The solar power market has witnessed significant growth over the past few years owing to increasing awareness regarding the benefits of renewable energy and the need to reduce dependence on fossil fuels. Solar power technology uses photovoltaic cells to convert sunlight directly into electricity and is considered one of the cleanest forms of renewable energy available. Solar power systems including photovoltaic panels, mounting and tracking equipment are used widely in residential, commercial and utility-scale developments to generate electricity from sunlight.
The solar power market is estimated to be valued at USD 269.07 Bn in 2024 and is expected to reach USD 410.05 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Key players: Canadian Solar and JinkoSolar Holding Co. are two major players dominating the global solar power market. Canadian Solar is one of the largest manufacturers of solar photovoltaic modules and has a strong footprint across key markets. JinkoSolar is a vertically integrated solar power product manufacturer with a focus on mono-crystalline solar cells.Growing demand: There is a growing Solar Power Market Demand from the residential sector as individuals are increasingly installing rooftop solar panels to meet their energy needs and sell surplus power. Governments across countries are also providing various subsidies and tax incentives to promote solar power adoption.Technological advancement: The solar power industry is witnessing significant technological advancements such as more efficient solar cells, flexible and portable solar panels, and improvements in energy storage to store electricity generated from solar energy. These advancements are expected to make solar power more affordable and viable on a larger scale.
Market Trends
Increasing focus on utility-scale solar power plants: Globally, countries are installing large utility-scale ground-mounted and floating solar power plants to generate bulk electricity through public-private partnerships.Rising demand for polycrystalline solar cells: Polycrystalline solar cells offer a good balance of efficiency, energy production, and cost. With ongoing improvements, polycrystalline solar cells are gaining wider acceptance over monocrystalline cells for residential rooftop installations.
Market Opportunities
Growing focus on building integrated photovoltaics: The adoption of solar materials in buildings and infrastructure such as solar roof tiles, solar facades, solar glass is expected to increase significantly over the coming years among net-zero energy constructions.Emergence of solar parking canopies: The construction of solar parking canopies that generate renewable energy while providing shaded parking spaces is being widely encouraged globally. Several airport, metro stations, and malls have already installed solar parking canopies.
Impact of COVID-19 on Solar Power Market growth
The COVID-19 pandemic has affected the solar power market both positively and negatively. In the initial months of the pandemic, the supply chain got disrupted due to lockdowns and movement restrictions across countries. Projects faced delays, manufacturing and installation activities were stalled due to shortage of workers. This led to a decline in new solar PV capacity additions across regions in 2020. However, post lockdowns were lifted, demand picked up supported by policy push for renewable energy sources. Many nations expedited approvals and permits for new projects to boost economic recovery through job creation. This stimulated the market to gain back lost growth. With pandemic creating awareness about clean energy sources, many residential consumers also opted for rooftop solar systems. The emerging trend of work from home further boosted their installations. In future, targets of decarbonization will support higher compound annual growth rate despite short term glitches from COVID waves.
Geographical Regions with highest Solar Power market value
Asia Pacific region leads the global solar power market in terms of value. China dominates the region as well as worldwide installations accounting for over 30% share in 2020. Other major value contributors include India, Japan, South Korea which are also emerging PV manufacturing hubs. The reason for Asia Pacific's prominence is strong policy push through renewable purchase obligations, fiscal incentives, land availability and supportive investment environment. This has led to continuously declining prices of solar modules over years attracting more customers. Countries in the region also account for highest annual additions to capacities.
Fastest growing region for Solar Power marketT
he Middle East and Africa region is witnessing highest growth rate for solar power market. This is because of abundant availability of solar resources across nations and growing focus on developing indigenous energy supplies. Countries rich in oil and gas are realizing solar power potential through ambitious targets under various initiatives like Middle East Solar Industry Association. Nations like Saudi Arabia, UAE, Egypt and South Africa are emerging as major future growth centers through capacity expansion programs and mega projects in the desert regions. Facilitated by supportive investment policies and international funding, the regional installations are increasing at a strong double digit compound annual growth rate over last five years. This momentum is expected to continue with more opportunities in off-grid and rooftop segments in future.
Get More Insights On- Solar Power Market
Get this Report in Japanese Language: 太陽光発電市場
Get this Report in Korean Language: 태양광발전시장
Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
