Photovoltaic Modules Market Size, Share, Growth Analysis, By Type(Monocrystalline PV modules, polycrystalline PV modules, thin-film PV modules, and others), By End Use(Residential, commercial, industrial, and utilities), By Region - Industry Forecast 2024-2031

Photovoltaic Modules Market Drivers

Government Initiatives and Policies

• One of the primary drivers of the photovoltaic modules market is favorable government initiatives and policies promoting the adoption of renewable energy sources. For instance, in 2020, the European Union announced its goal to become carbon neutral by 2050, and the European Green Deal aims to increase the share of renewable energy in the EU's energy mix to 32% by 2030. Similarly, the Indian government announced the National Solar Mission, which aims to achieve 100 GW of solar power capacity by 2022. Such government initiatives are expected to drive the adoption of photovoltaic modules, thereby fueling the growth of the market.

Declining Costs of Solar Energy

• The declining costs of solar energy are another significant driver of the photovoltaic modules market. The reduction in the cost of photovoltaic modules is attributed to the advancements in technology and the economies of scale achieved through large-scale production. Moreover, the growing investment in renewable energy projects is driving the demand for photovoltaic modules, leading to further cost reductions. For instance, the cost of solar photovoltaic modules in India has declined by over 80% in the last decade, making it one of the cheapest sources of electricity in the country.

Photovoltaic Modules Market Restraints

High Initial Costs

• The high initial costs associated with the installation of photovoltaic modules are a significant restraint for the market. The cost of photovoltaic modules is primarily influenced by the size of the system and the quality of the materials used, making it expensive for residential and small-scale installations. Moreover, the lack of financing options and low awareness among consumers about the long-term benefits of solar energy are further hindering the growth of the market.

Dependence on Weather Conditions

• The dependence of photovoltaic modules on weather conditions is another significant restraint for the market. The efficiency of photovoltaic modules is affected by the availability of sunlight, making them less effective during cloudy or rainy days. Moreover, extreme weather conditions, such as hailstorms or high winds, can damage the modules, resulting in a loss of productivity.