Agrivoltaics Market

Agrivoltaics Market Market Size

Agrivoltaics Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 9.9% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 3.8 billion and is projected to reach USD 10.6 billion by the completion of 2034.

Agrivoltaics, which is also known as solar farming, involves the integration of agriculture with solar panels to maximize the usage of lands. These systems are designed to enable the use of land for farming, raising livestock, and installing solar panels. This method improves agricultural output by decreasing water loss and possibly boosting crop yield. It helps in achieving sustainable energy objectives by generating clean power and conserving land that could have been used for solar farms or agriculture, thereby reducing the need for extra land. Besides, agrivoltaics allows farmers to expand their revenue streams and simultaneously reduce their carbon footprints to meet sustainability goals.

Market Highlights

Agrivoltaics Market is anticipated to grow at a robust rate, with projections indicating a 9.9% compound annual growth rate (CAGR) between 2024 and 2034

Agrivoltaics market is expected to reach USD 10.6 billion during the forecast period, due to its dual benefits of boosting agricultural productivity and producing renewable energy. This dual use of agrivoltaics attracts farmers as well as energy providers, which leads to high adoption rates of agrivoltaics. In addition, developments in solar panel technology and farming methods have made agrivoltaics systems more efficient and convenient. Furthermore, the growth in the market is attributed to government policies and regulations that offer subsidies and tax relaxations to encourage businesses to invest in integrated systems. Besides, continuous innovation boosts growth by improving productivity and reducing costs.

Source: Fatpos Global

Agrivoltaics Market Segmentation

Fixed agrivoltaics systems segment is anticipated to lead due to their easy installation and effectiveness

Agrivoltaics market is segmented based on System Type into Dynamic Agrivoltaics Systems and Fixed Agrivoltaics Systems. The fixed agrivoltaics systems segment is anticipated to lead the market due to its easy installation as compared to dynamic systems. These systems have solar panels that require minimal adjustment after installation, which makes them more reliable and reduces the likelihood of technical issues and downtime. In addition, lower maintenance requirements lead to low operational expenses and faster recouping of investment. Furthermore, the simple design and setup of fixed agrivoltaics systems make them cost-effective and suitable for large-scale use. The fixed nature of these systems does not disrupt farming activities and allows crops to thrive while simultaneously generating energy.

Photovoltaic (PV) Panels segment will dominate the industry as it is reliable and widely used for energy conversion

Agrivoltaics market is classified based on Technology into Photovoltaic (PV) Panels, Solar Thermal Systems, and Bifacial PV Panels. The photovoltaic panels segment will dominate the agrivoltaics market as these panels are widely used in energy conversion from sunlight to electricity. In addition, these panels are less expensive due to improvements in technology, which has reduced the installation costs. The affordability of these panels makes them attractive for large projects. Besides, these panels can be installed in different arrangements like fixed or movable, which increases energy production and the efficiency of farming. Alongside, they fit well with sustainability goals and provide renewable energy which lowers carbon emissions and promotes eco-friendly farming.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increase in Demand for Renewable Energy is Important to Boost the Adoption of Agrivoltaics

Growth in the global population is causing a rise in energy demand. This increasing energy demand is causing people to look for renewable energy sources, which leads to the adoption of agrivoltaics. Governments and organizations are also looking for renewable energy sources due to concerns about climate change and environmental degradation. Additionally, among other renewable energy sources, solar energy is thought to be important in reducing climate change and reducing greenhouse gas emissions, which has raised the demand for agrivoltaics. Along with this, government subsidies and tax breaks are promoting the use of solar panels in farming to produce cleaner energy and providing farmers with an additional source of income by selling the electricity generated from these solar panels.

Improved Efficiency in Land Utilization Will Aid the Market

Agrivoltaics helps in optimizing the usage of land by combining farming and solar energy production to increase productivity. It plays an important role in regions with limited land availability by combining farming and energy generation through solar panels. This helps in reducing the need for more land and avoiding conflicts over land usage. Additionally, the installed solar panels in the field provide shade for crops and prevent excessive sun exposure, which helps in higher crop yields. Thus, by proper land usage farmers can have different sources of revenue from a single land by selling electricity generated from solar panels, thereby making agrivoltaics an attractive option for farmers to consider.

Restraints

High Installation Cost Can Limit the Growth of the Agrivoltaics Market

High installation cost is one of the major reasons limiting the market growth. A significant amount of money is needed to establish agrivoltaics systems, which include solar panels, electrical components, and other equipment. This financial burden is challenging for small & medium-scale farmers with limited budgets which affects the growth of the agrivoltaics industry. Also, the demand for trained and experienced labor in developing and monitoring agrivoltaics systems increases the cost and makes it less accessible for farmers. Besides, farmers often invest in traditional agricultural improvements such as irrigation systems or machinery, that seem less risky and familiar, which again impacts the growth of the industry.

Recent Developments

• In 2023, BayWa AG, a German renewable energy firm, implemented an agrivoltaics project in France. This initiative involves more than 1,420 semi-transparent PV modules installed on a fruit farm. The project aims to produce substantial clean energy while ensuring adequate sunlight reaches the crops.
• In 2023, Turkey launched an agrivoltaics research project aimed at evaluating products and production processes. As part of this initiative, researchers introduced tracker systems designed specifically for crops grown using agrivoltaics methods.
• In 2023, Boralex, a French renewable energy company, teamed up with Sun'Agri, an agrivoltaics pioneer, to launch new solar power plants in France and Europe. This partnership focuses on integrating agrivoltaic principles to protect farms from adverse weather conditions and maximize sunlight for crop growth.
• In 2017, Enel Green Power initiated agrivoltaic projects in Italy and Spain, integrating solar energy production with agricultural practices to support sustainable land management.

Agrivoltaics Market

Key Players:

• BayWa AG
• Insolight SA
• Namaste Solar
• JA Solar Holdings Co. Ltd.
• Ombrea
• Sun Agri
• Enel Green Power
• First Solar
• Trina Solar Limited
• Exelon Corporation
• ABB Ltd.
• Suzlon Energy Ltd.
• Wood Group
• AREVA
• Hanwha Q Cells
• 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

Agrivoltaics market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region is expected to control the agrivoltaics market due to growing public awareness and support for renewable energy alternatives. The region has a strong focus on sustainability and reducing carbon emissions, which makes agrivoltaics a highly attractive option for meeting these goals. In addition, the market for agrivoltaics systems is expanding in North America due to large investments made in research and development to improve the affordability of agrivoltaics systems.

Simultaneously, due to high government support for renewable energy and technological innovations in solar panel integration, the Asia Pacific agrivoltaics industry is expanding at a very fast pace. Besides, the extensive agricultural fields and strong solar resources across the Asia Pacific region further boost the adoption of the agrivoltaics market.

Source: Fatpos Global

Impact of COVID-19 on the Agrivoltaics Market

COVID-19 pandemic had a mixed impact on the agrivoltaics market. Initially, the pandemic disrupted the supply chain and caused delays in project installations due to a shortage of raw materials and solar panel components. The shortage of labor in the manufacturing units of companies further affected the market as the prices of components swiftly saw a rise. However, there was an inclination towards sustainable solutions like agrivoltaics, which boosted the demand for agrivoltaics systems. Furthermore, the use of remote monitoring and management technologies for solar installations was accelerated by the pandemic, which could be beneficial for agrivoltaics projects as it allowed for more effective operation and maintenance.

Agrivoltaics 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

Agrivoltaics Market Scope and Segments: