by The Solar Collector Tube Market is estimated to be valued at US$ 4.56 Bn in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Solar collector tubes are used in solar thermal energy systems to absorb heat from sunlight and transfer it to a fluid medium like water or glycol. The tubes are made from materials like copper, steel and glass that effectively absorb and transfer solar heat energy. They are used in residential, commercial and utility scale solar thermal power plants for applications like space heating and cooling, hot water, desalination and power generation.
Market Dynamics:
The rising demand for renewable energy sources and government initiatives to reduce dependence on fossil fuels are the key drivers for the solar collector tube market growth. Many countries are offering subsidies, tax exemptions and feed-in-tariffs to promote the use of solar thermal technologies. Additionally, increasing adoption of solar energy for both grid connected and off-grid applications in the industrial, commercial and residential sectors is also propelling the market expansion. However, high initial investment costs and intermittent nature of solar energy are some challenges faced by the market. Innovation in materials for lower cost and more effective heat transfer is expected to create new opportunities over the forecast period.
Segment Analysis
The global solar collector tube market is segmented by material type into evacuated tube and non-evacuated tube. The evacuated tube segment dominates the market and accounts for over 60% revenue share as of 2023. Evacuated tubes offer higher operational efficiency as compared to non-evacuated tubes due to insulation provided by the vacuum in between the inner and outer glass tubes, which makes it suitable for higher temperature applications such as industrial process heating.
PEST Analysis
Political: Favorable government policies and regulations supporting solar energy adoption such as tax credits and net metering have encouraged installations of solar water heating systems, driving the demand for solar collector tubes.
Economic: Lower cost of solar energy compared to fossil fuels along with availability of subsidies is positively impacting the solar collector tube market. The declining price of solar components including solar collector tubes is also boosting their adoption rates.
Social: Increasing public awareness about benefits of renewable energy in terms of reducing carbon emissions is propelling the installation of solar water heating systems for domestic as well as commercial applications.
Technological: Innovation in solar collector tube designs to improve efficiency, durability and reduce material cost will support the market growth. Some manufacturers are developing evacuated tubes that can withstand high operating temperatures.
Key Takeaways
The global solar collector tube market size was valued at US$ 4.56 Bn in 2023. The market is expected to witness high growth, exhibiting a CAGR of 8.5% over the forecast period, due to increasing governmental support through subsidies and initiatives for renewable energy adoption.
Regionally, Asia Pacific dominated the global solar collector tube market in 2023 and is expected to maintain its leading position during the forecast period as well. China accounted for over 50% of the Asia Pacific market share due to significant solar water heating installations in the country supported by favorable policies. Europe is projected to witness steady growth owing to growing deployment of solar thermal collectors for domestic hot water and space heating applications in countries like Germany, Denmark, and Austria.
Key players operating in the solar collector tube market are Schott AG, Yulong Dingtajian, Apex Solar, Sinosun Energy, Neo Solar Power Corporation, Solimpeks Solar Energy, Sunrain, Hubei Fullhonor Solar Energy, and others. The market is moving towards consolidation with major players expanding their global presence through mergers and acquisitions of regional companies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
