Containerized Solar Generators Market Size, Share & Trends Analysis Report By Product Type (Off Grid/Hybrid, Grid Connected, Others), By Storage Capacity (10 – 40 KWH, 40 – 80 KWH, 80 - 150 KWH, More than 150 KWH), By Applications (Household Appliances, Manufacturing, Energy, Automotive) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global containerized solar generators market was valued at USD 480.08 million in 2023. It is estimated to reach USD 925.06 million by 2032, growing at a CAGR of 7.56% during the forecast period (2024–2032). In recent years, there has been a rapid rise in the pollution and emission levels of greenhouse gases primarily due to the combustion of fossil fuels, which has increased environmental concerns and led to a rise in the adoption of sustainable energy alternatives like solar power, thereby augmenting the global market growth. Moreover, containerized solar generators are a cost-effective alternative, further enhancing their adoption. 

Containerized solar generators are self-contained solar power systems housed within a shipping container. These generators typically include solar panels, inverters, batteries, and other necessary components for generating and storing electricity from solar energy. The containerized design allows for easy transport, installation, and deployment in various locations, making them suitable for remote or off-grid areas, temporary power needs, disaster relief efforts, and construction sites. They offer a renewable and sustainable alternative to traditional diesel-powered generators, reducing emissions and reliance on fossil fuels. Containerized solar generators can be scaled up or down based on the energy needs of the specific application.

Highlights

• Off-grid/ hybrid dominates the product type segment
• More than 150 KWH dominates the storage capacity segment
• Asia-Pacific is estimated to be the largest shareholder in the market

Market Dynamics

Global Containerized Solar Generators Market Drivers

Environmental Concerns

Environmental concerns are a significant driver of the containerized solar generators market as the world seeks to mitigate climate change and reduce pollution. Conventional energy sources like fossil fuels emit greenhouse gases and other pollutants, contributing to air and water pollution and global warming. In contrast, solar power generated by containerized solar generators produces no greenhouse gas emissions during operation, making it a clean and sustainable alternative.

According to the NOAA's Annual Greenhouse Gas Index (AGGI), the warming effect of persistent greenhouse gases on our climate, or radiative forcing, increased by 49% between 1990 and 2022. Carbon dioxide (CO2) contributed to approximately 78% of this increase. Carbon dioxide is the major greenhouse gas in the atmosphere, responsible for around 64% of the climate's warming effect, primarily due to the combustion of fossil fuels. Thus, by choosing containerized solar generators, businesses, governments, and individuals can minimize their environmental footprint, promote sustainable energy practices, and contribute to a healthier planet for current and future generations.

Cost-Effectiveness

Cost-effectiveness is a key driver of the containerized solar generators market due to several factors. Firstly, advancements in solar technology have led to a significant reduction in the cost of solar panels and related components over the years. For instance, as per the International Renewable Energy Agency (IRENA), the total average installed costs in the residential rooftop PV sector decreased by 85% between 2010 and 2020. Further, the declining costs of energy storage systems, such as batteries, have improved containerized solar generators' overall efficiency and reliability, making them more economically viable.

Moreover, the operational costs of solar power are lower than those of traditional fossil fuel-based generators, as solar energy is abundant and free once the initial infrastructure is in place. Containerized solar generators offer long-term savings by reducing reliance on expensive diesel fuel and minimizing maintenance and fuel costs. Overall, the cost-effectiveness of containerized solar generators makes them an attractive investment for businesses, governments, and individuals looking to reduce energy expenses and achieve long-term sustainability goals. This is projected to stimulate the expansion of the global market.

Global Containerized Solar Generators Market Restraint

High Initial Costs

The high initial costs associated with containerized solar generators act as a significant restraint on market growth. These systems require substantial upfront investments to purchase, install, and integrate solar panels, inverters, battery storage, and other components. The capital-intensive nature of containerized solar projects can deter potential customers, particularly in regions where traditional fossil fuel-based power sources are cheaper or financing options are limited.

Moreover, the long payback periods associated with solar investments can further discourage adoption, as some customers may prioritize short-term cost savings over long-term sustainability benefits. To overcome this barrier, stakeholders must work to drive down costs through technological advancements, economies of scale, and supportive policies and incentives that make solar energy more affordable and available to a broader range of customers.

Global Containerized Solar Generators Market Opportunities

Launch of New Containerized Solar Generators

There has been a rise in the introduction of new and innovative containerized solar generators by market players in recent years. For instance, in June 2022, Enerwhere Sustainable Energy DMCC, a Dubai-based solar developer, created a solar-battery container solution for off-grid use in distant places or construction sites. The company stated that the portable unit can be relocated and used again every two weeks. It is only about two hours to set up.

Furthermore, in January 2021, Desert Technologies (DT), a Saudi solar energy company, introduced the Sahara containerized solar generator (CSG) in partnership with Green Corp Konnection (GCK) to provide power for a section of the bivouac in NEOM during the Dakar Rally. The installation utilized one 20-foot container and two 40-foot standard containers to produce 62 kW of energy for partially powering the assembly area for rally drivers. Such factors create opportunities for market growth.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global containerized solar generators market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global containerized solar generators market shareholder and is expected to expand substantially during the forecast period. The region offers significant prospects for the containerized solar generators market because of rapid urbanization, industrialization, and increasing energy demand. Urban land areas are projected to quadruple from 2015 to 2050, with the majority predicted to be in growing Asia-Pacific regions. Asia-Pacific, home to the most populated and rapidly expanding economies globally, is the largest emitter of greenhouse gases, accounting for approximately half of the world's carbon dioxide emissions. China, India, and other major emitters must increase their efforts to decrease emissions to achieve the Paris Agreement's target of limiting global warming to 1.5–2 degrees Celsius above pre-industrial levels. This has increased the use of greener energy sources like solar power, increasing the demand for containerized solar generators in Asia-Pacific.

Furthermore, countries like China, India, Japan, and Australia invest significantly in solar energy infrastructure to achieve sustainability objectives and tackle energy security issues. China's finance ministry established the 2022 renewable power subsidy at 3.87 billion yuan ($607.26 million), as reported by state television on Tuesday. The ministry would assign 2.28 billion yuan to solar power stations. Government programs like feed-in tariffs, renewable energy auctions, and subsidies are promoting the use of containerized solar generators in the area. The government has extended the PM-KUSUM initiative until March 2026 to enhance solar power installation in rural areas. Therefore, all these factors contribute to the growth of the containerized solar generators market in the region.

The North American market is growing due to the transition from non-renewable to renewable energy sources to minimize carbon emissions and the adoption of solar energy to decrease company expenses. The usage of solar generators is increasing significantly because of a substantial reduction in the cost of solar energy. As per the United States National Renewable Energy Laboratory (NREL), the price of residential, commercial rooftop, and utility-scale PV systems in the country decreased by 64%, 69%, and 82% from 2010 to 2020.

The decrease in solar PV system pricing is mainly due to reduced solar panel prices, increased competition in the maturing market, and technological advancements. Due to declining prices, more residential and business consumers choose rooftop solar PV systems to reduce energy expenses and return on investment. This scenario anticipates significant growth in rooftop solar PV installations as more individuals, organizations, and governments embrace solar PV technology to utilize renewable energy. This increases the need for portable, flexible solar solutions such as containerized solar generators.

Segmental Analysis

The global containerized solar generators market is segmented by product type, storage capacity, and application.

Based on product type, the global containerized solar generators market is bifurcated into off-grid/ hybrid, grid-connected, and others. 

The off-grid/ hybrid segment dominates the global market. Off-grid solar generators are self-contained systems that generate electricity from solar and store it in batteries for utilization when needed. The hybrid power plant generates electricity using two or more energy sources, such as wind and solar power systems. These systems are created to operate independently of the grid (off-grid) or in conjunction with it (hybrid), providing a reliable power source in remote regions or areas with unreliable grid infrastructure.

Off-grid/ hybrid solar power systems are expected to gain huge demand during the forecast period due to their significance as complementary power generators, increased capacity utilization, and efficient land usage. Moreover, increasing land occupancy for residents urges the use of a hybrid solar system, which reduces dependency on single sources and increases the productivity of a solar plant.

Based on storage capacity, the global containerized solar generators market is segmented into 10 – 40 KWH, 40 – 80 KWH, 80 - 150 KWH, and more than 150 KWH. 

The more than 150 KWH segment owns the highest market share. More than 150 KWH storage capacity containerized solar generators are majorly used for government solar projects, commercial, industrial projects, etc. Increasing government projects are expected to propel the containerized solar generators market growth during the forecast period 2019-2026.

For instance, China was the first country to pass 100 GW of cumulative installed PV capacity in 2017, which was increased to 174 GW of cumulative installed solar capacity by 2018. Moreover, according to the US-based Institute for Energy Economics and Financial Analysis (IEEFA), China's large international clean energy projects and takeovers accounted for USD 32 billion in 2016 and increased by USD 44 billion in 2017.

Based on application, the global containerized solar generators market is divided into household appliances, manufacturing, energy, automotive, and others.

Containerized solar generators offer a versatile and flexible solution for meeting energy needs in various contexts within the energy sector. The energy sector is a major contributor to the global containerized solar generators market growth owing to increasing attention to producing electricity by solar energy systems rather than conventional systems, which are attributed to controlling CO2 emissions and environmental threats. For instance, as per a report published by the International Renewable Energy Agency, the renewable energy sector's share was 25 % in 2017. It is projected to capture a share of 85% by 2050, mostly through the growth of the solar and wind power sectors.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments

• January 2024- Reliance Industries Ltd announced the sale of REC Solar Norway AS to Oslo-listed Elkem ASA for approximately USD 22 million. REC Norway, a subsidiary of REC Solar Holdings, specializes in producing kerf-based polysilicon throughout Scandinavia.
• December 2023- REC Solar Holdings AS (REC Group), a well-known global solar energy brand, announced its involvement in the United Nations Global Compact program as part of its dedication to sustainable business practices.