Home Energy And Power Solar Heating and Cooling System Market Growth, Share, Forecast to 2029

Solar Heating and Cooling System Market

Solar Heating and Cooling System Market Size, Share & Trends Analysis Report By Type (Heating, Cooling, Combi), By Collector Type (Flat plate, Evacuated Tube, Others), By Application (Residential, Commercial, Industrial, Institutional) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SREP1249DR
Study Period 2020-2032 CAGR 7.5%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market Europe Fastest Growing Market Asia Pacific

Market Overview

Solar Heating and Cooling System Market size is growing at a higher CAGR 7.5% during the forecast period.

The world has been constantly looking for methods to shift from the dependency on fossil fuels. The use of solar power to generate electricity has paved the way for different opportunities in heating and cooling systems. Solar heating and cooling systems utilize solar power to generate thermal energy for hot water, space heating, and pool heating. These systems use light collectors for the concentration of solar radiation.

Market Dynamics

Product Lifecycle

The market still hasn’t reached the maturity phase. Companies are striving to develop products that are both energy-efficient and cost-effective. The solar power industry infrastructure needs to be ramped up in order to create a strong alternative for conventional energy sources.

Strict Government Regulations to Curb Greenhouse Gas Emissions

Governments all over the world have taken strict measures to curb greenhouse gas emissions. The U.S. Environmental Protection Agency (EPA) under the Clean Air Act regulates greenhouse gas emissions. According to EPA, commercial and residential source of greenhouse gas emissions in 2018 was 12% while that of industrial was 22%. The change of government in the U.S. is expected to push the curb on greenhouse gas emissions, thereby generating the demand for solar-powered equipment.

The European Union has set for ambitious plans under the regulatory basis for obligations for new and existing buildings to provide 50-100% of domestic water and 25% of space heating/cooling from solar in 2020, and by 2030, the EU expects to develop regulations that will not allow the use of external energy sources. All energy needs to be produced on-site by renewables. In Asia-Pacific, where solar power is in abundance, countries such as India, China, and Central Asia are giving away subsidies to foster the development of the solar power industry.

Growing Demand for Water Heating Systems

The traditional electric and gas water heater's energy prices have been up in recent years. Product development in solar water heating along with government subsidies has bolstered the use of solar water heating systems. This is more evident in residential and commercial applications where the temperature requirement of heated water is relatively less than in industrial applications. Solar, in general, has a lot to offer in hydronic systems. Demand for solar heating systems is increasing for applications such as pool heating and space heating.

Opportunities for Solar Cooling Systems

The solar cooling system market is a niche market; however, with growing product compatibility with solar energy, and rising energy prices, solar cooling systems are likely to be a dark horse in the market. The demand for solar cooling systems has been promising especially in Europe where companies such as Fahrenheit (Germany), Solid Solar Energy Systems (Austria), and Solarinvent and Maya (Italy) have earned contracts for solar thermal solutions. It is expected that once the cooling systems become cost-effective, then only it can compete with gas-fired heat pumps and electric compression chillers.

Some companies have also found a hybrid way of using solar cooling systems. They are utilizing waste heat in winter and solar power in the summer, which is likely to be the path forward for solar cooling systems. Countries have also introduced initiatives regarding solar thermal cooling kits, which have significantly reduced prices, thus contributing to positive market development.

Regional Analysis

Europe is expected to have the largest share in the solar heating and cooling system market. The European Commission is on its way to achieving 20% of its energy demand from solar by 2030. Many countries in Europe have been successful in fully integrating solar power by on-grid or standalone type. Countries such as Austria, Germany, and Denmark have taken significant strides in integrating solar thermal, especially for heating. On the other hand, Poland and Spain are some of the fastest-growing solar thermal markets according to the European Solar Thermal Industry Federation. Heating and cooling comprise 46% of Europe’s energy system for which the EU is constantly funding programs in terms of solar thermal integration. Greece and Cyprus are also contributing to the region’s 2020 landmark.

In Asia-Pacific, China has surpassed all other countries and has gained almost half of the total market share. Solar air-conditioning is perceived as a possible disruptor in the HVAC market. Solar air conditioning has been witnessing positive growth with companies such as BlueStar in the mix. Japan has been using solar thermal mostly in commercial spaces such as hospitals and public institutions.

Report Scope

Report Metric Details
Segmentations
By Type
  1. Heating
  2. Cooling
  3. Combi
By Collector Type
  1. Flat plate
  2. Evacuated Tube
  3. Others
By Application
  1. Residential
  2. Commercial
  3. Industrial
  4. Institutional
Company Profiles Fahrenheit, Shuangliang Yazaki,
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

Combi Systems for Residential Applications

Solar thermal solutions have been developed in order to provide energy for hot water and space heating as well. These combi systems are more in demand from residential applications. The collector here is a larger one as combi systems are providing two loads. The combi system is also equipped with an auxiliary energy source such as biomass, oil, gas, or electricity. However, the combi system installation requires a specific skill set that needs to be taught to contractors.

Solar PV Systems Currently More Dominant

Solar PV is based on the photovoltaic effect, where the photon impacts on a surface to generate charge while a solar thermal heat up a fluid using sunlight. Solar thermal is more efficient than solar PV while solar PV has a larger lifespan and also the ability to power many appliances. Some other advantages that solar thermal provides are — space-efficiency, less complication than solar PV, and a uniform and reliable supply of electricity. Investment in research and development should make solar thermal a sought-after technology, thereby overcoming the major restraint of solar PV. It is expected that once the solar PV lifecycle matures, manufacturers are likely to find ways of solar energy storage where the demand for solar thermal systems will surge.

Market Feasibility in Industrial Applications

Companies still haven’t explored the full scope of solar heating and cooling system in industrial applications, especially in process heating. There are very instances where solar heating systems are used but that too in low-temperature requirements. As there are more technological advancements in product development, the use of solar heating systems will be more feasible for medium temperatures up to 250°C.

Market Size By Type

Top Key Players

Solar Heating and Cooling System Market Share of Key Players

Fahrenheit, Shuangliang Yazaki,

Frequently Asked Questions (FAQs)

What is the growth rate for the Solar Heating and Cooling System Market?
Solar Heating and Cooling System Market size will grow at approx. CAGR of 7.5% during the forecast period.
Some of the top industry players in Solar Heating and Cooling System Market are, Fahrenheit,  Shuangliang, Yazaki, etc.
Europe has been dominating the Solar Heating and Cooling System Market, accounting for the largest share of the market.
The Asia Pacific region has experienced the highest growth rate in the Solar Heating and Cooling System Market.
The global Solar Heating and Cooling System Market report is segmented as follows: By Type, By Collector Type, By Application


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