The global solar photovoltaic (PV) market size was USD 316.78 billion in 2023. The market is expected to grow from USD 399.44 billion in 2024 to USD 2,517.99 billion by 2032 at a CAGR of 25.88% over the forecast period (2024-2032). Asia pacific dominated the solar photovoltaic (PV) market with a mar Contact online >>
The global solar photovoltaic (PV) market size was USD 316.78 billion in 2023. The market is expected to grow from USD 399.44 billion in 2024 to USD 2,517.99 billion by 2032 at a CAGR of 25.88% over the forecast period (2024-2032). Asia pacific dominated the solar photovoltaic (PV) market with a market share of 49.16% in 2023. The Solar PV market in the U.S. is projected to grow significantly, reaching an estimated value of USD 331.25 billion by 2032, driven by the need to combat climate change through renewable energy sources reinforced by government tax credit and feed-in-tariff programs.
Solar energy is used to convert sunlight into electricity by using photovoltaic effect technology. These PV systems are the most reliable and widely available source of renewable energy. Fossil fuel is responsible for generating major pollution in the environment and solar energy is a very feasible alternative to fossil fuel. The U.S., Germany, China, and Spain are the accounts for maximum sun-based resources in the world. The demand for renewable energy is very high and the unit cost of silicon-based cells is declining, these are the major factors influencing this market positively.
The COVID-19 has impacted numerous business which includes oil & gas, manufacturing, aviation, tourism, and others. The governments in many countries had imposed nationwide lockdowns & restrictions due to this pandemic, which has severely affected economies worldwide, disrupted supply chains, caused a delay in many projects, and created a labor shortage. In many countries, the renewable industry highly depends on imports, primarily from China. As per the Government of India, the country’s almost 80% of solar modules and solar cells demand are fulfilled from China, along with equipment such as prefabricated structures, raw materials, and inverters in India.
Power consumption in the Asia Pacific and other regions has increased considerably over the last few years. Robust economic growth, surging population, and booming manufacturing sector have led to the a surge in power consumption. The developing economies are witnessing high electricity demand due to expansion and infrastructure development. Industrialization and urbanization along with the rising living standard of people increase the demand for electricity generation.
As demand for electricity is increasing, many countries across the world are increasing their power generating capacity either by expanding the existing ones or installing new plants. The government in many countries has imposed stringent carbon emission norms due to which the focus towards the renewable sector is increasing, particularly towards solar photovoltaic generation. This is expected to push this market towards growth during the forecast period.
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Off-grid areas have very limited access or no access to grid-connected electricity. Such areas are dependent on secondary sources of Photovoltaic, such as solar energy. Many regions around the world have large-sized off-grid areas that do not have access to grid-connected electricity. According to World Energy Outlook, more than 1 billion people worldwide are still living without electricity.
In the Sub-Saharan Africa region, the urban electrification rate is 60% and the rural electrification rate is 14%. This encourages governments of Sub-Saharan countries to use sun-energy to meet the power requirement in rural and urban areas. According to the Bloomberg New Energy Finance report, around 1.2 GW of sun energy-based projects is expected to come online in Sub-Saharan countries by the end of 2021. Hence, the growing off-grid areas worldwide are expected to boost this market during the forecast period.
Numerous countries across the globe have established environmental norms as environmental protection awareness is increasing widely. This forces power generation companies to change their production pattern and adopt eco-friendly and clean resources. Key countries around the world are expanding their renewable energy sources of power generation to decrease their dependency on conventional sources. Sun-based energy is a crucial renewable energy source having the potential to meet increasing electricity demand.
According to recent estimates by the International Energy Agency (IEA), around USD 2.8 trillion has been invested in energy in 2023. More than USD 1.7 trillion have been spent on clean energy, including renewables, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables, and electrification. For every dollar spent on fossil fuels, USD 1.7 is spent on clean energy. Five years ago, the ratio was 1:1.
Utility-scale solar projects require a large land power generation. The selection such land can be hamped by many environmental or technical parameters. The use of such land for the deployment of solar systems can impact the natural areas and biodiversity.
For instance, the deployment of solar photovoltaic plant is very difficult in wetlands, agricultural land, water bodies, and forest due to instability and inaccessibility of land. Large-scale sun-based energy power plants need to consider various factors such as land, transportation networks, implications on near residential areas, and distance to the electricity grid. The above factors hamper the global solar photovoltaic (PV) market growth.
Based on technology, the market is segmented into monocrystalline silicon, thin-film, multi-crystalline silicon, and others. The multicrystalline segment has dominated the market in 2020. This segment has a wide range of applications in this market and it is widely used in the commercial, residential, and industrial segments.
The monocrystalline silicon segment is expected to grow at the highest pace during the forecast period. Monocrystalline silicon sun-energy panels are more widely used in solar rooftop systems. These panels are commonly preferred for large-scale solar PV installations. Such solar panels are used in different sectors such as industrial, commercial, or residential. Many manufacturers are also shifting from multi-crystalline to monocrystalline solar cells due to their high efficiency, compact design, and durability.
Based on the installation, the market is segmented into ground-mounted, rooftop, and others. The ground-mounted segment held a dominant share of the market in 2020. This type of PV is mainly used for commercial and utility purposes as it is cost-effective. The ground-mounted solar has a wide number of installation, and operation & maintenance efficiencies.
The rooftop segment is likely to expand significantly during the forecast period. Rooftop solar is primarily used in small residential projects and the number of residential projects is also increasing. Thus, driving growth in the rooftop solar PV segment in the market.
Based on the grid type, the market is segmented into on-grid and off-grid. The on-grid segment held a dominant share of the market in 2020 due to the rising number of utility-scale projects around the world. An on-grid solar photovoltaic system is a grid-connected to a utility grid that generates electricity using solar photovoltaic. The on-grid system ranges from small residential units to large utility-scale solar photovoltaic generating stations. The adoption of off-grid systems is rapidly increasing in rural areas.
The off-grid segment is estimated to grow during the forecast period. The off-grid systems are not connected to the utility grids. The off-grid segment is rapidly growing as their adoption is widely increasing in rural areas or in the areas where grid connectivity is inaccessible across the world.
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Asia Pacific Solar Photovoltaic (PV) Market Size, 2023 (USD Billion)
Geographically, the global solar photovoltaic (PV) market share is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. The Asia Pacific region held the major share of the global market. More than 77 GW of solar capacity will be added in the region in 2020. The primary elements driving the market''s growth are high solar irradiation levels and cheap component production costs. High carbon emission reduction targets set by a number of nations, notably China and India, combined with rising electricity demand will fuel market growth. In 2020, China installed a large number of sun energy based projects with a capacity of more than 49 GW. The country remains the world’s largest market, adding the largest solar power capacity in 2020.
In terms of solar PV installations, Europe’s solar capacity reached the second-largest position. The European Union installed more than 20 GW of solar photovoltaicin 2020. Large scale solar projects are quickly expanding in this region. These are the primary drivers driving market expansion in Europe. The EU Renewable Energy Directive outlined the EU''s strategy for promoting and producing sustainable energy sources across the country. This directive established targets for achieving a 20 percent renewable adoption rate in the overall energy mix. Such variables would hasten the market''s expansion in this region.
The North America region is also expanding significantly in this market. The region is increasing solar photovoltaic capacity in the Canada and the U.S. The region along with Central America has installed a capacity of more than 100 MW of off-grid solar installation in 2020.
For example, in July 2020, Sonnedix augmented its operational capacity by 8.2 MW through the acquisition of two portfolios. These include the acquisition of three operating plants with a combined capacity of 3 MW from Melfin (Melchioni Group) and six operating plants with a combined capacity of 5.2 MW from Silver Ridge Italia. In June 2021, Tata Solar Power announced that it has won an engineering, procurement, and construction (EPC) contract to build a solar project with an installed capacity of 210 MW from NTPC. The total order value is around 686 crores and the NTPC is planning to commission the project by 2022.
The global market research report includes a detailed solar industry analysis and focuses on key aspects such as leading companies, technology, installation, grid type, and leading applications of the product. Besides this, the report offers insights into the solar photovoltaic (PV) market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.
An Infographic Representation of Solar PV Market
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