How big is the Solar Thermal Market | Industry Forecast & Growth Analysis 2025

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Code: MTA9057

Publication Date: Sep 2025

What is the size of Solar Thermal Market?

According to 6Wresearch internal database and industry insights, the Global Solar Thermal Market was valued at USD 22 Billion in 2024 and is expected to reach USD 32 Billion by 2031, growing at a compound annual growth rate of 7.90% during the forecast period (2025-2031).

The key drivers of this growth are an increased demand for sustainable heating solutions, the increasing deployment of concentrated solar power plants, and advances in thermal storage systems, improving efficiency and reliability.

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Growth Factors for Solar Thermal Industry

Increase the uptake of solar water heating systems in residential and commercial sectors.
Deployment of concentrated solar power plants to generate electricity at scale.
Government policies and incentives supportive of renewable-based heating applications.
The integration of thermal storage technologies supports improved performance and availability.
The increasing industrial applications of solar thermal systems for process heating.

Solar Thermal Market Trends

The trends for the Solar Thermal Market indicate an increase in demand for solar-based heating for residential, commercial, and industrial applications. Concentrated solar power plants are becoming a popular choice with the ability to deliver dispatchable renewable electricity. Another key trend occurring within the Solar Thermal Market is the growing use of energy storage systems, hybrid solar-thermal projects, and new styles and forms. Solar thermal manufacturers are working to lower costs and improve durable materials for the longevity of systems.

Emerging Developments in the Solar Thermal Market

The Solar Thermal Market developments include improvements in parabolic troughs, solar towers, and Fresnel technologies to increase efficiency. Companies are also researching hybrid models, which join solar thermal with photovoltaic systems.

Further developments in the Solar Thermal Market will include new thermal storage technologies, modular plant systems, and new financing to promote uptake. Strategic partnerships will also be crucial to continue to grow large-scale solar thermal development.