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The solar panels market size is estimated to grow at a CAGR of 7.87% between 2022 and 2027. The market size is forecast to increase by USD 50.08 billion. The growth of the market depends on several factors, including increasing investments in the renewable energy sector, declining cost of solar PV panels, and emerging favorable government regulations.
This solar panels market report extensively covers market segmentation by end-user (power utilities, commercial, and residential), type (crystalline panel and thin-film panel), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing investments in the renewable energy sector are notably driving the market growth, although factors such as high initial investment and maintenance costs for solar PV systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing investments in the renewable energy sector are notably driving the market growth. Over the past two decades, there has been a significant shift in the world's energy mix. The IEA estimates that the proportion of renewable energy in the world's electricity generation rose from 26% in the first quarter of 2020 to about 28% in the first quarter of 2021. By 2023, it's anticipated to reach 30%. When compared to more conventional energy sources like fossil fuels, such as nuclear power, producing electricity from renewable sources is relatively expensive overall.
Investments in renewable energy have grown globally as a result of their competitive cost of production and low carbon emissions. For instance, USD 14.5 billion was invested in India's renewable energy sector between April and December 2022. Investments in the energy sector are rising as the emphasis is shifting to renewable energy sources. This will drive the growth of the global solar energy sector, which, in turn, will propel the growth of the global market during the forecast period.
The rise in the deployment of microgrids is an emerging trend in the market. A small-scale power grid with its own sources of generation and storage is known as a microgrid. It can run on its own or in cooperation with other tiny power grids. In order to operate in both grid-connected and island modes, a microgrid can connect to and disconnect from the power grid. When the primary power grid experiences a failure or if the system is purposefully disconnected from the primary grid, a microgrid may go into island mode. In villages where access to grid-connected power is difficult or scarce, microgrids are used. They can work independently or in tandem with traditional grids. Since they are unaffected by power outages in the main grid, they are more dependable. They also lower the price of expanding the grid to outlying areas.
The vulnerability of centralized grid architecture has been demonstrated by numerous natural disasters. Governments all over the world are encouraging the use of microgrids because of their strong ability to withstand natural disasters. As a result, many communities now use microgrids to deal with power outages during emergencies. Thus, such factors are expected to drive the growth of the global market during the forecast period.
High initial investment and maintenance costs for solar PV systems are major challenges impeding the market growth. Despite the fact that the cost of the materials has significantly decreased, solar PV installations still require a significant upfront investment. The main cause of the higher investment rates is the need for a large area for panels to produce a lot of electricity. Due to intermittency issues, which reduce solar panels' efficiency, customers must install a lot of solar panels to meet their energy needs, which raises both the initial investment and ongoing maintenance costs.
The use of solar PV installation for residential applications is also limited by the high maintenance costs of solar panels for small-scale users. For instance, a household inspection costs about USD 120- USD 160, and solar panels need to be inspected every year. Additionally, the panels must be cleaned every six months, which will cost USD 10 to USD 20 per panel, based on ratings from reputable companies. The use of solar panels and, consequently, solar cover glass for residential purposes will be constrained as a result of the significant burden this will place on household users. Therefore, such factors will hinder the growth of the global market during the forecast period.
The 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 growth strategies.
Global Solar Panels Market Customer Landscape
Vendors 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.
Antec Solar GmbH - The company offers photo-voltaic and building-integrated photo-voltaic systems for residential and commercial applications. The key offerings of the company include solar panels such as energy facades, energy facades in color, and energy facades with advertising.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the power utilities segment will be significant during the forecast period. The power utility sector held the largest share of the global solar panel market in 2022. The installation of large-scale solar power plants to generate clean energy and reduce carbon emissions is increasing. This will have a positive influence on segment growth.
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The power utilties segment was valued at USD 43.10 billion in 2017 and continued to grow until 2021. In order to meet climate goals, the world's power utility sector is switching to greener, renewable energy sources while consuming fewer fossil fuels. The main driving forces behind this transformation are the continual decline in the cost of renewable energy, the growing trend toward bettering air quality and cutting carbon emissions, the improvement of energy security, and the enhancement of accessible, affordable energy. By 2050, the solar energy sector is predicted to meet 25% of the world's electricity needs, which will result in a tenfold increase in solar PV's share of the generation mix from its levels in 2020. Such major targets set across the global utility sector, favorable solar policies, and incentives to encourage solar installations are expected to propel the growth of the global solar panel market in the power utility sector during the forecast period.
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APAC is estimated to contribute 43% 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.
During the forecast period, the regional market will expand due to rising environmental concerns, rising energy demand, supportive government regulations, and a decline in the price of solar PV. India, China, and Japan are some of the biggest market participants. The largest annual installed capacity is in China, followed by India.
Over the past few years, the solar systems market in APAC has experienced rapid growth. China has continued to lead the world in the production of solar energy, surpassing the US in annual solar installed capacity, according to the IEA. The nation has already surpassed its 2020 goals for solar energy. In China, the rate of expanding solar power capacity increased significantly in 2021 before slowing down in 2019 and 2020. As a result, the government gradually eliminated feed-in tariffs and instituted deployment quotas to address grid integration issues and keep costs in check. This policy shift from the government is expected to drive capacity addition during the forecast period in the country, which, in turn, is expected to propel the growth of the solar panels market in APAC.
Owing to the COVID-19 pandemic in 2020, regional market growth was hampered. However, the initiation of the COVID-19 vaccination drive improved the economic condition of the countries in APAC, including India, China, and Japan, which led to the resumption of operations at the solar power plants. Additionally, renewable energy production in the region is also expected to grow significantly during the forecast period. Such factors will drive the demand for solar panels, which, in turn, will boost the growth of the market in APAC during the forecast period.
The solar panels market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global solar panels market as a part of the global renewable electricity market within the global independent power and renewable electricity market. The parent global renewable electricity market covers companies engaged in the generation and distribution of electricity using renewable sources. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Solar Panels Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.87% |
Market growth 2023-2027 |
USD 50.08 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.35 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, China, South Korea, Germany, and Italy |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 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. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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