Saudi Arabia Solar Thermal Systems Market

Saudi Arabia Solar Thermal Systems Market Overview:

The Saudi Arabia solar thermal systems market size is projected to exhibit a growth rate (CAGR) of 4.50% during 2025-2033. At present, the growing demand for clean energy due to the government’s commitment to minimizing carbon emissions and encouraging energy optimization is positively influencing the market. In addition, the rising need for energy-efficient technologies in residential and commercial properties is driving the demand for solar thermal systems. Besides this, the rapid broadening of hotels is contributing to the expansion of the Saudi Arabia solar thermal systems market share.

Saudi Arabia Solar Thermal Systems Market Trends:

Rising infrastructure development

Increasing infrastructure development is offering a favorable market outlook. As the country continues to grow and modernize, there is a rising demand for energy-efficient technologies in both residential and commercial properties. Solar thermal systems are particularly attractive for new developments, as they provide a cost-effective way to meet energy needs for water heating and air conditioning. With the government promoting sustainability and energy conservation in construction, developers are incorporating solar thermal solutions into their projects to comply with green building standards. Additionally, the rapid expansion of hotels, resorts, and large-scale commercial properties in tourism hubs is benefiting from the installation of solar thermal systems, lowering operating costs and enhancing environmental sustainability. As per industry reports, Saudi Arabia's hotel development portfolio is said to exceed USD 110 Billion, leading to the creation of approximately 310,000 hotel rooms by 2030. As infrastructure development is accelerating across the country, solar thermal technology is becoming a key component of energy-optimized design.

Increasing adoption of clean energy

Rising adoption of clean energy is propelling the Saudi Arabia solar thermal systems market growth. As part of the Vision 2030 initiative, Saudi Arabia aims to significantly increase the utilization of renewable energy, including solar power, to meet sustainability goals. According to the IMARC Group, the Saudi Arabia renewable energy market size was valued at 2.09 Gigawatt in 2024. Solar thermal systems, which harness the sun’s energy to generate heat for water and space heating, are becoming an important part of this transition. With abundant sunlight year-round, Saudi Arabia has the perfect conditions for solar thermal technology. The increasing demand for clean energy is also due to the government’s commitment to minimizing carbon emissions and encouraging energy optimization. These systems help cut energy costs, especially in the residential and commercial sectors, by minimizing the need for electricity-based water heating. Moreover, solar thermal solutions align with the adoption of greener technologies and contribute to energy security by providing a decentralized energy source. As businesses and individuals are becoming environmentally conscious, they are employing solar thermal systems as a component of their efforts to reduce their carbon footprint. This growing interest, combined with supportive government policies and technological advancements, continues to expand the market for solar thermal systems in Saudi Arabia.

Saudi Arabia Solar Thermal Systems Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for ​2025-2033​. Our report has categorized the market based on technology, application, and end user.

Technology Insights:

• Flat Plate Collectors
• Evacuated Tube Collectors
• Concentrated Solar Power (CSP)
  • Parabolic Trough
  • Solar Tower
  • Fresnel Reflectors
  • Dish Stirling

The report has provided a detailed breakup and analysis of the market based on the technology. This includes flat plate collectors, evacuated tube collectors, and concentrated solar power (CSP) (parabolic trough, solar tower, Fresnel reflectors, and dish Stirling).

Application Insights:

• Water Heating
• Space Heating and Cooling
• Industrial Process Heat
• Power Generation
• Desalination

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes water heating, space heating and cooling, industrial process heat, power generation, and desalination.

End User Insights:

• Residential
• Commercial
• Industrial
• Agricultural

The report has provided a detailed breakup and analysis of the market based on the end user. This includes residential, commercial, industrial, and agricultural.

Regional Insights: 

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Solar Thermal Systems Market News:

• In April 2025, the solar thermal energy storage project ‘Desert Phoenix,’ funded by the Saudi sovereign fund PIF, was officially linked to the grid. With a molten salt storage capacity of 6.8GWh, it established a new industry benchmark and could satisfy the 24-hour energy requirements of 2 Million homes.
• In November 2024, Cox was set to initiate the first phase of the globe's largest solar thermal facility in partnership with GlassPoint. The initial collaborative initiative was the first stage of Ma’aden I, established in Saudi Arabia. During this initial stage, Glasspoint and MISA would invest around 30 Million euros, with the overall project valued at 1.5 Billion euros.

Saudi Arabia Solar Thermal Systems Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia solar thermal systems market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia solar thermal systems market on the basis of technology?
• What is the breakup of the Saudi Arabia solar thermal systems market on the basis of application?
• What is the breakup of the Saudi Arabia solar thermal systems market on the basis of end user?
• What is the breakup of the Saudi Arabia solar thermal systems market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia solar thermal systems market? 
• What are the key driving factors and challenges in the Saudi Arabia solar thermal systems market?
• What is the structure of the Saudi Arabia solar thermal systems market and who are the key players?
• What is the degree of competition in the Saudi Arabia solar thermal systems market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia solar thermal systems market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia solar thermal systems market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia solar thermal systems industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.