The global solar tracker market size was valued at USD 3.38 billion in 2021 and is projected to reach USD 21.15 billion by 2030 at a CAGR of 20.13% from 2022 to 2030.
A solar tracker is a system that positions an object relative to the sun at an angle. The most prevalent solar tracking system involves positioning photovoltaic (PV) panels perpendicular to the sun's rays and using space telescopes to determine the sun's position. A PV solar tracking system adjusts the orientation of a solar panel based on the sun's position in the sky. By keeping the panel perpendicular to the sun, the solar panel receives more sunlight, less light is reflected, and more solar energy is absorbed. This energy can be converted to electricity.
Over the forecast period, it is anticipated that growing concerns about energy conservation and switching from nonrenewable to renewable energy will increase demand for solar energy and, eventually, solar trackers. Solar trackers use various electrical components, including actuators, motors, and sensors, to position the solar cell to focus sunlight on maximizing the amount of energy captured. The solar radiation caught is then turned into electricity, used by different end-user segments. The popularity of solar energy as a viable commercial energy source has increased due to the falling cost of solar PV panels, which is anticipated to boost market growth further.
|Market Size||USD 21.15 billion by 2030|
|Fastest Growing Market||The Middle East and Africa|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Globally, rising concerns about energy conservation and the transition from nonrenewable to renewable energy are anticipated to increase demand for solar energy and, eventually, solar trackers during the forecast period. A solar tracker employs a number of electrical components, such as actuators, motors, and sensors, to orient the solar cell in order to maximize the energy captured by concentrating the sun's rays. The captured solar radiations are converted into electricity, which is then utilized by a range of end-user segments. The rising use of solar power as a potential source of commercial energy generation has gained popularity as a result of the declining price of solar PV panels, which is anticipated to further stimulate market expansion.
Demand for green and clean energy is being driven by the rising trend of carbon emissions. According to the rapid carbon analysis, the British government intends to generate roughly half of its electricity from renewable sources by 2025. In addition, increasing investments in green energy projects contribute to the expansion of the market. Consequently, the rising demand for renewable energy is driving the expansion of the global solar tracker market.
The expansion of the solar tracker industry is a result of new government regulations that encourage the development of various solar energy projects. Due to the growing industry demand for sophisticated technology for tracking purposes, businesses are concentrating on developing products based on advanced technology. To expand their geographical reach and product offerings, manufacturing companies employ a combination of organic and inorganic expansion strategies.
Solar tracker installation necessitates substantial financial outlay. Implementing a solar tracker is more expensive due to the expense of labour and space. The initial large capital investments required to install these devices are the primary restraint for the global market for solar trackers.
In regions such as Europe and Asia-Pacific, expansion has been hampered by a lack of knowledge regarding the profitability of fixed-tilt installations compared to solar tracker installations. Additionally, the lack of resources hinders the market's expansion. As a result, lack of infrastructure is a major obstacle to the expansion of the global solar tracker market.
Approximately 29% of global electricity production is currently derived from renewable energy sources. In the subsequent years, it is anticipated to increase significantly, thereby stimulating the market. In 2015, the global installed capacity for solar energy was 217.34 gigawatts (GW), and in just four years, it increased to 578.55 GW. Consequently, the increasing demand for renewable energy is creating opportunities for the expansion of the global solar tracker market.
The increasing emphasis on green and clean energy is driving growth in the global solar tracker market. As people become more environmentally conscious, the global market for solar trackers is also expanding.
In 2021, North America accounted for the largest revenue share, exceeding 25%, and this trend is anticipated to continue until 2030. The growth is primarily attributable to the increasing emphasis on renewable energy and the Paris Agreement on Climate Change, which recommends the use of renewable energy as the nation's primary source of energy. Through a variety of initiatives, the U.S. government aims to increase the use of solar energy in the economy. DOE (U.S. Department of Energy) launched the SunShot Initiative in 2011 with the objective of making the solar industry cost-competitive with conventional energy sources by 2020 by reducing costs to less than $1 USD per watt. The initiative has sponsored over three hundred and fifty projects, including those from corporations, private universities, and national laboratories.
The Middle East and Africa are expected to experience the greatest growth over the forecast period. The region is anticipated to experience significant growth over the next ten years as a result of its high solar potential and a rise in solar project investments, particularly in the UAE and Saudi Arabia. Saudi Arabia held the largest share in the Middle East and Africa in 2021 as a result of substantial domestic and international investments. The country also experienced significant growth as a result of the investments made by U.S. solar companies due to the country's favorable climate.
In Europe, solar energy demand grew at a robust rate. Spain, Germany, the United Kingdom, and Italy have been at the forefront of increasing penetration in the nation's overall power mix. This pattern presents the market region with tremendous growth prospects and ambitious green energy ambitions.
Due to China's production of 40% of the world's capacity, Asia Pacific serves as the center of the tracker industry. In the upcoming years, it is anticipated that India, China, and other Southeast Asian countries will increase their capacity for renewable energy, resulting in a significant need for trackers.
This market can be segmented on the basis of type, technology, application, regions and competitors. By Type, the dual-axis segment held the largest revenue share in excess of 50.0% in 2021 and is anticipated to grow at the highest CAGR during the forecast period. Due to their ability to track the sun both horizontally and vertically, dual-axis trackers allow for the maximum absorption of the sun's rays. Dual-axis trackers produce 8% to 10% more energy than single-axis trackers. Dual-axis trackers have high O&M expenses due to their high land requirements, complex technology, and high maintenance needs for motors and control systems. This factor impedes the widespread adoption of dual-axis trackers significantly.
Single-axis systems track the sun's rays along a single axis, which increases system performance by 20% or more compared to fixed solar PV cells in areas of high isolation. Solar trackers with a single axis require more land than fixed solar panels because their movement can cast shadows that reduce the efficiency of adjacent panels. The use of single-axis trackers maximizes potential output at the expense of increased CapEx (capital expenditure) and OpEx (operational expenditure) (operating expenditure).
Based on technology, solar photovoltaic (PV) was the largest technology segment in 2021, accounting for over 85% of total revenue. The compatibility of PV cells with standard photovoltaic module technologies is the primary reason why PV technology holds the largest market share. The increasing cost of electricity resulting from the supply-demand gap will increase the use of solar PV in both utility and non-utility applications.
Concentrated solar power (CSP) is used to harness the sun's energy potential and has the capacity to provide reliable renewable energy to consumers worldwide, even when the sun is not shining. In recent years, concentrated solar power (CSP) has faced increasing competition from less expensive photovoltaic (PV) solar power and rapidly expanding concentrator photovoltaics (CPV).
The utility was the largest application segment in terms of revenue in 2021, with an 80.0% share. Solar trackers are expected to become more prevalent in utility applications as a result of rising electricity costs and demand for renewable sources of energy. This trend is anticipated to persist throughout the forecast period. Due to the ground-mounted nature of solar utility installations and the ability of single-axis trackers to track the sun throughout the day, the single-axis tracking system is the most popular solar tracker in the utility sector. Increasing government subsidies and feed-in tariff schemes have led to the widespread use of trackers in utility applications, particularly in the North American and European regions.
Solar power systems for both business and residential use are included in the non-utility sector. Due to the impossibility of using trackers due to land restrictions, non-utility applications have a lower market share than utility applications.