The solar collector tube market has gained significant traction over the recent past owing to the increasing demand for renewable energy sources across the world. Solar collector tubes are an indispensable part of solar thermal systems used for heating water and generating electricity through concentrating solar power generation. The rising cost of electricity from conventional sources and stringent environmental norms to reduce carbon emissions have stimulated the adoption of solar energy-based systems in various applications such as space heating and cooling, hot water, process heat, and desalination. Further, government incentives and subsidies in the form of tax benefits and capital cost reductions are augmenting the deployment of solar collector tube installations globally.
The global solar collector tube market is estimated to be valued at US$ 5.37 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the solar collector tube market are Church & Dwight Co., Inc., Swiss Precision Diagnostics GmbH, Procter & Gamble Co., and Abbott Laboratories. These players are focusing on new product launches and partnerships to expand their geographic presence.
Some of the key opportunities in the global solar collector tube market include rising investments in concentrated solar power projects in regions with abundant solar resources such as the Middle East, Africa and Latin America. Further, growing support from governments worldwide in the form of fiscal incentives is also fueling market growth. For instance, China is offering subsidies up to 65% of project costs to encourage renewable energy adoption.
The Solar Collector Tube Market Growth is also witnessing expansion into new regions with growing focus on emerging economies. Leading manufacturers are setting up manufacturing plants in Asia Pacific and Latin America to cater to the rising local demand. For example, Evacuated Tube Collectors, a key player has manufacturing facilities in Germany, China and the United States.
Market Drivers
The growing emphasis on renewable energy sources due to rising environmental concerns about climate change is a key driver for the solar collector tube market growth. According to the IEA, solar power capacity addition reached 130 GW in 2020 alone. Additionally, supportive government policies in the form of capital and installation subsidies are providing a boost.
Market Restrains
High initial costs associated with setting up concentrated solar power plants and solar thermal installations remains a major challenge. Additionally, lack of standard testing facilities for solar collectors is also hampering market growth to some extent. Concerns around land use for large-scale solar projects is another key restrain.
Segment Analysis
The global solar collector tube market is dominated by evacuated tube collectors sub-segment which holds around 60% share of the overall market. Evacuated tube collectors work on the principle of greenhouse effect and have high efficiency of around 70% even in low temperature and diffused solar radiation conditions. This high efficiency and effectiveness in low light conditions has made it a popular choice for commercial and domestic solar water heating installations across regions. The flat plate collectors sub-segment is expected to witness fastest growth during the forecast period due to ease of installation and relatively lower costs.
Global Analysis
Regionally, Asia Pacific dominated the Solar Collector Tube Market Companies and accounted for approximately 45% share in 2024. China is the largest producer and consumer of solar collectors in the world. Various initiatives by the Chinese government such as subsidies and financial incentives for rooftop solar installations have stimulated solar collector tube demand. Europe is the second largest market and is expected to witness significant growth during the forecast period owing to supportive regulatory policies around renewable energy adoption across countries like Germany, Italy, France etc. The Middle East & Africa region is projected to emerge as a highly lucrative market for solar collector tubes with countries like Saudi Arabia, UAE driving new solar projects in the coming years.
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