Building Integrated Photovoltaics Market

Market Overview

The global building integrated photovoltaics market size was valued at USD 24.0 billion in 2023 and is projected to reach USD 135.4 billion by 2032, registering a CAGR of 21.2% during the forecast period (2024-2032). Global Building Integrated Photovoltaic Renewable Energy Projects are driving market share growth.

Building Integrated Photovoltaics (BIPV) is a technique that smoothly incorporates solar energy-generating materials into building structures like roofs, facades, and windows. This integration offers renewable energy and improves the aesthetics and functioning of buildings. The increased demand for building integrated photovoltaic materials can be ascribed to the greater integration of solar energy solutions into commercial infrastructures for architectural optimization and energy conservation. The growing environmental worries about the depletion of nonrenewable energy resources such as oil and coal drive demand for solar power generation. Further, rapid modernization in the construction and building sectors, combined with a greater emphasis on clean energy, has increased demand for green or zero-carbon structures.

Furthermore, increased consumer awareness of the environmental benefits of BIPV has resulted in increased home adoption of solar energy harnessing systems. Aside from that, the installation of favorable government laws, backed by several programs stressing the importance of decreasing carbon footprints, has fueled global demand for building-integrated solar systems.

However, the high initial cost of investments will likely stifle growth in the building-integrated photovoltaics market throughout the forecast period. Furthermore, heat generation from BIPV modules will likely drive growth in the building-integrated photovoltaics market over the forecast period.

Highlights

• Crystalline Silicon dominates the market by technology.
• Roof generates the highest revenue share by application.
• Industrial dominates the market by end-use.

Market Dynamics

Global Building Integrated Photovoltaics Market Drivers:

Increasing Demand for Sustainable and Energy-Efficient Buildings

The increased awareness of the need to combat climate change and reduce energy use drives demand for sustainable and energy-efficient buildings. BIPV systems play an essential role in this context since they incorporate photovoltaic technology directly into building materials, allowing buildings to generate renewable energy on-site. This integration reduces greenhouse gas emissions, lowers energy costs, and contributes to the overall sustainability of the built environment.

In addition, the construction and use of buildings are the largest source of greenhouse gas emissions, and the construction industry plays a critical role in lowering them. However, the sector has historically concentrated on reducing operating emissions, and forecasts indicate that these emissions will fall from 75% to 50% of overall sector emissions over the next few decades. This vast impact has prompted a call for more sustainable building practices.

Furthermore, green building certifications such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) are becoming increasingly popular around the globe. These certificates encourage the use of renewable energy technology, such as BIPV. According to the US Green Building Council (USGBC), LEED-certified buildings use 25% less energy and 11% less water than non-certified ones. LEED-certified buildings also emit 34% less CO2 and save over 80 million tons of garbage from landfills. As of 2023, there were about 105,000 LEED-certified buildings and 205,000 LEED-accredited professionals in 185 countries.

As a result, the growing demand for sustainable and energy-efficient buildings is a crucial driver of the BIPV industry. This demand is driven by the need to minimize carbon emissions, meet green building regulations, take advantage of government subsidies, and save money on energy over time.

Global Building Integrated Photovoltaics Market Restraints:

High Initial Cost

The initial costs of Building Integrated Photovoltaic (BIPV) systems are a substantial barrier to their broad implementation. These expenses include the specialized materials, complex installation techniques, and probable structural changes needed to integrate solar cells into building features, including roofs, facades, and windows. These upfront costs can be significantly greater than those for conventional building materials and non-integrated photovoltaic systems.

Additionally, a BIPV system for a commercial building can cost up to USD 580,950.75, with an average installation cost of USD 244.20 per square meter. In Europe, the average price for a BIPV glass module ranges between 120 and 250€/m2 but can be as low as 95€/m2 for a conventional glass-glass module. Customized solar exterior designs can cost up to 380€/m2. Building Integrated Photovoltaics (BIPV) costs vary depending on the product. However, they typically range between €200 and €625 per square meter. In India, BIPV solar power systems can cost ?41,000 per kilowatt, ?4,20,000 per unit, or ?60 per watt.

Furthermore, the overall cost of an average roof was expected to be USD 20,000, whereas the cost of installing a BIPV roof was USD 28,000. The energy savings and anticipated rise in property value justified the extra USD 8,000 upfront cost. Although the initial expenditures are expensive, BIPV systems can result in significant long-term savings. For example, the Lawrence Berkeley National Laboratory discovered that incorporating BIPV systems might cut a building's energy use by up to 30%, resulting in significant cost savings during the system's lifetime.

Global Building Integrated Photovoltaics Market Opportunity:

Rapid Urbanization and Smart City Initiatives

Rapid urbanization is driving up the demand for energy-efficient and sustainable infrastructure. Urban areas continually develop, needing novel approaches to managing energy usage and environmental effects. Building Integrated Photovoltaics (BIPV) systems provide a dual purpose of providing building materials while also generating renewable energy, which aligns with the goals of smart city programs. These systems can be integrated into various building components, including facades, roofs, and windows, increasing urban complexes' energy self-sufficiency and sustainability.

According to the United Nations, urban populations will increase from 55% in 2018 to 68% by 2050. This urban expansion necessitates using sustainable building solutions to meet increased energy consumption while reducing environmental effects. Rapid urbanization requires the development of innovative technology capable of making cities more energy-efficient and sustainable. BIPV systems, which generate renewable energy on-site, help to minimize reliance on nonrenewable energy sources and lower greenhouse gas emissions.

Furthermore, smart cities seek to employ technology and data to improve their residents' quality of life, increase service efficiency, and reduce environmental impacts. These initiatives rely on BIPV systems to provide renewable energy while enhancing urban buildings' aesthetics and functionality. Singapore's Housing & Development Board (HDB) is installing solar panels, including BIPV systems, on the rooftops of public housing blocks as part of the SolarNova program. This plan seeks to create 350 megawatts of solar power by 2030, considerably increasing the city's renewable energy potential.

Regional Analysis

Europe Dominates the Global Market

The global building integrated photovoltaics market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global building integrated photovoltaics market shareholder and is estimated to grow at a CAGR of 21.1% over the forecast period. A favorable prognosis for renewable energy, combined with consumer knowledge of the same in European countries, is expected to drive the BIPV market throughout the forecast period. Germany and Italy are rapidly emphasizing the use of solar energy, which is projected to result in increased use of BIPV, promoting industry growth over the projection period.

Additionally, Europe is in the vanguard of the fight against climate change, having agreed to considerable greenhouse gas (GHG) reductions under the Paris Agreement (2015). This dedication has resulted in a major push for renewable energy sources like BIPV. Furthermore, some significant competitors in the BIPV market are headquartered in Europe, driving technical innovation in this industry. The presence of these enterprises, combined with excellent R&D skills, is propelling the regional BIPV industry.

Asia-Pacific is anticipated to exhibit a CAGR of 21.6% over the forecast period. The Asia-Pacific area has successfully and cost-effectively implemented solar PV technologies in various businesses. The region's technology has matured, and prices are continuing to fall. Countries such as China, India, Japan, and ASEAN have demonstrated their expertise in solar power generation by developing new creative technology for BIPV, rooftops, and a variety of other uses.

Furthermore, China's production size for each technology in the PV industry accounts for more than half of the global market and is projected to remain at the top shortly. The product's demand is expected to stay high in economies such as China and Japan as governments increase their efforts to implement these solutions. Consumers in the region strongly prefer renewable energy sources to lessen the environmental impact of nonrenewable energy sources.

North America holds a significant market share. The demand for building-integrated photovoltaics in North America is expected to increase as more people choose aesthetically pleasing solar energy-harnessing systems. Furthermore, the region's high disposable incomes, particularly in the United States and Canada, and developments in BIPV solar panel production methods are expected to drive up demand for the product over the next seven years.

Latin America's increasing building and construction sector is expected to drive the market over the forecast period. Furthermore, the demand for BIPV systems in the region is expected to rise because of their use in the industrial and commercial sectors. Moreover, the CSA market, particularly in Brazil and Argentina, has great potential due to the increased installation of solar energy-harvesting devices.

Segmental Analysis

The global building-integrated photovoltaics market is segmented based on technology, application, and end-use.

The market is further segmented by technology into Crystalline Silicon and thin Film.

The crystalline silicon segment dominated the market, accounting for 70% of worldwide revenue in 2023. Crystalline silicon cells can be integrated into building roofs utilizing smart mounting solutions that replace roof portions while maintaining structural integrity. This form of integration is cost-effective and efficient. Another alternative for integration is to replace roof tiles with crystalline silicon cells. Furthermore, the market sees the adoption of anti-reflective coatings, which aid in capturing solar energy and give higher efficiency. Crystalline Silicon has the highest energy conversion efficiency; commercial modules typically convert 13%-21% of incident sunlight into electricity.

Thin film accounted for 25% of the global market in 2023. The thin film BIPV market is predicted to rise steadily over the forecast period, owing to significant technical advancements and the introduction of sophisticated technologies. Thin film BIPVs are widely employed in buildings with substantial weight limits. In such circumstances, the building envelope cannot bear the weight of crystalline silicon integration, resulting in a significant demand for thin film-integrated installations. Because of its high flexibility, thin film is useful for curved surfaces.

The market can be bifurcated by application into Roof, Glass, Wall, andFaçade.

Roof installation dominated the market, accounting for 60% of total revenue in 2023. The roof sector will retain its lead over the projection period. Photovoltaics integrated onto building roofs are known to be efficient due to the increased incidence of light on the roof surface. BIPV systems integrated onto roofs are one of the most prevalent uses. These systems replace roofing materials with photovoltaic elements, transforming rooftops into power-generating surfaces. BIPV roofing solutions include solar shingles, tiles, and panels that mix with traditional roofing materials while producing energy.

Moreover, the segment held the largest market share in 2023, owing to the increased robustness and visual appeal of integrated roofs and skylights. The demand for integrated roofs is predicted to rise over the forecast period due to the development of better products.

The higher efficiency of solar walls due to the substantial incidence of sunlight is predicted to stimulate demand for BIPV in walls over the forecast period. The introduction of sophisticated low-weight solar panels is projected to boost demand for building integrated walls. BIPV walls involve the integration of photovoltaic panels into vertical building surfaces. These systems can be used in new buildings or retrofitted into existing structures, giving more surface area for solar energy generation than roofs and windows.

Additionally, developing advanced technologies, such as the combination of amorphous silicon clear glass solar panels with an opaque glazing unit, is expected to increase demand for BIPV in these applications. Double- and triple-glazed insulating glass use in BIPV walls is also predicted to drive up product demand throughout the projection period.

Based on end-use, the market is fragmented into Industrial, Commercial, and residential.

The industrial segment dominated the market in 2023, accounting for 40% of the market share. The industrial sector includes factories, warehouses, industrial parks, and other large-scale industrial structures. BIPV solutions in the industrial industry aim to improve energy efficiency, lower operational costs, and demonstrate corporate sustainability activities. These installations frequently include big rooftop solar arrays, BIPV facades on manufacturing plants, and integrated solar carports that supply renewable energy for industrial processes.

Furthermore, building-integrated photovoltaics are predicted to become increasingly popular in industrial applications to reduce dependency on nonrenewable energy sources. The segment is expected to grow as commercial building in Europe continues. Furthermore, enterprises in established European economies are increasingly turning to integrated photovoltaics to improve building aesthetics.

The commercial sector includes office buildings, retail spaces, shopping malls, hotels, and other commercial structures. BIPV solutions in the commercial industry aim to lower operating costs, increase property value, and demonstrate environmental responsibility. BIPV systems in commercial buildings frequently include solar panels integrated into rooftops, facades, and canopies, which provide renewable energy while complimenting the building's visual aesthetic. The increased number of retrofit projects employing building-integrated photovoltaics is expected to drive demand for these installations in commercial facilities. The high focus on the aesthetic attractiveness of solar energy-harvesting systems, particularly in commercial buildings, is projected to drive product demand in this area.

Recent Developments

• April 2024- AGC received Its First Environmental Product Declaration for Architectural Glass Products in Japan.
• April 2024- A groundbreaking rooftop solar installation in Dülmen, Germany, was completed successfully, utilizing Heliatek's revolutionary HeliaSol solar films. The project, a partnership between Heliatek, Laukien, and TEPE Systemhallen, represents a watershed moment in sustainable energy solutions, demonstrating HeliaSol's versatility - whether built for retrofitting buildings or as an inherent part of building materials, everything is possible.