Solar Energy Market
Report ID: SQMIG55E2088
Report ID: SQMIG55E2088
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Report ID:
SQMIG55E2088 |
Region:
Global |
Published Date: July, 2025
Pages:
189
|Tables:
205
|Figures:
72
Global Solar Energy Market size was valued at USD 207.37 Billion in 2024 and is poised to grow from USD 222.09 Billion in 2025 to USD 384.45 Billion by 2033, growing at a CAGR of 7.1% during the forecast period (2026–2033).
The solar energy market is rapidly expanding as the world is growing more focused on sustainable energy and renewable energy sources. There is a global surge of investment in solar energy structures from government actors, and advances in solar cell technology, like photovoltaic cells are greatly improving efficiency. Higher electricity costs along with challenges from climate change is leading residential and non-residential consumers to pursue solar. Along with falling costs of solar panels and favorable policies from government actors, this energy market is evolving in the context of the global energy transition.
The biggest drivers of the solar energy market are government incentives, whether through subsidies, tax credits, or mandatory commitments to renewable energy. Technological advances in equipment, such as bifacial panels and solar tracking systems, also improve the performance and output of solar energy, increasing the commercial viability of solar energy in the energy mix of countries. There is also rising demand for energy, in particular energy from emerging economies, that responds to the needs of the majority of the world's citizens. Increased corporate social responsibility and commitment to sustainability by large companies leads to more investment in parks and other projects for solar energy. There is also general, public awareness about environmental challenges that we face as humanity.
Although the solar energy market is growing, several constraints remain. Residential users, particularly in cost-sensitive markets, are discouraged by the high initial installation costs. Harvesting solar energy is intermittent and weather dependent, often necessitating large upstream storage or hybrid solutions. Available land for large-scale solar farms can also present problems, particularly in more densely populated areas. In addition, the supply chain risks of solar-grade silicon and other components could disrupt reliable manufacturing and deployment.
How is Artificial Intelligence Reshaping the Landscape of Solar Energy?
As discussed earlier, AI is transforming solar energy systems in several significant aspects: data-driven forecasting, predictive maintenance, and offering dynamic performance optimization. Lucky for us, AI has the ability to review all the data generated by sensors, weather models, and satellite images. As a result, the reliability of solar irradiance forecasting is improved by 20-25%, allowing grid operators and plant managers to better anticipate generation variability and optimal strategies for storage dispatch. AI-driven machine learning models can detect fault earlier—for example, either overheating inverters, or soilings—from components—over a 70% reduction in the time it takes to identify an equipment fault, and over a 25% reduction in the maintenance costs. AI can also dynamically reposition solar panels for orientation or cleaning to improve yield based on real-time requirements.
In December 2024, Hitachi Energy launched Nostradamus, AI, a hosted energy forecasting solution that is powered by AI, improving forecast accuracy over traditional benchmarks by as much as 20%. Nostradamus is a cloud-based, scalable platform for forecasting generation from solar or wind, from a single site to an entire enterprise portfolio. Nostradamus employs advanced machine learning models as well to help with energy trading decisions, load forecasting, and operational planning. By being able to improve asset performance, reduce revenue uncertainty, and support faster, data-driven strategic decision-making by operators through changing grid dynamics, Nostradamus provides a powerful example of how AI is redefining solar energy management in the real world.
Market snapshot - 2026-2033
Global Market Size
USD 193.62 billion
Largest Segment
Photovoltaic (PV) systems
Fastest Growth
Photovoltaic (PV) systems
Growth Rate
7.1% CAGR
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Global Solar Energy Market is segmented by Technology, Component, Solar Module Type, Installation Type, Grid Type, Application, End User and region. Based on Technology, the market is segmented into Photovoltaic (PV) Systems and Concentrated Solar Power (CSP). Based on Component, the market is segmented into Solar Modules, Inverters, Mounting Systems, Storage Systems and Balance of System (BoS). Based on Solar Module Type, the market is segmented into Monocrystalline, Polycrystalline, Thin-Film, PERC (Passivated Emitter Rear Cell) and Bifacial. Based on Installation Type, the market is segmented into Rooftop, Ground-mounted, Floating Solar and Building-Integrated Photovoltaics (BIPV). Based on Grid Type, the market is segmented into On-grid (Grid-connected), Off-grid (Standalone) and Hybrid Systems. Based on Application, the market is segmented into Residential, Commercial & Industrial and Utility-scale. Based on End User, the market is segmented into Residential Households, Commercial Buildings, Industrial Facilities, Utilities & Power Producers, Agricultural Sector and Public Infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
How the Photovoltaic (PV) systems are dominating the market?
Photovoltaic (PV) systems convert sunlight directly into electricity using semiconductor materials such as silicon. These systems are widely adopted for residential, commercial, and utility-scale applications due to their scalability, modularity, and declining installation costs. PV systems can be grid-tied or off-grid and include components like solar panels, inverters, and mounting structures. Advancements in PV technologies—such as monocrystalline, polycrystalline, and thin-film solar cells—are improving efficiency and durability. Their rapid deployment across rooftops, solar farms, and building-integrated photovoltaics (BIPV) has made PV systems the dominant technology in the global solar energy market.
How the Concentrated Solar Power (CSP) systems is fastest growing segment of the market?
Concentrated Solar Power (CSP) systems generate electricity by using mirrors or lenses to concentrate sunlight onto a small area to produce heat. This thermal energy is then used to drive a steam turbine connected to a power generator. CSP is most effective in regions with high direct solar irradiance, such as deserts. It offers the advantage of thermal energy storage, allowing power generation even during non-sunny hours. Common CSP technologies include parabolic troughs, solar power towers, and dish Stirling systems. Though less widespread than PV, CSP is valued for its grid stability and utility-scale energy production potential.
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What makes North America the top market for Solar Energy in 2024?
North America leads solar adoption with robust utility‑scale deployment and strong policy support. The U.S. market benefits from large projects, cost reductions, and grid modernization, while Canada’s aligned federal‑provincial incentives and corporate PPAs drive steady growth.
The United States Solar Energy Market
The U.S. dominates North American solar, driven by the Inflation Reduction Act fueling $422 billion in clean energy investment and over 406,000 clean‑energy jobs across 751 projects as of January 2025. The utility‑scale segment is surging, adding 22.5 GW in 2023 (77% growth), while residential installations reached a record 6.8 GW (+13%). European investor AIP Management pledged $500 million to Silicon Ranch—a U.S. solar developer with 3.6 GW assets—underscoring investor confidence amid rising electricity demand and domestic solar project pipeline growth.
Canada Solar Energy Market
Canada’s solar expansion is propelled by federal clean energy standards, tax credits, and smart‑renewables programs. Installed capacity is forecast to grow from ~6.6 GW in 2025 to ~9.6 GW by 2030 (CAGR ~7.8%). Alberta’s coal retirement unlocked fast‑track approvals for solar, spurring a wave of projects in provinces previously secondary markets, aligning with indigenous equity partnership models to support deployment.
How are Government Policies in the Asia-Pacific Driving the Growth of the Solar Energy Market?
Asia Pacific is the fastest‑growing solar region, led by expanding capacity, strong government incentives, and rising energy demand. India, Japan, and South Korea are accelerating deployments through manufacturing schemes, feed‑in‑tariffs, and "Green New Deal" initiatives.
Japan Solar Energy Market
Japan surpassed 90 GW of installed solar capacity by 2023 and produced 102 TWh in 2024, generating ~13% of national electricity—up from under 10% in 2022. The government’s revised feed‑in tariff and Strategic Energy Plan aim to reach 24% renewable energy by 2030, backed by $700 billion investments.
South Korea Solar Energy Market
South Korea’s Green New Deal is directing significant spending on solar and smart energy infrastructure. The nation is deploying large-scale solar farms and rooftop programs, coupled with storage and grid modernization, to enhance resilience and climate objectives. In early 2025, the government announced competitively priced new tenders for agrivoltaic and distributed rooftop solar, which included subsidies and simplified permitting, enhancing the prospect of commercial and community developer take-up.
India Solar Energy Market
India achieved ~81 GW solar capacity by end-2022 with aggressive expansion plans; the government aims to add 20 GW in 2023–24 through PLI‑supported domestic manufacturing and subsidy schemes. Rising electricity demand and solar cost competitiveness support further uptake across residential, commercial, and utility segments.
How is Europe Maintaining Its Position in Solar Energy Market?
Europe’s mature solar market continues robust growth thanks to ambitious national targets, policy reforms, and integration with storage. Germany, France, and the UK stand out for capacity expansion and innovation.
Germany Solar Energy Market
Germany is Europe’s solar leader, with ~81.8 GW capacity by end-2023 and solar generating 14% of electricity in 2024 (~72 TWh), a record high
Wikipedia. The 2023 Solarpaket program simplified permitting, raised tender volumes, and incentivized rooftop and agrivoltaic deployments, driving more than 15 GW additions in 2023 alone.
France Solar Energy Market
France added ~3.5 GW of solar capacity in Q1–Q3 2024, boosting total installed capacity to ~23.7 GW and generating 22.7 TWh in 2023—a 19% year‑on‑year increase. The government’s Solar Pact supports domestic manufacturing, agrivoltaic integration, mandatory solar on new car parks, and targets ~60 GW by 2030.
UK Solar Energy Market
The UK has reached ~18 GW of solar capacity by mid‑2025, generating ~5% of electricity annually in 2024 and peaking at over 30% on sunny days. Growth is driven by commercial and rooftop deployments, though remaining below continental counterparts. The UK government initiated a safety study into balcony solar systems in April–May 2025 to enable plug‑and‑play installations for flat dwellers—potentially unlocking urban rental markets and accelerating capacity growth toward its 2030 goals.
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Solar Energy Market Drivers
Government Policies and Incentives.
Technological Advancements in Solar PV
Solar Energy Market Restraints
High Initial Capital Investment
Intermittency and Energy Storage Challenges
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The competitive landscape in the solar energy market reveals sharp strategic distinctions, with major suppliers exploiting scale, innovation, and vertical integration to defend their leadership. Chinese giants such as JinkoSolar, Trina Solar, LONGi, and JA Solar dominate global module output by leveraging cost-efficient large-scale manufacturing and integrated supply chains. First Solar differentiates with high-efficiency thin-film modules, allowing it to maintain margins despite price volatility. Players like Canadian Solar, SunPower, Enphase, and SolarEdge focus on system integration, inverter tech, and customer-centric models such as PPAs and energy-as-a-service to capture value beyond hardware.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
SkyQuest’s study suggests that the solar energy market is expanding rapidly due to strong government support, such as tax incentives, renewable energy mandates, and targeted subsidy programs, driving adoption across residential, commercial, and utility sectors. However, high initial capital investment and energy storage challenges restrain growth, especially in developing regions. North America remains the dominating region, led by large-scale U.S. installations and Canada's favorable policies. The dominating segment is utility-scale solar, driven by declining costs and bulk power demand. Another key driver is technological innovation in solar PV—such as bifacial panels, AI-based forecasting, and perovskite cells—enhancing efficiency and cost competitiveness. These advancements enable wider deployment and increased investor confidence across global solar markets.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 207.37 Billion |
| Market size value in 2033 | USD 384.45 Billion |
| Growth Rate | 7.1% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Top Player’s Company Profiles
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Solar Energy Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Solar Energy Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Solar Energy Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Solar Energy Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Companies are creating vertically integrated approaches, smart inverters, AI based maintenance and differentiation technologies (for example compliant thin film or printable), new business models like energy-as-a-service such as system integration, customer centric data, experience and performance management.
The predominant successful models are third-party ownership, power purchase agreements (PPA), and energy-as-a-service. These models minimize upfront costs and have predictable forms of return to the investor, this is especially important for the utility and commercial sectors where there has been frequent disruption and volatility in installing incentives.
Companies will want to monitor for shifts in policy and geographic diversifications in keeping with emerging subsidy programs and clean energy standards. Engaging in community energy models and use of incentives for storage and sharing of solar will help firms remain stable and resilient in changing environments.
Energy storage creates grid performance, and accounts for the unreliability and intermittency of solar event reliability when they exist. The falling price of batteries and regulations favouring energy-plus-storage are already fuelling more diverse models of solar and energy storage including residential installation, commercial deployments, and utility scope projects, allowing access to electricity all day.
We know that adding automation capabilities to the setup of a solar farm will lower installation costs, and using streamlined permitting processes, or subsidies at the policy level with government support for installation will help reduce installation costs. Companies are putting an increasingly large effort toward moving to plug and play, standardized systems for customer acquisition and lowering customer acquisition costs in terms of third party ownership options.
Collaboration should be based on co-partnering around incentive programs, financing for utility and community projects, and support shared infrastructure development like agrivoltaics. Describing costs in relation to national energy targets and adopting collective commitments to ESG goals (and politics) can also facilitate greater public and private investment synergies.
Global Solar Energy Market size was valued at USD 207.37 Billion in 2024 and is poised to grow from USD 222.09 Billion in 2025 to USD 384.45 Billion by 2033, growing at a CAGR of 7.1% during the forecast period (2026–2033).
The competitive landscape in the solar energy market reveals sharp strategic distinctions, with major suppliers exploiting scale, innovation, and vertical integration to defend their leadership. Chinese giants such as JinkoSolar, Trina Solar, LONGi, and JA Solar dominate global module output by leveraging cost-efficient large-scale manufacturing and integrated supply chains. First Solar differentiates with high-efficiency thin-film modules, allowing it to maintain margins despite price volatility. Players like Canadian Solar, SunPower, Enphase, and SolarEdge focus on system integration, inverter tech, and customer-centric models such as PPAs and energy-as-a-service to capture value beyond hardware. 'Terabase Energy: Established in 2017, their main objective is to automate large-scale solar farm construction using robotics and AI-driven assembly. Backed by a $130â¯million investment from SoftBank’s Vision Fund 2 in March 2025, they’ve piloted installations across three U.S. solar farms (~40â¯MW) and aim to scale into hundreds of megawatts by 2026, doubling installation productivity and slashing labor costs.', 'SOLRAâPV: Established in 2021, their main objective is to deliver printable perovskite solar panels for ambient indoor energy harvesting. Targeting IoT and low-light applications, SOLRAâPV develops plugâandâplay panels that power sensors without batteries or wiring. Their technology enhances accessibility and sustainability for smart devices in homes and commercial buildings.', 'NextEra Energy', 'Iberdrola', 'GE Vernova', 'Adani Green Energy', 'Sungrow Power Supply', 'First Solar', 'LONGi Green Energy', 'Brookfield Renewable Partners', 'Tesla (Energy Division)', 'JinkoSolar', 'Enel Green Power', 'Canadian Solar'
Supportive government policies, such as subsidies, tax credits, and renewable portfolio standards, are critical in driving solar energy adoption. Programs like the U.S. Inflation Reduction Act and India's PM Surya Ghar scheme have drastically reduced upfront costs and encouraged both residential and utility-scale investments. Feed-in tariffs, net metering, and green financing options further enhance solar’s financial viability, attracting private investment and accelerating deployment, especially in emerging markets with high solar potential and rising electricity demand.
Integration of Energy Storage with Solar Systems: One key trend is the increasing incorporation of battery storage with solar projects, for access to energy when the sun is not shining, and to add resiliency to the utility grid. Solar residential, commercial and utility scale projects are now augmenting significantly with lithium-ion or flow batteries. Many factors are driving this including reduced battery prices, favorable regulations, and demand for greater energy independence in tandem with added resiliency when the utility grid goes down.
What makes North America the top market for Solar Energy in 2024?
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