Solar Panel Market

Global Solar Panel Market Size (2024-2029):

 The Global Solar Panel Market size is expected to grow at a CAGR of 15.18% during the forecast period 2024-2029. The market share was valued at USD 149.18 billion in 2023 and is expected to reach USD 302.42 billion in 2029.

MARKET DRIVERS

The rising concern over carbon emissions is increasing the need to adopt renewable energy production globally. Both private and public companies are investing highly in the production of renewable energy, which is greatly influencing the growth rate of the market.

The trend to adopt renewable sources to produce energy is continuing globally. This factor is ascribed to accelerate the market value in the coming years. For instance, China invested around USD 83.4 billion in renewable resources in 2022, whereas the U.S. positioned second by investing USD 55.5 billion. The growing need to produce more energy with solar as a major renewable source is enhancing the demand for the solar panel market. For instance, the demand for solar panels has increased with the U.S. investments of over USD 5 billion to leverage the domestic solar panel manufacturing capacity by the end of 2024. In addition, the growing prominence of the clean energy sector is lavishing the market size. The U.S. and China are two major countries that contribute high investments in the clean energy sector. The investments in clean energy were approximately valued at USD 495 billion in 2022 globally, and the investment rate is expected to increase in the coming years. Stringent rules and regulations by government authorities to promote green energy targets are inclined to propose investments in the construction of solar panels in emerging countries across the world. Also, the rising popularity of launching floating solar technology and the installation of solar panels above the water infrastructure is escalating the market growth rate. China is one of the major countries that has already installed two novel floating solar technologies in Huainan City and Pei County. Even South Korea has installed this technology in many areas, such as Jipyeong, Otae, and Cheonpung Lake.

MARKET RESTRAINTS

The high cost of installation and maintenance is certainly a limiting factor for the market's growth.

Also, the land required to install the solar panels depends on the production of the energy. Therefore, the lack of sufficient area to install the solar panels is restricting the growth of the market. Lack of proper knowledge of the installation procedure and growing concern over recycling infrastructure and facilities are majorly restraining the market growth rate.

MARKET OPPORTUNITIES

The rapid adoption of the latest technology is to enhance the growth opportunities for the solar panel market in the coming years. The growing importance of nanomaterials in generating energy and levelling up the efficiency of solar cells is escalating the market growth rate to an extent. Growing competition between the key players and rising investments from government organizations to produce high-quality energy using renewable sources like solar energy are likely to promote market growth opportunities in the coming years. Focus on developing rural areas in developed countries is likely to promote the demand for the production of highly efficient energy.

MARKET CHALLENGES

Lack of complete knowledge of rapidly changing technology is a major constraint for the market key players. Poor infrastructure resources for the construction of solar panels due to fluctuations in the availability of the raw materials directly inhibit the market value.

COVID-19 Impact on the Solar Panel Market

The COVID-19 pandemic imposed a negative impact on the solar panel market share in 2020. Social distancing and lockdown measures disrupted the supply chain of the raw materials, which created a huge delay in the construction of the solar panels. Due to less transportation, there was a direct impact on renewable electricity projects worldwide. Labor shortages, delays in the supply of equipment, and less availability of land deals are major concerns for the market to grow during the pandemic crisis. However, the market started to rise at a higher rate once all the restrictions were lifted in the last months of 2020. It is deemed that the solar panel market is expected to showcase a high growth rate in the coming years with the globally increasing demand for the generation of highly efficient energy through renewable resources.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Solar Panel Market Analysis by Type

The monocrystalline segment is leading with the largest share of the market. The monocrystalline type has an efficiency of 15% - 20%. It can produce more electricity even in limited space, which is inclined to propel the demand for this segment. The thin film solar panel market is projected to hit the fastest growth rate in the near future. Thin film is widely used in solar panels as it is very economical and generates less waste.

Global Solar Panel Market Analysis By Application

The photovoltaic segment has grown at a prominent rate for the past few years, whereas the concentrated solar power segment has the largest market share. Photovoltaic is a process that converts solar energy into electricity with more than 70% efficiency. Due to this factor, the demand for this segment is growing at a robust rate.

Global Solar Panel Market Analysis By End Use

The industrial segment is leading with the prominent share of the market with the shifting trends towards the renewable sector from conventional. Stringent government rules to curb increasing pollution levels, especially in industries, are majorly fuelling the demand for solar panels in the industrial segment. Commercial and Residential segments are expected to have prominent growth opportunities in the coming years.

Solar Panel Market Analysis By Grid Type

The on-grid segment is anticipated to have the dominant market share. On-grid systems supply huge amounts of power depending on the solar panel's production rate. Off-grid solar panels are also expected to gain a prominent growth rate during the foreseen period. Off-grid solar panels are effective in saving electricity at the backends as this system does not have a direct connection with the utility grid.

REGIONAL ANALYSIS

Asia Pacific is thriving with a prominent share due to growing prominence to invest more in the renewable energy sectors. A growing population is one of the major factors for the growth of the solar panel market in the Asia Pacific region. The increasing population is raising the demand for the supply of electricity in many ways. Around 940 million people are facing power interruptions in the Asia Pacific, which is why the demand to generate more electricity using solar energy as the main source is rapidly increasing. It is expected that the demand for energy in the Asia Pacific will increase by 80% by 2040. China is the major country in the world that produces high solar energy. In 2022, 392GW of solar capacity, whereas it is expected to install 500 GW by the end of 2023. It is about to reach the target of clean energy by adopting renewable sources to produce electricity that reduces greenhouse effects. India has witnessed the highest growth rate during the forecast period. The rising adoption of innovative technologies is majorly prompting the growth of the solar panel market in India. For instance, based on TOPCon technology, a bifacial solar panel was unveiled by Jackson in October 2023 at the Renewable Energy India Expo. This product has a tremendous efficiency of around 22.86%, which is expected to increase the demand for solar panels in the coming years. North America is next in leading, with the dominant share of the market and growing per capita income. Solar panels have become a huge source of electricity in North America, as around 36% of electricity is being produced with the help of solar energy. Approximately 230,000 Americans were employed in the solar industry as per data in 2021. The goal to obtain at least 10% of electricity using solar input is gearing the share of the solar panel market in North America. The U.S. and Canada are prominently playing major roles in escalating the demand for solar panels. With the growing demand to reduce greenhouse effects, some countries are coming up with innovative ideas to work against climatic changes. The U.S. department of energy (D.O.E.) Solar Energy Technologies Office (SETO) is supporting solar technology to fully adopt the decarbonized energy sector by 2050. Also, the National Renewable Energy Laboratory (NREL) is projected to provide more than 45% of electricity in the U.S. if the energy sector is decarbonized by 2050. Also, the use of solar panels is accelerating in the residential sector. It was estimated that almost 3.5 million homes have already installed solar panels, whereas the United States is completely relying on 3.5% of solar energy production. Europe's solar panel market is likely to have a prominent growth rate during the forecast period.

KEY PLAYERS IN THE SOLAR PANEL MARKET

Companies playing a promising role in the global solar panel market include Trina Solar Limited (China), Canadian Solar Inc. (Canada), Jinko Solar Holding Co. Ltd. (China), J.A. Solar Holdings Co. Ltd. (China), Hanwha Q CELLS Co. Ltd. (South Korea), ABROS Green GmbH (Germany), Yingli Solar (China), SunPower Corporation (U.S.A.), Abengoa Solar (Spain), eSolar Inc. (U.S.A.), and Others.

RECENT HAPPENINGS IN THE MARKET

• In 2023, Canadian Solar is all set to establish a 5GW module production facility in Texas by deploying Topcon solar technology. With an investment of USD 250 million, the company is stabilized to produce 20,000 high-power modules daily.

DETAILED SEGMENTATION OF THE GLOBAL SOLAR PANEL MARKET INCLUDED IN THIS REPORT

This research report on the global solar panel market has been segmented and sub-segmented based on type, application, end user, grid type, and region.

By Type

• Monocrystalline
• Polycrystalline
• Thin Film
• By Application
• Photovoltaic
• Concentrated solar power

By End User

• Residential
• Commercial
• Industrial
• Utilities
• Space & Defense
• Others

By Grid Type

• On-grid
• Off-grid

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa