Global Solar Thermal Collectors market will reach USD 47.85 Billion by 2031 at 10.73% CAGR, driven by rising renewable heating demand.
The global solar thermal collectors market is undergoing a profound structural pivot, where a contracting residential sector is being offset by dynamic growth in industrial process heat and district heating applications. The IEA SHC's Solar Heat Worldwide 2025 report confirms that 17.8 GW of new solar thermal capacity was installed globally in 2024, yet the overall market declined by 14%, primarily due to a sharp contraction in China. China continues to dominate with 380 GWth of installed solar water heater capacity, representing 75.2% of the global total of 505 GWth. Against this trend, annual sales grew at double-digit rates in several major markets, including Mexico, Brazil, and Turkey, driven by a growing construction sector and intensified marketing strategies by system suppliers. The most significant development is the surge in Solar Heat for Industrial Processes (SHIP), with 120 MW of new capacity commissioned globally in 2024, a 28% increase over the previous year, with major projects under construction for the copper mining sector in Chile. Solar district heating is also expanding, with large collector fields in the planning phase in Kosovo (44 MW) and Serbia (27 MW). The market's evolution is propelled by corporate decarbonisation mandates, national renewable heating targets, and technological advancements in hybrid PVT collectors, which saw 37.5 MWth of new thermal capacity installed globally, a 13% increase, with Germany leading the market. However, the sector faces significant headwinds from policy uncertainty, intense competition from heat pumps, and the rapid expansion of low-cost photovoltaic systems. According to the research report "Global Solar Thermal Collectors Market Outlook, 2031," published by Bonafide Research, the Global Solar Thermal Collectors market was valued at more than USD 26.34 Billion in 2025, and expected to reach a market size of more than USD 47.85 Billion by 2031 with the CAGR of 10.73% from 2026-2031. Sunrain Group, Himin Solar Energy Group, and Linuo Paradigma represent the core of this manufacturing base, with Sunrain achieving national recognition as a Manufacturing Single-Item Champion for its solar thermal collector products in 2025. In Europe, GREENoneTEC Solarindustrie GmbH of Austria operates as the world's largest flat plate collector manufacturer, exporting to over 50 countries, while Viessmann Group, Bosch Thermotechnology, and Vaillant Group maintain significant production capacity across Germany. Ritter XL Solar GmbH specialises in large-scale solar thermal systems for industry and district heating, with its AquaSystem innovation utilising water as the heat transfer fluid without glycol. Absolicon Solar Collector AB of Sweden has developed a unique business model selling complete production lines globally, and TVP Solar SA of Switzerland manufactures high-vacuum flat plate collectors with active sales teams across Europe, Brazil, China, and Switzerland. In the United States, SunEarth Inc. holds the most ICC-SRCC certified solar thermal systems, and Alternate Energy Technologies (AET) produces OG-100 certified collectors with a strong focus on domestic sourcing. In India, Tata Power Solar, Havells India, Racold, V-Guard Industries, and Supreme Solar constitute the primary domestic manufacturers. The value chain is characterised by intense vertical integration among Chinese manufacturers, while European and North American producers focus on high-value industrial and district heating applications. Entry barriers include Solar Keymark and ICC-SRCC certification requirements, the capital intensity of collector production, and the need for compliance with evolving domestic content rules for federal incentives.
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Download Sample| By Type | Concentrating | |
| Non-Concentrating | ||
| By End-user | Commercial | |
| Residential | ||
| Industrial | ||
| Utility | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| South America | Brazil | |
| Argentina | ||
| Colombia | ||
| MEA | United Arab Emirates | |
| Saudi Arabia | ||
| South Africa | ||
Non-concentrating collectors dominate the global market because they are the most cost-effective and technologically mature solution for the world's overwhelming demand for low-temperature water heating. • The global installed solar thermal capacity reached 544 GWth in 2024, with the overwhelming majority comprising flat plate and evacuated tube collectors serving residential water heating and space heating applications. • Flat plate collectors are the dominant technology globally, with their simplicity, low maintenance requirements, and compatibility with the vast majority of building stock making them the default choice for residential and commercial installations. • Evacuated tube collectors represent the second-largest non-concentrating technology, preferred in colder climates and for higher-temperature industrial applications due to their superior insulation and efficiency characteristics. • China alone accounts major chunk of global solar water heater capacity, with its total collector area exceeding 420 GWth, the vast majority comprising non-concentrating flat plate and evacuated tube systems deployed on residential rooftops. • Non-concentrating collectors require no tracking systems or complex installation procedures, making them accessible to homeowners and small commercial operators alike, which is critical in markets with limited technical workforce and capital availability. • The global PVT market, a hybrid non-concentrating category, installed 72,544 m² of new collectors worldwide in 2024, representing 37.5 MWth of thermal capacity and signalling growing demand for integrated solutions that maximise energy yield per square metre. • The residential and commercial building segments, which overwhelmingly specify non-concentrating technology, serve at least 122 million clients worldwide, demonstrating the enormous installed base and sustained demand for these mature, reliable products. Water heating is the largest application globally because it represents the most fundamental and universally adopted use of solar thermal energy, serving hundreds of millions of households across both developed and developing markets. • Applications for domestic hot water and space heating in buildings remain predominant in most regions of the world, according to the IEA SHC's Solar Heat Worldwide 2025 report, which covers data from over 70 countries. • The residential sector accounts for the dominant share of global installed capacity, with China's total collector area exceeding 420 GWth and approximately 42% of Japanese households equipped with solar water heating equipment. • Against the global market decline, annual sales grew at double-digit rates in several large markets including Mexico (14%) and Brazil (11%) in 2024, driven by a growing construction sector and intensified marketing strategies by system suppliers. • The global solar water heater market represents a substantial segment, with the installed base providing clean hot water to 122 million residential, commercial, and industrial clients worldwide. • The electric shower in Brazil, which operates between 5,500 and 7,500 watts and accounts for 30 to 45 percent of residential electricity consumption, exemplifies the massive addressable market for solar water heating displacement in emerging economies. • Solar water heating can reduce water heating bills by 50–80% depending on climate and system size, with return on investment as short as 3–6 years, making it economically compelling for households across diverse geographies. • Despite the overall market contraction of 14% in 2024, the long-term trajectory of the last twenty years shows an average annual increase of 3.5% in installed collector capacity, demonstrating the durable, structural demand for solar water heating globally. Commercial is the most significant growth segment globally because solar heat for industrial processes and district heating networks is expanding rapidly, with 120 MW of new capacity commissioned in 2024 alone. • Solar heat for industrial processes (SHIP) saw 120 MW of new capacity installed globally in 2024, a 28% increase over the previous year, with at least 106 new industrial solar heat plants coming into operation worldwide. • The outlook remains strong with an additional 125 MWth of SHIP capacity under construction by the end of 2024, including three multi-megawatt installations being built for copper mines in Chile, demonstrating the scalability of solar thermal for heavy industry. • Commercial solar heat applications are showing strong growth while the residential segment struggles, with Christoph Brunner, CEO of AEE INTEC, noting that large-scale applications such as industrial process heat and solar district heating are driving dynamic growth. • Solar district heating is expanding into new markets, with large-scale collector fields in the planning stages in Kosovo (44 MW) and Serbia (27 MW), while Denmark already operates 124 district heating systems powered by solar thermal energy. • A total of 346 towns and cities worldwide now use solar district heating, with 124 in Denmark, 76 in China, and 59 in Germany, demonstrating the commercial viability of solar thermal for urban-scale heat networks. • The commercial and industrial segments are increasingly turning to low-CO₂ solar heat solutions, with the global shift toward decarbonisation creating a compelling economic case for replacing gas boilers with solar thermal systems. • The Groningen project in the Netherlands, with 48,800 m² of collector area, represents the world's fourth-largest solar thermal plant, supplying heat to a district heating network and exemplifying the scale of commercial deployment now achievable. Low temperature below 100°C is the largest range globally because flat plate and evacuated tube collectors are specifically designed for these applications, representing the most mature and widely deployed segment of the industry. • Low-temperature applications for domestic hot water and space heating in buildings remain predominant in most regions of the world, constituting the overwhelming majority of the 544 GWth of global installed solar thermal capacity. • Flat plate collectors are specifically designed for low-temperature applications below 100°C, and they dominate the global market due to their simplicity, low cost, and compatibility with the vast majority of residential and commercial building stock. • China's total collector area exceeds 4.2 billion square metres, the vast majority serving low-temperature domestic hot water demand, representing approximately 75.2% of global solar water heater capacity. • Approximately 30% of total industrial process heat demand requires temperatures below 100°C, representing a substantial addressable market for low-temperature solar thermal collectors in food processing, textile, and agricultural applications globally. • The residential water heating segment, which operates almost exclusively in the low-temperature range, serves at least 122 million clients worldwide, making it the single largest application for solar thermal technology. • Evacuated tube collectors, which are also predominantly used for low-temperature applications, represent the second-largest non-concentrating technology globally, with their superior insulation making them suitable for colder climates while still operating below 100°C. • The cost of low-temperature collectors has declined significantly over the past two decades, with the long-term development showing an average annual increase of 3.5% in installed capacity, making solar thermal increasingly accessible to a broader range of consumers globally. Rooftop is the largest installation segment globally because solar thermal systems require no additional land, making them particularly attractive in the world's densely populated urban areas where ground-mounted systems are impractical. • The global installed solar thermal capacity reached 544 GWth in 2024, with the overwhelming majority deployed on residential and commercial building rooftops for domestic hot water and space heating applications. • China's total installed solar thermal capacity exceeds 420 GWth, with the vast majority deployed on residential and commercial building rooftops across the country's extensive urban landscape. • Solar thermal systems require no additional land, making rooftop installations particularly attractive in densely populated urban areas across Asia, Europe, and Latin America where ground-mounted systems are impractical. • The residential sector, which overwhelmingly specifies rooftop installations, serves at least 122 million clients worldwide, representing the largest single application and installation category for solar thermal technology. • Approximately 42% of Japanese households are equipped with solar water heating equipment, predominantly installed on rooftops, representing one of the world's most mature rooftop solar thermal markets. • The global solar thermal market's long-term development shows an average annual increase of 3.5% in installed collector capacity over the past twenty years, with rooftop systems representing the dominant installation type driving this sustained growth. • Rooftop installations are compatible with the vast majority of building types globally, requiring no tracking systems or complex installation procedures, making them the default choice for homeowners, housing developers, and commercial building operators alike.
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Asia-Pacific is the largest region globally because China alone contributes majority share of global solar water heater capacity, with the region contributing 65% of all new installed capacity worldwide. • China's cumulative installed solar thermal capacity exceeds 420 GWth, representing major share of the global total of 544 GWth, with total collector area surpassing 4.2 billion square metres. • The Asia-Pacific region contributed 65% of global newly installed capacity in 2025, with China's annual collector additions alone representing the largest single-country deployment in the world. • China led the global market for industrial solar heat in 2024, according to the IEA SHC's Solar Heat Worldwide 2025 report, demonstrating the region's dominance not only in residential applications but also in commercial and industrial segments. • China also hosts 76 solar district heating plants with a combined capacity far exceeding any other single country, with 346 towns and cities worldwide now using solar district heating and 76 of these located in China. • India's cumulative solar thermal capacity has surpassed 32 million square metres, with annual additions reaching approximately 4.2 million square metres in 2025, driven by the Ministry of New and Renewable Energy's viability gap funding scheme. • Chinese manufacturers with vertically integrated plants scaling glass-melting and coating lines to reduce costs and maintain the region's competitive advantage in global export markets. • Japan and South Korea represent mature replacement markets, with approximately 42% of Japanese households equipped with solar water heating equipment and the Japan Thermo-Hygro System Industry Association recording 6,616 units of solar collectors sold in 2024.
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