Solar Photovoltaic (PV) Market Size, Share and Industry Analysis, By Technology (Monocrystalline Silicon, Thin Film, Multicrystalline Silicon, and Others), By Grid Type (On-grid and Off-grid), By Installation (Ground Mounted, Rooftop, and Others), By Application (Residential, Non-Residential and Utilities), and Regional Forecast, 2024-2032

The global solar photovoltaic (PV) market size was USD 316.78 billion in 2023. The market is expected to grow from USD 399.44 billion in 2024 to USD 2,517.99 billion by 2032 at a CAGR of 25.88% over the forecast period (2024-2032). Asia pacific dominated the solar photovoltaic (PV) market with a market share of 49.16% in 2023. The Solar PV market in the U.S. is projected to grow significantly, reaching an estimated value of USD 331.25 billion by 2032, driven by the need to combat climate change through renewable energy sources reinforced by government tax credit and feed-in-tariff programs.

Solar energy is used to convert sunlight into electricity by using photovoltaic effect technology. These PV systems are the most reliable and widely available source of renewable energy. Fossil fuel is responsible for generating major pollution in the environment and solar energy is a very feasible alternative to fossil fuel. The U.S., Germany, China, and Spain are the accounts for maximum sun-based resources in the world. The demand for renewable energy is very high and the unit cost of silicon-based cells is declining, these are the major factors influencing this market positively.

The COVID-19 has impacted numerous business which includes oil & gas, manufacturing, aviation, tourism, and others. The governments in many countries had imposed nationwide lockdowns & restrictions due to this pandemic, which has severely affected economies worldwide, disrupted supply chains, caused a delay in many projects, and created a labor shortage. In many countries, the renewable industry highly depends on imports, primarily from China. As per the Government of India, the country’s almost 80% of solar modules and solar cells demand are fulfilled from China, along with equipment such as prefabricated structures, raw materials, and inverters in India.

Solar Photovoltaic (PV) Market Trends

Rising Demand for Electricity to Boost Market Growth

Power consumption in the Asia Pacific and other regions has increased considerably over the last few years. Robust economic growth, surging population, and booming manufacturing sector have led to the a surge in power consumption. The developing economies are witnessing high electricity demand due to expansion and infrastructure development. Industrialization and urbanization along with the rising living standard of people increase the demand for electricity generation.

As demand for electricity is increasing, many countries across the world are increasing their power generating capacity either by expanding the existing ones or installing new plants. The government in many countries  has imposed stringent carbon emission norms due to which the focus towards the renewable sector is increasing, particularly towards solar photovoltaic generation. This is expected to push this market towards growth during the forecast period.

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Solar Photovoltaic (PV) Market Growth Factors

Rising Number of Off-grid Areas to Drive the Market Growth

Off-grid areas have very limited access or no access to grid-connected electricity. Such areas are dependent on secondary sources of Photovoltaic, such as solar energy. Many regions around the world have large-sized off-grid areas that do not have access to grid-connected electricity. According to World Energy Outlook, more than 1 billion people worldwide are still living without electricity.

In the Sub-Saharan Africa region, the urban electrification rate is 60% and the rural electrification rate is 14%. This encourages governments of Sub-Saharan countries to use sun-energy to meet the power requirement in rural and urban areas. According to the Bloomberg New Energy Finance report, around 1.2 GW of sun energy-based projects is expected to come online in Sub-Saharan countries by the end of 2021. Hence, the growing off-grid areas worldwide are expected to boost this market during the forecast period.

Rising Investment in Solar Energy to Propel the Market Growth

Numerous countries across the globe have established environmental norms as environmental protection awareness is increasing widely. This forces power generation companies to change their production pattern and adopt eco-friendly and clean resources. Key countries around the world are expanding their renewable energy sources of power generation to decrease their dependency on conventional sources. Sun-based energy is a crucial renewable energy source having the potential to meet increasing electricity demand.

According to recent estimates by the International Energy Agency (IEA), around USD 2.8 trillion has been invested in energy in 2023.  More than USD 1.7 trillion have been spent on clean energy, including renewables, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables, and electrification. For every dollar spent on fossil fuels, USD 1.7 is spent on clean energy. Five years ago, the ratio was 1:1.

Global investment in solar energy increased 43% to USD 239 billion in the first half of 2023 compared to the same period in 2023. However, investment in renewable energy still fell short of the amount needed to reach net zero by 2050. In the second quarter of 2023, a total USD 239 billion were invested in renewables in large and small solar systems, accounting for two-thirds of global renewable energy investment in the first half of the year, according to a report by Energy Investment Tracker. The U.S. was one of the largest solar investors, spending $25.5 billion on large and small solar in the first half of 2023. Although U.S. investment was significantly lower than China, it was already 75% more than in the first half of 2022. Record investments were also made in Germany, Poland, and the Netherlands, where the demand increased due to Russia's attack on Ukraine and the subsequent energy crisis in Europe.

RESTRAINING FACTORS

Land Use Constraints to Hinder the Global Market Growth

Utility-scale solar projects require a large land power generation. The selection such land can be hamped by many environmental or technical parameters. The use of such land for the deployment of solar systems can impact the natural areas and biodiversity.

For instance, the deployment of solar photovoltaic plant is very difficult in wetlands, agricultural land, water bodies, and forest due to instability and inaccessibility of land. Large-scale sun-based energy power plants need to consider various factors such as land, transportation networks, implications on near residential areas, and distance to the electricity grid. The above factors hamper the global solar photovoltaic (PV) market growth.

Solar Photovoltaic (PV) Market Segmentation Analysis

By Technology Analysis

Multicrystalline Silicon to Propel Market Growth Due to its Fundamental Use in Solar PV

Based on technology, the market is segmented into monocrystalline silicon, thin-film, multi-crystalline silicon, and others. The multicrystalline segment has dominated the market in 2020. This segment has a wide range of applications in  this market and it is widely used in the commercial, residential, and industrial segments.

The monocrystalline silicon segment is expected to grow at the highest pace during the forecast period. Monocrystalline silicon sun-energy panels are more widely used in solar rooftop systems. These panels are commonly preferred for large-scale solar PV installations. Such solar panels are used in different sectors such as industrial, commercial, or residential. Many manufacturers are also shifting from multi-crystalline to monocrystalline solar cells due to their high efficiency, compact design, and durability.

By Installation Analysis

Easy Installation Of Ground-Mounted Segment Dominated the Market

Based on the installation, the market is segmented into ground-mounted, rooftop, and others. The ground-mounted segment held a dominant share of the market in 2020. This type of PV is mainly used for commercial and utility purposes as it is cost-effective. The ground-mounted solar has a wide number of installation, and operation & maintenance efficiencies.

The rooftop segment is likely to expand significantly during the forecast period. Rooftop solar is primarily used in small residential projects and the number of residential projects is also increasing. Thus, driving growth in the rooftop solar PV segment in the market. 

By Grid Type Analysis

On-Grid Segment Dominated the Market Due to Cost-Effective Nature

Based on the grid type, the market is segmented into on-grid and off-grid. The on-grid segment held a dominant share of the market in 2020 due to the rising number of utility-scale projects around the world. An on-grid solar photovoltaic system is a grid-connected to a utility grid that generates electricity using solar photovoltaic. The on-grid system ranges from small residential units to large utility-scale solar photovoltaic generating stations. The adoption of off-grid systems is rapidly increasing in rural areas.

The off-grid segment is estimated to grow during the forecast period. The off-grid systems are  not connected to the utility grids. The off-grid segment is rapidly growing as their adoption is widely increasing in rural areas or in the areas where grid connectivity is inaccessible across the world.

By Application Analysis

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Utility Segment to Grow Due to Rising Government Funding For Solar Projects For Electricity Generation

Based on the application, the market is segmented into residential, non-residential, and utility. The utility segment dominated market share in 2020 and will record a notable CAGR over 2021-2028. Many utility-scale sun-energy projects are in the pipeline across the globe. In May 2020, Amazon announced five new utility-scale solar projects to power the global operations in China, Australia, and the U.S. Additionally, the government initiatives for solar enegy conservation and new electricity production plants throught solar energy has helped utility segment to grow. For instance, Gujarat Solar Park is located in Charanka village in Patan district of Gujarat and is spread over 5384 hectares of unused land. This integrated "Solar Park" has a state-of-the-art infrastructure that allows the use of rainwater in addition to the electric steam from the stairs. Further, the rising number of residential building projects and the rising consumer awareness regarding clean energy will drive the growth of the residential segment during the forecast period.

REGIONAL INSIGHTS

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Geographically, the global solar photovoltaic (PV) market share is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. The Asia Pacific region held the major share of the global market. More than 77 GW of solar capacity will be added in the region in 2020. The primary elements driving the market's growth are high solar irradiation levels and cheap component production costs. High carbon emission reduction targets set by a number of nations, notably China and India, combined with rising electricity demand will fuel market growth. In 2020, China installed a large number of sun energy based projects with a capacity of more than 49 GW. The country remains the world’s largest market, adding the largest solar power capacity in 2020.

In terms of solar PV installations, Europe’s solar capacity reached the second-largest position. The European Union installed more than 20 GW of solar photovoltaicin 2020. Large scale solar projects are quickly expanding in this region. These are the primary drivers driving market expansion in Europe. The EU Renewable Energy Directive outlined the EU's strategy for promoting and producing sustainable energy sources across the country. This directive established targets for achieving a 20 percent renewable adoption rate in the overall energy mix. Such variables would hasten the market's expansion in this region.

The North America region is also expanding significantly in this market. The region is increasing solar photovoltaic capacity in the Canada and the U.S. The region along with Central America has installed a capacity of more than 100 MW of off-grid solar installation in 2020.

List f Key Companies in Solar Photovoltaic (PV) Market

Key Players Focus on Increasing Their Production Capacity by Introducing New Plants 

The global market is uneven as a result of the presence of huge number of players worldwide. Currently, Canadian Solar Inc., First Solar, and Trina Solar are leading the market. These companies are expanding their solar capacities by inducing new plants or expanding the existing ones.

For example, in July 2020, Sonnedix augmented its operational capacity by 8.2 MW through the acquisition of two portfolios. These include the acquisition of three operating plants with a combined capacity of 3 MW from Melfin (Melchioni Group) and six operating plants with a combined capacity of 5.2 MW from Silver Ridge Italia. In June 2021, Tata Solar Power announced that it has won an engineering, procurement, and construction (EPC) contract to build a solar project with an installed capacity of 210 MW from NTPC. The total order value is around 686 crores and the NTPC is planning to commission the project by 2022.

LIST OF KEY COMPANIES PROFILED:

• Canadian Solar Inc. (Canada)


• BrightSource Energy, Inc. (U.S.)


• First Solar (U.S.)


• SunPower Corporation (U.S.)


• Trina Solar (China)


• Yingli Solar (China)


• Wuxi Suntech Power Co. Ltd. (China)


• Jinko Solar (China)


• Waaree Group (India)


• AccionaEnergia S.A.(Spain)


• Nextera Energy Sources LLC (U.S.)


• Vivaan Solar (India)


• eSolar Inc. (U.S.)


• Tata PowerSolar Systems Ltd. (India)


• Abengoa (Spain)

KEY INDUSTRY DEVELOPMENTS:

• In September 2023, First Solar Inc. opens new tab renewable energy company Longroad Energy has increased the company's solar panel orders by 2 gigawatts (GW), bringing Longroad's total purchases to approximately 8 GW. The advanced thin-film solar module order is expected to be delivered between 2027 and 2029, based on an existing 3.7 GW to the contract.Longroad has developed or acquired 4.3 GW of renewable energy projects across the United States. It sold its 108-megawatt solar project in Virginia to utility Dominion Energy ( D.N ), which will open a new tab early this year.


• In October 2021, SunPower Corp., a leading provider of solar technology and energy services announced that it had acquired Blue Raven Solar, one of the fastest-growing residential solar providers in the United States on Blue Raven's growth trajectory. The additional geographic footprint is expected to give SunPower a path to rapidly expand the solar market to serve more customers in underserved areas, including the Northwest and Mid-Atlantic regions.


• In August 2020, Canadian Solar announced that it commenced the construction of one of the largest commercial and industrial (“C&I”) rooftop solar projects in Malaysia, by collaborating with Antah Solar Sdn. Bhd. and EleapsSdn. Bhd. The 5 MWp project will span an area of over 26,000 m2 and is located in Penang, Malaysia.


• In August 2020, Tata Power on announced that its three wholly-owned subsidiaries Coastal Gujarat Power Ltd (CGPL), Tata Power Sun Systems (TPSSL) and Af-Taab Investment Company (Af-Taab) merged with the parent company collaboration in financing, execution and supervision. According to the company, the merger is part of a strategic initiative aimed at simplifying the structure of the group's owners and a broader plan to promote the company's further growth through the consolidation of state finances and strengthening the balance sheet.


• In July 2020, Indian prime minister, Narendra Modi inaugurated Asia’s largest solar power plant which is located in Rewa district of Madhya Pradesh. The Indian government said that this new solar power plant would help in reducing emissions equivalent to approximately 15 lakh tonnes of carbon dioxide every year in the country.

REPORT COVERAGE

The global market research report includes a detailed solar industry analysis and focuses on key aspects such as leading companies, technology, installation, grid type, and leading applications of the product. Besides this, the report offers insights into the solar photovoltaic (PV) market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.

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