Solar Power Market

The Global Solar Power Market is valued at USD 186.20 Billion in 2022 and is projected to reach a value of USD 305.85 Billion by 2030 at a CAGR of 6.40% over the forecast period.

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The Solar Power market is growing because people are paying more attention to renewable energy sources, and the government is giving them more money. One key growth driver for India’s Solar Power market. The country has set high goals for making energy from renewable sources, and by the end of 2022, it is expected to have more than half of the world's installations. Several opportunities are available for companies active in the Solar Power market. Some of these are coming up with new technologies or apps that make the ones they already have better, expanding into new markets where there is a high demand for renewables, or branching out into complementary businesses like battery storage or charging infrastructure for electric vehicles. Traditional power generators are starting to invest in renewables, especially solar, as they become more cost-effective and environmentally friendly. In terms of installation, the U.S. is projected to account for the highest share in 2021. This is partly thanks to federal tax incentives offered by Washington DC and other states. SunPower Corporation is one of the biggest companies in the world that makes solar panels. It has both traditional equipment and thin-film equipment. The company has a fleet of over 1 GW of installed capacity worldwide, including India, the U.S., Europe, and Latin America. Governments are also incentivizing the growth of Solar Power by offering various tax breaks and subsidies. The increasing popularity of rooftop solar systems is also boosting the demand for solar energy. The demand for solar PV systems is expected to rise due to government initiatives such as the Clean Power Plan and increasing awareness about climate change. Solar module manufacturers are producing more than enough modules to meet global demand, but they are increasingly looking to export their products to increase their profit margins. This trend will likely continue in the coming years because there is a huge potential for growth in emerging markets such as China and India.

Factors inhibiting the growth of the global Solar Power market include stiff competition from other Renewable Energy Sources such as Wind Power, Biomass Energy, and Solar Thermal Power; high cost of installation; inadequate financing options; and lack of awareness about Solar Power among consumers, lack of infrastructure, and high electricity prices in some countries. The cost of solar panels has been rising recently, which could make Solar Power less affordable for consumers. This could lead to a decline in demand for Solar Power or prompt some companies to discontinue their operations altogether. Solar Power has been slow to take off in many countries due to concerns about its environmental impact and affordability relative to other forms of energy. This could result in a slowdown or even a reversal of the growth seen in recent years. However, several initiatives, such as The SunShot Initiative and The Clean Energy Investment Fund, are being taken up by various companies to overcome these restraints. These factors are expected to be overcome over time as more people adopt solar panels for their home or business needs.

Business Strategies and Entrance Risks

The market has been growing owing to the increasing demand for renewable energy and government initiatives such as R&D funding and promotion. Various factors, such as increased investment in R&D by companies, rise in real estate and transportation sectors, increase in India's renewable energy target, and strengthening of European Union regulations, are driving the growth of the Solar Power market. However, several risks associated with this market should be considered before investing in it. One such risk is that government policies may change or go out of favor, which could lead to a decline in demand for Solar Power. Another risk is a liability; whether governmental or private organizations might impose liabilities on those involved in Solar Power deployment. Lack of grid parity for Solar Power across geographies can also pose a threat to the growth of the global Solar Power market. Despite these risks, several opportunities are available in the global Solar Power market. For instance, installations of large-scale photovoltaic (PV) systems have been increasing due to high levels of investment and favorable government policies. In addition, new entrants into this segment are designing cost-effective products that offer lower installation costs than traditional PV systems.

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Top Market Trends

• Rising demand for renewable energy sources: The increasing popularity of renewables such as Solar Power across various sectors are driving the market. Renewable energy sources like Solar Power help reduce emissions and mitigate environmental concerns. This, in turn, is propelling the growth of the global Solar Power market.
• Growing awareness about environmental concerns: The growing awareness about environmental concerns among consumers is another factor bolstering the growth of the global Solar Power market. Consumers are increasingly looking for environmentally-friendly solutions that would reduce their carbon footprint. Thus, the rising demand for renewable energy sources such as Solar Power can also be attributed to this trend.
• Increasing deployment of rooftop systems: Deployment of rooftop systems is another significant factor fueling the global Solar Power market growth. Over 50% of all installed capacity for solar PV globally resides on rooftops, making this sector one of the most promising in terms of future growth opportunities. This is because rooftops provide an excellent opportunity to install large-scale systems without any disturbance to local infrastructure or aesthetics.
• Growth in Installation Industry: The installation industry is projected to grow at a high rate due to increasing demand for energy-efficient buildings, growing need for clean energy, and rising concerns about climate change.
• Rise in R&D Spending: Several large players are investing in R&D initiatives to develop new technologies and enhance their product offerings. This will likely drive innovation in the Solar Power market segment.

Market Segmentation

The global Solar Power Market is segmented based on Technology, Solar Module, Application, End Use, and Region. Based on the Technology, the market is segmented into Photovoltaic Systems and Concentrated Solar Power Systems. Furthermore, based on Solar Module, the market is segmented into Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Other Solar Modules. In addition, based on Application, the market is segmented into Residential, Commercial, and Industrial. Moreover, based on End Use, the global Solar Power Market is segmented into Electricity Generation, Lighting, Heating, and Charging. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Technology

Most of the photovoltaic systems market growth will be due to the deployment of rooftop solar systems. In 2021, rooftop solar systems accounted for more than half of the total installed capacity of photovoltaic systems. By 2028, this share is expected to reach 66%. The deployment of large-scale Solar Power projects, such as those in China and India, is also expected to contribute significantly to the global photovoltaic systems market growth over the next 10 years. The concentrated Solar Power (CSP) systems segment is expected to grow at a slower rate than PV systems due to higher initial installation costs and a lack of government support in some regions. However, CSP systems are expected to account for a significant share of the global market by 2028 as they offer greater thermal efficiency and better scalability than PV systems.

Based on Solar Module

The Monocrystalline segment is projected to account for the largest share of the global Solar Power market during the forecast period, followed by the polycrystalline segment. Due to its higher cost, the cadmium telluride segment is expected to grow slower than the other segments. The amorphous silicon cells segment is expected to witness the highest growth rate during the forecast period. Other segments, such as cadmium telluride, organic photovoltaics, and thin film technologies, are expected to witness moderate growth during the forecast period. Factors such as increasing investment in research and development activities, increasing adoption of green energy, and increasing demand from various industries are driving the growth of these segments.

Based on Applications

During the forecast period, the Residential segment is expected to account for the largest share of the Solar Power market. This is due to the increasing installed capacity of rooftop solar systems in residential applications. The commercial segment is also expected to grow significantly due to increased investment in renewable energy sources and demand for green infrastructures such as smart cities and sustainable buildings. Meanwhile, the industrial segment is expected to show a declining trend owing to increased penetration of other renewable sources such as wind and Solar Power into the industrial sector.

Based on End Uses

During the forecast period, the Electricity Generation segment is estimated to account for the largest share of the Solar Power market. By 2028, the Solar Power market segment based on lighting is expected to grow at the highest rate, with a CAGR of 14%. This is primarily due to the increasing demand for LED lighting products and their penetration into various end users, such as Residential, Commercial, and Municipal Sectors. The Solar Power market segment based on heating is expected to grow at a lower rate, with a CAGR of 5%. This is due to the higher installed capacity of thermal storage systems and electric vehicles compared to residential and commercial segments. The Solar Power market segment based on charging is expected to grow at a higher rate, with a CAGR of 13%. This is due to the increasing number of electric vehicles and the increased installation of charging infrastructure for these vehicles.

Based on Region

During the forecast period, North America is expected to be the leading region in Solar Power installations. The region is expected to account for more than half of the global installed capacity by 2028. North America will lead the global Solar Power market with a share of 37% in 2028. Europe is also projected to multiply during the forecast period as the region invests substantially in renewables. Europe will be the second largest market with a share of 31%. Asia Pacific is projected to be the fastest-growing region in Solar Power installations, owing to increasing investments in renewable energy across various countries in the region. Asia Pacific will account for a share of 27% in 2028. Latin America is also projected to grow significantly due to favorable economic conditions and increasing awareness about climate change. Latin America will be the fourth largest market with a share of 24%. On the other hand, the Middle East & Africa is projected to be the fastest-declining region in terms of Solar Power installations over the forecast period. This is primarily due to low solar penetration rates and limited government support for renewable energy initiatives.

Competitive Landscape

The key players in the Global Solar Power market include- Abengoa SE (Spain), Acciona SA (Spain), Canadian Solar Inc. (Canada), Esolar Inc. (US), United Renewable Energy Co. Ltd. (Taiwan), Sunpower Corporation (US), Kaneka Corporation (Japan), Tata Power Solar Systems Ltd. (India), Wuxi Suntech Power Co. Ltd. (China), Brightsource Energy Inc. (US) and others.

Recent Developments

• The U.S. Solar Power market is expected to grow at 27% during the forecast period. This growth is mainly due to the increasing number of installations under the Solar Investment Tax Credit (ITC) program and advancements in solar technology such as photovoltaic (PV) modules and tracking systems, among others. The Chinese Solar Power market is also expected to witness healthy growth during the forecast period owing to increased investment in renewable energy sources, government initiatives such as the National Renewable Energy Program (NREL), and increasing consumer awareness about climate change.
• India has set a target of installing 175 gigawatts (GW) of renewable energy by the end of 2022, which is expected to account for around 30% of its total installed capacity.
• The International Renewable Energy Agency (IRENA) has stated that renewable energy must provide at least 30% of global electricity by 2030. To meet this goal, solar PV will need to grow to almost 200 gigawatts installed by 2030.

Segmentation of the Global Solar Power Market