USD 180.78 billion
Solar Energy Market Size, Share, Growth Analysis, By Technology(Photovoltaic System, Concentrated Solar Power System (Parabolic Through, Solar Power Tower, Dish Stirling), By Application(Residential, Commercial, Industrial), By Solar module(Cadmium Telluride, Amorphous Silicon Cells), By End use(Lighting, Heating, Charging), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG55F2019 |
Region:
Global |
Published Date: August, 2024
Pages:
182
|Tables:
61
|Figures:
77
Solar Energy Market Insights
Global Solar Energy Market size was valued at USD 180.78 billion in 2022 and is poised to grow from USD 193.62 billion in 2023 to USD 335.16 billion by 2031, at a CAGR of 7.1% during the forecast period (2024-2031).
The solar energy market has witnessed remarkable growth and transformation in recent years, becoming a pivotal player in the global energy landscape. This market encompasses the production, distribution, and utilization of solar power generated through photovoltaic (PV) panels and solar thermal systems. Its growth is driven by several factors. Firstly, increasing environmental concerns and the urgency to combat climate change have pushed governments and businesses to adopt cleaner and more sustainable energy sources. Solar energy, being abundant and renewable, aligns perfectly with these goals. Additionally, advancements in solar technology, such as improved efficiency and declining production costs, have made solar power more accessible and cost-effective.
Government incentives and policies, including tax credits and subsidies, further bolster the solar energy market. These measures encourage adoption by both residential and commercial consumers. Moreover, grid integration and energy storage solutions have improved the reliability and consistency of solar power, addressing the intermittency challenge. As the world continues its shift towards a low-carbon future, the solar energy market is expected to thrive. Incentivized by a convergence of environmental, economic, and technological factors, it is poised for sustained growth, offering a cleaner and more sustainable energy source for a planet in need of greener solutions.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Solar Photovoltaic
Fastest Growth
Solar Photovoltaic
Growth Rate
7.1% CAGR
Global Solar Energy Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Solar Energy Market Segmental Analysis
Global Solar Energy Market is segmented based on technology, application and region. Based on technology, the market is segmented into Photovoltaic System, Concentrated Solar Power System (Parabolic Through, Solar Power Tower, Dish Stirling, Fresnel Reflectors). Based on application, the market is segmented into residential, commercial, and industrial. Based on solar module, the market is segmented into Cadmium Telluride, and Amorphous Silicon Cells. Based on end use, the market is segmented into Lighting, Heating, and Charging. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Solar Energy Market Analysis by Technology
Due to increased investments in solar photovoltaic projects brought on by rising worldwide power consumption, the global solar PV segment dominated in 2022. Calculators, wristwatches, and other small electronic equipment can be powered by little solar panels (small PV) in situations when low power is needed. Solar PV systems have a long lifespan, require little maintenance, and have no fuel costs. According to IRENA, deep electrification and expedited solar PV development might account for 21% of the CO2 emission reductions by 2050. Furthermore, according to IRENA, by 2050, the world's capacity must be 18 times higher than it is now, or more than 8,000 gigawatts.
The parabolic trough, power tower, and linear Fresnel are the three components that make up the CSP segment. For use when there aren't enough renewable energy sources, CSP systems store energy using Thermal Energy Storage (TES) technologies. They are unable to store thermal energy since PV systems use direct sunlight rather than heat. CSP systems are superior for energy storage because of this. As a result, this element is anticipated to fuel the CSP segment's expansion.
Solar Energy Market Analysis by Application
More than 66.30% of total income was generated by the utility segment, which led the sector. Throughout the forecast period, the segment will continue to be in the lead. Many countries are investing in solar energy for utility-scale electricity production in an effort to move away from conventional energy generation. It is projected that this will lead to an increase in product demand. Utility-scale solar energy systems are more affordable because larger installations can achieve economies of scale. The sector is anticipated to grow gradually across all of its categories as consumer demand for the product increases. The industrial end-use category is predicted to experience the fastest CAGR between 2022 and 2030 due to the expanding industrial activities in APAC and MEA.
Due to the increased accessibility of solar energy systems for the residential sector, the residential end-use sector is anticipated to expand significantly throughout the projection period. Due to investments in technologies that improve production efficiency, the cost of these systems has been decreasing over the past ten years. The introduction of incentive programmes and policies by the governments of various nations has also increased product adoption.
Solar Energy Market Analysis on the basis of solar module
CdTe has rank high efficiency in converting sun light into electricity that is why CdTE solar modules have been used frequently. This means that for a given level of energy production there is potential for using less CdTe panels thus cutting down the costs of installation and space. Even more, it is worth admitting that CdTe panels have rather high efficiency in terms of high temperatures, which could be beneficial for the zones with intensive solar radiation. This type of solar cells is believed to be cost-effective compared to crystalline silicon solar cells due to their lower production costs, which potentially suggests that if large-scale solar plants are created, thin-film solar cells can be a good solution in terms of costs. Indeed, the major issue of CdTe is related to the content of cadmium which is included in its composition and is regarded as a toxic material. Recent developments however show that such environmental threats are being addressed through proper recycling as well as manufacturing techniques.
On the other hand, Amorphous Silicon Cells have high performance during low light conditions probably when the sun is not directly visible or during intervals of time when the sun is obscured by clouds. This can be useful in systems installed on roof tops in buildings especially in urban areas where direct sun light is not easily accessed. Furthermore, amorphous silicon solar cells are also relatively cheaper than that of crystalline silicon or CdTe types since it is a good option for any person or company that may be seeking to install solar cells but may not be financially capable of going for the other options. They also possess some advantages such as the flexibility and adjustability of installation as compared to the strict and sturdy moulded panels which can be installed on curved structures or unconventional rooftops, or any other structure that would allow for optimisation on the available space available for solar panel installations. However, amorphous silicon device has lower conversion efficiency than CdTe or crystalline silicon technologies.
Solar Energy Market Analysis by end use
Solar Lighting solutions helps a lot in areas where there is no power supply due to the inaccessibility of the electricity grid. These are incorporated in the provision of light using street lamps, lanterns and the like by utilizing solar power. Moreover, solar light can also be used as a renewable source of energy when it comes to lighting, as it is cheaper as compared to the other sources of light. The long-term expenditure is lower than that of conventional sources of energy because, once the intensity of sunlight has been installed, sunlight provides free energy ‘naturally’ for an extended period of time.
There are two main types of Solar Thermal Systems – for hot water and heating. These systems are used to provide water for domestic water heating or space heating; this has helped to reduce the usage of conventional practice and therefore cut down the costs incurred therefrom. In case of utilizing solar thermal systems, it is found to be appropriate for all types of buildings depending on its use from residential to commercial and even industrial use may include heating the water for pools.
Eventually, the Solar Charging of the Solar Energy Market section highlights the demand for the Solar Charging. Solar chargers, lightweight, are designed to be used anywhere, and whenever, to charge items such as mobile phones, iPads and other portable electronics. This is perfect for outdoor and adventure use, on a trip or simply in a place where electricity from the power grid is a no-no. On a larger scale, battery charging system can be used to store any excess in the solar energy captured during the day. This stored energy may then be used in optimizing the supply of power in homes or businesses during high demand or during the night.
Global Solar Energy Market Size By Technology (%)
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Solar Energy Market Regional Insights
In 2022, Asia Pacific had the biggest revenue share (61.49%), dominating the world market. By revenue, East Asia will dominate the Asia Pacific market in 2022. High product demand has developed in the area as a result of the desire to lessen dependency on conventional power sources and the existence of established competitors who are consistently improving their offers.
The market for solar energy in Europe had revenues of $117,810.0 million in 2022 and was expected to reach $399,827.6 million by 2028. This is primarily due to the quicker adoption of renewable energy sources like solar energy for electricity generation. For instance, according to a July 23 article in Forbes, a well-known American business magazine, Europe produced the majority of its electricity from renewable resources rather than relying on fossil fuels. In all member states of the European Union (EU), 40% of the electricity was produced using renewable resources like wind, solar, bioenergy, and hydropower. Additionally, the European Green Deal aims to get the EU ready for carbon neutrality by 2050.
Global Solar Energy Market Size By Geography
- Largest
- Fastest
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Solar Energy Market Dynamics
Solar Energy Market Drivers
Corporate Sustainability Goals to Bolster Sales of Solar Energy
- Many corporations are setting ambitious sustainability goals, including a shift towards renewable energy sources such as solar power. This is driven by a desire to reduce their carbon footprint, improve their environmental performance, and enhance their brand reputation.
- Solar power can provide a reliable source of energy, particularly in remote areas or during natural disasters where traditional power infrastructure may not be available. This has led to an increasing adoption of solar power in developing countries and in off-grid applications.
Solar Energy Market Restraints
Intermittency and Variability to Hinder Marktet
- The econ Solar power generation is dependent on weather conditions, and the output can be intermittent and variable. This can make it difficult to integrate into existing power grids and may require additional investment in energy storage and grid management systems.
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Solar Energy Market Competitive Landscape
The industry is extremely competitive due to players' involvement in R&D and regular product releases of more efficient products. A single component is the focus of multiple enterprises, which severely fragments the market. For instance, companies like Jinko Solar and LONGi Solar devote almost all of their resources to the production of solar panels. Instead of producing other system components, these companies focus on producing more efficient solar panels.
Solar Energy Market Top Player’s Company Profiles
- JinkoSolar (China)
- Canadian Solar (Canada)
- Trina Solar (China)
- SunPower Corporation (USA)
- First Solar (USA)
- LONGi Solar (China)
- JA Solar (China)
- Yingli Solar (China)
- Hanwha Q Cells (South Korea)
- Risen Energy (China)
- Vikram Solar (India)
- LG Solar (South Korea)
- SolarEdge Technologies (Israel)
- SMA Solar Technology (Germany)
- Enphase Energy (USA)
- Huawei Technologies Co. Ltd. (China)
- Sharp Solar (Japan)
- Kyocera Solar (Japan)
- Mitsubishi Electric Corporation (Japan)
- GCL-Poly Energy Holdings Limited (China)
Solar Energy Market Recent Developments
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In april 2024, Research suggests the number of countries installing at least 1 GW of solar annually ("GW-scale markets") is expected to reach 39 by 2024, signifying a significant expansion of the global solar market footprint,
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In late 2023, The global solar energy market witnessed a boom year, with estimates suggesting record-breaking installations reaching around 341 GW of new solar capacity added to the grid (a 43% increase compared to 2022
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In early 2023, Governments worldwide continued to implement policies and incentives favoring renewable energy sources like solar. This supportive environment is expected to further accelerate solar adoption.
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In March 2022, Solaria is set to release the PowerXT 430R-PL, a high-efficiency solar panel boasting 430 watts of power. This panel is designed to integrate seamlessly with upcoming Module-Level Power Electronics (MLPE) technology.
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In January 2022, Recurrent Energy, LLC, a subsidiary of Canadian Solar, publicly announced its execution of a purchase and sale agreement with Appalachian Power regarding the Recurrent Firefly Energy solar project in Pittsylvania County, Virginia.
Solar Energy Key Market Trends
- One key market trend in the global solar energy market is the rapid growth of utility-scale solar projects. As technology advancements continue to drive down the cost of solar panels and improve their efficiency, utility-scale installations have become increasingly economically viable. These large-scale projects provide a cost-effective means of generating significant amounts of clean energy, appealing to governments, energy companies, and investors alike. This trend reflects the global shift towards renewable energy sources, with utility-scale solar installations playing a pivotal role in meeting sustainability targets and reducing carbon emissions, making solar energy a central player in the transition to a greener energy future.
Solar Energy Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global solar energy market has experienced significant growth in recent years due to various factors such as increasing government initiatives for renewable energy, declining solar panel prices, and rising demand for sustainable energy sources. In the upcoming years, the market is anticipated to expand steadily at a rate. Governments and organizations around the world are looking to shift away from fossil fuels and towards renewable energy sources such as solar power. This has led to the implementation of policies and incentives that encourage the adoption of solar energy systems. The solar energy market still faces some challenges, such as high initial costs for installation and a lack of adequate infrastructure in some areas. Additionally, the market is subject to fluctuations in government policies and incentives, which can impact the demand for solar energy systems. The solar energy market is expected to continue to grow in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 180.78 billion |
| Market size value in 2031 | USD 335.16 billion |
| Growth Rate | 7.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Solar Energy Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Solar Energy Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
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.
Analyst Support
Customization Options
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.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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