Solar Photovoltaic Services Market by Service and Geography - Forecast and Analysis 2023-2027

The solar photovoltaic services (PV) market is estimated to grow at a CAGR of 15.38% between 2022 and 2027. The size of the market is forecast to increase by USD 16,359.62 million. The growth of the market depends on several factors, including increasing new installations and ageing asset base of solar PV modules, declining cost of solar power generation, and supportive government policies and regulations.

This report extensively covers market segmentation by service (installation services, O&M services) 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.

What will be the size of the Solar Photovoltaic Services Market During the Forecast Period?

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Solar Photovoltaic Services Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increasing new installations and aging asset base of solar PV modules are notably driving the market growth, although factors such as challenges associated with recycling of scrap from solar PV systems may impede the market growth. Our researchers analyzed the data with 2022 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.

Key Solar Photovoltaic Services Market Driver

The increasing new installations and aging asset base of solar PV modules are notably driving the market growth. One of the advantages of solar PV modules is their ability to be manufactured in large-scale plants, which allows manufacturers to reap economies of scale; moreover, as they involve modular technology, they can be deployed in small quantities as well. As a result, PV systems can be used on a very small scale, such as in solar-powered calculators or watches. Or they can be very large, such as in utility-scale power plants. As a clean energy-generating resource, solar PV systems have witnessed significant adoption over the last decade and will continue to exhibit strong growth in the coming years as well.

Additionally, the growth of renewable electricity capacity is expected to be led by solar PV as the technology is expected to reach almost 650 GW in installed capacity over the next five years. The installation of new solar PV modules requires both installation and consulting services, which significantly contribute to the growth of the market.

Significant Solar Photovoltaic Services Market Trend

Developments related to solar PV modules is the key trend in the market. The next generation of solar PV modules includes mono PERC and bifacial solar PV modules, which offer higher efficiency and conversion rates. Bifacial modules can generate power from both sides of the module, which results in higher power generation than monofacial modules. These solar PV modules require a smaller array footprint, which leads to a reduction in the balance of system (BOS) costs. Additionally, these are installed on highly reflective surfaces to utilize both sides of the modules and can lead to power output enhancements of about one-third. Bifacial solar PV modules are more durable than monoracial modules as both sides are UV-resistant and also have lower potential-induced degradation (PID) issues when the module is frameless.

Other than bifacial modules, research and innovations are also taking place in several other components of PV modules to increase their efficiency. Advanced PERC technology is one such technology that is expected to increase efficiency and enable faster returns on investment (ROI), thus leading to reductions in the cost of solar PV systems. The growing adoption of mono PERC and bifacial modules, as well as half-cut cell modules, is expected to drive the growth of the market during the forecast period.

Major Solar Photovoltaic Services Market Challenge

Challenges associated with recycling scrap from solar PV systems are the major challenges impeding the market growth. Solar PV scrap is growing rapidly, considering the number of solar PV modules that have been installed in the last two decades. The amount of discarded scrap from solar PV systems is expected to grow. The disposal of scrap from discarded solar PV systems in landfills is considered unsafe, especially if the solar PV module is broken up, as the toxic materials can contaminate the soil and water, thus making its disposal a major issue.

Moreover, toxic materials such as cadmium can also be washed out of damaged solar PV modules and pollute the surrounding environment. The burden of putting the cost of long-term storage or recycling of old or damaged solar PV modules could lead to manufacturers facing further financial failure as they continue to focus on reducing the cost of solar PV systems. This is hampering the growth of the global solar PV services market.

Key Solar Photovoltaic Services Market Customer Landscape

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 Photovoltaic Services Market Customer Landscape

Who are the Major Solar Photovoltaic Services Market Vendors?

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.

Risen Energy Co. Ltd. - The company offers solar photovoltaic services that include Monocrystalline Perc Module that come with dual-stage 100% EL inspection warrant, and wind load 2400Pa. The company also offers various products such as PV modules and energy storage systems.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Avi Solar Energy Pvt Ltd.
• Canadian Solar Inc.
• ENcome Energy Performance GmbH
• First Solar Inc.
• GCL System Integration Technology Co. Ltd.
• Hanwha Corp.
• JA Solar Technology Co. Ltd.
• Jiangsu Shunfeng Photovoltaic Technology Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• Longi green energy technology Co. Ltd
• RWE AG
• Sharp Corp.
• SunPower Corp
• Trina Solar Co. Ltd.
• Wuxi Suntech Power Co. Ltd.

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.

Parent Market Analysis

The reports categorize the global solar photovoltaic (PV) service 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 research report has extensively covered external factors influencing the parent market growth during the forecast period.

What is the Fastest-Growing Segment in the Solar Photovoltaic Services Market?

The market share growth of the installation services segment will be significant during the forecast period. The decline in the cost of generating solar energy due to the reduction in the cost of solar PV modules and BOS, as well as the rising number of solar power plant installations, has significantly increased the adoption of solar PVs. These factors have led to a rapid rise in the number of solar PV installations. The rise in solar PV installation is driven by growing environmental concerns and worldwide efforts to develop renewable sources of energy, such as solar PVs, to reduce GHG emissions and mitigate climate change.

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The installation services segment was valued at USD 4,468.15 million in 2017 and continued to grow until 2021. The solar energy industry has grown significantly over the past few decades. Advances in the production of solar panels and other related components and the increased adoption of technology have reduced the cost of generating electricity using solar energy significantly. As a result, solar energy is preferred in large utility-scale solar PV, commercial, and residential power projects to cater to the rising demand for electricity. Owing to these benefits, solar PV installations have grown significantly and subsequently have led to the growth of the segment.

Which are the Key Regions for the Solar Photovoltaic Services Market?

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APAC is estimated to contribute 74% 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 solar PV services market in APAC will grow rapidly during the forecast period, majorly driven by new installations in China, India, Japan, and South Korea, as these countries have the highest installed capacity of solar PVs in the region. The growth of solar PV systems can be attributed to the alarming levels of pollution from GHG emissions in China and India, which have resulted in the growing emphasis on renewables such as wind and solar for power generation. In solar power generation, initiatives taken by many countries in the region and the rapid pace of their execution indicate an increased focus on replacing fossil fuels with solar power.

The adoption and implementation of microgrids in APAC are also expected to contribute significantly to the growth of the solar PV services market. The adoption of microgrids is mainly driven by rural electrification programs in developing countries such as India, Indonesia, Myanmar, and the Philippines. The governments of various countries in this region are proactively taking initiatives for the implementation of microgrid solutions to improve rural access to electricity in their respective countries.

Due to COVID-19, many governments in the region imposed lockdowns, which resulted in the suspension of commercial activities and led to low demand for solar photovoltaic services. However, with the lifting of the lockdown restrictions in APAC, it became possible to initiate the resumptions of operation across the solar power generation facilities across the region, further fueling the demand for solar panel production and installations across APAC in 2021. Therefore, the solar photovoltaic service market in APAC is expected to propel during the forecasted period.

Segment Overview

The 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. The market has been segmented by Service (Installation services, O and M services) and Geography (APAC, Europe, North America, Middle East and Africa, and South America).

• Service Outlook (USD Million, 2017 - 2027)
  • Installation services
  • O and M services

• Region Outlook (USD Million, 2017 - 2027)
  • APAC
    • China
    • India
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina

Solar Photovoltaic Services Market Scope

Report Coverage	Details
Page number	153
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.38%
Market growth 2023-2027	USD 16,359.62 million
Market structure	Fragmented
YoY growth 2022-2023(%)	14.6
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 74%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	ABB, Acciona SA, Amana Contracting and Steel Buildings LLC, Anesco Ltd., Avi Solar Energy Pvt Ltd., Canadian Solar Inc., ENcome Energy Performance GmbH, First Solar Inc., GCL System Integration Technology Co. Ltd., Hanwha Corp., JA Solar Technology Co. Ltd., Jiangsu Shunfeng Photovoltaic Technology Co. Ltd., JinkoSolar Holding Co. Ltd., Longi green energy technology Co. Ltd, Risen Energy Co. Ltd., RWE AG, Sharp Corp., SunPower Corp, Trina Solar Co. Ltd., and Wuxi Suntech Power 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, 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.

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What are the Key Data Covered in this Solar Photovoltaic Services Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the solar photovoltaic services market between 2023 and 2027
• Precise estimation of the solar photovoltaic services market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC, Europe, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of solar photovoltaic services market vendors

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