Solar Photovoltaic (PV) Market Size (2024-2030)

The solar photovoltaic (PV) market was valued at USD 150 billion in 2023 and is projected to reach a market size of USD 292.31 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 10%. 

A business may thrive by using the boom in the solar photovoltaic (PV) industry. A world economy that is estimated to be worth over $150 billion and is expected to quadruple by 2030, with the Asia-Pacific region leading the way and North America and Europe entering the fray, is possible because of the extensive applications of PV. All kinds of solar panels, from silicon wonders to thin-film ones, compete for supremacy, while buildings embrace BIPV and transform from energy-hungry structures into solar powerhouses in their own right. Roofs are turning into personal power plants, utility farms dot landscapes, and even businesses are joining the sunlit revolution. But amidst this sunshine, challenges like grid integration and policy hurdles linger. Thankfully, innovation beckons with energy storage and smart grids, promising to unlock solar's full potential.

Key Market Insights:

The generation of solar PV electricity grew by 270 TWh in 2022, a 26% increase.

Solar photovoltaics generated 4.5% of the world's power in 2022.

Global installed photovoltaic (PV) capacity reached around 1,185 GW by the end of 2022, accounting for over 6% of the world's power consumption.

In nine nations, solar photovoltaics (PV) accounted for over 10% of the total annual residential power consumption in 2022.

$298 billion was invested worldwide in solar photovoltaic electricity in 2022.

But amidst this sunshine, shadows linger. Grid integration remains a puzzle, demanding smart solutions and grid modernization to harmonize clean energy with traditional systems. Policy hurdles can cast long shadows, requiring collaboration and sunshine-friendly policies to keep the market flourishing. Yet the dawn promises a brighter future. Energy storage and smart grids stand poised to unlock solar's full potential, painting a canvas of innovation and efficiency.

Therefore, the solar PV industry beckons because of the attraction to the technological breakthroughs of varied panels and BIPV, the regional potential of Asia-Pacific, and the expanding uses across roofs, farms, and enterprises. 

Solar Photovoltaic (PV) Market Drivers:

Rising Energy Demand is propelling market growth:

As global energy needs surge, particularly in developing economies, renewable sources like solar have become increasingly attractive. A world hungry for power and solar stepping up to the plate, offering a clean and plentiful alternative, is possible because of this.

Declining Costs are contributing to the increased adoption of solar energy:

Technological advancements and economies of scale are driving down the cost of solar panels and their installation, making them a more competitive option compared to traditional fossil fuels. Price tags are shrinking like melting glaciers, paving the way for wider adoption, which is envisioned shortly. This reduced cost has paved the way for creating a broader consumer base.

Government Incentives are hugely supporting the growth of the Solar Energy Market:

Many countries are implementing supportive policies like feed-in tariffs, tax breaks, and net metering schemes to incentivize solar adoption. Many governmental agencies are coming up with cost-effective strategies that promote the idea of sustainability. Investments are also being increased to encourage more companies to come up with creative solutions.  

Environmental Concerns and the Growing Awareness are leading the way for market growth:

With the urgency of climate change undeniable, solar power's clean and sustainable nature makes it a beacon of hope in the fight against greenhouse gas emissions. A world switching off fossil fuels and basking in the clean glow of solar energy is possible due to this technology.

Public awareness about the benefits of solar energy, including energy independence, reduced electricity bills, and environmental benefits, is driving increased demand across residential, commercial, and industrial sectors.

From efficiency improvements in panels to innovations in energy storage and smart grid integration, ongoing advancements are constantly expanding the potential of solar technology. R&D activities are being conducted to achieve new milestones in this industry.

Solar Photovoltaic (PV) Market Restraints and Challenges:

High Initial Investment: While costs are decreasing, installing solar panels still requires a significant upfront investment, posing a hurdle for some consumers and businesses, especially in developing economies. Additionally, maintenance charges are applicable. This can create obstacles for smaller firms, causing losses for the market.

Integrating intermittent solar power into existing electricity grids can be complex and costly, requiring grid modernization and smart solutions to manage fluctuations and maintain grid stability.

Fluctuations in government policies and support mechanisms can create uncertainty and hinder long-term investments in the sector. Shifting political winds and casting unpredictable shadows on the market, requiring adaptability and resilience, is the goal of this market.

Despite growing awareness, misconceptions and a lack of knowledge about solar technology and its benefits can still impede adoption, particularly in certain communities.

While inherently cleaner than fossil fuels, some aspects of solar power, like panel manufacturing and disposal, can have environmental impacts that need to be addressed through responsible practices and technological advancements. A sun with fewer dark spots, requiring continuous efforts to minimize the environmental footprint of solar energy, is possible because of this.

Solar Photovoltaic (PV) Market Opportunities:

This market is basking in golden opportunities, not just financial but environmental and social. The solar PV sector bursts with sunshine, from sun-drenched regions like Africa and Latin America waiting to harness their potential to rooftops across the globe transforming into personal power plants. But this isn't just about panels on roofs. BIPV seamlessly weaving solar into buildings, agrivoltaics fostering harmony between sun and crops, and even solar roads powering our footsteps is the aim.

Innovation in this market has been helping with the expansion. Next-generation panels promise enhanced efficiency, while energy storage solutions and smart grids unlock solar's full potential. Governments join the chorus with sunshine-friendly policies, fueling job creation and economic growth. Communities, empowered by local solar projects, build resilience and pave the way for a sustainable future.

By investing in green bonds or community solar gardens, individuals become agents of change. Businesses offset their footprints with sun-kissed projects, while technological advancements like perovskite panels and floating farms push the boundaries of what's possible.

SOLAR PHOTOVOLTAIC MARKET REPORT COVERAGE:

Solar Photovoltaic (PV) Market Segmentation: By Product Type

• Thin-Film

• Monocrystalline Silicon

• Polycrystalline Silicon

When it comes to product types, crystalline silicon reigns supreme, holding the largest market share due to its established performance and durability. Imagine these panels as industry titans, dominating rooftops and solar farms alike. However, the sun is rising rapidly on the thin-film segment, boasting the fastest growth. Their versatility, flexibility, and cost-effectiveness in specific applications like BIPV are making them the rising stars of the solar panel world.

Solar Photovoltaic (PV) Market Segmentation: By Application

• Residential

• Commercial

• Utility-Scale

Within applications, the sun shines brightest on the utility-scale segment, currently dominating the market with its large-scale power generation. These sprawling solar farms act as workhorses, feeding clean energy into grids and powering communities. However, the residential segment is stealing the spotlight, experiencing rapid growth thanks to falling costs, supportive policies, and the increasing appeal of rooftop power independence.

Solar Photovoltaic (PV) Market Segmentation: By Deployment

• Rooftop

• Ground-Mounted

When it comes to deployment, ground-mounted systems are the established kings, holding the lion's share of the market. Imagine vast solar farms stretching across landscapes, harnessing the sun's power on a grand scale. However, the future is looking bright for rooftop installations, which are experiencing the fastest growth. Falling costs, rising energy awareness, and the allure of personal power generation are driving this segment upwards.

Solar Photovoltaic (PV) Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia-Pacific: The undisputed global leader, boasting rapid growth driven by a booming middle class, supportive government initiatives, and diverse applications. China dominates, but India, Japan, and Southeast Asian nations are rising stars. Rooftops across megacities are basking in the sun, and sprawling solar farms dot landscapes from the Himalayas to the Pacific.

Europe, a pioneer in the early days, is now facing challenges like grid integration and policy uncertainties. However, strong environmental awareness and technological advancements in offshore and floating solar farms offer promising avenues for growth. Windswept coasts dotted with solar islands and historic rooftops highlighting the use of renewable energy are one major trend in European countries.

North America is a mature market with strong policy support, particularly in California, but it has been facing high upfront costs and inconsistent federal policies. Rooftop installations and utility-scale farms hold significant potential, especially for commercial and industrial sectors. Gleaming skyscrapers adorned with panels and vast deserts transformed into solar powerhouses are the vision of many North American countries.

South America is a region brimming with potential, fueled by abundant sunshine and growing economies. Brazil spearheads the charge, while countries like Chile and Argentina are catching rays. Amazon rainforests are being flanked by solar farms, and bustling cities are being powered by the Andean sun.

The Middle East and Africa have vast landscapes with immense potential yet are hindered by infrastructure limitations and political instability. However, initiatives like Noor Abu Dhabi, one of the world's largest solar farms, showcase the region's commitment to clean energy. Sun-drenched deserts are being transformed into power generators, illuminating communities and fostering sustainable development.

COVID-19 Impact Analysis on the Solar Photovoltaic (PV) Market:

The pandemic's shadow stretched across the solar PV market, disrupting supply chains, delaying projects, and casting uncertainty on investments. Imagine tangled wires snarling global deliveries, blueprints gathering dust on hold, and financial clouds obscuring sunshine. Yet, like a resilient sunflower, the sector turned towards its source of strength—the sun. Governments showered the market with financial rain through stimulus packages, fostering renewed interest in local, decentralized energy solutions like rooftop power plants. Innovation blossomed under the digital sun, with virtual tools and remote work models streamlining processes and cutting costs. While the pandemic's impact was undeniable, it did not eclipse the sector's bright future. The focus shifted towards resilience, adaptability, and sustainable solutions, painting a picture of a future powered by the sun where communities bask in self-reliance and innovation to illuminate the path forward.

Latest Trends/ Developments:

Companies in this industry are motivated to increase their market share by using a range of strategies, including acquisitions, joint ventures, and investments. Companies are spending a lot of money to develop technologies to retain competitive pricing. Further growth has resulted from this.

Perovskite panels, flexible and efficient, adorn buildings and fabrics, while tandem cell technology pushes the limits of energy conversion. AI optimizes everything from panel tilt to cleaning, while BIPV seamlessly weaves solar into buildings, blurring the lines between energy and aesthetics. Crops are thriving under the shade of agrivoltaic panels and vast solar islands floating on lakes, maximizing land and water resources. Green bonds channel investments into sun-kissed projects, community gardens democratize clean energy, and carbon offsetting initiatives paint a picture of environmental responsibility and market growth. These aren't just trends; they're sunbeams illuminating a future powered by innovation, sustainability, and shared prosperity. So, we need to embrace the sunshine, explore the possibilities, and join the movement toward a brighter future fueled by the endless potential of the sun.

Key Players:

1. Jinko Solar

2. Trina Solar

3. Canadian Solar

4. Hanwha Q CELLS

5. JA Solar

6. LONGi Solar

7. First Solar

8. ReneSola