The global non-concentrating solar collector market size was valued at USD 13.7 billion in 2023 and is anticipated to reach from USD 13.72 billion in 2024 to USD 47.3 billion by 2032, registering a CAGR of 14.7% during the forecast period (2024-2032).
Non-concentrating solar collectors market share has grown significantly due to rising environmental concerns, government incentives, and technological advancements, establishing solar energy as a viable alternative to traditional fossil fuels.
Non-concentrating solar collectors collect solar radiation and convert it into usable thermal energy without concentrating the sunlight. Unlike concentrating solar collectors, which use mirrors or lenses to direct sunlight to a small area, non-concentrating collectors absorb sunlight without focusing it.
The need for clean and sustainable energy sources, government incentives and subsidies, increased awareness of renewable energy, and growing concerns about climate change are all significant drivers of revenue growth in the global market. Non-concentrating solar collectors are less expensive and easier to install than concentrator-based systems, making them an attractive option for smaller-scale applications such as residential and commercial buildings. Furthermore, the increasing global adoption of rooftop solar panels is expected to accelerate the growth of the global market.
Additionally, the latest trends in the global market include adopting new technologies such as photovoltaic cell technology, increased investments in R&D, and collaborations and partnerships among key industry players. Companies also focus on developing efficient and cost-effective solar panels to attract more customers.
Highlights
Government policies, regulations, and incentives all play an essential role in increasing the adoption of non-concentrating solar collectors. Subsidies, tax credits, feed-in tariffs, and renewable energy targets are all examples of policies that encourage individuals, businesses, and utilities to invest in solar thermal technology. Many countries have implemented feed-in tariff programs, which provide renewable energy producers with guaranteed, long-term contracts and premium prices, such as solar thermal systems. Germany's Renewable Energy Sources Act (EEG) 2023 aims to integrate renewable energy into the market, lowering the costs of Germany's "energy turnaround" (Energiewende). To accomplish this, the federal government limits the annual extension of renewable energy plants and significantly changes the statutory tariff structure. In the future, operators of renewable energy plants will only receive the statutory feed-in tariff in exceptional circumstances. Instead, direct marketing of energy produced by renewable energy plants will be required.
Consequently, governments frequently offer financial incentives, such as subsidies and grants, to encourage the installation of solar thermal systems. For example, the United States federal government provides financial incentives for solar thermal installations through the Investment Tax Credit (ITC) and the Residential Renewable Energy Tax Credit. The renewable electricity production tax credit (PTC) is a per-kilowatt-hour (kWh) federal tax credit provided by Section 45 of the United States tax code for electricity generated by qualified renewable energy sources.
Similarly, in India, renewable energy subsidies increased to INR 14,843 crore, an 8% increase over FY 22, but they remain low compared to fossil fuels. In FY 2023, India increased renewable energy subsidies by 8% to INR 14,843 crore (USD 1.8 billion), making solar thermal more affordable and accessible to consumers.
The intermittent nature of sunlight directly impacts the energy generation capacity of non-concentrating solar collectors. Cloud cover, atmospheric haze, and seasonal variations in sunlight intensity can all cause fluctuations in energy output, creating uncertainty in meeting demand, especially for applications that require consistent heat or power supply. Svalbard, Norway. This Arctic archipelago experiences a polar night that lasts several weeks during the winter. The sun sets in late October and rises again in mid-February, so the region receives no sunlight for four months out of the year.
Furthermore, the intermittent nature of solar radiation significantly impacts solar thermal power plants, which generate electricity using non-concentrating solar collectors. For example, California's Ivanpah Solar Electric Generating System produced less electricity during cloud cover or haze, resulting in operational challenges and lower-than-expected output. The capacity factor of solar thermal power plants, which compares actual energy output to maximum potential output, varies with solar irradiance and weather conditions. Due to Canadian wildfires, New England's solar production dropped by 56% in a single week in June 2023. Further, in 2023, solar developers delayed the scheduled online date for an average of 19% of planned solar capacity, down from 23% in 2022 but still higher than the 2018-2021 average.
China's rapid urbanization and industrialization have significantly increased energy demand, particularly for building heating and cooling and industrial process heat. Non-concentrating solar collectors provide a viable solution for meeting the growing demand sustainably. For example, in China's northern regions, where coal-fired heating systems are standard, there has been a strong push to transition to cleaner heating sources, such as solar thermal technologies, to reduce air pollution and carbon emissions.
Additionally, the International Energy Agency (IEA) predicts that global energy demand will increase by 25% by 2040, driven primarily by population growth, urbanization, and rising living standards, particularly in emerging economies. This rising energy demand creates an excellent opportunity for renewable energy sources such as solar thermal to play a larger role in meeting future energy needs sustainably.
Furthermore, as more people move to cities and urban areas, there is an increase in demand for energy-intensive services like space heating, cooling, and hot water in residential, commercial, and institutional buildings. Non-concentrating solar collectors can be integrated into urban infrastructure to generate clean, renewable heat and power, reducing reliance on fossil fuels and mitigating environmental impacts.
| Study Period | 2020-2032 | CAGR | 14.7% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 13.7 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 47.3 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
Asia-Pacific is the most significant global market shareholder and is estimated to grow at a CAGR of 14.5% over the forecast period. The non-concentrating solar collectors market is expected to expand rapidly due to increased demand from planned and existing solar power projects in Asia Pacific. Furthermore, the market will likely benefit from attractive government programs and financing for clean, renewable energy. To encourage the use of high-efficiency solar photovoltaic (PV) panels, the Chinese government established the "Top Runner Program." As part of this initiative, China establishes efficiency standards for PV modules, encouraging manufacturers to develop and market more effective solar panels. The initiative aims to improve the overall efficiency and performance of the nation's non-concentrating solar collectors. China's ambitious Belt and Road Initiative seeks to connect and cooperate with European, Asian, and African countries. China has invested in and developed renewable energy projects, such as solar power installations, as part of this strategy. Non-concentrating solar collectors are frequently installed as part of these clean energy initiatives that promote sustainable development.
Furthermore, India has launched a solar irrigation pumping initiative to replace diesel-powered irrigation pumps with solar-powered ones. This initiative's goals are to improve agricultural output and reduce carbon emissions. India actively promotes rooftop solar systems through a variety of programs and incentives. These initiatives include installing solar panels and other non-concentrating solar collectors on the roofs of commercial, residential, and industrial buildings. The market for non-concentrating solar collectors is growing due to government incentives and net metering regulations encouraging rooftop solar systems.
Europe is anticipated to exhibit a CAGR of 14.8% over the forecast period. Solar district heating systems now account for most of the demand in European countries, with the non-concentrating solar collectors sector expanding significantly. For example, in January 2020, the European Parliament passed a resolution on the European Green Deal emphasizing the importance of decarbonizing the energy sector as the primary goal for reaching a net-zero economy for greenhouse gas emissions by 2050.
In addition, community-led solar projects are becoming more common in the United Kingdom. These programs entail attaching solar panels or other non-concentrating solar collectors to public buildings or other common areas. Solar PPAs are becoming increasingly popular, allowing businesses and organizations to purchase solar energy without incurring significant upfront costs for solar equipment. Under a PPA, the client pays a set price for the power generated, while the solar energy provider installs and maintains non-concentrating solar collectors. The United Kingdom has implemented school solar energy projects to promote renewable energy sources and reduce carbon emissions. Several schools have installed solar panels and other non-concentrating solar collectors to generate clean energy.
North America has dominated the non-concentrating solar collectors industry. Non-concentrating solar collectors were primarily used in commercial facilities in the United States during the projection period. This includes swimming pools and space heating in colder climates. The US market is expected to be driven by growing concerns about environmental sustainability and a dwindling supply of natural resources.
Additionally, in California, programs like the California Solar Initiative (CSI) and the Single-family Affordable Solar Homes (SASH) program have encouraged residential solar water heating systems. These programs provide rebates and incentives to homeowners who install solar thermal systems, making them more cost-effective and accessible. For example, the SASH program incentivizes low-income households to install solar water heating systems, lowering their energy costs and carbon footprint.
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The market is further segmented by absorber plates into Copper, Aluminum, and Steel Plates. Copper is a popular material for absorber plates in solar thermal collectors due to its high thermal conductivity and corrosion resistance. Copper absorber plates effectively absorb solar radiation and transfer heat to the working fluid, such as water or antifreeze, which circulates through the collector. Copper's high thermal conductivity allows for rapid heat transfer, increasing the efficiency of solar thermal systems. Furthermore, copper's durability and resistance to degradation make it suitable for long-term outdoor exposure, extending the life and reliability of solar thermal collectors.
Aluminum is another popular material for absorber plates in solar thermal collectors due to its lightweight, low cost, and corrosion resistance. Aluminium absorber plates effectively absorb solar radiation and transfer it to the working fluid, resulting in efficient thermal performance. Aluminum has slightly lower thermal conductivity than copper, but its low cost and ease of manufacture make it a popular choice for mass-produced solar thermal systems. Furthermore, aluminium's corrosion resistance ensures durability and longevity in harsh environments.
The market can be bifurcated by application into Residential, Commercial, and Industrial. In residential settings, non-concentrating solar collectors are primarily used for water and space heating. Solar water heating systems use flat plate or evacuated tube collectors installed on rooftops or open areas to capture solar energy and heat water for home use. These systems offer an environmentally friendly and cost-effective alternative to traditional water heaters, lowering homeowners' energy bills and carbon emissions. Furthermore, solar space heating systems use solar thermal collectors to warm residential buildings during the colder months, increasing energy efficiency and occupant comfort.
Non-concentrating solar collectors are used in commercial settings for various purposes, such as water heating, space heating, and process heat generation. Commercial buildings, such as offices, hotels, schools, and hospitals, frequently have high hot water demands for sanitation, laundry, and cooking. Solar water heating systems that include flat plate or evacuated tube collectors provide a long-term solution for meeting these demands while lowering operational costs and environmental impacts. Solar thermal collectors can also be used for space heating in commercial buildings, creating comfortable indoor environments while reducing energy costs. Furthermore, solar process heat systems are used in various industries, including food and beverage, manufacturing, and agriculture, to meet specific heating needs for production processes, sterilization, drying, and other applications.
