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The solar panels market size is forecast to increase by USD 53.4 billion, at a CAGR of 7.82% between 2023 and 2028. The renewable energy sector is experiencing a surge in investments, buoyed by several key factors. Firstly, the declining cost of solar photovoltaic (PV) panels is driving the widespread adoption of solar energy solutions, making them increasingly competitive with traditional energy sources. This cost reduction is pivotal in accelerating the transition toward sustainable energy production. Secondly, emerging government regulations are creating a conducive environment for renewable energy development, offering incentives and mandates that encourage investment and innovation in the sector. These regulations provide stability and predictability for investors, fostering confidence in the long-term viability of renewable energy projects. Combined, these trends signify a significant shift towards cleaner and more sustainable energy sources, with renewable energy poised to play an increasingly prominent role in the global energy landscape. Understanding and capitalizing on these trends are essential for stakeholders looking to navigate and thrive in the evolving renewable energy market. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The Solar Panels industry has experienced significant growth in recent years, driven by the global shift towards Renewable Energy and the need to reduce Environmental pollution from traditional Thermal energy sources like Oil and Coal. Solar Panels, specifically Photovoltaic (PV) panels, are a key component of this transition. These panels utilize Photovoltaic cells and Polysilicon to convert Solar energy into Electrical energy. The Solar Panel market is thriving due to Government incentives such as Tax breaks and Rebates, making Solar Powerhouses an attractive investment for businesses and individuals. The Renewable Energy Directive has set Emission standards, pushing for a reduction in carbon emissions and an increase in the use of Clean energy. The production of Solar Panels involves the use of Silver in the manufacturing process, making it an essential resource. The industry's Environmental impact is a concern, with the production and disposal of Solar Panels contributing to Earth's overall Energy needs. However, the benefits of Solar energy far outweigh the concerns, making it a promising solution for our future Energy needs.
The increasing investments in the renewable energy sector are one of the major drivers impacting market growth. The competitive cost of generating electricity and low carbon emissions from renewable sources has increased investments in renewable energy across the world. For instance, from April-December 2022, USD14.5 billion was invested in the renewable energy sector in India.
Further, many European countries, such as Norway, Iceland, and Sweden, rely on renewable sources for more than half of their total annual power demand. This is due to the implementation of stringent emission norms in countries in the EU. Global investments in renewable energy will exceed USD 2.4 trillion in 2022. The shift in focus to renewable sources of energy is increasing investments in the energy industry. This should drive the growth of the global solar energy sector, which, in turn, would propel the growth of the global solar panel market during the forecast period.
Floating solar PV plants is one of the major trends influencing market growth. Floating solar PV technology is an innovative method to install solar PV systems above water infrastructure. This new method helps in achieving water conservation, as floating panels help in reducing water loss due to evaporation. These floating panels operate at cooler temperatures compared with land-based systems, thus improving power generation efficiency.
Moreover, many floating panel projects have been developed in ponds, lakes, or reservoirs recently. These projects are anticipated to increase the demand for solar PV systems and, subsequently, the demand for solar panels during the forecast period. Countries such as China, India, Japan, and South Korea have already started developing such floating solar PV systems. For instance, China has two of the largest floating solar PV plants in Huainan City and Pei County. Similarly, South Korea has multiple floating solar PV plants in Cheongpung Lake, Otae Province, and Jipyeong Province.
The intermittent nature of solar power is one of the major challenges impeding market growth. The output of solar power systems varies highly due to the change in the solar irradiation level at different times of the day and in different seasons. This intermittent nature gives rise to the need for backup power to support the power demand and increases operations related to grid planning activities. However, some solar PV plants have a backup power system, but these still need to be improved.
As a result, the effective utilization of solar energy depends majorly on demand management, effective power adjustment, and the auxiliary system based on the energy storage system and grid modifications. Overcoming the intermittent nature of solar power still needs the use of advanced technology, whereas, in other renewable resources such as pumped hydropower, the systems make use of the reverse flow of water into the reservoir to generate energy. Thus, the intermittency of solar power affects the adoption of solar energy, which is expected to hinder the growth of the global panels market during the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 power utilities segment is estimated to witness significant growth during the forecast period. The Solar Panels industry experienced significant growth in 2022, with the energy sector accounting for the largest market share. Environmental concerns and the need for renewable energy sources drove the demand for PV panels, with silver and polysilicon being key components. Tax breaks and emission standards incentivized investments in solar energy systems, totaling a substantial amount. Notable developments included the expansion of utility-scale solar power plants using floating solar technology, which minimized water infrastructure evaporation during power production.
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The power utilities segment was the largest segment and was valued at USD 46.00 billion in 2018. Moreover, new product launches, contractual agreements, mergers and acquisitions, and collaborations shaped the market landscape. Transparent Solar Panels, capable of absorbing UV and infrared wavelengths, emerged as innovative solutions. Applications of Solar Panels extended to residential, commercial, and industrial sectors, with on-grid and off-grid solar systems gaining popularity. DIY solar panels also gained traction. Technological advancements included advancements in Concentrated Solar Power, Thin Film, and Crystalline technologies, enhancing grid connectivity and overall efficiency.
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APAC 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. The market, spearheaded by solar powerhouses like China, India, and Japan, is experiencing significant expansion due to increasing clean energy demands, supportive government regulations, and declining component production costs. Key drivers include government incentives such as tax rebates and the Renewable Energy Directive. Solar irradiation on land, abundant in regions like APAC, is being harnessed to generate electricity from renewable sources, surpassing fossil fuels like oil and coal. Photovoltaic cells and photovoltaic glass are essential components in this shift, with countries like China leading the way in solar capacity. The acceptance of solar power is on the rise, with rooftops and warehouses becoming prime locations for solar panel installation. Despite power consumption concerns, the environmental impact of solar energy is a welcome alternative to thermal energy and its associated carbon emissions.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is experiencing significant growth as more individuals and businesses seek to reduce their carbon footprint and save on energy costs. Solar Panels, also known as photovoltaic (PV) panels, convert sunlight into electricity through a process called the photovoltaic effect. Solar Panels are made of Silicon and are produced in large quantities in countries like China and the United States. The technology behind Solar Panels is continually improving, making them more efficient and cost-effective. The Polycrystalline and Monocrystalline types of Solar Panels are the most common, with the former being more affordable and the latter being more efficient. The market for Solar Panels is driven by various factors, including government incentives, increasing environmental awareness, and advancements in technology.
Additionally, renewable energy targets, such as those set by the European Union and the United States, have led to significant investments in Solar Panel production and installation. The Solar Panel industry is also seeing innovation in areas like Thin-film Solar Cells, which are more flexible and cost-effective than traditional Solar Panels. The Concentrated Solar Power (CSP) technology is another area of growth, which uses mirrors to focus sunlight on a small area to generate heat and electricity. In conclusion, the market is a growing and dynamic industry, driven by a combination of government incentives, technological advancements, and increasing environmental awareness. The future looks bright for Solar Panels as they continue to provide a sustainable and cost-effective solution for energy production.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.82% |
Market Growth 2024-2028 |
USD 53.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.28 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
China, US, South Korea, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., and Yingli Green Energy Holding Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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