Solar Thermal Market Size to Hit USD 40.67 Billion by 2035 | Research by SNS Insider

Solar Thermal Market Size to Hit USD 40.67 Billion by 2035 | Research by SNS Insider Austin, June 01, 2026 (GLOBE NEWSWIRE) -- Solar Thermal Market Size & Growth Insights:

According to the SNS Insider, “The global Solar Thermal Market Size was worth USD 20.68 billion in 2025 and is expected to be valued at USD 40.67 billion by 2035, expanding at a CAGR of 7.02% during 2026–2035.”

Scaling CSP Deployments and Industrial Process Heat Adoption Reshaping the Global Solar Thermal Landscape

At the core of the Solar Thermal Market’s growth is the rapid scale-up of concentrated solar power plants, particularly in China’s Gansu and Xinjiang provinces, alongside rising industrial adoption of solar process heat as a direct replacement for coal-fired boilers. The integration of molten salt and phase change material storage systems has addressed intermittency concerns, enabling round-the-clock thermal power availability for utility and industrial users. Simultaneously, the development of hybrid renewable energy systems combining solar thermal with photovoltaic panels and heat pumps is improving overall energy efficiency and system reliability. Government mandates including Europe’s RED III directive, China’s large-scale CSP programs, and the U.S. Inflation Reduction Act are providing structural policy support that is translating into accelerated project pipelines globally.

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Leading Market Players with their Product Listed in this Report are:

Solar Thermal Market Report Scope:

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Key Segmentation Analysis:

By Type

Parabolic Trough Systems held a dominant 42.35% revenue share in 2025, reflecting their advanced technology base, proven large-scale operational track record, and established cost-effective infrastructure in utility-scale CSP deployments. Power Tower Systems are expected to register the fastest CAGR during 2026–2035, driven by their superior heat generation efficiency, ability to operate at higher temperatures, and effective energy storage via molten salt systems.

By System Type

Flat Plate Collectors dominated with a 34.80% revenue share in 2025 on account of their simple design, cost-effective installation, and broad applicability across low-to-medium temperature water heating requirements in residential and commercial settings. Concentrated Solar Power (CSP) Systems are anticipated to record the fastest CAGR through 2035, backed by rising demand for large-scale solar-based power generation, high-efficiency heat production, and the ability to deliver uninterrupted power through integrated thermal storage.

By Application

Domestic Hot Water Systems commanded the highest revenue share of 37.85% in 2025, driven by widespread installation across residential buildings, hotels, hospitals, and small commercial facilities. Solar Combi Systems are projected to grow at the fastest CAGR from 2026–2035, reflecting increasing demand for integrated heating and cooling solutions in modern buildings.

By End-User Industry

The Residential Sector led the market with a 30.10% revenue share in 2025, supported by growing solar water heater penetration in households, rising energy costs, government incentive programs, ease of rooftop installation, and increasing consumer awareness of sustainable energy options. The Industrial Sector is expected to register the fastest CAGR between 2026 and 2035, as chemicals, food processing, textile, and manufacturing industries progressively replace conventional energy sources with solar thermal for process heating.

Regional Insights:

The Solar Thermal Market was predominantly led by North America in 2025, holding approximately 33.90% of global revenues. The United States accounts for 78.60% of the regional share, driven by robust residential water heating demand, commercial building heating applications, industrial process heat adoption, and utility-scale CSP projects. The region benefits from strong participation by key players such as BrightSource Energy, GlassPoint Solar, Siemens Energy, GE Vernova, and ENGIE, alongside widespread clean heating infrastructure deployment.

The Europe Solar Thermal Market is estimated to be USD 5.42 Billion in 2025 and is projected to reach USD 10.18 Billion by 2035, growing at a CAGR of 6.51% during 2026–2035.

The Asia-Pacific region is expected to be the fastest growing, recording a CAGR of approximately 9.10% from 2026–2035. China, contributing 30.20% within the region, is driving large-scale CSP installations in Gansu and Xinjiang. India’s National Solar Mission, Japan’s renewable heat policies, and South Korea’s clean energy investments are further expanding the regional pipeline. Rapid industrialization, rising energy demand, and growing deployment of district heating networks are reinforcing Asia-Pacific’s position as the market’s primary growth engine.

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Recent Developments:

Exclusive Sections of the Solar Thermal Market Report (The USPs):

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