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The Solar PV Balance Of Systems (BOS) Market size is forecasted to increase by USD 32.33 billion with a growth at a CAGR of 19.22% between 2023 and 2028. The growth rate of the market depends on several factors such as increasing investments in renewable energy, supportive government policies and advances in thin-film solar PV modules.
The report includes a comprehensive outlook on the solar PV balance of systems (BOS) market offering forecasts for the industry segmented by Product, which comprises structural, electrical, and inverter. Additionally, it categorizes End-user into commercial, industrial, and residential and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Solar PV Balance Of Systems (BOS) Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The global energy mix has changed drastically over the past two decades. Improvement in energy efficiency played a vital role in balancing energy supply and demand. The competitive cost of producing electricity and low carbon emissions from renewable sources led to an increase in investments in renewable energy across the world. For instance, during the last three years, the renewable power sector investment accounted for a high market share (over 40%) in total power sector investment. Therefore, robust investments in renewable energy will drive the growth of the solar PV balance of systems market.
Additionally, several countries in Europe, such as Norway, Iceland, and Sweden, rely on renewable sources for more than half of their total annual power demand due to the implementation of stringent emission norms. The increased focus on renewable energy sources is increasing investments in the energy industry, which will drive the growth of the global solar PV balance of systems (BOS) market during the forecast period.
The solar energy industry continues to strive for grid parity globally, with several countries and US states already achieving this milestone. Despite reaching grid parity, the industry remains focused on enhancing efficiency and advancing solar energy solutions. Inverters, crucial components of Solar PV Balance Of Systems (BOS), play a pivotal role in reducing the Levelized Cost of Energy (LCOE) and improving system performance. Inverter innovation is seen as essential for driving further advancements in the solar industry. Innovations in inverters lead to increased energy conversion efficiency, better grid integration capabilities, and enhanced system reliability. These advancements are particularly crucial for solar home systems, where optimizing energy production and minimizing operational costs are priorities. As the demand for clean and sustainable energy solutions grows, continued investment in inverter technology is expected to accelerate the adoption and affordability of solar home systems worldwide.
However, the leading solar inverter manufacturers such as SolarEdge Technologies, and SMA Solar Technology are offering advanced MLPE inverters. As the inverters' functionalities are growing, they are gradually shifting toward digitization. It means that more of the DC to AC conversion processes are happening electronically instead of mechanically. The advances in inverter technologies will positively impact the growth of the solar PV balance of systems (BOS) market. Such factors are expected to drive the market growth during the forecast period
Due to the declining solar technology prices and incentives from the governments, the adoption of solar PV systems has been increasing significantly. This has increased the number of solar power installations over the years. However, the intermittent nature of solar power has been a significant challenge, hindering the adoption of solar PV systems. The output of a solar PV system is not continuous, and it depends on many factors, such as the degree of shade, panel efficiency, and solar irradiation that vary for the day and under overcast conditions. Further, regions above the Arctic Circle do not receive high-intensity sunlight, which makes solar PVs ineffective in such places. Solar PVs have an average efficiency of approximately 15%. Although solar PV technology is constantly evolving, the conversion rate cannot match fossil fuels.
Moreover, the intermittent nature of solar power remains a significant challenge for the growth of the solar power industry as it is inefficient as a standalone power system. This is expected to be a significant challenge to the growth of the solar PV industry, which, in turn, will adversely impact the development of the market during the forecast period.
The structural segment is estimated to witness significant growth during the forecast period. Structural BOS components are used to assemble the PV system components. The structural BOS includes ground-mount trackers, fixed-tilt and rooftop mounting systems, fasteners, brackets, enclosures, racks, and other components that support the structure of the PV system. Structural BOS components are becoming a larger portion of the total cost of solar PV BOS.
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The structural was the largest segment and was valued at USD 7.18 billion in 2018. However, there has been a significant decrease in the costs of structural BOS over the past few years. This significant decline in the costs of structural components will drive the growth of the structural BOS segment Rooftop-mounting systems are expected to record significant sales. This is because of the high demand for solar PV systems in the commercial and residential sectors. However, ground-mounted systems will account for the larger share of the structural BOS components due to the high installed solar PV capacity in the utility sector. Structural BOS components are essential parts of solar PV systems. Therefore, the development of the structural BOS is aligned with the rising deployment of solar PV systems. Thus, the rise in the global solar PV capacity will drive the requirement for solar PV systems, which, in turn, will stimulate the deployment of structural BOS components during the forecast period.
Based on the end-user, the market has been segmented into commercial, industrial, and residential. The commercial?segment will account for the largest share of this segment.?In the commercial sector, solar PV balance of systems (BOS) serve various commercial applications and enable efficient and reliable solar power generation. Large-scale commercial solar PV installations require robust inverters and power conditioning units to convert DC power generated by solar panels into usable AC power compatible with commercial electric systems. The BOS components play an important role in ensuring the effective deployment, management, and performance optimization of commercial-scale solar PV systems. The advent of globalization and the ability to reach a wider customer base fuel the growth of the commercial sector. The rise in investments in infrastructure in both physical and digital aspects and the improved transportation and communication networks are playing a vital role in driving the growth of the commercial sector. Therefore, owing to such factors, the commercial segment is expected to grow, which in turn will propel the growth of the during the forecast period.
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APAC is estimated to contribute 61% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the solar PV balance of systems market growth analysis during the forecast period. The increasing greenhouse gas (GHG) emissions in India and China have resulted in the focus shift toward renewables, such as solar and wind, for power generation. Initiatives taken by many countries in the region to promote solar power generation and their pace of executing the programs indicate an increased focus on replacing fossil fuels with solar power. Moreover, vendors operating in the region have been significantly expanding their portfolio by adding more operational renewable energy capacity. Thus, the growing number of solar PV installations in countries such as India will propel the demand for solar PV BOS, which, in turn, will boost the growth of the market.
In addition, the governments of various countries in APAC are taking initiatives for the implementation of microgrid solutions to improve access to electricity in their countries. The tremendous growth in the solar power industry in APAC is boosting the growth of the solar PV BOS market in the region. Moreover, the targets set by governments for the installation of solar-based powered plants should boost the market growth during the forecast period in both the residential and commercial sectors in the region during the forecast period.
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.
ABB Ltd.: The company offers solar PV BOS such as fuse disconnectors E 90 PV, cyclindrical E 9F PV, miniature circuit-breakers S800 PV-S, and others.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including ABB Ltd., Array Technologies Inc., Bentek Corp., Eaton Corp. Plc, First Solar Inc., Golden Concord Holdings Ltd., Huawei Technologies Co. Ltd., Loom Solar Pvt. Ltd., Microtek International Pvt. Ltd., Moser Solar, Prysmian Spa, Renesola Ltd., S and P Global Inc., Schneider Electric SE, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., SunPower Corp., Unirac Inc., GeoTrust Inc., and SMA Solar Technology AG.
Technavio solar PV balance of systems (bos) market research report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The solar PV balance of systems (bos) market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Solar PV Balance Of Systems (BOS) Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.22% |
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Market Growth 2024-2028 |
USD 32.33 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
18.38 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 61% |
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Key countries |
US, China, Japan, India, 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 Ltd., Array Technologies Inc., Bentek Corp., Eaton Corp. Plc, First Solar Inc., Golden Concord Holdings Ltd., Huawei Technologies Co. Ltd., Loom Solar Pvt. Ltd., Microtek International Pvt. Ltd., Moser Solar, Prysmian Spa, Renesola Ltd., S and P Global Inc., Schneider Electric SE, SolarEdge Technologies Inc., Sungrow Power Supply Co. Ltd., SunPower Corp., Unirac Inc., GeoTrust Inc., and SMA Solar Technology AG |
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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. |
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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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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