The Photovoltaic Solar Panel Market size was valued at USD 116.2 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.5% from (2023-2028)
A solar panel is an aggregation of solar cells that spread over a large area to produce electricity using sunlight. When sunlight hits a cell, which acts as a semiconductor, the light turns into electricity which flows through the circuit. Solar panels can be used for many applications, including remote power systems for cabins, telecommunications equipment, remote sensing systems, and residential and commercial solar systems.
The appeal for solar power in emerging markets on all continents, especially in areas where electricity is needed most, contributes significantly to the expansion of the market. In addition, the rapid expansion of the market is mainly due to the increased competitiveness of solar photovoltaic energy and the increase in government initiatives and programs due to the increased demand for electricity. In addition, countries are looking to the potential of solar photovoltaic (PV) energy to study the problems of reducing pollution and CO2 emissions. In addition, the recent introduction of solar PV power in countries like India and China has been supported due to the response to National Electricity Tariff (FIT) payments.
Photovoltaic Solar Panel Market Drivers:
The growing demand for clean electricity based on renewable energy, coupled with government policy tax breaks and incentives to install solar panels, is expected to drive the market for years to come. Businesses in the commercial and industrial sectors are among the major consumers of solar photovoltaic (PV) panels due to their need for green energy on a large scale. Installation economies of scale in these sectors compensate for any loss of panel efficiency, making solar PV systems cost-effective for large-scale power generation. The residential sector is gaining momentum in PV solar panel installations due to net metering schemes for grid-connected systems and the availability of energy storage systems for off-grid systems.
Growing customer awareness of the environment, the provision of government incentives and tax reductions for installing solar panels, and drastically lowering the prices of key components to make solar cells/modules, such as silver and polysilicon, are key factors in solar growth. panel industry. Cost-effective forms of renewable energy are increasingly accepted over conventional energy sources. Additionally, solar panels do not burn fuel, making the process noise-free, pollution-free, and about two to three times more efficient than combustion technologies. The growing demand for solar-powered vehicles and electrical devices contributes to a growing demand for solar panels around the world. In addition, the growing demand for photovoltaic installations, the increasing adoption of storage networks, and the significant demand for solar panels in residential rooftop applications are expected to drive the growth of the solar panel industry.
The high initial investment involved in installing solar panels is slowing the growth of this market to some extent.
The solar panel market has huge long-term growth prospects, and solar power is expected to be the dominant power source in about a decade. The increasing installations of solar power systems in commercial and residential applications are the factors that provide lucrative growth opportunities in the market. Another key factor is to focus on reducing CO2 emissions. The use of solar energy will increase the production of green energy and save the running out of coal and natural gas reserves. Therefore, governments all over the world are promoting renewable energy sources, and supporting the heavy installation of solar systems, thereby boosting the growth of the solar panel market.
The low usability of solar panels resulting in lower power output than non-renewable energy sources is also a challenge for market growth.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
6.5% |
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Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
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Market Leaders Profiled |
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Photovoltaic Solar Panel Market - By Component
Modules
Inverters
The investor market is expected to grow at the highest CAGR during the forecast period. The expansion of the photovoltaic inverter market can be attributed to its increasing adoption in residential and utility applications.
Silicon
Compounds
By Installation Type
Ground Mounted
BIVP
The residential applications market is expected to grow at the highest CAGR during the forecast period. This can be attributed to the declining cost of PV systems in recent years.
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Asia-Pacific held the largest market share at 35.0% and was valued at $ 39 billion in 2020. China was the main contributor to market revenue generation in 2020. The presence of major players in the market coupled with favorable government policies providing subsidies and financial incentives for PV projects are among the key factors contributing to the growth of the industry in China.
In addition to being the largest panel manufacturing center, China has several solar farms, including the world's largest floating farm capable of producing 40 MW of electricity. In addition, the country occupies a leading position in the exports of photovoltaic solar panels to the world. However, some countries like the United States and India have placed restrictions on the number of photovoltaic panels imported from China, which has disrupted the profits of the solar industry in the country.
In North America, the market was valued at $ 26.2 billion in 2020. The United States accounted for the largest market share of 45.2% in 2020. The proliferation capacity of residential consumers is expected, along with announcing new utility projects, to improve product penetration across the countries in the coming years.
The US market is expected to experience a significant growth rate due to strong federal regimes such as the solar investment tax credit, increased demand in the public and private sectors for green electricity, and the falling cost of panels. According to the Solar Energy Industries Association, the US solar industry generated an investment of $ 17 billion in 2020 and reached an installed capacity of 78 GW nationwide.
The US Department of Energy has established codes, standards, and regulations governing the licensing and certification, installation, construction design, and warranties of solar photovoltaic systems. Although the guidelines are established in order to maintain public health, safety, and welfare, complicated and lengthy permitting processes are expected to hamper the rate of deployment of solar PV systems.
The COVID-19 epidemic is estimated to hamper the supply chain for photovoltaic solar panels. The pandemic is expected to cause panel prices to rise and manufacturers to face labor shortages, material shortages and stagnation in international trade affecting the export market. . Projects delayed due to supply chain disruption will further hamper the industry. COVID-19 is proving to be a major obstacle for the renewable energy industry, leading to a lack of availability of hardware components.
Due to the blockade imposed by countries around the world, the growth of construction and solar development is slowing down. As reported by Bloomberg New Energy Finance (BNEF), the global solar outlook has increased from 152 GW to 143 GW. Additionally, with China being the largest solar power generation market, the country's slowing economic growth has affected global investment in generation and renewable energy.
China is a pioneer in solar photovoltaic installations and the production of solar photovoltaic panels. According to Global Energy Data, the country represents more than 35% of the world's solar installations. China's annual installations are expected to reach around 30 GW by 2020. However, COVID-19 is likely to have an effect on solar installations. In addition, the United States depends on the production of solar photovoltaic energy from China.
JinkoSolar
JA Solar
Trina Solar
LONGi Solar
Canadian Solar
Hanwha Q-CELLS
Risen Energy
GCL-SI
First Solar
Talesun
SunPower Corporation
ReneSola
Shenzhen Yingli New Energy Resources Co.
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