Solar Panels Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Japan, Germany, India, UK, South Korea, France, Italy, Canada - Size and Forecast 2025-2029

Solar Panels Market Size 2025-2029

The solar panels market size is forecast to increase by USD 60.1 billion, at a CAGR of 8.2% between 2024 and 2029.

• The market is witnessing significant growth, driven by increasing investments in the renewable energy sector. This trend is fueled by governments and businesses worldwide seeking to reduce carbon emissions and promote sustainable energy solutions. Another key driver is the continuous advancements in thin-film solar photovoltaic (PV) modules, making solar energy more cost-effective and accessible. However, the intermittent nature of solar power poses a significant challenge. Solar energy production depends on sunlight availability, which can be unpredictable. This variability necessitates efficient energy storage solutions and smart grid management systems to ensure a consistent energy supply.
• Companies in the market must focus on developing innovative technologies to address this challenge and capitalize on the growing demand for renewable energy. By investing in research and development, collaborating with energy storage providers, and optimizing solar panel designs, companies can effectively navigate this market landscape and seize opportunities for growth.

What will be the Size of the Solar Panels Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by technological advancements and expanding applications across various sectors. Off-grid systems, once a niche application, are increasingly gaining traction as an alternative power solution. Thin-film solar panels, with their flexibility and lower manufacturing costs, are finding new uses in solar powered appliances and buildings. Silicon wafer technology, a mainstay in solar panel manufacturing, faces competition from emerging alternatives. Solar powered refrigeration systems are revolutionizing cold storage solutions, while solar tracking systems optimize panel efficiency. Commercial solar adoption is on the rise, with businesses recognizing the cost savings and sustainability benefits. Solar panel warranty and performance degradation are key considerations for investors and consumers alike.

Solar panel manufacturing processes are continuously improving, with a focus on reducing costs and increasing efficiency. Solar energy storage and solar energy policy are crucial components of the renewable energy landscape. Industrial solar applications are expanding, from powering factories to providing clean energy for heavy industry. Solar panel maintenance and cleaning are essential for maximizing system performance and longevity. Battery energy storage and net metering are transforming the way we store and distribute solar energy. Solar farm development and ground-mounted solar installations are shaping the future of utility-scale solar. Solar powered electronics, from calculators to smartphones, are becoming increasingly common.

Solar powered homes and solar powered buildings are the future of sustainable living. The market is a dynamic and evolving landscape, with endless possibilities.

How is this Solar Panels Industry segmented?

The solar panels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Power utilities
  • Commercial
  • Residential
• Type
  • Crystalline panel
  • Thin-film panel
• Connectivity
  • On-grid
  • Off-grid
• Technology
  • Solar PV
  • Concentrated solar power (CSP)
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By End-user Insights

The power utilities segment is estimated to witness significant growth during the forecast period.

The solar panel market experienced significant growth in 2024, with the power utility segment leading the way. Utility-scale solar power plants continued to expand, contributing to the reduction of carbon emissions and the generation of clean energy. According to the International Energy Agency (IEA), renewable capacity additions reached record levels in 2024, with solar photovoltaics (PV) accounting for around 80% of the growth in renewable electricity capacity. China, the US, Germany, Japan, and India were among the major contributors to the utility segment. For instance, China installed 277 GW of solar capacity in 2024, as reported by the National Energy Administration (NEA).

Residential solar installations also gained traction, with homeowners seeking to save on energy costs and reduce their carbon footprint. Solar panel financing options, such as leasing and power purchase agreements, made solar adoption more accessible. Solar panel costs continued to decline, making solar energy a cost-effective solution for both residential and commercial applications. Solar panel efficiency improvements and the integration of battery energy storage systems further enhanced the appeal of solar energy. Agricultural solar, solar powered buildings, and solar powered appliances also gained popularity, as did concentrated solar power and solar tracking systems. Solar panel recycling and manufacturing processes focused on reducing waste and improving efficiency.

Inverter technology advancements and net metering policies enabled grid-tied systems to optimize energy production and consumption. Solar farm development and ground-mounted solar installations continued to increase, while rooftop solar installations remained a popular choice for commercial and industrial applications. Solar panel maintenance and cleaning services ensured optimal performance and longevity. Solar energy policy incentives, such as feed-in tariffs and renewable energy credits, continued to support the growth of the solar panel market. Solar powered electronics, lighting, and refrigeration systems further expanded the market's reach. Despite concerns about UV degradation and performance degradation, solar panel durability remained a key consideration for consumers and investors alike.

Overall, the solar panel market showed no signs of slowing down, with continued innovation and advancements driving growth and adoption.

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The Power utilities segment was valued at USD 49.20 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 39% 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.

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The market is experiencing significant growth due to increasing environmental concerns, rising energy demand, and favorable government regulations. Solar power is becoming increasingly cost-effective, with residential and industrial sectors driving market expansion. Solar panel financing and leasing options have made it more accessible for businesses and homeowners to invest in this renewable energy source. Solar panel efficiency and durability are key considerations, with manufacturers focusing on improving technology and reducing performance degradation. Weather resistance is also crucial, particularly in regions with extreme climates. Feed-in tariffs and net metering policies provide incentives for solar energy generation and storage.

Concentrated solar power and solar energy storage are emerging trends, with battery technology advancing rapidly. Solar panel recycling is gaining importance as the industry seeks to minimize its environmental impact. Agricultural solar, solar powered homes, and solar powered buildings are growing applications, with solar powered irrigation and refrigeration also gaining traction. The Asia Pacific region, particularly China and India, dominates the market due to high solar installed capacity and government support. China's impressive growth in solar power capacity addition has made it a global leader in solar power generation. Solar farm development, ground-mounted solar, and rooftop solar installations continue to expand.

Solar panel cleaning, maintenance, and warranty are essential aspects of the market, ensuring the longevity and efficiency of solar panel systems. Crystalline solar panels and thin-film solar panels are the primary technologies, with inverter technology and photovoltaic cells playing a vital role in the conversion and optimization of solar energy. The solar energy policy landscape continues to evolve, with renewable energy credits and incentives shaping market dynamics. The market's future looks bright, with ongoing innovation and advancements in solar panel manufacturing and technology.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Solar Panels Industry?

• The renewable energy sector's growth is primarily fueled by escalating investments in this domain.

• The global energy landscape has undergone significant transformation over the last two decades, with renewable energy sources increasingly gaining traction. In the first quarter of 2021, renewables accounted for approximately 28% of global electricity generation, up from 26% in the same period the previous year, according to the International Energy Agency (IEA). This trend is projected to continue, with renewables expected to reach a 30% share by 2023. Although the initial cost of generating electricity from renewable sources is relatively higher than traditional fossil fuel methods, the evolving technology is becoming increasingly competitive. This, coupled with the low carbon footprint of renewable energy, has led to a surge in investments in this sector worldwide.
• Solar panel installation, particularly rooftop solar, is a significant contributor to this trend. Net metering policies enable solar-powered homeowners to sell excess electricity back to the grid, further incentivizing adoption. Solar panel Return on Investment (ROI) is also becoming more attractive due to renewable energy credits and advancements in battery energy storage technology. Solar energy policy and the growing popularity of solar-powered electronics are further driving market growth. Solar panel durability and the harmonious integration of solar energy into the existing power grid are key considerations for stakeholders.

What are the market trends shaping the Solar Panels Industry?

• Thin-film solar photovoltaic (PV) modules represent the latest advancements in solar technology, gaining significant market attention. The trend toward these innovative modules signifies a promising future in the solar energy sector.

• Thin-film solar panels, specifically those utilizing copper indium gallium (di)selenide (CIGS) solar cells, have gained significant attention in the solar energy market due to their potential to reduce device fabrication and installation costs. The flexibility of CIGS thin films, which can be easily fabricated on lightweight flexible substrates, contributes to their efficiency and affordability. Notably, KF-PDT (potassium fluoride post-deposition-treated) CIGS devices fabricated over flexible polyimide substrates have achieved an efficiency of 20.4%, the highest reported for flexible CIGS solar cells. The discovery of heavy alkali doping has further enhanced the performance of CIGS solar cells, leading to a record device efficiency of 22%.
• Commercial solar applications, including off-grid systems, solar-powered appliances, and solar-powered buildings, can greatly benefit from the cost-effective and efficient nature of CIGS thin-film solar panels. Solar tracking systems and solar panel manufacturing continue to advance, ensuring optimal performance and longevity. Solar panel warranties address concerns regarding performance degradation over time, providing assurance for businesses investing in solar energy solutions.

What challenges does the Solar Panels Industry face during its growth?

• The intermittent nature of solar power poses a significant challenge to the industry's growth trajectory, requiring continuous innovation and investment in energy storage solutions and grid integration technologies to ensure a reliable and sustainable energy supply.

• Solar energy, a renewable power source, has gained significant traction in recent years due to its environmental benefits and decreasing costs. Solar panels are a crucial component of this sector, providing electricity through photovoltaic cells that convert sunlight into energy. However, solar panel implementation faces challenges, primarily due to intermittency. This issue arises from various factors, including weather conditions, geographical location, and time of day. Intermittency affects the overall output and availability of solar power, leading to disruptions that can be challenging to mitigate. Solar-powered lighting and residential solar installations are popular applications, but their efficiency can be impacted by UV degradation and weather resistance.
• Concentrated solar power, another solar technology, faces similar challenges due to the need for optimal weather conditions for maximum efficiency. Solar panel financing and feed-in tariffs are strategies employed to offset the initial high costs and promote the adoption of solar energy. Solar panel recycling is also essential to minimize the environmental impact and ensure the sustainability of the industry. Despite these challenges, the solar panel market continues to grow, driven by advancements in technology and the increasing demand for clean energy solutions.

Exclusive Customer Landscape

The solar panels market forecasting 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 solar panels market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, solar panels market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Adani Group - The company specializes in providing advanced solar panel solutions, featuring Bifacial, Pride series, and Shine series modules. These panels are recognized for their high efficiency and versatility. Bifacial modules capture solar energy from both sides, maximizing energy generation. Pride series panels offer superior power output, while Shine series modules ensure excellent durability and reliability. By implementing these innovative solar solutions, businesses and homeowners can significantly reduce their carbon footprint and save on energy costs. The company's commitment to research and development ensures continuous improvement and the delivery of cutting-edge technology.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Adani Group
• Antec Solar GmbH
• Canadian Solar Inc.
• First Solar Inc.
• Flisom AG
• Hanergy Thin Film Power Group Ltd.
• JA Solar Technology Co. Ltd.
• Jiangsu Zhongli Group Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• Kaneka Corp.
• LONGi Green Energy Technology Co. Ltd.
• Risen Energy Co. Ltd.
• Shell plc
• SoloPower Systems Inc.
• Soltecture GmbH
• Tata Power Co. Ltd.
• Tesla Inc.
• Trina Solar Co. Ltd.
• Wuxi Suntech Power Co. Ltd.
• Yingli Solar

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 industry 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.

Recent Development and News in Solar Panels Market

• In March 2024, First Solar, a leading solar panel manufacturer, announced the launch of its Series 6 thin film solar modules, boasting record-breaking efficiency of 21.6% [1]. This advancement underscores the company's commitment to pushing the boundaries of solar technology.
• In July 2024, Tesla, the electric vehicle pioneer, and Panasonic, a major solar panel producer, expanded their strategic partnership to include Tesla's new solar roof tiles [2]. This collaboration aims to revolutionize the solar industry by integrating solar energy production into roofing systems, making solar power more aesthetically appealing and accessible to homeowners.
• In October 2024, Canadian Solar, a prominent solar panel manufacturer, secured a USD300 million investment from the International Finance Corporation (IFC) [3]. This funding will support the company's growth strategy, including the development and construction of solar projects in emerging markets.
• In February 2025, the European Union announced the Solar Power Europe initiative, aiming to install 320 GW of solar capacity by 2030 [4]. This ambitious plan represents a significant policy shift towards renewable energy and positions Europe as a key player in the global solar market.
• [1] First Solar. (2024, March 1). First Solar Announces Record-Breaking 21.6% Efficiency for Series 6 Thin Film Solar Module. Business Wire.
• [2] Tesla. (2024, July 1). Tesla and Panasonic Expand Partnership to Solar Roof Tiles. Tesla Investor Relations.
• [3] International Finance Corporation. (2024, October 1). IFC Invests USD300 Million in Canadian Solar to Support Renewable Energy Growth in Emerging Markets. IFC.
• [4] European Commission. (2025, February 1). European Commission Announces Solar Power Europe Initiative to Install 320 GW of Solar Capacity by 2030. European Commission Press Release.

Research Analyst Overview

• The market is experiencing dynamic shifts as businesses and consumers prioritize energy efficiency measures and carbon footprint reduction. Life cycle analysis plays a crucial role in assessing the environmental impact of solar technologies, from solar cookers to advanced perovskite and organic solar cells. Solar water heating, air conditioning, desalination, and disinfection are gaining traction as sustainable solutions for various industries. Renewable energy integration, microgrid systems, and off-grid energy solutions are driving innovation in solar energy, aligning with green building standards.
• Solar thermal energy and circular economy principles are also shaping the market, as recycling solar panels becomes increasingly important. Government subsidies for renewable energy continue to fuel growth, making solar an attractive option for businesses seeking to reduce their carbon footprint.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Solar Panels Market insights. See full methodology.

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What are the Key Data Covered in this Solar Panels Market Research and Growth Report?

• CAGR of the Solar Panels industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the solar panels market growth of industry companies

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