policies and incentives, including tax credits and subsidies, are further accelerating market adoption across various regions. The segment breakdown reveals a strong preference for parabolic trough systems, owing to their relative maturity and cost-effectiveness. However, power tower and dish/engine systems are expected to witness considerable growth in the forecast period (2025-2033) driven by technological innovations that improve energy conversion efficiencies and storage capacities. Geographical distribution shows strong potential in regions like North America and the Asia-Pacific, particularly in countries with high solar irradiance and energy demands such as the United States, China, and India. While the market shows immense potential, challenges remain. High initial capital costs associated with CSP plant construction can be a barrier to entry for smaller players. Land requirements for large-scale CSP plants can also present a limitation, especially in densely populated areas. Despite these constraints, ongoing technological advancements aimed at reducing costs and increasing efficiency, coupled with increasing energy security concerns globally, are expected to mitigate these restraints and ensure sustained market growth throughout the forecast period. Companies like BrightSource Energy, Abengoa, and SolarReserve are at the forefront of innovation and market leadership, continually striving to optimize system designs and improve the overall cost-competitiveness of CSP technology.

The European concentrated solar power (CSP) market is experiencing robust growth, driven by increasing concerns about energy security and the urgent need to transition to renewable energy sources. The market, valued at approximately €XX million in 2025 (assuming a logical estimation based on the provided CAGR and market size), is projected to expand at a compound annual growth rate (CAGR) exceeding 7.5% from 2025 to 2033. This growth is fueled by supportive government policies promoting renewable energy adoption, including substantial subsidies and tax incentives. Technological advancements, particularly in heat transfer fluids (with molten salt gaining traction for its superior energy storage capabilities), and the development of more efficient power tower and parabolic trough systems are further contributing to market expansion. Spain and Germany currently lead the European CSP market, benefiting from high solar irradiance and established renewable energy infrastructure. However, other countries like France and the UK are actively investing in CSP projects, fostering broader market penetration. While the initial capital expenditure for CSP plants remains high, representing a key restraint, decreasing technology costs and economies of scale are gradually mitigating this challenge. The market is segmented by technology (Power Tower, Dish/Stirling, Parabolic Trough, Linear Fresnel), heat transfer fluid (Molten Salt, Water-Based, Oil-Based, Other), and key European countries, allowing for targeted investment and policy strategies. The competitive landscape comprises a mix of established players like Abengoa SA, Masdar, and Engie SA, alongside emerging companies and specialized technology providers. The market's future hinges on continued technological innovation, favorable regulatory environments, and successful integration with existing energy grids. The focus is likely to shift towards improving energy storage capabilities and developing hybrid CSP systems that integrate solar thermal with photovoltaic technologies to enhance reliability and reduce reliance on fossil fuel backup. This convergence will unlock new avenues for growth and contribute to the long-term sustainability of the European energy sector. The forecast period (2025-2033) promises further market expansion, driven by the factors outlined above, and continued efforts to decarbonize the European energy mix. Recent developments include: In November 2021, SENER Renewable Investments launched the first hybrid solar project in Spain that merges CSP technology with molten salt storage and photovoltaic technology. In its current configuration, the Solgest-1 plant has a CSP unit with a storage capacity of more than 6 hours and a gross power generation of 110 MWe, making it capable of generating electricity at night or in cloudy weather., In November 2021, the European Commission approved the EUR 2.27 billion, three year incentive program planned by Greece to drive the deployment of more renewable energy generation capacity. The program is set to run untill 2025 and the Greek government aims to achieve 4.2 GW of renewables generation capacity.. Notable trends are: Molten Salt Segment to Dominate the Market.

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Thermal Energy Storage Market Size 2024-2028

The thermal energy storage market size is forecast to increase by USD 2.88 billion at a CAGR of 9.61% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. One of the primary drivers is the increasing demand for Concentrated Solar Power (CSP) technology, which relies on thermal energy storage for efficient energy generation. Another trend influencing market growth is the growing demand for renewable energy sources as countries aim to reduce their carbon footprint and transition towards sustainable energy. The market experiences increasing demand for renewable energy sources, driven by factors such as their growing utilization in smart cities and smart buildings, as well as shifts in the energy mix. With the rise of renewable energy and its integration into urban infrastructure, the market anticipates continued growth opportunities, aligning with the global push towards cleaner and more sustainable energy solutions.
Additionally, it is gaining popularity as an alternate energy storage solution due to its high efficiency rate and ability to provide consistent power output. These factors are expected to fuel market growth and create new opportunities for market participants in the coming years. Furthermore, it is a promising solution for grid stability and reliability, making it an attractive option for utilities and power grid operators. Overall, the market is poised for growth as the world shifts towards renewable energy sources and seeks efficient and reliable energy storage solutions.

What will be the Size of the Thermal Energy Storage Market During the Forecast Period?

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The market is experiencing significant growth due to the increasing demand for infrastructure resilience, security, and cost reduction. With the global transition towards renewable energy sources and the integration of smart grids, these systems have become essential for grid stability and efficiency improvements. The lifecycle cost of these systems, including their ability to provide peak load shaving and grid reliability, makes them an attractive solution for climate change mitigation and carbon emissions reduction.
Sustainability and environmental impact are key drivers in the market, with innovation in the technologies focusing on building management systems, renewable integration, and green building technologies. Policies and regulations are also playing a crucial role In the deployment of thermal energy storage infrastructure development. The systems offer independence from traditional power sources, contributing to sustainable development and grid modernization. The market's size and direction are influenced by the adoption of these systems in various thermal applications, such as solar power, and the reliability they provide in reducing greenhouse gas emissions. Overall, the market is an essential component In the transition towards a more sustainable and efficient energy future.

How is this Thermal Energy Storage Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Technology

  Molten salt energy storage
  Phase change material


End-user

  Industrial
  Residential and commercial
  Utilities


Geography

  Europe

    Germany
    UK


  North America

    US


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Technology Insights

The molten salt energy storage segment is estimated to witness significant growth during the forecast period. The molten salt thermal energy storage segment dominates the global market due to its extensive application in large-scale solar power projects, particularly concentrated solar power (CSP), enabling continuous electricity generation. In CSP systems, molten salt mixtures, such as sodium nitrate and potassium nitrate, are employed In the receiving tower to store energy. Upon absorption of solar heat from mirrors, the salt mixture reaches temperatures up to 1022 degrees Fahrenheit (550 degrees Celsius), causing it to melt.
The molten salt subsequently flows down the tower, either for immediate electricity production or storage in tanks for later use. This technology's popularity stems from its high energy density, compatibility with district heating and cooling systems, and ability to reduce carbon emissions from conventional fuels in power generation. This, coupled with its eco-friendly nature, aligns with the increasing demand for clean energy technologies, driving market growth. Technological advancements in MSES, such as improvements in safety, efficiency, and cost-effectiveness, have further boosted its market growth. Gov

The market is segmented by Technology (Parabolic Trough, Linear Fresnel, Power Tower, and Dish/Stirling), Heat Transfer Fluid (Molten Salt, Oil-Based, and Other Heat transfer fluid)

The Europe Renewable Energy Market size was valued at USD 120 Billion in 2024 and is projected to reach USD 225 Billion by 2032, growing at a CAGR of 8.1% from 2025 to 2032.

Strong Government Support and Policy Framework: The European Union’s Green Deal and Renewable Energy Directive (RED II) aim to increase renewable energy’s share in the EU’s total energy consumption to 32% by 2030. Renewable energy accounted for 22% of total EU energy consumption in 2020.

Technological Advancements and Cost Reduction: Renewable energy generation, particularly wind and solar power, has seen significant cost reductions over the past decade. Since 2010, solar photovoltaics and onshore wind electricity costs have dropped by 82% and 39%, respectively, according to the International Renewable Energy Agency (IRENA). This makes renewable energy more competitive with traditional fossil fuels, making it easier for European countries to transition to cleaner energy sources.

This dataset contains the data underlying the modelling activities of the MUSTEC (Market Uptake of Solar Thermal Electricity through Cooperation) project used in the models Green-X (TU Wien) and Enertile (Fraunhofer ISI).

For description of the modelled scenarios, results and findings, see: Resch, G., Schöniger, F., Kleinschmitt, C., Franke, K., Sensfuß, F., Thonig, R., and Lilliestam, J.: Market uptake of concentrating solar power in Europe: model-based analysis of drivers and policy trade-offs. Deliverable 8.2 MUSTEC project, TU Wien, Wien.

For information on the project see: https://www.mustec.eu/

For data descriptions, licence, and further information, see README.md.

The global solar thermal market, currently valued at approximately $XX million (estimated based on the provided CAGR and market trends), is projected to experience robust growth, with a compound annual growth rate (CAGR) of 5.71% from 2025 to 2033. Several key drivers fuel this expansion. The increasing global demand for renewable energy sources, coupled with stringent environmental regulations aimed at reducing carbon emissions, is significantly boosting the adoption of solar thermal technologies. Furthermore, advancements in technology, leading to improved efficiency and reduced costs, are making solar thermal systems increasingly competitive with traditional energy sources. Government incentives, such as subsidies and tax breaks, further incentivize the widespread implementation of these systems for both residential and commercial applications. Growing awareness among consumers regarding the economic and environmental benefits of solar thermal energy is also driving market growth. Market segmentation reveals significant opportunities across various types and applications. While specific type and application breakdowns are unavailable in the provided data, it is reasonable to expect strong growth in concentrated solar power (CSP) and distributed solar thermal systems, catering to large-scale electricity generation and individual household needs, respectively. Geographical analysis indicates that North America and Europe currently hold significant market shares, driven by strong government support and a high concentration of technologically advanced companies. However, emerging economies in Asia-Pacific, particularly China and India, are poised for substantial growth as their energy demands increase and renewable energy adoption accelerates. Despite the positive outlook, challenges such as high initial investment costs and intermittency of solar energy remain hurdles to overcome for wider market penetration. Competitive strategies among leading players, such as Acciona SA, ENGIE SA, and others, largely focus on technological innovation, cost optimization, and strategic partnerships to secure market dominance.

The molten salt solar energy thermal storage market, valued at $889.9 million in 2025, is projected to experience robust growth, driven by increasing demand for renewable energy solutions and the need for reliable energy storage to address intermittency issues associated with solar power. A Compound Annual Growth Rate (CAGR) of 6.7% from 2025 to 2033 indicates a significant expansion of this market, exceeding $1.5 billion by the end of the forecast period. Key drivers include government incentives promoting renewable energy adoption, declining costs of molten salt technology, and the rising need for grid stability in the face of growing renewable energy integration. The increasing adoption of concentrated solar power (CSP) systems, particularly tower-type and dish systems, is further fueling market growth. While challenges such as high initial investment costs and potential environmental concerns related to molten salt handling remain, ongoing technological advancements and improved safety protocols are mitigating these restraints. Geographic growth is expected across North America, Europe, and the Asia-Pacific region, with China and the United States leading the market due to substantial investments in renewable infrastructure and supportive government policies. Market segmentation reveals strong demand across diverse applications. The CSP system segment dominates, followed by electricity generation and industrial heating. Tower-type solar power tower systems currently hold the largest share in the types segment due to their higher energy storage capacity, but dish concentrating solar power systems are expected to gain traction due to their cost-effectiveness for smaller-scale applications. Leading companies like BrightSource Energy, Abengoa, and Siemens are actively involved in innovation and market expansion, further driving competition and fostering technological advancements that will improve efficiency and reduce the overall cost of the technology, making it even more attractive to potential adopters. The historical period (2019-2024) likely showed slower growth compared to the forecast period, indicating an acceleration of market adoption in the coming years due to technological maturation and greater policy support.

The global solar thermal market is experiencing robust growth, driven by increasing concerns about climate change and the need for sustainable energy solutions. The market, estimated at $15 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching approximately $28 billion by 2033. This expansion is fueled by several key factors. Government incentives and policies promoting renewable energy adoption are playing a significant role, particularly in regions like Europe and North America. Furthermore, declining solar thermal technology costs, coupled with improved efficiency and technological advancements in concentrated solar power (CSP) systems, are making solar thermal energy a more economically viable option compared to traditional fossil fuels. The rising demand for industrial process heat and the increasing integration of solar thermal systems into building designs further contribute to market growth. While the initial investment costs can be a barrier, long-term operational cost savings and the environmental benefits are compelling arguments for adoption. The market is segmented by application (heat generation, power generation) and type (concentrated and non-concentrated solar thermal). Concentrated solar thermal is expected to show higher growth due to its higher efficiency in electricity generation, although non-concentrated systems maintain a larger market share due to their lower initial costs and suitability for smaller-scale applications. Key players like Abengoa, Bosch Thermotechnology, ACCIONA, GREENoneTEC, and Viessmann are actively involved in developing and deploying innovative solar thermal technologies, further driving market competitiveness and innovation. Regional variations in market growth are anticipated, with North America and Europe expected to maintain significant market shares due to established renewable energy infrastructure and supportive government policies. However, the Asia-Pacific region is poised for substantial growth, driven by rapid industrialization and increasing energy demands in countries like China and India. Challenges remain, including intermittent solar energy availability and the need for efficient energy storage solutions to address the intermittency issue. Despite these challenges, the long-term outlook for the solar thermal market remains positive, driven by sustained global efforts to mitigate climate change and diversify energy sources. The market is expected to continue its trajectory of growth, fueled by technological innovation and supportive policy frameworks.

Solar Power Market Outlook

According to our latest research, the global solar power market size reached USD 243.5 billion in 2024, demonstrating robust momentum propelled by growing clean energy adoption. The market is expected to expand at a CAGR of 7.8% from 2025 to 2033, reaching a projected value of USD 482.9 billion by 2033. This remarkable growth is primarily driven by increasing government incentives, declining costs of solar technologies, and heightened environmental awareness globally. As per our analysis, the solar power market is undergoing a significant transformation, fueled by technological advancements and supportive policy frameworks that are making solar energy more accessible and economically viable for a broad range of applications.

One of the primary growth drivers for the solar power market is the ongoing reduction in the cost of solar photovoltaic (PV) modules and associated system components. Over the past decade, the average cost of solar panels has plummeted by more than 80%, making solar energy one of the most cost-competitive renewable sources worldwide. This price decline is largely due to advancements in manufacturing efficiency, economies of scale, and increased competition among suppliers. As solar technology becomes more affordable, both residential and commercial consumers are increasingly opting for solar installations to reduce their reliance on conventional energy sources and lower electricity bills. Additionally, the integration of energy storage solutions and smart grid technologies has further enhanced the reliability and appeal of solar power, allowing for greater flexibility and grid stability.

Government policies and regulatory support play a pivotal role in propelling the solar power market forward. Numerous countries have implemented ambitious renewable energy targets, feed-in tariffs, tax incentives, and subsidies to encourage the adoption of solar power. For instance, the European Union aims to achieve at least 42.5% of its energy from renewable sources by 2030, with solar power being a cornerstone of this strategy. Similarly, the United States and China have rolled out extensive programs to boost solar installations at both utility and distributed scales. These policy initiatives are complemented by growing investments from public and private sectors, which are accelerating research and development efforts, fostering innovation, and expanding solar infrastructure globally. As a result, the solar power market is witnessing increased participation from diverse stakeholders, including utilities, independent power producers, and corporate buyers seeking to decarbonize their operations.

Environmental concerns and the global push towards sustainability have significantly influenced consumer preferences and corporate strategies, further fueling demand for solar power. With rising awareness about climate change and the need to reduce greenhouse gas emissions, individuals and organizations are increasingly prioritizing clean energy solutions. Solar power, being a zero-emission technology during operation, offers a compelling alternative to fossil fuels, contributing to improved air quality and reduced carbon footprints. The proliferation of green building standards, corporate sustainability commitments, and renewable energy procurement agreements has led to a surge in solar installations across residential, commercial, and industrial sectors. This trend is expected to intensify in the coming years as more stakeholders recognize the long-term economic and environmental benefits of solar energy.

Regionally, the Asia Pacific dominates the global solar power market, accounting for more than 50% of total installations in 2024. This leadership is attributed to substantial investments in solar infrastructure, favorable government policies, and rapid urbanization in countries such as China, India, and Japan. North America and Europe also represent significant markets, driven by technological innovation, strong policy support, and growing consumer demand for sustainable energy solutions. Meanwhile, emerging markets in Latin America, the Middle East, and Africa are witnessing accelerated growth, supported by abundant solar resources and increasing efforts to diversify energy portfolios. The regional landscape of the solar power market is characterized by dynamic competition, varying regulatory environments, and diverse market entry strategies, creating a vibrant ecosystem for innovation and growth.<br /&

The global evacuated tube solar thermal collector market is experiencing robust growth, driven by increasing energy costs, stringent environmental regulations promoting renewable energy adoption, and government incentives supporting solar energy initiatives. The market's expansion is fueled by the rising demand for sustainable and cost-effective heating and hot water solutions in both domestic and commercial buildings. Full glass and glass-metal evacuated tube collectors are the dominant types, each catering to specific application needs and budget considerations. While the full glass variant offers a more economical option, the glass-metal type provides enhanced durability and efficiency, commanding a premium price. Technological advancements leading to improved heat transfer efficiency, longer lifespans, and easier installation are further bolstering market growth. The Asia-Pacific region, particularly China and India, represents a significant market share due to large-scale infrastructure development and government support for renewable energy projects. Europe and North America also demonstrate substantial market presence, driven by strong environmental consciousness and a robust building sector. However, high initial investment costs and dependence on sunlight availability pose some constraints to wider adoption. The market is highly competitive, with key players like GreenoneTEC, Viessmann, and others constantly innovating to improve product offerings and expand their market reach. Future growth is projected to be particularly strong in developing economies as they prioritize sustainable energy solutions. The forecast period (2025-2033) anticipates sustained growth, driven by ongoing technological enhancements, favorable government policies, and rising awareness of climate change. The market segmentation by application (domestic and commercial buildings) and type (full glass and glass-metal evacuated tube collectors) provides valuable insights for targeted marketing and strategic investments. Companies are focusing on expanding their product portfolios, enhancing distribution networks, and forging strategic partnerships to maintain a competitive edge. Research and development efforts are focused on improving collector efficiency, durability, and aesthetics to appeal to a wider consumer base. The competitive landscape is dynamic, with ongoing mergers and acquisitions shaping the market structure. Long-term growth will be significantly influenced by technological innovation, particularly in areas like advanced materials and intelligent control systems. The continued rise of energy prices and the increasing urgency of climate change mitigation efforts will further accelerate the adoption of evacuated tube solar thermal collectors globally.

The Market Report Covers Global Solar Thermal Collectors Manufacturers and is segmented by Collector Type (Glazed Collector and Unglazed Collector), Application (Residential, Commercial, and Industrial), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

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Parabolic Trough Concentrated Solar Power (CSP) Market Size 2024-2028

The parabolic trough concentrated solar power (csp) market size is forecast to increase by USD 596.7 million, at a CAGR of 2.06% between 2023 and 2028.

The market is driven by the global shift towards renewable energy sources and the increasing adoption of solar thermal technology for enhanced oil recovery. The energy mix is evolving, with a growing emphasis on sustainable and clean energy solutions. CSP, specifically parabolic trough systems, offer a unique value proposition, as they can generate electricity and provide thermal energy for industrial processes. However, the market faces significant challenges. Competition from alternative sources of renewable energy, such as photovoltaic (PV) solar panels, continues to intensify. PV systems have seen rapid cost reductions and technological advancements, making them increasingly competitive in the energy market.
Furthermore, the intermittency of solar energy remains a challenge for CSP, necessitating energy storage solutions or a reliable grid infrastructure to ensure consistent power generation. Addressing these challenges will require continued innovation and collaboration among industry players, regulatory bodies, and research institutions. Companies seeking to capitalize on the opportunities in the Parabolic Trough CSP market must focus on improving efficiency, reducing costs, and addressing energy storage and grid integration challenges.

What will be the Size of the Parabolic Trough Concentrated Solar Power (CSP) Market during the forecast period?

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Concentrated Solar Power (CSP) market dynamics continue to evolve as this sustainable energy technology unfolds new applications across various sectors. Parabolic trough collectors, a key component of CSP systems, consume water for cooling purposes during power generation. Solar energy policy and land use regulations significantly impact the market, influencing the location and design of CSP power plants. Power generation through CSP relies on solar irradiance and thermal energy storage, primarily using molten salt, to ensure consistent power output. Steam turbines convert thermal energy into electricity, while performance optimization and industrial process heat applications enhance the technology's efficiency and versatility.

Construction and project development in the CSP industry require careful consideration of capital and operational expenditures. Solar tracking systems and optical efficiency enhancements contribute to improved technology advancements, including the Organic Rankine Cycle and hybrid energy systems. Grid integration and government incentives are crucial for market penetration and growth. Carbon emissions reduction and clean energy initiatives further fuel the demand for CSP technology. Maintenance and operation costs, as well as power plant design and thermal efficiency, remain essential factors in the industry trends. The future outlook for CSP technology is promising, with advancements in heat transfer fluids, thermal storage, and solar field design continuing to drive innovation.

The environmental impact of CSP is a significant consideration, with ongoing efforts to minimize water consumption and reduce land use. In the ever-changing landscape of renewable energy, CSP technology continues to adapt and evolve, offering a sustainable and efficient solution for power generation and industrial process heat applications.

How is this Parabolic Trough Concentrated Solar Power (CSP) Industry segmented?

The parabolic trough concentrated solar power (csp) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Capacity

  Less than or equal to 50 MW
  More than 50 MW


Type

  U-shape
  V-shape


Geography

  North America

    US


  Europe

    France
    Germany
    Spain


  APAC

    China


  Rest of World (ROW). 

By Capacity Insights

The less than or equal to 50 mw segment is estimated to witness significant growth during the forecast period.

The market has experienced notable growth in the less than or equal to 50 MW segment, focusing on flexible small-scale energy solutions. This segment caters to businesses and residential areas, offering advantages such as installation in various locations, including urban areas. The scarcity of suitable land for power generation in several countries is a significant challenge, making small-scale CSP plants an appealing alternative. CSP technology, which includes Parabolic Trough collectors, harnesses solar energy through mirrors that focus sunlight ont

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Distributed Solar Power Generation Market Size 2025-2029

The distributed solar power generation market size is forecast to increase by USD 55.2 billion at a CAGR of 5.7% between 2024 and 2029.

The market is experiencing significant growth, driven by increasing investments in renewable energy and the expanding adoption of microgrids. This shift towards decentralized energy production is particularly notable in regions with robust solar resources and supportive regulatory frameworks. However, the market is not without complexities. The integration of distributed solar photovoltaic (PV) systems into the grid necessitates careful management of components such as energy storage, inverters, and power electronics. These complexities add to the cost of distributed solar projects and necessitate ongoing operational and maintenance efforts. Despite these challenges, companies seeking to capitalize on this market opportunity can benefit from strategic partnerships, technological innovation, and a deep understanding of local regulatory environments. By navigating these complexities effectively, players in the market can position themselves to capitalize on the long-term growth potential of this sector.

What will be the Size of the Distributed Solar Power Generation Market during the forecast period?

Request Free SampleThe market encompasses a range of technologies and applications, including solar asset management, building-integrated photovoltaics, solar water pumps, power towers, solar cookers, and photovoltaic thermal. Solar irradiance and resource assessment play crucial roles in optimizing system performance and energy yield. Advancements in solar technology continue to emerge, such as parabolic troughs, solar glazing, and solar agriculture. Blockchain technology is also being explored for peer-to-peer energy trading and energy resilience. Circular economy principles are increasingly being applied to the solar industry through the use of renewable energy certificates and life cycle analysis. Solar thermal power, solar awnings, and energy sharing are other areas of growth. Electric vehicle charging, solar reits, and peak shaving are among the applications driving innovation in the market. Energy trading, solar irrigation, and carbon footprint reduction are key considerations for businesses adopting solar power. Energy arbitrage, performance optimization, and solar charging stations are essential components of grid reliability and microgrid management. Flow batteries and ESG investing are also gaining traction in the sector. Solar desalination and solar facades offer solutions for water scarcity and energy efficiency, respectively. Green bonds and system sizing are important financing and planning tools for businesses investing in solar power. Thermal energy storage and grid reliability are critical for ensuring the stability and effectiveness of distributed solar power systems. Overall, the market is dynamic and evolving, with numerous opportunities for businesses to reduce their carbon footprint and enhance their energy resilience.

How is this Distributed Solar Power Generation Industry segmented?

The distributed solar power generation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. Installation SitesOn-gridOff-gridEnd-userCommercialIndustrialResidentialTypeMono-SIp-SiA-SiCVPLocationGround mountedRoof-topGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKMiddle East and AfricaAPACAustraliaChinaIndiaJapanSouth KoreaSouth AmericaRest of World (ROW)

By Installation Sites Insights

The on-grid segment is estimated to witness significant growth during the forecast period.In the realm of renewable energy, on-grid distributed solar power systems have emerged as a cost-effective solution for residential consumers. These systems, which operate in conjunction with the grid, enable homes to utilize solar energy while remaining connected to the power grid. Solar panels installed in homes are linked to appliances, meters, and the grid, providing substantial cost savings by eliminating the need for batteries and standalone equipment. The installation and maintenance of such equipment add to the overall cost, making on-grid distributed solar systems a more affordable and simpler alternative. Moreover, the integration of advanced technologies, such as machine learning, energy management systems, and data analytics, enhances the efficiency and performance of these systems. Energy service companies and solar developers are increasingly embracing these technologies to optimize energy production and consumption. The adoption of renewable portfolio standards, net metering, power purchase agreements, and feed-in tariffs further incentivizes the growth of the on-grid distributed

Solar Thermal Phase-Change Storage Market Outlook

According to our latest research, the global solar thermal phase-change storage market size reached USD 1.82 billion in 2024. The market is experiencing significant momentum, registering a robust CAGR of 14.9% from 2025 to 2033. By the end of 2033, the market is forecasted to attain a value of USD 6.16 billion. This impressive growth is primarily fueled by the increasing integration of renewable energy sources into global energy portfolios and the urgent demand for efficient, scalable, and sustainable energy storage solutions.

One of the primary growth factors driving the solar thermal phase-change storage market is the escalating global focus on decarbonization and the transition toward renewable energy. Nations worldwide are intensifying their efforts to reduce greenhouse gas emissions, which has led to substantial investments in solar energy infrastructure. However, solar energy’s intermittent nature necessitates advanced storage solutions to ensure a stable and reliable power supply. Phase-change materials (PCMs) have emerged as a highly effective option, as they can store and release thermal energy with high efficiency, thereby addressing the critical challenge of energy variability in solar power generation. This technological advantage is prompting utilities, industries, and governments to integrate solar thermal phase-change storage systems into their energy frameworks, further propelling market growth.

Another significant driver is the rapid advancement in phase-change material technologies and storage system designs. Innovations in material science have led to the development of new PCMs with higher energy density, improved thermal conductivity, and greater durability, making them more suitable for large-scale applications. The availability of a diverse range of PCMs, such as paraffin, salt hydrates, and eutectic salts, allows for tailored solutions across different temperature ranges and storage capacities. These advancements are not only enhancing the efficiency of solar thermal storage systems but also reducing operational costs, thus making them more attractive for commercial, industrial, and residential applications. The growing adoption of smart grids and digital monitoring systems further enhances the operational efficiency and integration of solar thermal phase-change storage into existing energy networks.

Government policies and financial incentives play a pivotal role in accelerating the adoption of solar thermal phase-change storage solutions. Many countries have introduced favorable regulations, tax credits, and subsidies to encourage the deployment of renewable energy and energy storage systems. These policy measures are particularly pronounced in regions such as Europe and Asia Pacific, where ambitious renewable energy targets are driving large-scale investments in solar infrastructure. Additionally, the increasing participation of private sector players and strategic partnerships between technology providers, utilities, and research institutions are fostering innovation and market expansion. As a result, the ecosystem for solar thermal phase-change storage is becoming increasingly dynamic and competitive, further supporting the market’s upward trajectory.

From a regional perspective, Asia Pacific stands out as the fastest-growing market, driven by rapid industrialization, urbanization, and strong government support for renewable energy initiatives. China, India, and Japan are leading the charge, with significant investments in solar power generation and storage infrastructure. Europe remains a key market, underpinned by stringent environmental regulations and ambitious decarbonization goals. North America is also witnessing robust growth, particularly in the United States, where technological innovation and supportive policy frameworks are facilitating the integration of solar thermal phase-change storage across various sectors. Meanwhile, Latin America and the Middle East & Africa are emerging as promising markets, fueled by abundant solar resources and growing energy demand. Overall, the global landscape for solar thermal phase-change storage is characterized by diverse opportunities and strong growth momentum across all major regions.

The global solar thermal fluid market is experiencing robust growth, projected to reach a market size of $1213 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 8.0% from 2025 to 2033. This expansion is driven by the increasing adoption of solar thermal energy for various applications, particularly in power generation, heating and cooling, and desalination. The rising demand for sustainable and efficient energy solutions, coupled with government incentives and supportive policies promoting renewable energy sources, significantly contributes to market growth. Technological advancements leading to improved fluid efficiency and durability further fuel this expansion. The market is segmented by fluid type (ethylene glycol and non-ethylene glycol) and application, reflecting the diverse uses of solar thermal fluids across various industries. Ethylene glycol currently dominates the market due to its established performance and widespread availability, however, the non-ethylene glycol segment is expected to witness significant growth driven by increasing concerns regarding environmental impact and toxicity of ethylene glycol based fluids. The geographical distribution of the market reflects strong growth in regions with high solar irradiance and increasing investments in renewable energy infrastructure, such as North America, Europe, and Asia Pacific. Key players in the market, including Sentinel, Fernox, Hydratech, and others, are focusing on innovation and product diversification to meet the growing demands of various sectors. Competition is intensifying as companies strive to enhance product performance, reduce costs, and expand their market reach. The market faces challenges related to raw material price fluctuations and potential environmental concerns associated with specific fluid types. However, ongoing research and development efforts towards more sustainable and environmentally friendly fluids are mitigating these restraints, paving the way for continued market expansion in the coming years. The long-term forecast anticipates a steady increase in market size, driven by consistent growth in renewable energy adoption and supportive government policies.

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Off-Grid Solar Power Systems Market Size 2024-2028

The off-grid solar power systems market size is forecast to increase by USD 4.01 billion at a CAGR of 12.93% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. One of the primary drivers is the high cost of grid expansion, which makes off-grid solar power systems an attractive alternative for remote and rural areas. Another trend influencing market growth is the increasing adoption of the Pay-As-You-Go (PAYG) model, which allows consumers to pay for solar power in installments, making it more affordable. The substantial cost of grid expansion necessitates innovative alternatives, leading to heightened curiosity and investment in hybrid power systems that integrate renewable energy with traditional sources. However, the high initial cost of PV systems remains a challenge for market growth. To address this challenge, companies are focusing on developing cost-effective solutions, such as using locally available materials and implementing economies of scale. Overall, the market is poised for steady growth as it provides a sustainable and cost-effective solution for energy access in areas not connected to the grid.

What will be the Size of the Off-Grid Solar Power Systems Market During the Forecast Period?

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The market represents a significant growth opportunity for businesses and individuals seeking energy independence and sustainability. Solar panels, as a renewable energy source, have gained popularity as an alternative to traditional electrical grids, particularly in areas with limited or unreliable electricity access. These systems operate on both direct current (DC) and alternating contemporary (AC) power, allowing for the integration of environmentally friendly appliances. Monetary incentives, including tax breaks, subsidies, and supportive initiatives, have driven the widespread adoption of off-grid solar power systems. The market's growth is further fueled by technological advancements, which have led to cost decreases and increased efficiency.



Energy storage systems play a crucial role In the market, ensuring a consistent power supply and reducing the reliance on fossil fuels, ultimately lowering greenhouse gas emissions. The upfront costs associated with purchasing, installing, and transporting equipment, as well as labor costs and integral infrastructure modifications, remain challenges for the market's growth. However, the benefits of these systems, such as energy independence, cost savings, and environmental sustainability, continue to attract consumers and drive the market forward.

How is this Off-Grid Solar Power Systems Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  AC
  DC


Application

  Non-residential
  Residential


Geography

  APAC

    China
    India


  Europe



  Middle East and Africa

    Kenya


  North America

    US


  South America

By Type Insights

The AC segment is estimated to witness significant growth during the forecast period.

Off-grid solar power systems refer to solar energy solutions that provide electricity without relying on the traditional electrical grid. These systems typically consist of solar panels, batteries for energy storage, solar inverters, controllers, and other associated equipment. These systems are increasingly popular due to their environmental benefits, as they utilize a renewable energy source and help mitigate greenhouse gas emissions, unlike fossil fuels. Technological advancements have led to decreasing costs, making these systems more accessible and affordable for both commercial and residential applications. Supportive policies, monetary incentives, tax breaks, and subsidies further encourage the widespread adoption of off-grid solar power systems.

These systems can provide clean power for critical services, such as healthcare facilities, vaccine storage, and telemedicine initiatives, ensuring resilience and adaptability during grid failures or power outages. The solar photovoltaic sector, including solar panel manufacturers and installers, is experiencing significant growth as the world transitions towards a renewable-based electricity mix.

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The AC segment was valued at USD 2.94 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 47% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and