Solar Photovoltaic Market

Solar Photovoltaic Market is anticipated to grow at a CAGR of 13.9% in the forecast period (2024-2034), with the market size valued at USD 171.8 billion in 2023 and projected to reach USD 718.3 billion by 2034.

Product Overview

Solar photovoltaic (PV) technology is a method of converting sunlight into electricity using semiconductor materials. When sunlight interacts with these materials, it stimulates electrons and generates an electric current. This mechanism is known as the photovoltaic effect and is used to generate power in solar cells. Solar PV systems are typically made up of several solar panels, each with many interconnected solar cells. These panels are organized into arrays and can be deployed on rooftops, ground-mounted structures, or installed into building facades. In addition, solar PV technology is renowned for its sustainability and offers a sustainable energy alternative with minimum environmental impact. Its vast adoption in residential, commercial, and utility-scale applications has been crucial in global attempts to transition to renewable energy sources and lower carbon emissions.

Market Highlights

Solar Photovoltaic Market is expected to exhibit a CAGR of 13.9% during the forecast period, 2024-2034

Solar Photovoltaic Market is anticipated to reach USD 718.3 billion, growing at a CAGR of 13.9% during the forecast period, due to various factors including growing awareness of climate change and reducing costs of solar panel installations. Recent technological innovations have improved the efficiency of photovoltaic technology and simultaneously reduced installation expenses. Moreover, the utility-scale segment has emerged as a dominant force due to large-scale solar projects and supportive policies that advocate for the integration of renewable energy into the grid. Furthermore, the residential and commercial sectors are experiencing notable growth, driven by incentives and a growing demand for energy autonomy. Therefore, as solar PV is increasingly competing with conventional energy sources, the market will witness growth and offer significant opportunities for stakeholders to create a sustainable energy environment.

Source: Fatpos Global

Solar Photovoltaic Market Segmentation

Monocrystalline Silicon segment dominates the solar photovoltaic market due to its better performance

Solar Photovoltaic Market is segmented based on Technology into Monocrystalline Silicon, Thin Film, and Polycrystalline Silicon. The monocrystalline silicon segment is set to dominate the solar photovoltaic market, owing to its superior efficiency and dependability. Monocrystalline silicon solar cells are crafted from a single crystal structure, which increases their electron mobility and conversion rates. This efficiency benefit is valuable for installations with limited space and where space optimization is crucial. Moreover, monocrystalline panels have an extended lifespan and better durability, which offers low degradation over time. These attributes, along with ongoing innovations in manufacturing techniques, make monocrystalline silicon the preferred choice for residential and utility-scale solar projects.

On-Grid segment to prevail owing to their simplicity and reliability

Solar Photovoltaic Market is segmented based on Grid Type into On-grid and Off-grid types. The on-grid segment will likely dominate the solar photovoltaic (PV) market as on-grid systems are directly connected to the utility grid and allow excess energy to be sent back to the grid, thereby providing a reliable source of income for users. Additionally, on-grid systems require lower upfront costs compared to off-grid systems, as there is no need for expensive energy storage solutions. The on-grid installations benefit from grid stability and ensure continuous access to electricity even during periods of low solar irradiance. Furthermore, government policies and incentives often favour on-grid PV installations, which promote their adoption.

Market Dynamics

Growth Drivers

Technological Advancements Have Played a Crucial Role in the Growth of the Market

Continuous innovation in solar photovoltaic (PV) technology is a major growth driver for the solar photovoltaic market as it improves efficiency and cost-effectiveness. Innovations in materials science, such as high-efficiency solar cells like PERC (Passivated Emitter Rear Cell) and tandem solar cells, are used for boosting energy conversion rates and reducing the cost per watt of solar power. Similarly, improvements in manufacturing operations, such as transitioning to automated production lines and using advanced encapsulation materials, further reduce the production costs of panels. These technological improvements collectively make solar energy more accessible and economically viable across various applications, thereby promoting continuous advancements in the solar PV market.

Favourable Government Policies and Incentives Exert a Strong Influence on the Growing Adoption of Solar Energy

Encouraging policies and incentives are important for driving the adoption of solar PV systems as they reduce financial barriers and offer regulatory clarity. Governments across the world are using diverse measures to promote the use of solar energy, such as feed-in tariffs, net metering schemes, tax incentives, rebates, and renewable energy objectives. These initiatives provide a favourable environment for investing in solar PV infrastructure and encourage demand across residential, commercial, and utility-scale sectors. Moreover, renewable energy policies result in the creation of new jobs and energy self-sufficiency while helping countries attain climate and sustainability targets. Thus, by incentivizing the adoption of solar energy, governments have a major influence in accelerating the transition to a sustainable and resilient energy ecosystem.

Restraints

Intermittency and Grid Integration Challenges Pose Significant Hurdles for the Market

Solar PV systems generate irregular electricity based on the availability of sunlight, which presents various challenges for grid integration and stability. These variabilities in solar output can result in mismatches between supply and demand, which force grid operators to balance the electricity grid. Moreover, abrupt changes in solar generation due to factors like cloud cover or weather patterns can cause voltage fluctuations and grid instability. Thus, addressing these issues requires investment in modern forecasting tools and energy storage solutions. Additionally, integrating solar PV into the electricity grid requires upgrades to infrastructure, such as grid expansion and the development of smart grid capabilities. Consequently, despite these challenges, active measures and investments can reduce intermittency issues and facilitate the smooth integration of solar PV into the broader energy system.

Recent Developments

• In 2023, First Solar Inc., announced the Series 7 module, its next-generation thin-film solar panel with improved efficiency and lower cost. The company is also focusing on expanding Series 6 module production and building new giga factories in the US and India.
• In 2023, Canadian Solar Inc. introduced the HiDM 9 bifacial module with higher power output and improved performance in low-light conditions. They have successfully formed a joint venture with CS Group to enter the Indian solar rooftop market.
• In 2023, JinkoSolar Holding, launched the Tiger Neo series module with advanced TOPCon technology for increased efficiency. They have also acquired CSI Solar, which is a provider of tracker solutions for utility-scale solar projects.
• In 2023, SunPower Corporation, introduced the A-Series residential solar panel with an integrated microinverter for simplified installation. They have also successfully acquired SunRun, which is a leading residential solar installer, to create a vertically integrated renewable energy provider.
• In 2023, Trina Solar Ltd, introduced the Vertex S bifacial module with ultra-high power output for utility-scale applications. They are significantly focusing on various research and development of advanced cell technologies like n-type TOPCon and PERC+.

Solar Photovoltaic Market

Key Players:

• First Solar Inc.
• Canadian Solar Inc.
• JinkoSolar Holding Co., Ltd.
• SunPower Corporation
• Trina Solar Ltd.
• LONGi Solar
• Hanwha Q Cells Co., Ltd.
• JA Solar Holdings Co., Ltd.
• Yingli Solar
• Risen Energy Co., Ltd.
• SolarEdge Technologies Inc.
• SMA Solar Technology AG
• Enphase Energy Inc.
• Huawei Technologies Co., Ltd.
• REC Group
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Solar Photovoltaic Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region leads the solar photovoltaic (PV) market as the region benefits from active government policies and major investments in renewable energy infrastructure. In addition, fast urbanization and industrialization in countries like China and India are creating significant demand for electricity across the Asia Pacific region. Moreover, favourable geographic conditions, such as abundant sunlight and vast land availability, improve the feasibility of large-scale solar projects.

Furthermore, the North American region follows the Asia Pacific region due to ambitious renewable energy targets and increasing consumer awareness of sustainability. Moreover, innovations in PV technology and declining costs are contributing to the high adoption of solar PV systems in the North America region.

Source: Fatpos Global

Impact of COVID-19 on Solar Photovoltaic Market

The solar photovoltaic market has been affected by the COVID-19 epidemic in multiple ways. Initially, disruptions in the global supply chain and construction activities resulted in project delays and supply shortages, which affected the installation of solar PV systems. Moreover, uncertainties regarding economic conditions also discouraged investors, thereby causing a slowdown in new project development and financing. However, governments across the world implemented stimulus measures and recovery packages that included investments in renewable energy infrastructure and provided a boost to the solar PV market. Therefore, while COVID-19 initially presented challenges, the pandemic accelerated the switch towards clean energy and highlighted the role of solar PV in building a sustainable and resilient future.

Solar Photovoltaic Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Solar Photovoltaic Market Scope and Segments:

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