Agrivoltaics Market

Agrivoltaics Market Size:       

The agrivoltaics market size reached US$ 4.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 11.5 Billion by 2032, exhibiting a growth rate (CAGR) of 11.7% during 2024-2032. The global market is primarily driven by technological advancements in tracking sensors, AI, real-time control systems, and bifacial photovoltaics, growing adoption of sustainable agricultural practices, implementation of supportive government policies, and the rising global demand for eco-friendly and resilient agricultural solutions.   

Agrivoltaics Market Analysis:     

• Major Market Drivers: Growing emphasis on sustainable agricultural practices and renewable energy solutions is driving the adoption of agrivoltaics, enabling land use optimization through the merging of crop production with solar energy generation to lower carbon footprints and enhance resource efficiency.

• Key Market Trends: Technological advancement, such as bifacial photovoltaic cells, AI, and IoT sensors, enhances the efficiency and productivity of agrivoltaics systems. This also highlights the strategic partnerships and support from governments that lead to innovation and greater market acceptance.
• Geographical Trends: North America is one of the largest agrivoltaics markets, with high technological adoption, supported by government policies, and continued huge investment in renewable energy. More specifically, the U.S. is leading with research initiatives and major large-scale demonstration projects that are going to be adopted over there and, hence, elsewhere in the world.
• Competitive Landscape: The major players profiled in the competitive landscape analysis are BayWa AG, Next2Sun Technology, Solaria, Ciel & Terre, Ombrea -TotalEnergies, Sun’Agri, and JA Solar Technology Co., Ltd. These companies are focusing on aggressive R&D investment and entering into several strategic collaborations and partnerships, with pilot installations in various regions, to acquire a leading position in the global market.
• Challenges and Opportunities: High initial setup costs and regulatory hindrances are some challenges in the market, whereas technological advancements, government support in terms of incentives, and rising demand toward sustainable agriculture are some of the opportunities. The barriers in the market currently can be overcome with strategic collaborations and innovations.   

Agrivoltaics Market Drivers: 

Growing sustainable practice                 

The market is supported by rising concern towards practicing sustainable agriculture which dominate the market. This approach integrates both the use of solar energy and crop farming which offers benefits of power generation and crop production. Governments and organizations across the world are encouraging such sustainable practices through inflation of incentives and subsidies, thus propelling the use of agrivoltaics further. Additionally, it aids in conserving natural resources, preserving soil moisture, and reducing water consumption, thereby enhancing agricultural practices.     

According to an article published in MDPI, agrivoltaics systems can increase overall land productivity by 35–73%, thus they avoid using land solely for energy production at the expense of agricultural production.

Dual use of agricultural land  

Agrivoltaics capitalizes on the dual use of agricultural land, which is a significant market driver. This practice involves installing solar panels above crops, allowing for simultaneous energy generation and agricultural production. This dual functionality maximizes land efficiency, making it particularly advantageous in regions with limited arable land.  Therefore, the maximization of the available land in agricultural production through the application of agrivoltaics is being considered as the most viable method since there is increasing demand for energy requirement as well as food production.     

Changing customer trends              

The market for agrivoltaics is primarily fueled by the shift of customer preferences towards more sustainable and renewable energy solutions. The growing consumer demand for more sustainable and eco-friendly products is creating a positive market outlook. Also, the growing focus on locally produced and organic foods are supporting the demand, especially since consumers appreciate reduction in carbon emissions and energy dependency. These changing consumer tastes are fostering higher levels of efficiency and changes towards the improvement of agriculture and renewable energy resources compatible with the sustainable environment.    

Agrivoltaics Market Opportunities:     

Partnership and collaboration  

The cooperation between agricultural producers and energy firms helps to develop joint, coordinated approaches, combined funds, knowledge, and tools to create comprehensive agrivoltaics platforms. They facilitate the implementation of such interventions on a larger scale through shared investments and joint ventures, which are more cost-effective. Research institutes and universities plays a key role to play in pioneering innovative strategies and technologies that further improves the effectiveness of future solutions to agrivoltaics. Furthermore, partnerships with the governmental authorities and NGOs improves the opportunities to receive grants, subsidies, and equipment. 

Government policy and support     

Government policies and supportive mechanisms are augmenting the market. Reasonable regulations and subsidies and admissible tax deductions can result in significant reduction in the economic hurdles needed to install and adopt the dual-use systems. Properly structured governments' policy also allows for the dual use of the land, thus promoting the development of renewable energy projects that will complement benefits for a traditional farm. In addition, government-led research and development programs can be significant in nurturing innovation in the agrivoltaics technologies that are more effective and affordable to end-users.

Demonstration projects and research

Demonstration projects and research programs form a significant avenue for the agrivoltaics market. Pilot projects could be carried out that demonstrate the practical benefits with viable agrivoltaics systems and even provide realistic data. Collaboration with public and private institutions for learning and research also augments innovation to explore new crop varieties, new technologies in solar panels, and new system configurations that will improve both agricultural and energy production. It can also focus on finding the microclimate effects from the installation of the agrivoltaics system and its effect on crop development.

Technological advancement   

Emerging innovations in solar panel design, such as bifacial panels, and transparent photovoltaic cells, has made it possible to optimize energy-generation and allows sufficient light for crop development. Other smart grid technology is also being developed for energy storage solutions that enhance agrivoltaics systems' efficiency and reliability. Besides, with the development of advanced technologies for precision agriculture, including IoT sensors, and AI-based analytics, the agrivoltaics farm can be managed by monitoring and optimizing the environmental conditions for maximizing both crop yields and energy output.   

On October 30, 2023, nearly 120 delegates came together to launch the India Agrivoltaics Alliance (IAA), a first-of-its-kind collaborative platform attempting to streamline low-carbon energy development with efforts to improve socio-economic outcomes in the agriculture sector. 

Key Technological Trends & Development:

Tracking sensors          

Self- propelled tracker systems represent technological trend in the market aimed at increasing the efficiency of solar radiation selectivity. These sensors help the system track the movement of the sun each day and ensure the exposure of sun to the solar panels. By optimizing the angle of the panels, tracking systems can significantly increase solar energy output compared to fixed systems. Further, tracking sensors are also compatible with the automatic system that makes it capable to adapt the performance according to the weather conditions. It improves the efficiency of energy production and assists the balance between the solar shading and light needs that are required for better crop growth. 

Artificial intelligence and machine learning in agrivoltaics 

AI and ML significantly impact the improvement of the agrivoltaics market by implementing innovative approaches in the cultivation of plants and the generation of energy sources. With regards to crop management, AI features enables crop estimation yield from data captured by sensors and environmental measures. ML models can also be used to advise on the right panel placements and operations for optimal efficiency of solar energy. These technologies facilitate measurement, control, and efficient utilization of resources during production. The integration of AI and ML is beneficial for agrivoltaics systems as it creates better optimization throughout systems and allows them to adjust efficiency in real time for increased agricultural production capabilities which are sustainable and more profitable.   

Control system and real time sensors    

Smart control systems as well as the sensory technology for real time operation and monitoring are key technological trends in the market. These systems ensure real-time control and regulation of both agricultural and energy aspects. Sensors obtain information on soil moisture, its temperature, light, and other environmental factors, which is used by control systems regulating irrigation, shading, and positioning of photovoltaic panels. This dynamic management helps to ensure that the crops get the right level of sunlight and water while also getting optimal output from solar energy. These technologies increase the yields efficiency, lower operation costs, and hence increase the possibilities of making agrivoltaics systems commercially viable thus possible for implementation.  

Cloud-based platform         

Remote control technologies available in the cloud platforms are driving the market. Technologies such as social media platforms and smart home devices collect data from several sensors and present the results through a single, easily accessible interface. Control of agrivoltaics systems can be facilitated remotely, thus improving flexibility in operations as well as response to matters arising. Cloud technology enables virtual data storage, computation, and communication for supporting big data analysis and condition-based maintenance. This technology also facilitates collaboration among stakeholders, including farmers, energy providers, and researchers.  

Integration of bifacial photovoltaics    

Bifaciality is a major technological trend enhancing energy efficiency in the agrivoltaics market. Traditional solar panels absorb sunlight on one side, while bifacial solar panels absorb light from both faces, thus increasing the power yield. Such dual-sided operation is beneficial to an agrivoltaics system, especially when the ground reflects sunshine. Bifacial panels can also harness diffracted light, which increases their capability in various weather conditions. By generating more power in the same area of surface, bifacial photovoltaics increase the efficiency and economic viability of entire agrivoltaics facilities, thereby supporting the dual goals of energy production and sustainable agriculture.  

Agrivoltaics Market Segmentation:                   

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on design, cell type, and application.

Breakup by Design:

• Fixed Solar Panels
• Dynamic
   

Dynamic accounts for the majority of the market share     

The report has provided a detailed breakup and analysis of the market based on the design. This includes fixed solar panels and dynamic. According to the report, dynamic represented the largest segment.

Dynamic design systems holds the largest share in the market. These systems harness sophisticated tracking systems to tilt the positioning of solar panels to align with relevant sunlight sources and increase the efficiency of energy production from the solar panels. Since dynamic designs effectively track the position of the sun and consistently produce far more power than the static ones, they are favored by farmers and energy producers. This flexibility based on the spinning of the blades enables better control of the shading and spread of sunlight which is of immense importance in proper growth of crops. Dynamic agrivoltaics systems have been identified as having superior performance and efficiency as the result of the proper assessment of the present market share ratios. 

Breakup by Cell Type: 

• Monocrystalline
• Polycrystalline
   

Monocrystalline holds the largest share of the industry      

A detailed breakup and analysis of the market based on the cell type have also been provided in the report. This includes monocrystalline and polycrystalline. According to the report, monocrystalline accounted for the largest market share.      

Monocrystalline cells are dominant in the agrivoltaics industry due to their high work rate and resistance to wear and tear. These are monocrystalline solar cells that are manufactured from a single silicon crystal, which is more effective in converting the sun’s rays into electricity compared to polycrystalline or thin-film cells. Compared to polycrystalline cells, monocrystalline cells can generate more energy for each given area, which is critical for agrivoltaics systems that require a fused function of photoelectric generation and agriculture. These advantages include a longer life span and superior performance in low light environments which drives the market demand for monocrystalline cells. 

Breakup by Application:  

• Crop Production
• Livestock Grazing
• Aquaculture
   

Crop production represents the leading market segment   

The report has provided a detailed breakup and analysis of the market based on the application. This includes crop production, livestock grazing and aquaculture. According to the report, crop production represented the largest segment.    

Crop production is identified as the largest application segment of agrivoltaics due to the pressing concern of efficient resource utilization and betterment of agricultural practices. The combination of installation of these solar panels on crop fields makes it possible for the farmers to produce electricity from renewable resources and at the same time carry out farming activities. This application is useful for moisture retention, reducing the rate of water evaporation and shielding crops from the harsh weather conditions which in turn enhances productivity and quality of produce. The flexibility that characterizes crop production makes the practice ideal for agrivoltaics systems, thus assuring the market leadership as farmers look forward to improving both sales revenues and productivity. 

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa
   

North America leads the market, accounting for the largest agrivoltaics market share 

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); the Middle East and Africa. According to the report, North America represents the largest regional market for agrivoltaics.

North America holds the largest market share of the agrivoltaics market due to strong technological implementation, policies that support the improvement of new technologies related to renewable energy technologies, and increased investments in this technology. Socio-cultural and political factors such as the commitment towards sustainable agriculture production and energy provision facilitate the adoption of agrivoltaics systems in the region. America remains one of the leading countries actively involved in research and many demonstration projects that prove the efficiency of integrating solar power with agriculture. Also, North America remains at the forefront of agrivoltaics due to its focus on advancement in agriculture as well as the energy sector. 

Analysis Covered Across Each Country:

• Historical, current, and future market performance
• Historical, current, and future performance of the market based on design, cell type, and application.
• Competitive landscape
• Government regulations

Competitive Landscape:  

• The market research report has provided a comprehensive analysis of the competitive landscape covering market structure, market share by key players, market player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, among others. Detailed profiles of all major companies have also been provided. This includes business overview, product offerings, business strategies, SWOT analysis, financials, and major news and events. Some of the major market players in the agrivoltaics industry include    
• BayWa AG
• Next2Sun Technology
• Solaria
• Ciel & Terre
• Ombrea -TotalEnergies
• Sun’Agri
• JA Solar Technology Co., Ltd.   
   

The major players in the market are taking various measures to enhance their market position and find new avenues for growth, within the market landscape. These strategic investments include heavy outlays in research and development toward deriving more efficient and cost-effective agrivoltaics systems, including developments in bifacial, transparent photovoltaic cells, and smart tracking systems.  Moreover, emphasizing sustainability, these firms align their strategies with global environmental goals, promoting agrivoltaics as a solution for reducing carbon footprints, conserving water, and enhancing food security. Also, they are using smart technologies, such as AI, ML, and IoT sensors to enhance the performance and output rates of the systems in place.     

Analysis Covered for Each Player: 

• Market Share
• Business Overview
• Products Offered
• Business Strategies
• SWOT Analysis
• Major News and Events   

Agrivoltaics Market News:                  

• On 3^rd July 2023, Sun’Agri and RWE formed a strategic partnership to advance the development of agricultural photovoltaics (Agri-PV) in France. The partnership aims to support the implementation of integrated solutions for growing fruits, vegetables, and wine.
•  On 13^th November 2023, JA Solar Technology  Co. Ltd continued strategic cooperation agreement with Power n Sun. The cooperation focused on promoting clean energy in the regions. 
• On 15^th December 2023, Next2Sun and iSun build the first vertical agrivoltaics system in the USA. The project was launched in Vermont, covering 3.7 acres. The project features 69 vertical rack elements, each equipped with 2 bifacial solar modules, spaced 30 feet apart.   

Agrivoltaics Market Report Scope:

Key Questions Answered in This Report:

• How has the global agrivoltaics market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global agrivoltaics market?
• What is the impact of each driver, restraint, and opportunity on the global agrivoltaics market?
• What are the key regional markets?
• Which countries represent the most attractive agrivoltaics market?  
• What is the breakup of the market based on the design?
• Which is the most attractive design in the agrivoltaics market?
• What is the breakup of the market based on the cell type?
• Which is the most attractive cell type in the agrivoltaics market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the agrivoltaics market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global agrivoltaics market? 

Key Benefits for Stakeholders:  

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agrivoltaics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global agrivoltaics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agrivoltaics industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.