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The solar photovoltaic market size is forecast to increase by USD 47.16 billion and is estimated to grow at a CAGR of 8.42% between 2022 and 2027. The solar photovoltaic market outlook report includes historic market data from 2017 to 2021. The market is witnessing a growing demand for the increasing focus on decarbonization by vendors, advancements in thin-film solar photovoltaic cells, and the rise of grid electrification.
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The primary trend driving the global solar PV market growth is the increasing focus on decarbonization by vendors. This focus has led to the launch of new projects and investments in solar photovoltaics. For example, Canadian Solar's solar power projects in Japan and First Solar's investment in scaling the production of photovoltaic solar modules 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.
The market share growth by the commercial segment will be significant during the forecast period. Solar photovoltaic systems, which include photovoltaic cells in the commercial sector, are mainly used in non-residential buildings where there is a constant requirement for power.
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In this segment, a large amount of power is consumed daily by consumers to meet power needs. Most power needs in the commercial sector are derived from fossil fuel sources. Besides, for backup, diesel generators are used as a source of generating electricity. To reduce the threat of climate change, in some countries such as China, a carbon tax has been imposed on commercial buildings, which increases the electricity cost. Therefore, to stay economically competitive and environmentally responsible, alternative sources of power, such as solar energy, are being considered. Thus, increasing adoption of solar power in commercial buildings will drive the demand for solar photovoltaic modules and, in turn, drive the market in focus during the forecast
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APAC is estimated to contribute 42% to the solar photovoltaic 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 solar photovoltaic market. The solar photovoltaic market in China and India is expected to grow significantly due to the increasing number of residential solar photovoltaic installations in these countries. The increasing electrification of rural areas, growing off-grid installations, and the declining cost of solar photovoltaic systems are anticipated to drive the growth of the solar photovoltaic market during the forecast period.
Owing to the COVID-19 pandemic, most operations of solar plants were halted, or construction activities in plants were suspended in APAC, primarily during the first half of 2020. However, the initiation of vaccination drives by the government in 2021 and the decline in COVID-19 cases led to the resumption of solar photovoltaic installations. Furthermore, the increasing focus on the shift from fossil fuels to renewable energy, such as solar power, will drive the regional market to focus during the forecast period.
Increasing government support for solar power technology is the key driver of the global solar PV 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.
Competition from alternative energy sources poses a significant challenge to the global solar photovoltaic 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 solar photovoltaic 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 Solar Photovoltaic 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 solar photovoltaic 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.
Solar Photovoltaic Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.42% |
Market growth 2023-2027 |
USD 47.16 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.81 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, Vietnam, and Germany |
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., 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., Zhejiang CHINT Electrics Co. Ltd., and JinkoSolar 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 forecast period |
Customization purview |
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