U.S. Solar Tracker Market Size, Share & COVID-19 Impact Analysis, By Type (Photovoltaic (PV) and Concentrated Solar Power (CSP)), By Movement (Single Axis and Dual Axis), By Application (Utility and Non-utility), and Country Forecast, 2023-2030

The U.S. solar tracker market size was worth USD 3.36 billion in 2022 and is projected to grow at a CAGR of 14.45% during the forecast period.

The U.S. has observed a significant rise in the use of solar trackers due to rising awareness regarding energy conservation and the transition from non-renewable energy to renewable energy. Moreover, increasing government focus on renewable energy is predicted to boost the demand for solar energy and, eventually, solar trackers. The increasing use of Concentrated Solar Power (CSP), which is a potential alternative source of energy generation, has recently gained attention due to the reduction in solar panel costs. This factor is expected to further drive market growth.

During the COVID-19 pandemic, the energy industry came head on with multiple challenges. It was deterred in 2020 with repeated lockdowns and transportation restrictions. This resulted in an economic slowdown and trade activity on a global scale, simultaneously pushing energy use down by 4%. Subsequently, the clean energy transition was at the forefront of economic recovery & stimulus plans, bringing the spotlight on renewables, which resulted in continuous expansion during the pandemic.

LATEST TRENDS

Incorporation of Software Technologies to Boost Market Growth

Research and development activities in the energy industry to reduce dependence on fossil fuels are increasing technological developments across the sector. The power industry is on a hotbed of innovation, driven by the rising demand for sustainable energy and the increasing importance of cutting-edge products, such as robotic solar tracking, smart solar tracking, and advanced bifacial solar tracking. For instance, in April 2023, Arctech Solar launched a new generation of Artificial Intelligence (AI)-based solar tracking solutions, which will support PV tracking power plants adapting to diverse conditions according to the weather, topography, and terrain.

DRIVING FACTORS

Increasing Solar Panel Installations to Drive Market Growth

A substantial increase in the number of solar panel installations throughout the world is one of the important factors propelling market growth. According to the Solar Energy Industry Association (SEIA), the U.S. solar market installed around 6.1 GW of solar capacity in the initial months of 2023. Installations in the residential segment have increased compared to last year. People view rooftop solar panels as a greener and cheaper way to fuel their homes. Moreover, the commercial segment also experienced a sharp increase in installations this year.

RESTRAINING FACTORS

High Initial Investment to Hamper Market Growth

One of the main factors hindering the U.S. solar tracker market growth is the increasing price of steel, which is further increasing the cost of solar tracking systems used in utility-scale projects. Steel accounts for more than half of the total cost of these systems, which eventually hikes their price. Moreover, the average installation cost in the U.S. is around USD 23,000, which is sometimes not affordable for residential purposes. However, solar panel costs vary by state and region depending on the usage and number of sunny days per year.

SEGMENTATION

By Type Analysis

Based on type, the market is segmented into Photovoltaic (PV) and Concentrated Solar Power (CSP).

The Photovoltaic (PV) segment held the largest U.S. solar tracker market share in 2022, owing to the increasing awareness of smart energy networks.

• Solar photovoltaics are essential in energy networks that work on Distributed Power Generation (DPG).  DPG is extraordinarily eco-friendly as it helps reduce the electricity production of a centralized power plant. Moreover, the installation cost of solar photovoltaics is comparatively lower than that of other alternatives available on the market.

By Movement Analysis

Based on movement, the market is segmented into single axis and dual axis.

The single axis segment held the largest market share in 2022 as it incurs a lower installation cost than dual-axis trackers.

• Both the trackers are completing their purpose and increasing electricity production. However, the single-axis tracking system dominates the market as dual axis is not reliable and highly complex. These tracking systems incur lower cost as well. When kept in front of the sun, dual-axis trackers point all over the sky. In contrast, single-axis trackers face the same direction and produce the same amount of energy.

By Application Analysis

Based on application, the market is segmented into utility and non-utility.

The utility segment held the largest share of the market in 2022 as it is the largest application sector.

• Rising electricity cost and strong demand for energy generation from renewable sources are anticipated to enhance the usage of solar trackers in power & utility applications. The most extensively utilized solar trackers in this sector are the single-axis trackers that can be utilized to track the sun. These trackers are used on a large scale in power & utility applications.

KEY INDUSTRY PLAYERS

The competitive scenario of the U.S. market portrays dominance by major manufacturers, such as Array Technologies, PV Hardware, NEXTracker, and Soltec. NEXTracker has captured the largest share of the market, obtaining contracts from various countries in every region. A reputed supply chain, customer trust, and recognized brand name have been the factors contributing to the company's success. The market also includes other players, such as Trina Solar and Solar Steel, as they are growing their customer base and creating a strong footprint in the market. This factor is predicted to create notable growth opportunities for solar trackers in the coming years.

LIST OF KEY COMPANIES PROFILED:

• NEXTracker (U.S.)


• Array Technologies (U.S.)


• SunPower Corporation (U.S.)


• Arctech Solar (U.S.)


• OTT HydroMet B.V. (Netherlands)


• Sun Action Trackers (U.S.)


• Trina Solar (China)


• Soltec (Spain)


• Solar Steel (Spain)


• PV Hardware (Spain)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Array Technologies, a U.S.-based supplier of trackers, has entered into a partnership with Lock Joint Tube, a producer of mechanical-grade steel, to ensure a consistent supply of steel from a mill in Texas dedicated to manufacturing solar tubing. Lock Joint Tube is a provider of steel tubing solutions for solar panels and manufactures utility-scale solar tubing.


• July 2023: Array Technologies, a supplier of single-axis solar trackers and services for utility-scale solar projects, has opened a new solar tracker torque tube factory in Texas, where Lock Joint Tube has initiated operations. The new mill will utilize steel sourced from nearby places to manufacture solar torque tubing for domestic requirements.


• May 2023: NexTracker Inc., a leading global provider of utility-scale solar trackers, has partnered with U.S.-based MSS Steel Tubes to establish a new facility in Tennessee. The factory will manufacture steel components with low-carbon for Nextracker, especially steel torque tubes.

REPORT COVERAGE

The report has conducted a detailed study of the market and highlighted critical areas, such as an overview of the average number of solar installations in the U.S., technological innovations, and pricing analysis. The report has also analyzed the use of solar trackers, the number of utility-scale installations in the U.S., key industry developments, such as mergers, acquisitions, and partnerships, novel product launches, and the effect of the COVID-19 pandemic on the market. The report also offers information about the region-wise performance of the market and the latest market trends. It also sheds light on the top developments in the industry. In addition to the factors mentioned above, the report covers many factors that have contributed to the market’s growth in recent years.

Report Scope & Segmentation