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The global building integrated photovoltaics (BIPV) market size is forecast to increase by USD 36.17 billion, at a CAGR of 21.25% between 2023 and 2028. A growing number of commercial buildings with large floor spaces are adding to the energy cost of the construction and building sector. Simultaneously, the steady rise in electricity prices has also increased the operational cost of such facilities, resulting in a direct impact on the facility's bottom-line expenses. Reduction in solar PV industry costs is the primary trend shaping market growth. Renewable penetration refers to the amount of renewable energy that can be added to the system output. For example, 20% penetration means that for 1 megawatt (MW) of installed generator capacity, 200 kW of renewable power can be added.
In March 2021, the United States Department of Energy (DOE) announced an ambitious new goal to reduce the cost of solar power generation by 60% over the next ten years, as well as over USD128 million in funding to reduce prices, improve performance, and accelerate the implementation of solar energy technology. Additionally, the integration of solar walls and building integrated walls in commercial infrastructures is becoming increasingly popular due to their energy conservation and environmental concerns.
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Commercial buildings typically have higher levels of energy consumption than residential buildings. The systems allow these buildings to generate their own electricity, reducing the reliance on grid-connected power and leading to significant energy cost savings over time. Thus, initiatives undertaken by governments worldwide are focusing on energy management systems and technologies as they improve overall building efficiency.
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Furthermore, governments are providing financial incentives for the development of alternative energy sources, such as solar power, as they lower carbon emissions. This makes the global market an attractive option in terms of investments. Additionally, government policies and incentives play a crucial role in promoting renewable energy adoption. Stimulus packages and policies to support green initiatives and infrastructure projects could positively impact the market during the forecast period.
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Europe is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe is expected to register significant growth due to the high demand for installations from the power utilities and residential sector, which are the major end-users in this region. Advances in building integrated technology attract market players.
Furthermore, Germany led the market in Europe in 2022. The country also has the greatest number of solar energy installations. Additionally, to stimulate additional commercial development, governments are offering support policies and R&D funding, while project developers are discovering different finance tactics to help accelerate the investment payback systems. Thus, the above-mentioned factors will propel the growth of the regional building-integrated photovoltaics market during the forecast period.
The Building Integrated Photovoltaics Market is experiencing growth driven by the rising demand to reduce energy costs, prompting increased adoption of integrated roof systems and building-integrated photovoltaics (BIPV) in both residential and commercial buildings. A notable trend in this market is the reduction in solar PV costs, facilitated by advancements in photovoltaic materials and the development of thin film BIPV modules.
However, the industry faces challenges due to the intermittent nature of solar power, necessitating innovative solutions to address issues such as heat generation and wireless connectivity in BIPV systems. With a focus on leveraging alternate sources of energy and reducing carbon footprint, BIPV solutions offer ecological benefits while contributing to the construction of energy-efficient buildings. As consumer awareness increases and favorable government regulations support clean energy initiatives, the BIPV market continues to evolve, driving infrastructure development and fueling the transition towards green or zero-emission buildings.
Rising demand to reduce energy costs is the key factor driving market growth. Commercial buildings, healthcare facilities, and manufacturing plants are the most energy-intensive end-users as they need to function round-the-clock and use various equipment for the upkeep of their in-house operations. As a result, the demand and amount spent on electricity in these facilities are high. A growing number of commercial buildings with large floor spaces are adding to the energy cost of the building sector. Simultaneously, the steady rise in electricity prices has also increased the operational cost of such facilities, resulting in a direct impact on the facilitys bottom-line expenses.
Further, the commercial building sector is working toward reducing energy expenses across the globe. By implementing energy management practices, a building can save 10%-20% of its energy consumption and extend it above 30% with a comprehensive energy plan. For instance, in healthcare facilities, photovoltaic systems has proven to be a highly cost-effective solution that cuts down energy consumption and realizes cost savings. Thus, the rising demand to reduce energy costs in buildings will propel market growth during the forecast period.
Reduction in solar PV costs is the primary trend shaping market growth. Renewable penetration refers to the amount of renewable energy that can be added to the system output. For example, 20% penetration means that for 1 megawatt (MW) of installed generator capacity, 200 kW of renewable power can be added. In March 2021, the United States Department of Energy (DOE) announced an ambitious new goal to reduce the cost of solar energy by 60% over the next ten years, as well as over USD128 million in funding to reduce prices, improve performance, and accelerate the implementation of solar energy technology.
Further, aligned with market trends and analysis, a decline in solarPV prices has resulted in the growth of the market. Globally, there has been more than a 40% decline in price in the past decade. Governments worldwide have played an important role in this price decline by providing subsidies and grants for solar-energy installations. Furthermore, many (PV) market players have lowered their prices to increase the demand for the product. Thus, such factors will propel the growth of the market during the forecast period.
The intermittent nature of solar power is a challenge that affects market growth. With solar power prices spiraling down, PV adoption has gained traction, leading to a high number of installations over the years. However, the intermittent nature of solar power is a key issue. Power output from solar PV depends on factors such as the efficiency of the panel, solar-irradiation, and the degree of shading, which varies according to the time of day and the amount of cloud cover. Further, systems are often connected to the electricity grid.
Moreover, the intermittent nature of solar-power can pose challenges for grid operators in managing fluctuations in power supply. The intermittent nature of solar-energy also has a significant impact on power systems. As a result, having a 100% standalone solar power system is not a feasible option. The timing of energy-production systems may not always align with the timing of energy-demand. Thus, the intermittent nature of solar-power will impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Building Integrated Photovoltaics Market is witnessing significant growth due to increasing awareness of renewable energy sources and the need to reduce greenhouse gas (GHG) emissions. As solar photovoltaic (PV) installation capacities expand, there's a growing demand for integrated roof systems and alternate sources of energy in the construction sector.
Thin film BIPV modules are revolutionizing the solar panel market, offering seamless integration with conventional building materials such as roofs, skylights, and facades. These modules utilize photovoltaic materials to generate electricity while maintaining aesthetic appeal.
With increasing household adoption driven by favorable government regulations and the desire to reduce energy bills and carbon footprint, BIPV systems are becoming mainstream. Thin-film PV and crystalline PV technologies are driving market growth analysis, offering cost-effective solutions for sustainable energy generation.
As disposable income levels rise, more consumers are investing in thin-film solar panels integrated into their buildings, contributing to the global shift towards renewable energy. The Building Integrated Photovoltaics Market holds immense potential to transform the way we generate and consume energy, paving the way for a greener and more sustainable future.
The market analysis and report forecasts market growth and forecasting by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018 to 2028.
Building Integrated Photovoltaics Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.25% |
Market Growth 2024-2028 |
USD 36.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
20.65 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 41% |
Key countries |
US, China, Japan, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGC Inc., BELECTRIC Solar and Battery GmbH, Canadian Solar Inc., ertex solar, First Solar Inc., Hanergy Thin Film Power EME BV, Harsha Abakus Solar Pvt. Ltd., Heliatek GmbH, Kyocera Corp., Meyer Burger Technology AG, Onyx Solar Group LLC, PowerFilm Solar Inc., Reliance Industries Ltd., SCHOTT AG, Sharp Corp., Solaria Corp., Trina Solar Co. Ltd., United Solar Ovonic Inc., Wuxi Suntech Power Co. Ltd., and Yingli Green Energy-Holding Co. Ltd. |
Market dynamics |
Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Panel Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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