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The solar photovoltaic(PV) market size is forecast to increase by USD 53.5 billion and is estimated to grow at a CAGR of 8.79% between 2023 and 2028. The market outlook report encompasses historical market data spanning from 2018 to 2022. This period witnessed a swell in demand driven by the escalating emphasis on decarbonization among companies, breakthroughs in thin-film solar photovoltaic cells and photovoltaic inverters, and the expansion of grid electrification initiatives. However, the market faces challenges including competition from alternative energy sources, the intermittent nature of the systems, and the substantial initial investment and maintenance costs associated with them. Despite these hurdles, the market's trajectory remains promising as advancements continue to enhance the efficiency and affordability of solar technology. With a growing global focus on sustainability and renewable energy, these systems are poised to play a pivotal role in shaping the future energy landscape, driving further innovation and adoption worldwide.
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The market share growth by the ground-mounted segment will be significant during the forecast period. The solar photovoltaic market has witnessed substantial growth in recent years, driven by the deployment of ground-mounted systems. Novel materials and advanced PV design continue to enhance system efficiency and reduce costs.
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The ground-mounted segment was the largest segment and was valued at USD 42.00 billion in 2018. Besides, for backup, diesel generators and electric generators are used as a source of generating electricity. To stay economically competitive and environmentally responsible, alternative sources of power, such as solar energy, are being considered. Grid-type solar power systems are increasingly preferred due to their ability to feed excess energy back into the grid. The global demand for electricity, fueled by population growth, is driving the market's expansion. Technological advancements, economies of scale, and heightened competition are contributing to the declining installation costs. Solar panel projects are becoming more streamlined, with labor costs seeing significant reductions.
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APAC is estimated to contribute 43% to the market growth during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The global solar photovoltaic market in APAC will grow significantly during the forecast period. In 2022, the major leading countries in the region were China, Japan, India, Australia, and South Korea. China accounted for a significant market share in the regional market. The market in China and India is expected to grow significantly due to the increasing number of residential installations in these countries. The increasing electrification of rural areas, growing off-grid installations, and the declining cost of the systems are anticipated to drive the growth of the market during the forecast period.
The market is rapidly evolving, driven by diverse schemes and increasing solar installations. Residential applications are on the rise, fueled by the declining cost of PV systems and innovations in novel technologies and materials, including perovskite. The unique crystal structure of perovskite enhances its potential alongside silicon-based technologies, such as metal halide perovskite solar cells. Improvements in optical absorption coefficient and solar panel efficiency bolster overall performance. Large-scale projects like solar farms are emblematic of the shift towards sustainable power technologies meeting surging electricity demand and expanding power generation capacity. International engagement is key, with a focus on meeting capacity quota targets and addressing climate-related disruptions. Technological advancements, supported by artificial intelligence and smart technologies, drive optimization in production processes and energy storage solutions. Governments incentivize adoption through financial incentives and rebates, ensuring a bright future for the market.
Increasing government support for solar power technology is the key driver of global market growth. Governments worldwide offer tax benefits, subsidies, and incentives to promote solar energy implementation and reduce greenhouse gas emissions. Countries like China, the US, India, and Australia are gradually adopting solar power to achieve carbon emission targets and reduce reliance on fossil fuels. For instance, the Indian government's production-linked incentive (PLI) for solar modules will strengthen domestic manufacturing and reduce import dependence. This support encourages research and development for more cost-effective and reliable solar technology, leading to market growth during the forecast period.
The primary trend driving the global solar PV market growth is the increasing focus on decarbonization by companies. This focus has led to the launch of new projects and investments in solar photovoltaics. For example, solar power projects is scaling the production of photovoltaic solar modules, and grid connected PV systems are contributing to the decarbonization efforts and the fight against climate change. These initiatives are expected to fuel the market's growth during the forecast period.
Competition from alternative energy sources poses a significant challenge to the global market share. Solar energy faces tough competition from fossil fuels, natural gas, wind, and hydropower. Countries like Saudi Arabia prioritize fossil fuels due to their abundant availability for electricity generation. The high cost and intermittent nature of renewables also hinder solar energy adoption. Declining natural gas costs favor its increased use for power generation, competing with solar technology like solar photovoltaic. Furthermore, within the renewables segment, solar energy faces competition from wind and hydropower. Wind energy's advantage lies in its continuous power generation throughout the day, unlike solar energy, which relies on daylight. Hydropower is widely favored for its low maintenance costs, long lifecycle, and independence from weather conditions. As a result, the growing reliance on these alternative sources hinders the growth of the solar industry and impacts the global market during the forecast period.
The market research 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 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.
ABB Ltd.: The company offers solar photovoltaic products and services such as residential photovoltaic systems.
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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018- 2022 for the following segments.
The market is witnessing a tide in installations globally, driven by various schemes promoting renewable energy adoption. Residential applications are booming, spurred by declining costs of PV systems and advancements in perovskite technology, known for its unique crystal structure. Metal halide perovskite solar cells are enhancing optical absorption coefficient, carrier mobility, and carrier lifetime, while reducing mid-gap state density, thus boosting power conversion efficiency. Deposition processes and defect passivation techniques are improving cost-effectiveness. Tandem solar cells, bifacial solar panels, and transparent solar cells are reshaping PV modules, aided by advanced manufacturing techniques and Artificial Intelligence (AI)-driven data analytics. Safety issues, skills and expertise, and land acquisition remain challenges, yet investments are soaring, driven by legalities and conservationists' support. Utility applications are expanding, necessitating land with minimal habitat loss, thus floating PVs and solar farms are gaining traction, ensuring sustainable power technologies meet escalating electricity demand. International engagement and capacity quota targets are pivotal in driving carbon emissions down while optimizing power production and installation costs. With innovations in solar panel efficiency and production processes, coupled with energy storage solutions and smart technologies, the market is poised for exponential growth, capitalizing on financial incentives and renewable energy targets.
Moreover, the market is experiencing exponential growth driven by escalating solar installations worldwide. Solar PV systems are at the forefront, with decreasing costs making them increasingly accessible. Silicon, a key component, undergoes passivation of defects to enhance performance. Artificial Intelligence (AI) is revolutionizing the industry, aiding in technological standardization and optimizing costs and economic viability. However, challenges persist, such as the lack of skilled workforce and land requirements, mitigating land degradation is crucial. The market's potential is evident in its expanding power generation capacity and continuous advancements in photovoltaic cell technology, leveraging electrons, silicon atoms, and photons. Government incentives like tax exemptions, tariffs, and financial support drive investment in clean energy sources despite fluctuations in solar energy prices. Focus on resource availability and industry potential fuels solar installation targets and deployment rates, optimizing energy production measured in TWh while addressing climate-related disruptions. Innovations in energy storage, novel materials, and recycling ensure sustainability, complemented by incentives like rebates, feed-in tariffs, and tax credits alongside net metering and NSM initiatives. Enhanced efficiency through organic materials and infrared technology caters to consumer consciousness and diverse designs, bolstering the solar PV market's growth in various grid types.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.79% |
Market Growth 2024-2028 |
USD 53.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.03 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Germany, Japan, and Vietnam |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., All Earth Renewables, Canadian Solar Inc., Eaton Corp plc, EMMVEE SOLAR, First Solar Inc., Hanwha Corp., JA Solar Technology Co. Ltd., JinkoSolar Holding Co. Ltd., LONGi Green Energy Technology Co. Ltd., Mitsubishi Electric Corp., Sharp Corp., SMA Solar Technology AG, Sungrow Power Supply Co. Ltd., Tongwei Co. Ltd., Trina Solar Co. Ltd., Waaree Energies Ltd., Wuxi Suntech Power Co. Ltd., Yingli Green Energy Holding Co. Ltd., and Zhejiang CHINT Electrics Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market 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 Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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