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The Europe solar thermal market size is forecast to increase by USD 2.64 billion, at a CAGR of 7.81% between 2023 and 2028. The report includes historic market data from 2018 - 2022. Market growth is influenced by several pivotal factors: the rising demand for Concentrated Solar Power (CSP) as a sustainable energy solution, driven by its efficiency and environmental benefits; shifts in the energy mix across European countries towards renewable sources, enhancing energy security and reducing carbon footprints; and advancements in zero-energy building technologies, promoting energy-efficient construction practices and reducing overall environmental impact. The increasing adoption of CSP reflects global efforts to transition towards cleaner energy alternatives, meeting growing electricity demands while reducing reliance on fossil fuels. Additionally, Europe's transition to a diversified energy mix underscores commitments to renewable energy targets, stimulating investments in solar, wind, and other sustainable sources. Meanwhile, the development of zero-energy buildings emphasizes energy conservation and renewable energy integration, aligning with sustainability goals and regulatory mandates. These factors collectively shape market dynamics, driving innovation and investments in renewable energy technologies and sustainable building practices across Europe and beyond.
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Solar thermal-enhanced oil recovery is the primary trend in the market. Solar thermal enhanced oil recovery (EOR) is a technique to increase production from depleted wells using concentrated solar technology. As oil wells mature, production drops significantly. Therefore, it is important to use different oil recovery methods to ensure adequate production from the well. In solar EOR, mirrors are used to reflect and concentrate sunlight onto receivers that capture solar energy and then convert it into heat. This heat is then used to create steam, which is pumped into the reservoir to enhance oil production.
Moreover, the upstream companies are increasing operational efficiency to lower the overall costs associated with crude oil production. Additionally, due to the use of solar energy, carbon emissions will be reduced owing to low natural gas consumption. Therefore, oil recovery through solar thermal energy, the Europe solar thermal energy market is expected to witness significant growth during the forecast period.
The low and medium temperature segment is estimated to witness significant growth during the forecast period. The low and medium temperature segment mainly includes small and medium solar water heating systems for residential and commercial buildings. This segment faces stiff competition from photovoltaic systems and heat pumps. The solar water heating system includes a solar collector and a storage tank. This system uses solar collectors to collect solar radiation and transfer thermal energy to the heat transfer fluid, which in turn heats the water in the heat exchanger.
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In Europe, the solar thermal heating market is facing challenges from other competitors, leading to a gradual decline in the growth rate of the Europe solar thermal market. This is because the availability of new technical solutions has led to the development of other high-efficiency heating systems, in particular thermodynamic water heaters and gas or oil-condensing boilers. Therefore, the overall low and medium-temperature segment of the Europe solar thermal market is expected to see moderate growth during the forecast period.
The market is advancing in industrial use, offering efficient solutions for direct heating, drying, and water desalination. It utilizes solar heating systems including glazed collectors for residential segments and unglazed collectors for industrial applications, harnessing solar thermal technology to generate megawatts of renewable energy. This technology reduces energy bills and supports initiatives like solar district heating plant installations and the Solar Payback Project. Solar thermal systems provide high-temperature heat for district heating and industrial processes, utilizing photovoltaic energy to convert electromagnetic radiation into usable energy for heating water and air. They play a crucial role in sustainable development, reducing reliance on fossil fuels and mitigating environmental impact by utilizing free and abundant solar resources effectively in homes, industries, and food production facilities.
Increasing demand for CSP is the key factor driving the growth of the market. Solar thermal enhances the system flexibility of solar power plants by expanding the contribution of solar power generation to improve their match with normal demand. Solar thermal energy storage achieves this by reducing ramp-up constraints and minimum production levels in CSP plants. By using thermal energy storage in CSP plants, it is possible to produce electricity even in adverse weather conditions with little or no loss of operating efficiency.
Moreover, these factors have led to the installation of new CSP plants over the years. These plants use solar thermal energy because they can withstand much higher temperatures than alternative storage technologies such as batteries. Therefore, solar thermal energy has become the main energy source in CSP power plants. Growing demand for CSP will drive the growth of the Europe solar thermal market during the forecast period.
Dependency on fossil fuels is a challenge that affects the market growth. Fossil fuels remain the main source of electricity generation across the globe. Governments in various countries with abundant non-renewable energy resources do not like to invest in alternative energy sources because the implementation costs are very expensive. Additionally, rising concerns about the impacts of climate change are encouraging many countries to reduce their use of non-renewable fuels and switch to low-emission alternative fuels.
Furthermore, concerns about grid stability arise when the contribution of intermittent renewable energy sources, such as wind and solar resources, is high. Hence, these factors could hinder the adoption of renewable energy, which could harm the growth of the solar thermal market in Europe during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aalborg CSP: The company offers solar thermal such as CSP parabolic troughs, Flat solar thermal panels, combination plants and heat storage accumulation tanks.
The research report also includes detailed analyses of the competitive landscape of the market and information about Key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data, with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is pivotal in the clean energy transition, leveraging photovoltaic generators and gigawatt photovoltaic power stations to meet energy demands across the power generation sector. It encompasses diverse technologies like flat plate solar collectors, evacuated tube collectors, and unglazed water collectors for applications in solar heating systems and solar devices. These systems support public and private companies in harnessing sun rays for solar drying, solar air heating, and solar desalination projects, particularly in desalination plants where they convert seawater into fresh water by leveraging concentrated solar power systems and pumped solar heating systems. The market also aids agriculture, food processing, and industrial processes by providing clean energy resources that reduce greenhouse gas emissions and reliance on fossil fuels. With government incentives and green building codes driving adoption, solar thermal technology plays a critical role in achieving sustainable development goals globally. The Glazed Collector is designed for the residential segment to harness solar heat for industrial processes, while the Unglazed Collector focuses on capturing electrons for energy conversion.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.81% |
Market growth 2024-2028 |
USD 2.63 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.25 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aalborg CSP, Abengoa SA, Acciona SA, ACS Actividades de Construccion Y Servicios SA, Atlantica Sustainable Infrastructure plc, BrightSource Energy Inc., CGC SAMCA, Cosmosolar Ltd, DEL PASO SOLAR SL, DIMAS SA, FRENELL GmbH, GREENoneTEC Solarindustrie GmbH, Greenville Energy and Research Inc., Hewalex Sp. z o. o. Sp.k., Nobel International EAD, PHOENIX SonnenWarme AG, Robert Bosch GmbH, SENER GRUPO DE INGENIERIA SA, Vaillant GmbH, and Viessmann Climate Solutions SE |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID --19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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