Solar Thermal Fuel Market - Forecast(2023 - 2028)

Solar Thermal Fuel Market Overview

COVID-19 Impact

The rapid spread of coronavirus has had a major impact on global markets as, major economies of the world were completely lockdown due to this pandemic. Because of this major lockdown, suddenly all the consumer market has started to show zero interest towards purchasing any goods and governments have also halted the funding towards R&D of these projects, as the funds are diverted towards healthcare and developing vaccine to fight against COVID-19.

Report Coverage

Key Takeaways

• Asia-Pacific dominates the solar thermal fuel market owing to increasing demand from applications in industrial, households and automotive industries.
• The growing popularity solar energy usage, is likely to aid in the market growth of solar thermal fuel.
• The growing demand for rechargeable batteries can lower down the usage of electricity, hence this is expected to drive the market demand for solar thermal fuel.
• Solar Energy Initialization and Storage Is Expensive this will create hurdles for the solar thermal fuel market.

Figure: Asia Pacific Solar Thermal Fuel Market Revenue, 2020-2026 (US$ Million/Billion)

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Solar Thermal Fuel Market Segment Analysis – By End Use Industry

Automotive sector has been the primary market for Solar Thermal Fuel in the year 2020 and is expected to grow at a CAGR of 4.1% during the forecast period. The potential advantages of solar energy are clear it is free, abundant. With the growing concerns towards air pollution and taking steps towards green revolution, the solar energy is used even in automotive and is the future. Solar cars are electric cars that use solar energy. They use photovoltaic cells to convert energy from sunlight into electricity. These cars can store some solar energy and can also run smoothly at night or in the absence of direct sunlight. Solar-powered cars not only help with environmental pollution but also noise pollution. Therefore with the growing demand for automotive the solar thermal fuel market is driving.

Solar Thermal Fuel Market Segment Analysis – By Geography

APAC has dominated the solar thermal fuel market in the year 2020 and is expected to grow at a CAGR of 5.6% during the forecast period. Countries such as China, India, Japan and Others have dominated in this region, owing to the larger population in the APAC region. The demand for vehicles in this region is very high for both personal and commercial use, and this has eventually led to the increased demand for longer distance roadways network in this region. AH1 is the longest route of the Asian Highway Network, running from Tokyo, Japan via Korea, China, Southeast Asia, Bangladesh, India, Pakistan, Afghanistan and Iran to the border between Turkey and Bulgaria west of Istanbul where it joins end-on with European route E80. This is expected to increase the demand for more solar cars and hence the solar thermal fuel market will grow. Whereas according to the production statistics of 2019 released by OICA, China and India are 1^st and 5^th largest producer of motor vehicles including passenger cars, commercial vehicles, heavy trucks, buses and others. Hence with the growing production of automotive in this region the solar thermal fuel demand is increasing.

Solar Thermal Fuel Market Drivers 

Growing demand for battery electric vehicles

The shift towards electric vehicles in the developed and developing nations would hamper the growth of existing IC engine vehicles and also increase the solar thermal fuel market over the forecast timeframe. According to IEA, Norway, the Netherlands and Japan are front-runners in the electronic vehicles segment. Norway held the share of 46 percent in terms of the global new electric car sales as reported by IEA in 2018. In order to meet zero emission targets under the “Paris Climate Accord”, in 2017, France government has announced that it will ban diesel and gasoline-powered vehicles completely and switch to electric powered vehicles by 2040.

Implementation of Stringent Environment Regulations

Governments stringent regulation towards air pollution will force the private companies to invest and conduct R&D more towards solar energy usage and hence the solar thermal fuel market will grow. For example the Jawaharlal Nehru National Solar Mission (JNNSM) 2010, also known as the Solar Mission, is a part of India’s National Action Plan on Climate Change (NAPCC). There are three phases to the mission: Phase I (2010–12), II (2013–17), and III (2017–22). So, stringent regulation like these expand the market for solar thermal fuel.

Solar Thermal Fuel Market Challenges 

Solar Energy Initialization and Storage Is Expensive

The initial cost of purchasing a solar system is fairly high. This includes paying for solar panels, inverter, batteries, wiring, and the installation. Whereas solar energy has to be used right away, or it can be stored in large batteries. These batteries, used in off-the-grid solar systems, can be charged during the day so that the energy is used at night. This is a good solution for using solar energy all day long but it is also quite expensive.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Solar Thermal Fuel market. Major players in the Solar Thermal Fuel Market are Eni S.P.A, Massachusetts Institute of Technology among others.

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