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The solar photovoltaic services market size is forecast to increase by USD 24.33 billion at a CAGR of 18.69% between 2023 and 2028. The increasing new installations and the aging asset base of solar PV modules indicate a growing adoption of solar energy as a sustainable power source. The declining cost of solar power generation makes it more competitive with traditional energy sources, driving further adoption. Supportive government policies and regulations, such as incentives, subsidies, and mandates for renewable energy, play a significant role in promoting the development of the solar power market. Together, these factors are driving growth and expansion in the solar power industry. Additionally, advancements in solar technology, such as improved efficiency and energy storage solutions as well as off-grid solar power systems, are driving further growth in the market. The increasing focus on sustainability and the growing awareness of the environmental benefits of solar power are also contributing to the market's expansion. 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 market relies heavily on materials like chloroethene, a key component in the production of PVC (Polyvinyl chloride), a material widely used in PVC pipes for the building and construction sectors. It's also crucial for the healthcare, electrical, and agriculture sectors. The production of PVC involves petrochemicals such as ethane and acetylene, with carbon dioxide often being a byproduct. The industry also uses copolymers and ethylene obtained through the thermal cracking of ethylene dichloride. However, there are environmental concerns, leading to research into bio-based vinyl chloride monomer and other alternatives. Regulations and trade play significant roles in shaping this market's dynamics, influencing factors such as raw material supply and product approvals. The market continues to grow, driven by factors like bioenergy and a diverse energy mix. Optimization and standardized product methods enhance power production, ensuring efficiency and reliability. Our researchers analyzed the data with 2023 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.
The increasing new installations and aging asset base of solar PV modules are notably driving the market growth. One of the advantages 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. This is supported by research and development efforts, environmental concerns, availability of substitutes, raw material considerations, government regulations, trade regulations, import-export analysis, emerging revenue pockets, and strategic market considerations.
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, these 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 modules requires both installation and consulting services, which significantly contribute to the growth of the market.
Developments related to solar PV modules is the key trend in the market. The next generation of these 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 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 these 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.
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 these modules that have been installed in the last two decades. The amount of discarded scrap from these systems is expected to grow. The disposal of scrap from discarded solar PV systems in landfills is considered unsafe, especially if the 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 modules and pollute the surrounding environment. The burden of putting the cost of long-term storage or recycling of old or damaged modules could lead to manufacturers facing further financial failure as they continue to focus on reducing the cost of these systems. This is hampering the growth of the 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.
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 research 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 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 these 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 installations. The rise in the 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 5.01 billion in 2018. 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 this energy significantly. As a result, this 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, the installations have grown significantly and subsequently have led to the growth of the segment.
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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 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 in the region. The growth of these 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 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. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is driven by the increasing global installed solar PV capacity and the adoption of solar PV projects worldwide. Rooftop solar panels and ground-mounted Solar PV installations are contributing significantly to the solar PV installed capacity. The market is witnessing declining costs of solar panels and associated systems, making solar energy more accessible. The market landscape depends on bonded warehouses, 100,000 square meters, Price of Solar Panels, South-Central Section, Moving parts, Photovoltaic cell, Electrons, Silicon atoms. Governments, especially in emerging nations, are setting ambitious renewable energy targets to achieve 100% electricity access, particularly in remote areas and for off-grid applications. Technology advancements in solar PV power generation systems are enhancing efficiency and driving down installation costs, further boosting the industry potential. Regulatory measures and financial support are also key factors propelling the growth of the market.
The market is witnessing significant growth driven by various factors such as the adoption of solar PV systems and the increasing global solar PV capacity. Distributed solar power and utility-scale projects are playing a crucial role in expanding the market. Governments' focus on achieving Solar photovoltaic (PV) installation targets and reducing reliance on fossil fuel-based power generation is propelling the market forward. Additionally, initiatives like government renewable energy goals and new product developments are further boosting the market growth. The Brazil and India solar market is influenced by factors such as Solar Photovoltaic Power Plants, Installed Power Capacity, Technological Advancements, and Electricity Grid development. Sanctions may impact market growth.
The market is experiencing robust growth, driven by various factors including the adoption of renewable technologies like solar PV systems. Initiatives such as Delhi Solar Cell and the development of solar farms are contributing to the market expansion. The market is witnessing advancements in technology and manufacturing precision, leading to increased efficiency in power generation. Government actions and international engagement are also playing a crucial role in promoting clean energy sources and reducing carbon emissions. Additionally, factors such as resource availability and cost-effectiveness are further driving the growth of the market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2023 |
Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 18.69% |
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Market growth 2024-2028 |
USD 24.34 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.01 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 74% |
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Key countries |
China, Japan, India, US, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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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 forecast period. |
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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 Service
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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