The global solar thermal fuel market is anticipated to expand at a substantial CAGR between 2020 and 2028. Solar thermal fuel is a fluid that can absorb sunlight, which can be stored for several days and used for several applications especially for heating purposes. The fuel stores solar energy in the form of heat and releases it as needed due to light-induced changes in its chemical composition. It works in the same way as a rechargeable battery but one exception is that the fuel, instead of utilizing electricity, uses sunlight to charge and release heat. Using process of photochemical, thermochemical, and electrochemical methods, the fuel can be obtained and it can be reused and recycled. As it generates no greenhouse gases in the process, and the fuel is safe for the environment. Over the recent years, the use of solar thermal fuel is increasingly widen that have the potential to replace solar photovoltaics in the future. China, for example, leads in solar thermal fuel consumption, accounting for almost 25 petajoules (PJ) in 2020 and 44 PJ in 2021. Furthermore, it is predicted that the solar thermal fuel consumption would reach 45 PJ by 2022.
Market Trends, Drivers, Restraints and Opportunities
- Rising need for fuel combustion for numerous manufacturing operations from various industries such as industrial, commercial, automotive, and residential present key factor driving the market expansion.
- Favourable government laws in attempts to integrate solar thermal technology in place of conventional technology and various renewable energy planned projects are anticipated to propel the market growth in the coming years.
- Availability of other renewable energy sources as well as the high initial cost of solar thermal fuel infrastructures are key challenges that can hinder the market expansion during the projection period.
- Rising finance shortfall of several players in the market caused by a global economic downturn due to the COVID-19 pandemic outbreak is expected to hamper the market development in the coming years.
- R&D programs and technological development are two key factors expected to create immense opportunities for the market growth in the long run.
Scope of the report:
The report on the global solar thermal fuel market includes an assessment of the market, size, share, trends, and segments. Overview and dynamics have been included in the report.
2018 & 2019
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
Solar Thermal Fuel Market Insights
Household segment to attain a high growth rate
In terms of applications, the market can be classified as commercial, household, industrial, and automotive. The household segment is expected to attain a high growth rate in the coming years owing to growing demand for renewable energy for various household applications. Moreover, due to rising awareness among consumers, the technology is increasingly accepted as an ideal substitute for lead batteries and other traditional sets, which are used to provide steady and reliable energy supply for several household activities. On the other hand, the commercial segment is projected to dominate the market during the forecast period due to high consumption of power energy in the commercial units. The power consumption is constantly higher in the commerce sector as it is widely used for a wide range of production activities.
Europe to account for a larger market share
On the basis of region, the global solar thermal fuel market can be categorized as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Europe is likely to dominate the market in the coming years owing to the presence of significant key players in the region. Moreover, the presence of a large number of people who are aware of sustainable development and strict regulations by government agencies to curb carbon emission are likely to increase the demand for solar thermal fuel in the region. On the other hand, the market of Asia Pacific is anticipated to grow at rapid pace during the forecast period owing to increased investment in renewable energy sources in the region.
- North America
- Asia Pacific
- Middle East & Africa
- Latin America
The major players in the global solar thermal fuel market are Massachusetts Institute of Technology; Lancaster University; Solar Energy Industries Association; Tata Centre for Technology and Design; Australian Solar Thermal Energy Association; University of Florida; Chalmers University of Technology; and International Energy Agency. Some of these players are widely engaged in several strategic activities for their business development such as collaboration with research institutes, R&D programs, product launches, and acquisitions.