The global solar photovoltaic (PV) market size was valued at USD 308.60 Million in 2023 and is projected to reach USD 2401.99 Million by 2032, growing at a CAGR of 25.6% during the forecast period (2024-2032).
Factors such as favorable government policies and upcoming projects and rising adoption of alternate clean power sources significantly drives the solar photovoltaic (PV) market demand by 2030.
The solar photovoltaic (PV) method is a straightforward, no-moving-parts approach to converting sunlight into power. Light from the sun is used to create an electric current by removing electrons from their silicon host atoms. Electrons absorb the photons, or packets of light energy, which give them the propulsion to leave their high atomic orbit. The favorable government programs and incentives, such as tax breaks and tariffs, will improve business prospects and support ongoing technological developments and a growing consumer and regulatory preference for clean energy sources. The solar photovoltaic (PV) systems market will grow due to the lower cost of solar energy and increased financial support.
Governments worldwide have introduced numerous regulations for developing renewable energy in response to the rising carbon emission. The policies have significantly accelerated the growth of the solar energy business on a global scale. The solar PV industry in China contributes significantly to the world market. Changes to its policies heavily impact the worldwide solar PV market. China saw a significant decline in investment due to its unclear FiT policy and lower subsidies for solar projects. However, the market is anticipated to regain pace for the construction of solar projects throughout the projected period with the introduction of the amended FiT regulation. India benefits from several government programs encouraging the nation's utility- and residential-based solar PV projects, much like any other significant solar energy market. To install 40 GW of rooftop solar projects by 2022, the Ministry of New and Renewable Energy's Grid Connected Solar Rooftop Programme was established.
There is a growing need for a prime power source on a global scale due to the escalating use of electrical equipment. Due to the high rate of electrical gadget use, there can be a noticeable increase in demand for electricity at certain times of the day. In order to keep up with the rising electricity demand, utilities must upgrade their power supply. The infrastructure for power generation must be able to ramp up electricity production quickly in such an event. In contrast to renewable energy sources, gas-fired power plants can be synchronized with the grid in just a few minutes, making them peak-load power plants. Gas power plants have become the utilities' favored option above all other forms of power generation, including solar power. These factors are anticipated to hinder solar photovoltaic (PV) market growth during the forecast period. Additionally, the expansion of the wind power industry globally is significantly accelerated by the rising investments in wind power projects.
Several environmental restrictions worldwide are pressuring power-producing companies to switch to greener and more environmentally friendly energy sources. Major countries worldwide are putting a lot of effort into expanding renewable energy power generation to lessen their dependence on fossil fuel-based power generation. Solar energy is one of the primary renewable energy sources that can address many global challenges. As a result, rising investments in solar energy resources are producing attractive chances to expand the global solar photovoltaic (PV) market during the forecast period.
| Study Period | 2020-2032 | CAGR | 25.% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 308.60 Million |
| Forecast Year | 2032 | Forecast Year Market Size | USD 2401.99 Million |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
North America is the most significant shareholder in the global solar photovoltaic (PV) market and is expected to grow significantly during the forecast period. Solar energy is now more widely available in the United States and generates 43% of the nation's total electricity, according to the US Energy Information Agency (EIA). In some states, such as California, Hawaii, and Minnesota, solar electricity is already competitively priced with other forms of energy. The trend is projected to persist over the projection period.
Additionally, battery energy storage is being progressively used with solar utility installations to boost reliability and availability when solar radiation is unavailable. The latitude of Canada causes a relatively low level of sun irradiation (solar power per unit area). Together with cloud cover, this results in a capacity factor of 6%, which is significantly lower than the 15% capacity factor in the US. Due to their even greater latitude, the country's northern regions receive less direct sunshine and have a relatively lower solar potential. By 2040, 1.2% of Canada's total energy consumption may come from solar energy, according to the National Energy Board's forecast. The Canadian government also adopted two crucial strategic stances to aid in the development of the solar industry in the nation. The first aims to hasten the adoption of solar energy in Canada. At the same time, the second seeks to maximize the potential of solar energy by supporting both on-grid and off-grid installations and, as a result, propelling the solar PV industry in the nation.
Asia-Pacific is anticipated to grow steadily during the forecast period.Most solar PV installations are located in China's eastern and southern regions. The economies of these two areas are the most prosperous, and solar energy is most in demand there. The largest PV capacity was also added in the province of Guangdong, followed by Inner Mongolia, Zhejiang, and Shanxi. Additionally, China's government has launched several measures to encourage the use of solar energy there. The local governments also have policies on subsidies for distributed solar PV projects in addition to the federal solar subsidy, which is USD 0.049 per kilowatt-hour (kWh).
Power stations that burn coal and lignite make up the majority of the energy production in India. Hydropower facilities, both renewable and non-renewable, contribute significantly to electric generation capacity and output. By 2022, the government wants to generate 175 GW of renewable energy. Due to this lofty objective, the growth of the power generation sector is anticipated to be dominated by the renewable energy sector. India's government set an ambitious goal of achieving 175 GW of renewable energy capacity by 2022 as part of its commitments under the Paris Agreement. To improve the air quality in its cities and minimize the reliance on coal in the fast-expanding economy, the government declared in July 2019 that it intended to increase the renewable energy target to 500 GW by 2030.
The coalition agreement in Germany has a short-term objective of increasing the proportion of renewable energies (RE) in gross power consumption to 65% by 2030. An average yearly PV addition of at least 5–10 GW is required, depending on how electricity consumption evolves and wind generation develops. By 2030, the federal government's proposed climate protection policy calls for installing 98 GW solar capacity. This would necessitate adding 4.5 GW of PV systems annually. The feed-in tariff, depending on which energy suppliers pay if a building or organization generates its electricity using a renewable source like wind or solar, is regulated in the United Kingdom. This significantly increased the country's pace of solar panel installation. Although energy suppliers are free to choose the price for exported power, the government modified the feed-in tariff (FIT) with the Smart Export Guarantee (SEG) plan, which requires consumers to pay for every unit they are going to pump into the grid.
Brazil is a recently industrialized nation with a population and rapid economic development. The nation's primary energy consumption has increased significantly in recent years due to its expanding population and industrial sector. Most of the nation's energy requirements are satisfied mainly by hydroelectricity and traditional energy sources, including coal, natural gas, and oil. According to the Brazilian Atlas of Sun Energy, the country experiences daily solar radiation ranging from 4,500 Wh/m2 to 6,300 Wh/m2. Brazilian average annual sunlight hours range from 2,000 to 3,000 hours. The nation is a relatively recent player in the solar power sector, although having a lot of potential.
The Chilean government has long highlighted the need for diversification. It has adopted an energy policy for 2050 that calls for renewables to account for at least 70% of the country's energy mix by 2050 and 60% by 2035. Regarding wind and solar energy, Chile's renewable energy sector is expected to increase significantly during most of the anticipated period. The country's unique natural renewable resources and the rising demand for electricity from the industry made Chile a desirable location for foreign investment. During the projected period, solar PV is anticipated to represent the most significant percentage of new investments in renewables.
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Based on type, the global solar PV market share is bifurcated into thin film, Multi-Si, and Mono-Si. Thin film solar photovoltaic cells are devices that convert light energy into electrical energy through the photovoltaic effect. They are made up of micron-thick photon-absorbing material placed on a flexible substrate. There are many types of thin films such as Cadmium Telluride (CdTe), Amorphous Silicon (a-Si), and Copper Indium Gallium Diselenide (CIGS). Thin film solar cells are lightweight and flexible, thus allowing a large number of applications to be addressed by building integrated photovoltaics and portable solar solutions. CdTe is the most widely used thin film technology due to its relatively high efficiency and low production costs. Cost efficiency, lightweight, and increasing global demand for clean and renewable energy sources drive the growth of the segment.
Homeowners wishing to install solar panels on a budget frequently choose polycrystalline panels, also known as multi-crystalline panels. Similar to monocrystalline panels, a seed crystal is inserted into molten silica during the production of polycrystalline solar cells. The entire silicon vat cools instead of extracting the silicon seed crystal. The panels' "marbled" blue appearance is due to the many crystals. Like monocrystalline panels, polycrystalline panels have 60 or 72 cells, and their efficiency ratings typically range from 15 to 17%. However, due to recent technological breakthroughs, polycrystalline solar panels are significantly more efficient than monocrystalline solar panels. Additionally, technical research is being done to improve efficiency and lower costs, making multi-Si the most advantageous option during the forecast period.
Monocrystalline PV panels are made from single-crystal silicon, providing a uniform structure that enhances electron mobility and energy conversion efficiency. Monocrystalline panels are generally more energy-efficient and space-efficient than polycrystalline panels. Mono-crystalline silicon solar cells are the most efficient type of solar cells; however, they are also the most expensive due to the technology involved in making large highly uniform silicon crystals. High energy efficiency, space efficiency, and durability drive the growth of the segment.
Based on application, the global solar PV market share is bifurcated into residential, commercial, and utility. The residential segment owns the highest market share and is expected to grow steadily during the forecast period. The European residential PV market has continued to expand steadily, with self-consumption in Germany and net metering in the Netherlands and Poland serving as the market leaders. The rise in home installations is a result of rising electricity prices and declining system costs. Residential systems covered by the FiT program are likewise anticipated to contribute marginally more to the forecast. Additionally, Poland has seen a rise in investment in distributed PV, particularly in the residential sector, thanks to a net metering program and falling investment prices. However, it is anticipated that between 2023 and 2026, average annual growth will rise again due to improved net-metering regulations and new government solar programs that support the residential sector.
The commercial segment includes businesses and organizations such as offices, shopping malls, hospitals, schools, and warehouses that install Photovoltaics to reduce electricity costs and enhance sustainability. Commercial enterprises generally have large, flat roofs or extended open areas, which are suitable for photovoltaic installations. Photovoltaics' capacity to generate and store solar energy on-site enables businesses to achieve greater energy independence and reduce their environmental impact. corporate sustainability goals, and increasing awareness of renewable energy drive growth of the segment.
Utility-scale solar refers to large solar power installations designed to generate electricity for the utility grid, typically with a capacity of at least 1 megawatt (MW). These facilities play an important role in the transition to renewable energy by providing significant amounts of power. They are usually situated in areas with high solar irradiance and ample space, such as deserts or open fields.
Based on deployment, the global solar PV market share is bifurcated into ground-mounted and rooftop solar. The ground-mounted solar PV market is anticipated to be driven by emerging economies like China, India, and Brazil, with several large-scale ground-mounted solar projects planned.
Rooftop solar allow residents and small businesses to generate their electricity while providing the advantages of modern electricity services to households without access to the grid. It also lowers electricity costs in places like islands and other remote regions that rely on oil-fired generation. The rooftop solar photovoltaic (PV) segment is one of the clean energy sectors with the fastest growth worldwide due to its capacity to deliver reliable power to both rural and urban customers, scale up investments through the entry of multiple investors, empower energy consumers, and enhance their energy security while aiding utilities in addressing crucial transmission and distribution losses. Due to declining solar PV costs, favorable government policies for residential solar PV, FIT programs, and subsidies, coupled with the goals established by various governments for the solar PV industry, the share of the rooftop solar segment is anticipated to grow over the forecast period.
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