Solar Thermal Market Size To Hit USD 40.67 Billion By 2035 Research By SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The U.S. Solar Thermal Market was worth USD 5.51 billion in 2025 and is projected to reach USD 8.90 billion by 2035, growing at a CAGR of 4.93% during 2026–2035. Growth is underpinned by rising demand for water heating in residential and commercial buildings, expanding industrial process heat applications, and utility-scale concentrated solar power projects. The Inflation Reduction Act continues to provide up to 30% investment tax incentives for solar heating and CSP, while the U.S. Department of Energy has stepped up funding for high-temperature industrial decarbonization efforts.

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:

• Abengoa Solar
• Acciona Energia
• ACWA Power
• BrightSource Energy
• Siemens Energy
• GE Vernova
• ENGIE
• SENER
• Cobra Instalaciones y Servicios
• TSK Group
• EDF Renewables
• Enel Green Power
• Masdar
• Larsen & Toubro Limited
• GlassPoint Solar
• SCHOTT AG
• Flabeg Solar
• Rioglass Solar
• ACME Group
• Noor Energy 1

Solar Thermal Market Report Scope:

Report Attributes	Details
Market Size in 2025E	USD 20.68 Billion
Market Size by 2035	USD 40.67 Billion
CAGR	CAGR of 7.02% From 2026 to 2035
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Type (Parabolic Trough Systems, Power Tower Systems, Dish Stirling Systems, Linear Fresnel Systems) . By System Type (Flat Plate Collectors, Evacuated Tube Collectors, Concentrated Solar Power (CSP Systems), Integrated Solar Thermal Systems) . By Application (Residential Use, Commercial Use, Industrial Use, Utility Power Generation) . By End-User Industry (Residential Sector, Commercial Sector, Industrial Sector, Utilities & Power Plants, Agriculture Sector)

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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:

• 2026: Masdar and ENGIE advanced large-scale solar thermal hybrid installations in Abu Dhabi, centering on integrated CSP and energy storage technologies to deliver uninterrupted green power generation.
• 2026: Siemens Energy enhanced its CSP and thermal energy storage systems, strengthening its capabilities for large-scale solar thermal installations across global utility markets.

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

• CSP DEPLOYMENT & CAPACITY EXPANSION METRICS – helps you understand global concentrated solar power capacity additions across parabolic trough, power tower, and linear Fresnel technologies, commercial versus utility-scale deployment trends, and regional CSP expansion patterns worldwide.
• SOLAR PROCESS HEAT & INDUSTRIAL ADOPTION METRICS – helps you analyze growth in industrial solar thermal adoption across food processing, chemicals, textiles, and manufacturing sectors, temperature range capabilities, displacement of coal-fired heating infrastructure, and sector-specific decarbonization benchmarks.
• THERMAL ENERGY STORAGE & GRID INTEGRATION METRICS – helps you evaluate advancements in molten salt storage, phase change materials, and thermochemical storage systems enabling continuous solar thermal power generation, alongside grid integration technologies and hybrid renewable energy system configurations.
• INVESTMENT & POLICY SUPPORT INTELLIGENCE METRICS – helps you uncover opportunities driven by government incentive programs, international clean energy funding, tax credit frameworks such as the U.S. IRA, and policy mandates including Europe's RED III that are shaping project pipelines and investment flows globally.
• DIGITIZATION & SMART MONITORING TECHNOLOGY METRICS – helps you identify trends in IoT-enabled solar thermal plant monitoring, AI-driven performance optimization, predictive maintenance platforms, and digital energy management systems improving operational efficiency and system uptime across solar thermal installations.
• COMPETITIVE LANDSCAPE & SOLAR TECHNOLOGY DEVELOPMENT METRICS – helps you gauge the competitive positioning of leading CSP developers, solar thermal system manufacturers, and EPC contractors based on installed capacity, technology innovation strength, strategic project partnerships, and commercialization progress globally.

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

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