According to a new report published by Allied Market Research, the agrivoltaics market size was valued at $3.6 billion in 2021 and is projected to reach $9.3 billion by 2031, growing at a CAGR of 10.1% from 2022 to 2031. Rapid expansion of the solar power sector, rising land scarcity, and the need for climate-resilient agricultural practices are key factors driving the global agrivoltaics market.
Key Findings of the Study
Fixed solar panels are projected to grow at a CAGR of ~10.5% during the forecast period
Monocrystalline cells dominated the agrivoltaics market in 2021
Crop-based agrivoltaics applications led the market
North America remained the largest revenue contributor and fastest-growing region
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Introduction to Agrivoltaics
Agrivoltaics, also known as agrophotovoltaics, refers to the simultaneous use of land for both agricultural production and solar photovoltaic power generation. This innovative approach allows crops to grow beneath or alongside solar panels, enabling efficient land utilization while producing renewable energy. The agrivoltaics market leverages synergies between agriculture and solar energy to address land constraints, improve farm income, and support sustainable rural development.
By integrating solar installations with farming activities, agrivoltaics helps protect biodiversity, enhance water efficiency, and reduce greenhouse gas emissions, making it a promising solution for both food security and clean energy transition.
Market Drivers: Clean Energy Transition and Land Scarcity
The growing global demand for renewable energy is a major driver of the agrivoltaics market growth. As countries accelerate their transition toward low-carbon energy systems, solar power capacity continues to expand rapidly. However, large-scale solar projects often compete with agricultural land, creating land-use conflicts. Agrivoltaics addresses this challenge by enabling dual land use, making it particularly attractive in regions facing land scarcity.
Climate change is another key driver. Increasing droughts, heatwaves, and extreme weather events are threatening agricultural productivity worldwide. Agrivoltaics systems provide shade to crops, reducing heat stress, limiting water evaporation, and protecting plants from hail and heavy rainfall. These benefits improve crop resilience while ensuring zero-emission electricity generation.
Technological Progress and Global Adoption
The agrivoltaics market has witnessed significant technological advancements and global dissemination over the past decade. The global installed capacity of agrivoltaics increased from approximately 5 MW in 2012 to nearly 2.9 GW in 2020, highlighting growing acceptance of this integrated solution.
Innovations in panel design, mounting structures, and tracking systems have enhanced light diffusion and energy efficiency, enabling better crop yields and higher solar output. In addition, photovoltaic panels benefit from the cooling effect created by crop transpiration, which helps improve panel efficiency and overall system performance.
One notable example is the world’s largest agrivoltaics installation near the Gobi Desert in China, where berries are cultivated beneath solar modules with a capacity of 700 MW. Such projects demonstrate the scalability and commercial viability of agrivoltaics solutions.
Government Support and Policy Landscape
Supportive government policies play a crucial role in accelerating the agrivoltaics market development. Subsidies, tax incentives, reduced loan rates, lease agreements, and joint ventures are essential to reduce financial risks and encourage investment. Clear regulatory frameworks are also needed to ensure that solar installations do not negatively impact agricultural productivity.
In some regions, concerns over crop yield reduction have led to stricter regulations on solar farm deployment. However, research shows that certain crops—especially cool-season plants—benefit from partial shading, making agrivoltaics a win-win solution when properly designed and implemented in collaboration with farmers.
Market Challenges and Constraints
Despite its advantages, the agrivoltaics market faces several challenges. These include the lack of international standardization, regulatory hurdles, and the need for comprehensive monitoring systems. Economic feasibility remains a concern in some regions, particularly where initial installation costs are high.
Another challenge is ensuring farmer participation and awareness. Successful agrivoltaics projects require close cooperation with farmers to minimize interference with agricultural activities and optimize crop selection. Continued improvements in system efficiency and cost reduction will be critical for broader adoption.
Market Segmentation Analysis
The agrivoltaics market analysis is segmented by system design, cell type, crop type, and region.
By System Design
Fixed Solar Panels
Dynamic Systems
The fixed solar panel segment dominated the agrivoltaics market share in 2021 and is expected to maintain its dominance throughout the forecast period. Fixed systems offer ease of installation, lower maintenance requirements, and high power generation efficiency. In contrast, dynamic systems require regular panel adjustments, increasing operational complexity.
By Cell Type
Monocrystalline
Polycrystalline
The monocrystalline segment accounted for over 51.7% of the agrivoltaics market share in 2021. These cells are favored for their higher efficiency and better performance in commercial applications, making them suitable for integrated solar-agriculture systems.
By Crop Type
Crops
Vegetables
Fruits
Others
The crop segment dominated the market in 2021, driven by the need to protect staple crops from extreme weather and dehydration. Vegetables are expected to follow closely, as many benefit from diffused sunlight and reduced heat stress.
Regional Outlook
Region-wise, the agrivoltaics market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
North America dominated the agrivoltaics market share in 2021 and is projected to grow at a CAGR of 10.7% during the forecast period. Declining arable land availability, rising clean energy demand, and supportive renewable energy policies are driving market growth in the region.
Europe and Asia-Pacific are also witnessing increasing adoption due to strong climate commitments, renewable energy targets, and agricultural sustainability initiatives.
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Competitive Landscape
Key players operating in the agrivoltaics industry include Next2Sun, Sun’Agri, Ombrea, Namaste Solar, Mirai Solar, SunSeed APV, Enel Green Power S.p.A., JA Solar Technology Co., Ltd., BayWa AG, and Insolight SA. These companies are focusing on innovation, partnerships, and large-scale pilot projects to strengthen their market presence.
Conclusion
In conclusion, the agrivoltaics market is poised for strong growth, supported by rising clean energy demand, climate-resilient agriculture needs, and efficient land utilization. As technology advances and supportive policies expand, agrivoltaics is expected to play a vital role in achieving sustainable food production and renewable energy goals worldwide.
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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
