Solar Tracker Installation Market

Market Overview

The global solar tracker installation market size was valued at USD 247.88 billion in 2022. It is estimated to reach USD 608.83 billion by 2031, growing at a CAGR of 10.5% during the forecast period (2023–2031). An increase in concerns regarding greenhouse gas emissions and the need for energy security is forecasted to drive the demand for solar energy. This, in turn, is expected to boost the growth of the global solar tracker installation market.

Solar tracker installation refers to setting up and installing solar tracking systems, which are mechanisms that enable solar panels or solar thermal collectors to follow the sun's movement throughout the day. The purpose of solar trackers is to increase the solar panels' exposure to sunlight, thereby increasing their energy production. The equipment and components are assembled and configured during solar tracker installation to ensure proper functionality. This includes mounting the solar panels onto the trackers, which are structures that allow the panels to move and adjust their position based on the sun's location in the sky. The installation process may involve securing the trackers to a foundation or support structure and connecting them to the electrical system of the solar power installation.

Solar tracker installation requires careful planning and consideration of factors such as the site's geography, orientation, and shading conditions. Proper alignment and positioning of the trackers are essential to ensure optimal solar energy capture. Electrical wiring and connections must be properly installed to transmit generated electricity from the solar panels to the desired destination, such as a power grid or battery storage system. Solar tracker installation involves setting up and configuring solar tracking systems to maximize solar panels' exposure to sunlight. It requires careful planning, proper alignment, and accurate electrical connections to ensure optimal performance and energy production from the solar power installation.

Market Dynamics

Global Solar Tracker Installation Market Drivers:

Growth in Demand for Renewable Energy

The International Energy Agency projects that during the next five years, renewable energy will increase in proportion to the total energy consumption of the world, reaching a 12.4% level in 2023. Renewable energy comes from organic sources like the sun's rays and the wind. Some main renewable energy sources are solar, geothermal, bioenergy, hydropower, and ocean power. Renewable energy is used in heating, electricity, cooling, and transport. Several factors are responsible for boosting the usage of renewable energies, the most significant being the link between carbon dioxide and climate-warming emissions from the combustion of fossil fuels.

Furthermore, an increase in concerns regarding greenhouse gas emissions and the need for energy security is forecasted to drive the demand for solar energy. As a result, the demand for solar trackers is also expected to increase. This, in turn, is expected to boost the growth of the global market.

Rise in the Demand for Solar Energy from Emerging Economies

Several factors drive the global solar tracker installation market, and one significant driver is the rise in demand for solar energy from emerging economies. Solar energy has emerged as a crucial strategy for addressing the expanding energy demands sustainably and ecologically friendly as nations worldwide increasingly acknowledge the significance of renewable energy sources. Emerging economies, in particular, are experiencing rapid industrialization and urbanization, leading to a surge in energy consumption.

However, these countries often face challenges in meeting their energy demands through traditional fossil fuel-based power generation due to limited resources, environmental concerns, and the need for energy diversification. The rise in demand for solar energy from emerging economies is a key driver for the global market. As these countries seek sustainable and clean energy solutions, solar power, supported by efficient solar tracker installations, offers a viable and economically attractive option to meet their energy needs.

Global Solar Tracker Installation Market Restraints:

Huge Investments

Developing new renewable resources requires large initial investments to build infrastructure. These investments increase renewable electricity costs, especially during the early years. First, the developers must find places accepted by the public and have good supplies and easy access to transmission lines. It takes several years of watching it to determine if a spot is good for solar power. Workers must also be taught how to install, use, and keep up with the new tools. Some renewables must be used in certain weather conditions before they can work at their best. All these things make it more expensive to put up solar panels, increasing the cost of solar trackers. The 5 kW off-grid solar tracking system with pitch roof mounting 5000-watt system home will cost around $0.80–$1.20/Watts. The 1 MW solar panel sun-tracking solar system AC 220v for factory use will cost around $0.40–$0.70/Watts. This high cost is expected to hamper market growth because solar trackers can't be used as much.

Global Solar Tracker Installation Market Opportunities:

Rise in Government Initiatives and Programs

Through the Feed-in Tariff scheme, private developers, businesses, and communities can produce renewable energy and sell it to the province for a certain period at a guaranteed price. Electricity provided to the provincial grid under a FIT contract is charged per kilowatt-hour (kWh). The cost of the generated power varies depending on the type of renewable energy technology employed and the scale of the project. To promote the development of renewable energy technologies and draw investments to phase out coal-fired power plants, feed-in tariff programs were introduced in 2009 in nations including Canada and the United States. These programs aim to lessen the increased reliance on fossil fuels. Thus, the ongoing investments and commitment toward developing and scaling up renewable energy significantly contribute toward market growth, thereby providing lucrative growth opportunities for market expansion.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant global solar tracker installation market shareholder and is estimated to grow at a CAGR of 10.8% over the forecast period. The North American market is analyzed across the U.S., Canada, and Mexico. The North American solar tracker installation market is driven by solar photovoltaic (PV) technologies, which are expected to boost the demand for solar trackers. In North America, rooftop solar PV systems are deployed at an increasing rate to produce electricity for household and commercial purposes. In addition, the U.S. government has implemented policies such as net metering and has taken up community solar projects to encourage the usage of PV technology.

Moreover, the government introduced a feed-in tariff policy in Canada to accelerate investment to install many high-capacity solar energy systems. These projects focus on generating more electricity, which has both residential and business uses. Furthermore, in Mexico, PV energy is largely used in agriculture to generate low-cost electricity using PV panels. As the PV industry is expected to expand, the demand for solar trackers is anticipated to increase significantly.

Europe is anticipated to exhibit a CAGR of 11.7% over the forecast period. The European market is analyzed across the UK, Spain, Germany, Italy, France, and the Rest of Europe. Europe's solar tracker installation market is driven by the growing concentrated solar power (CSP) market, which is expected to drive the demand for solar trackers. According to the German Aerospace Centre (DLR), the potential of electricity produced by CSP in Europe is around 1500 TWh/year. In 2014, CSP employed 22,000 people worldwide, of which 15,000 were employed in Europe.

In Europe, the potential CSP technology is supported by national policies. Six EU countries, such as Cyprus, France, Greece, Italy, Portugal, and Spain, have reflected CSP in their National Renewable Action Plans (NREAPs). CSP collectors need a degree of accuracy in sun tracking. Therefore, tracking devices are utilized to minimize the angle of incidence of incoming solar rays onto a panel. The European region has witnessed significant growth in CSP activities over the past few years. For instance, the construction of a 9 MW Fresnel facility in France and a hybrid biomass-CSP facility incorporating 17 MW of CSP in Denmark. This is expected to increase the demand for solar trackers in Europe, driving the market's growth.

The Asia-Pacific market is analyzed across China, Japan, India, South Korea, Australia, and the rest of Asia-Pacific. The Asia-Pacific market is forecasted to grow due to the increased desire for electricity. According to the Asia Pacific Energy Research Center (APERC), by 2050, the demand for power in the Asia-Pacific region is expected to increase by 45%. This expanded interest will be driven by China and Southeast Asia, where creating economies, rising per-capita pay, and expanding transport will lead to higher power utilization. More than 3,200 gigawatts (GW) of new power plant limit is required to achieve the growth. Hence, the solar tracker is expected to be crucial in generating electricity.

The LAMEA solar tracker installation market is driven by Brazil, South Africa, Saudi Arabia, and the rest of LAMEA. In the LAMEA region, PV energy is widely used for residential and commercial purposes, such as rooftop solar PV and solar farms. Solar farms include solar energy installation of higher capacity to produce high electricity for household and business use.

Segmental Analysis

The global solar tracker installation market is bifurcated into types and applications.

Based on type, the global solar tracker installation market is bifurcated into single-axis and dual-axis.

The single-axis segment dominates the global market and is projected to exhibit a CAGR of 10.5% over the forecast period. Single pivot trackers have one degree of freedom that acts as an axis of rotation. The axis of rotation of a single-axis tracker is commonly adjusted along a North meridian. We can align them in any fundamental direction with the help of advanced tracking algorithms. The single-axis tracker incorporates horizontal single-axis trackers with tilted modules (HTSAT), tilted single-axis trackers (TSAT), horizontal single-axis trackers (HSAT), vertical single-axis trackers (VSAT), and polar aligned single-axis trackers (PSAT). Single-axis solar trackers have both horizontal and vertical axes.

In addition, the horizontal single-axis tracker is used increasingly in tropical regions with bright sunlight at noon, but the days are short. The vertical single-axis tracker is used increasingly in high latitudes where the sun is not very high; however, summer days can be very long. An increase in the use of single-axis trackers in both tropical and high-altitude regions is expected to drive the market's growth. In addition, a single-axis tracker is also increasingly used in parabolic and linear Fresnel mirror designs to capture maximum sunlight, further boosting the market growth.

Based on application, the global solar tracker installation market is bifurcated into residential, commercial, and industrial.

The residential segment dominates the global market and is projected to exhibit a CAGR of 9.1% over the forecast period. In residential applications, CSP generates exhaust heat that can be used for heating water. The water can be heated in dormitories or hospitals for domestic or institutional purposes. These applications include hot water for cooking, bathing, cleaning, and more. Heating water is one of the most important applications, and the savings can easily be calculated. The free heat energy of CSP can also be used for space heating in factories, hospitals, dormitories, homes, and others. On the other hand, the same heat can offer cooling using absorption chillers. In solar power (CSP) applications, trackers capture maximum energy from the sun's rays. The increase in demand for construction activities globally fuels the application of solar trackers in the residential sector. This is attributed to increased demand for installing CSP on rooftops, owing to minimal technical losses and ease of power generation. Governments in developing countries such as India and China promote solar installation by providing schemes and subsidies on the capital cost of rooftop solar plants, which is expected to boost the demand for solar trackers.

Recent Developments

• May 2023- Array Technologies announced the launch of its new DuraTrack HZ v3 solar tracker.The new tracker is designed to be more efficient and easier to install than previous models.
• April 2023- NEXTracker announced the launch of its new NX Navigator controller system.The new control system uses artificial intelligence and machine learning to optimize the performance of solar trackers.