Solar Tracker Market Size, Share & Industry Analysis, By Type (Photovoltaic (PV) and Concentrated Solar Power (CSP)), By Movement (Single Axis and Dual Axis), By Application (Utility and Non-Utility), and Regional Forecast, 2024-2032

The global solar tracker market size was valued at USD 7.88 billion in 2023 and is projected to grow from USD 8.67 billion in 2024 to USD 25.24 billion by 2032, exhibiting a CAGR of 14.3% during the forecast period. The Solar Tracker market in the U.S. is projected to grow significantly, reaching an estimated value of USD 9.58 billion by 2032, driven by federal and state policies, incentives, and regulatory support encouraging renewable energy adoption. North America dominated the solar tracker market with a market share of 56.85 % in 2023.

A solar tracker is a system that positions an object at an angle relative to the sun. The most common solar tracking system is placing photovoltaic (PV) panels to remain perpendicular to the sun’s rays and setting space telescopes to determine the sun’s direction. PV solar tracking system adjusts a solar panel's path according to the sun's position. By keeping the panel perpendicular to the sun, more sunlight strikes the solar panel, less light is reflected, and more solar energy is absorbed. That energy can be converted into power.

During the COVID-19 pandemic, the solar tracker market witnessed a decline in its growth owing to the implementation of several stringent laws. Furthermore, major renewable and fossil energy-producing countries, such as China and India took strict measures to prevent the spread of the COVID-19 virus. Subsequently, the transition to clean energy was at the center of economic recovery and stimulus plans, bringing the spotlight on renewables and resulting in the market’s continuous expansion during the pandemic.

Solar Tracker Market Trends

Integrating Software Technologies to Hold Immense Growth Opportunity

Research and development activities in the renewable energy sector intending to reduce the reliance on fossil fuels are increasing technological advancement across the sector.

For instance, Arctech Solar has developed a new generation of artificial intelligence (AI) solar tracking solutions, which helps PV tracking power plants adapt to different conditions according to weather conditions, topographies, and terrains. Moreover, the AI control system can perform algorithm optimization on the tracker angle along with weather sampling, feedback distribution, and constant comparison of information which could help improve power generation of solar power plants by up to 7%. Moreover, Sunpower, a solar panel company, uses artificial intelligence (AI) and high-resolution satellite imaging to help private customers design and customize solar power systems as per their needs. The AI recognizes the roof and any obstructions, placing the panels accordingly.

Solar Tracker Market Growth Factors

Green Energy Targets to Fuel Investments in Solar Industry

The ambitious targets and goals set by governments worldwide to move towards green energy and transition away from fossil fuels and carbon reduction have increased the adoption of renewable energy, such as solar power, globally. Movements such as Dubai’s clean energy strategy 2050, targets set by Federal Climate Change Act 2021 to achieve greenhouse gas neutrality by 2045, and North America’s target to have electricity generation 50% renewable target by 2025 are leading the adoption of renewable energy at a fast phase.

For example, renewable energy source accounts for around 29% of the total electricity generation globally. Moreover, as per the International Energy Agency (IEA) Renewable 2021 market report, it is forecasted that renewables are set to account for almost 95% of the increase in global power capacity by 2026, with solar PV alone accounting for more than half of capacity, driven by stronger support from government policies and more ambitious clean energy goals.

Moreover, the tax credits and other tax benefits available to solar energy projects have increased the number of solar PV installations. For instance, in Brazil, according to the new legal framework for solar energy, those who begin photovoltaic generation in 2022 will not pay taxes until 2045.

Growing Adoption of Renewable Sources for Power Generation to Boost Market

The depletion of natural resources like oil, petroleum, and coal, continuous population increase, and electricity prices have shifted from these fossil energy sources to renewable energy sources like wind, solar, hydropower, nuclear, and others.

Among these, solar energy is one of the most accepted net zero renewable energy sources owing to the ample availability of the sun as an energy source to generate electricity. This has resulted in various entities of different countries providing subsidies, rebates, incentives, and many others to ensure solar energy adoption and promotion.

In the MEA region, the UAE and Saudi Arabia are the two most ambitious investors in renewable energy and aim to produce 50% of their energy from clean sources by 2030 and 2050, respectively. Solar energy is projected to play the biggest role in Saudi Arabia as the government and international investors are investing heavily in this competitive segment of renewable energy. In Saudi Arabia, the development of NEOM, which is a USD 500 billion smart city, will be powered entirely by solar, wind, and other forms of renewable energy.

Many developing countries have also set targets for sustainability. For instance, Uzbekistan, where 85% of the electricity demand is fulfilled by coal and natural gas, planned to increase its installed capacity of solar energy by 5GW by 2030. In September 2023, Chinese solar tracker manufacturer Arctech signed a contract with the China Energy Engineering Corporation (CEEC) to provide 240MW of solar trackers to Uzbekistan. Arctech will supply the SkyLine-II Solar Tracking System, featuring a pentagonal torque tube and a synchronous multi-point drive mechanism.

RESTRAINING FACTORS

High Investment and Lack of Required Infrastructure Could Impact Market Growth Slightly

A major factor hindering the market growth is the rise in steel prices, further driving the cost of the tracking systems used in most utility-scale projects. More than 65% of the total cost of solar tracking systems typically comes from steel, which makes solar tracking systems more expensive. Additionally, the total cost of the solar tracking system is higher than that of installing normal solar panels, which reduces its adoption for residential purposes where energy demand is generally less. For context, the installation of 15 ground-mounted solar panels with a power rating of 300 watts would come with a total cost of USD 14,625. The installation would cost an additional USD 500 per solar module. This initial cost rise results in less solar tracking system adoption.

In addition, the lack of necessary infrastructure is the other factor that slows down investment in the market. In Asia Pacific and Europe, a lack of awareness regarding the advantages and increased preference for fixed-tilt installations over tracker installations have hampered growth.

Solar Tracker Market Segmentation Analysis

By Type Analysis

Increasing Solar Photovoltaic Installations Will Drive the Growth of Segment

Based on type, the market is segmented into photovoltaic and concentrated solar power. Photovoltaic installations are very large compared to concentrated solar power installed in different regions, due to which it dominates the solar tracker market share. Concentrated Solar Power (CSP) technology uses mirrors to accumulate the sunrays and focus on a single point. As a result, only dual-axis trackers are preferred in these installations. The most commonly used solar technologies for homes and businesses are solar photovoltaics for electricity, passive solar design for space heating and cooling, and solar water heating.

By Movement Analysis

Economic Feasibility and Delivery of Expected Results to Drive Single-Axis Segment Growth

According to movement, solar tracking approaches two basic types, single axis and dual axis trackers. The most common are single-axis tracking systems. Trackers with a single axis tracking system follow the sun's trajectories by moving in one axis, most commonly in the east-west direction.  Single axis trackers are cheap, very simple in set up and run at low cost. They are more reliable than any other trackers

Moreover, trackers with dual axis can be moved in two-axis motion, primarily in the north-south and east-west direction, making them more precise than single axis trackers, but with higher cost due to the additional axis of rotation. Due to the high cost it is the second dominating segment in the market.

By Application Analysis

Increasing Solar-Grid Integration by Utilities will Fuel the Growth of the Utility Segment

The market is segmented into utility and non-utility in terms of application. The utility segment is expected to lead the market due to rising solar grid integrations that have become common in many countries. The standalone systems and the rooftop solar installation are found to have fixed-tilt, eliminating trackers. Further, the introduction of DEG and VPP technologies, which work on the concept of decentralized power, is also expected to attract investments in solar devices, as per the solar tracker market analysis. The non-utility segment also accounted for reasonable growth owing to the rising agriculture and commercial business.

REGIONAL INSIGHTS

Based on region, the market is studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

In North America, the U.S., with the maximum deployment of solar trackers for operational efficiency of the installed panels, will aid the demand for products across the region, resulting in North America holding the lead position in the global market during the forecast timeframe.

Subsequently, Brazil and Mexico in Latin America have emerged as major importers of solar technologies trackers. Out of the shipments of trackers, more than half were being done for North America.

The demand for solar power increased at a healthy rate in Europe. Italy, U.K., Germany, and Spain have been the front runners in increasing solar penetration in the country’s overall power mix. This market trend, along with ambitious green energy targets, poses enormous growth opportunities for the market in the region.

Asia Pacific is the production hub for trackers, as 40% of the global capacity is manufactured in China. India, China, and other Southeast Asian countries are expected to boost their renewable energy capacity in the coming years, creating a huge demand for trackers.

South Africa holds the lion’s share of the market in the Middle East & Africa, which is expected to witness healthy growth over the forecast period with contracts for solar power to be commissioned.

List of Key Companies in Solar Tracker Market

Key Players Concentrate on Enhancing their Product Capabilities to Meet Customer Demand

The competitive landscape of this market depicts market dominance by major solar trackers manufacturers such as NEXTracker, PV Hardware, Array Technologies, and Soltec. NEXTracker has the maximum share in the global market, acquiring contracts from different countries in every region. A well-established supply chain, customer preference, and an established brand name have been the factors for the company's success. The market also includes other players such as Array Technologies, Trina Solar, and Solar Steel, increasing their customer reach and establishing a strong footprint in the market. This is expected to lead to a competitive market for solar tracker sales in the forthcoming years.  For instance, In December 2021, Gonvarri Solar Steel signed an agreement with Elawan Energy. The contract includes the supply of more than 1,000 solar trackers that will enable the installation of 800,000 modules (solar panels) in Torrijos, Escuderos, and Belinchón.

LIST OF KEY COMPANIES PROFILED:

• NEXTracker (U.S.)


• Array Technologies (U.S.)


• Trina Solar (China)


• SunPower Corporation (U.S.)


• ArcelorMittal Projects (Luxembourg)


• Soltec (Spain)


• Convert Italia (Italy)


• PV Hardware (Spain)


• Arctech Solar (U.S.)


• Solar Steel (Spain)


• Ideematec (Germany)


• SunPower (U.S.)


• Scorpius Trackers (India)


• Sun Action Trackers (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 - Nextracker Inc. plans to double India's solar tracker manufacturing capacity to 10 gigawatts in the next few years. They will manufacture the semiconductors under the production-linked incentives scheme and indigenously produce 100% of the products. The company said India's target of 500 GW renewable capacity by 2030 would see at least 7-8 GW of projects annually have trackers.


• February 2023 - PVHardware announced it will build Spain's world’s largest solar tracker factory. This facility will occupy a space of 65,000 square meters of area. The firm wants to take its capacity to 25 GW, making it the world’s top solar tracker producer.


• February 2023 – Solar Steel and Electrum has signed an agreement, where Solar Steel will supply its TracSmarT + solar trackers with a capacity of 21MW for the Osów project, which is said to be the largest solar tracking project in Poland. The single-rowed solar trackers will provide energy equivalent to the consumption of around 7,000 homes and help reduce more than 4,200 tons of carbon-di-oxide (Co2) emission annually.


• February 2022 - Solar Steel is developing a project called Digital Twins of photovoltaic plants for the design, engineering, and O&M phases. The digital twin virtually reproduces the behavior and performance of a process or product. This allows predicting failures and anomalous situations and performing certain actions to avoid them.


• April 2022 - Array Technologies, Inc. has agreed to supply 1 GW of DuraTrack HZ v3 single-axis solar trackers for the Gemini solar project. The project is expected to be one of the largest solar storage plants in the U.S.

REPORT COVERAGE

The research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed analysis of market segments, including applications and regions, helping our readers get a comprehensive overview of the global market.

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