Solar Photovoltaic (PV) Market

Market Overview:

The global solar photovoltaic (PV) market size reached 1,034.5 TWh in 2022. Looking forward, IMARC Group expects the market to reach 2,546.5 TWh by 2028, exhibiting a growth rate (CAGR) of 16.4% during 2023-2028. The growing environmental concerns, supportive government policies, ongoing technological advancements, declining product costs, and the push for sustainable energy solutions are some of the major factors propelling the market.

Solar photovoltaic (PV) refers to a technology that converts sunlight into electrical energy. It involves the use of solar cells made from semiconductor materials, such as silicon, which generate a direct current (DC) when exposed to sunlight. These cells are then integrated into solar panels, which can be installed on rooftops, fields, or other suitable surfaces to harness solar energy. This sustainable and environmentally friendly method is gaining popularity worldwide as an alternative energy source due to its clean nature and potential to reduce greenhouse gas emissions.

The growing concerns about climate change and the need to transition away from fossil fuels have led to a rise in demand for renewable energy sources, with solar PV emerging as a clean and sustainable solution. Additionally, supportive government policies and incentives, such as tax credits and feed-in tariffs, are encouraging investments in solar PV installations, further bolstering the market. Concurrently, ongoing technological advancements in PV technology have also played a significant role, leading to improved efficiency, reduced costs, and increased reliability of solar panels, making them more attractive to consumers and businesses. Moreover, the rising awareness of environmental benefits and the desire to reduce carbon footprints are driving adoption across various sectors, including residential, commercial, and industrial, presenting remunerative growth opportunities for the market.

Solar Photovoltaic (PV) Market Trends/Drivers:

Increasing environmental concerns and demand for renewable energy

As awareness of climate change and its impact on the environment grows, there is a rising concern about reducing greenhouse gas emissions and transitioning to cleaner energy sources. Solar PV technology offers a sustainable solution as it generates electricity without giving off greenhouse gases or other harmful pollutants. Concurrent with this, consumers, businesses, and governments worldwide are recognizing the significance of renewable energy in mitigating climate change and are actively seeking alternatives to fossil fuels. Solar PV, being one of the most accessible and scalable renewable energy technologies, has emerged as a key player in meeting this demand.

Supportive government policies and incentives

Many governments are implementing supportive policies and incentives to foster the adoption of solar PV systems, representing one of the key factors impelling the market growth. These policies often include feed-in tariffs, tax credits, grants, and renewable energy targets, which is encouraging consumer and industrial shift towards sustainable solar PV systems. In addition to this, by providing financial incentives, governments aim to make solar PV installations more affordable for consumers and businesses, thereby creating a favorable outlook for market expansion. Moreover, renewable energy targets set by governments push utilities and industries to invest in solar PV as part of their energy mix, further boosting the market.

Technological Advancements and Cost Reductions

Significant advancements have been made in solar PV technology, leading to increased efficiency and reduced manufacturing costs. Moreover, extensive research and development (R&D) efforts resulting in better-performing solar cells, improved panel designs, and innovative installation techniques are positively impacting the market growth. In line with this, the economies of scale achieved through mass production have also contributed to cost reductions in solar PV systems. As a result, solar PV has become more economically viable and competitive compared to traditional energy sources, making it an attractive option for a wide range of consumers, including residential, commercial, and industrial sectors.

Solar Photovoltaic (PV) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global solar photovoltaic (PV) market report, along with forecasts at the global, regional and country levels from 2023-2028. Our report has categorized the market based on type, grid type, deployment and end user.

Breakup by Type:

• Thin Film
• Multi-Si
• Mono-Si
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes thin film, multi-Si, and mono-Si.

The surging popularity of thin film solar PV is due to its lightweight, flexible nature, making it suitable for unconventional applications, and integration into various surfaces represents a key driver of the market growth. Moreover, the increasing demand for multi-SI solar PV, with its higher efficiency and lower production costs compared to traditional mono-Si, as it offers a compelling balance between performance and affordability, is creating a positive outlook for market expansion. Apart from this, mono-Si solar PV, known for its excellent efficiency and longevity, continues to be in demand for utility-scale projects and premium applications where maximizing power output and durability are crucial, which in turn, is contributing to the market's growth. The market's growth is further impelled by increasing investment in R&D to improve PV technology, widening consumer awareness of environmental benefits, and the expansion of solar PV manufacturing capacity across the globe.

Breakup by Grid Type:

• On-Grid
• Off-Grid
   

On-grid holds the largest share in the market

A detailed breakup and analysis of the market based on the grid type has also been provided in the report. This includes on-grid and off-grid. According to the report, on-grid accounted for the largest market share.

The increasing emphasis on energy security and the need to reduce dependency on centralized power sources are driving consumers and businesses to adopt on-grid solar PV installations, thus strengthening the market growth. Besides this, on-grid PV systems allow for net metering and the potential to feed excess electricity back into the grid, enabling consumers to benefit financially and contribute to the overall grid stability, which is propelling its adoption across numerous applications. In addition to this, supportive government policies and feed-in tariffs incentivize the integration of on-grid solar PV, encouraging investment in these systems. Furthermore, the declining costs of solar PV components and improved grid integration technologies are making on-grid systems more economically viable and attractive to a wider range of consumers and industries, aiding in market expansion.

Breakup by Deployment:

• Ground-mounted
• Rooftop Solar
   

Ground-mounted dominates the market

The report has provided a detailed breakup and analysis of the market based on the deployment. This includes ground-mounted and rooftop solar. According to the report, ground-mounted represented the largest segment.

The ground-mounted systems offer ample space and the flexibility to deploy larger solar arrays, which makes them ideal for utility-scale projects that require high power generation capacity, aiding in market expansion. In addition to this, ground-mounted PV installations can be strategically located in areas with optimal sun exposure, maximizing energy production efficiency. Besides this, the declining costs of solar PV components and installation, along with advancements in tracking technologies, have improved the economic viability of ground-mounted systems. As a result, they are highly preferred among various industrial verticals. Furthermore, the increasing push for renewable energy adoption and the need to meet clean energy targets are driving utilities and governments to invest in ground-mounted solar PV projects as reliable and sustainable energy solutions, thereby strengthening the market growth.

Breakup by End User:

• Residential
• Commercial
• Utility
   

Utility holds the largest share in the market

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes residential, commercial, and utility. According to the report, the utility sector accounted for the largest market share.

The extensive focus on sustainability and reducing carbon emissions in the utility sector is propelling the demand for solar PV as a clean and renewable energy source. Besides this, utility-scale solar projects benefit from economies of scale, making them financially attractive with lower generation costs over time. Moreover, significant advancements in solar technology and grid integration solutions have improved the reliability and stability of solar PV, making it a viable option for large-scale electricity generation, thereby contributing to its increasing adoption across the industry. In addition to this, favorable government incentives and mandates, along with growing public support for renewable energy, are encouraging utilities to incorporate solar PV into their energy portfolios, further driving the demand in the utility sector.

Breakup by Region:

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

Asia Pacific exhibits a clear dominance, accounting for the largest solar photovoltaic (PV) market share

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

The demand for solar photovoltaic (PV) in North America is primarily driven by supportive government policies and financial incentives, with tax credits, rebates, and renewable energy targets encouraging the product adoption. In line with this, the region's commitment to sustainability and energy independence drives the demand for clean energy solutions, creating a favorable outlook for market expansion.

Moreover, ambitious renewable energy goals set by the European Union (EU), along with feed-in tariffs and supportive regulations, are key drivers for the growth of solar PV in Europe. In addition to this, the increasing awareness of climate change and environmental responsibility is fueling the demand for PV installations.

Apart from this, rapid industrialization, urbanization, and a growing population in the Asia Pacific region drive the need for sustainable energy sources, and solar PV emerges as a viable solution to meet the rising energy demand. Government initiatives, such as net metering and subsidies, further bolster the demand for solar PV in the region.

Competitive Landscape:

The global solar photovoltaic (PV) market exhibits a competitive landscape characterized by intense rivalry among established players and an influx of new entrants seeking a share in the growing market. Several key players dominate the industry, holding significant market share due to their extensive experience, established brand reputation, and economies of scale. These major players are continuously investing in research and development to improve solar PV efficiency, reduce production costs, and enhance product offerings. Apart from this, the market also sees a rise in innovative start-ups and technology disruptors, particularly in thin-film and advanced solar technologies. As solar PV installations become more widespread across various industries and regions, local players also emerge, capitalizing on regional knowledge, localized services, and competitive pricing.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Acciona S.A.
• Canadian Solar Inc.
• First Solar Inc.
• JA Solar Technology Co
• JinkoSolar Holding Co. Ltd.
• LONGi Green Energy Technology Co. Ltd.
• Sharp Corporation
• Solar Frontier K.K
• SunPower Corporation
• Suntech Power Co. Ltd. (Shunfeng Int'l)
• Tata Power Solar Systems Limited (Tata Power Company Limited)
• Trina Solar Co. Ltd.

Recent Developments:

• In July 2023, ACCIONA Energía announced a five-year power purchase agreement (PPA) with Berry Global Group, Inc. to cover all the electricity needs of its facilities in Mexico with 100% renewable energy.
• In June 2023, Canadian Solar Inc. announced that CSI Energy Storage has entered into an agreement to deliver 49.5MW/99MWh of turnkey battery energy storage solutions to Cero Generation ("Cero"), and Enso Energy (Enso).
• In May 2023, JA Solar announced the launch of its new n-type module DeepBlue 4.0 Pro which adapts cells cut from the next generation n-type rectangular silicon wafer size independently developed by JA Solar.

Solar Photovoltaic (PV) Market Report Scope:

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 solar photovoltaic (PV) market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global solar photovoltaic (PV) 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 assist 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 solar photovoltaic (PV) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.