Solar Energy System Market to Reach Valuation of USD 255.3 Billion by 2028 – Increasing Initiatives in the Development of Solar Energy Drives the Market

Vantage Market Research

Jul 12, 2022

In terms of revenue, the Global Solar Energy System Market is expected to reach USD 255.3 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 20.1% from 2022 to 2028. Growing investments in solar energy and supportive government initiatives and policies are anticipated to augment the market's growth during the forecast period.

Key Highlights from Report:

  • The utility segment held a significant market share in 2021 and is attributable to the increased need for cleaner energy sources and rising new utility-scale solar PV projects installed in 2020. Many projects are in the pipeline. Between 2021 and 2028, the residential segment is expected to develop due to rising rooftop solar adoption and increased customer awareness of the benefits of using environmentally friendly sources.

  • The third-generation cells segment is projected to grow at a considerable CAGR during the forecast period. This is attributable to the increasing demand for installing solar energy systems in architecture and residential applications. However, the broad footprint of the solar energy industry has had an impact, although rising R&D investments and the adoption of solar storage systems are projected to stimulate demand for solar energy systems.

  • Asia Pacific is expected to grow at the fastest CAGR during the forecast period. Emerging economies such as China and Japan have significantly increased their solar technologies output due to government tariffs and mergers and acquisitions of domestic producers. Furthermore, research to maximize solar potential has received a lot of attention in North America and Europe. As a result, solar energy has been utilized for power generation, architecture, and agriculture and has grown in popularity across the Middle East and Africa.

Market Dynamics:

Increased environmental degradation, government incentives, and tax breaks for installing solar panels propel the solar energy sector forward. Furthermore, demand in the power generation sector has increased due to the lower water footprint of solar energy systems. In addition, the market for solar cells has grown significantly due to an increase in rooftop installations, followed by an increase in architectural applications. Furthermore, increased demand in the electricity generation sector for parabolic troughs and solar power towers is expected to increase demand for concentrated solar power systems.

Photovoltaic (PV) storage systems must be developed for PV systems to be able to replace existing conventional sources. The adoption of a storage grid is expected to expand with the rise in demand for PV installations, fueling demand for lithium ion-powered batteries for solar energy storage and boosting the solar energy market's growth.

Europe held the most significant shares in 2021. China had the largest share in Asia, followed by Europe for the global Solar Energy System market. The regional market growth is fueled by favorable legislation, renewable energy targets, and an increasing number of solar farms. In rural areas of Africa and Latin America, poor electricity networks have raised the demand for solar energy. Furthermore, government incentives for solar panel installations have driven industry expansion.