Photovoltaic Market Analysis and Global Forecast (2024-2034)

Photovoltaic Market Overview

The Photovoltaic Market size accounted for USD 96.30 Billion in 2023 and is estimated to account for 98.02 Billion in 2024. The Market is expected to reach USD 178.88 Billion by 2034 growing at a compound annual growth rate (CAGR) of 11.85% from 2024 to 2034. The photovoltaic market refers to the global industry involved in the production, distribution, and installation of photovoltaic (PV) systems. These systems use solar cells to convert sunlight into electricity, providing a clean and renewable energy source. The market encompasses a wide range of components, including solar panels, inverters, racking systems, and other related equipment.

The market is driven by factors like growing awareness of renewable energy sources, government incentives for solar power, falling costs of PV systems, advancements in technology, and the global shift towards decarbonization.

Global Photovoltaic Market Synopsis

Photovoltaic Market Dynamics

The major factors that have impacted the growth of Photovoltaic Market are as follows:

Drivers:

Ø  Declining Costs of Solar PV Systems

Technological advancements and economies of scale have led to significant reductions in the costs of solar panels, inverters, and other components, making PV systems more affordable for both residential and commercial applications. The falling levelized cost of electricity (LCOE) for solar is making it competitive with traditional energy sources. Solar PV provides countries with the ability to generate their own electricity, reducing dependence on fossil fuels and enhancing energy security. This is particularly important for countries seeking to diversify their energy portfolios.

Restraint:

• Perception of High Initial Investment Costs and Raw Material Supply Chain Issues

While the cost of solar PV systems has declined over time, the initial capital investment required for purchasing and installing PV systems, particularly for large-scale projects, remains significant. This can be a barrier for residential consumers and small businesses with limited budgets. The production of photovoltaic panels, especially silicon-based panels, depends on the availability of raw materials like silicon, silver, and other rare earth elements. Disruptions in the supply chain or price volatility of these materials can lead to higher production costs, impacting the overall market growth.

Opportunity:

⮚      Development of Advanced Energy Storage Solutions

The integration of solar PV with advanced energy storage technologies (such as next-generation batteries, solid-state batteries, and hydrogen storage) presents a significant opportunity. These advancements will help overcome the challenge of intermittency, allowing solar power to be stored and used during periods of low sunlight, making solar PV more reliable and scalable. Ongoing research and development in new photovoltaic technologies such as perovskite solar cells, bifacial solar panels, and thin-film PV offer opportunities for more efficient, flexible, and cost-effective solar power solutions. These innovations could increase energy conversion efficiency and open up new applications, including solar-integrated building materials (Building-Integrated Photovoltaics, or BIPV).

Photovoltaic Market Segment Overview

By Type

Based on Type, the market is segmented based on Modules, Inverters and Balance of System. The Modules segment dominant the market. PV modules (also known as solar panels) are made by assembling multiple photovoltaic cells. These cells are usually made from silicon or other materials, and they are designed to absorb sunlight and convert it into electrical energy. The modules are then installed on rooftops, in solar farms, or for off-grid solutions.

By Cell Type

Based on Cell Type, the market segment has been divided into Full Cell PV Type and Half Cell PV modules. The Full Cell PV Type segment dominant the market. Full cell PV technology involves using full-sized silicon wafers without any cutting or division of the cell. These are typically monocrystalline or polycrystalline silicon cells. These solar cells are widely used in traditional PV modules and are known for their reliability and efficiency and Full cell PV technology remains a dominant force in the solar energy market due to its established manufacturing processes, cost-effectiveness, and high energy conversion rates.

By Application

Based on Application, the market segment has been divided into Residential, Commercial & Industrial and Utilities. The residential application segment dominated the market. The growing adoption of photovoltaic technology by homeowners and residential property owners is driving the growth of this segment. Residential photovoltaic systems offer several benefits, including lower electricity bills, reduced carbon footprint, and increased energy independence. The availability of government incentives and subsidies, along with declining costs of photovoltaic technology, has made residential photovoltaic systems more accessible and affordable for homeowners.

By Installation Type

Based on Installation Type, the market segment has been divided into Ground Mounted, Building-Integrated Photovoltaics and Floating PV. The ground-mounted segment dominant the market. The rising number of utility-scale projects, solar energy targets by government bodies, and minimizing costs of solar PV installations are some of the key factors fueling ground-mounted solar PV systems. Government bodies across various countries are developing large-scale solar PV projects to minimize their reliance on fossil fuel-based power generation and diversify their energy mix.

Global Photovoltaic Market Regional Analysis

Based on region, the global Photovoltaic Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Photovoltaic Market followed by the Asia-Pacific and Europe regions.

North America Market

North America holds a dominant position in the Photovoltaic Market. The US is one of the largest solar markets in the world, with a mix of residential, commercial, and utility-scale installations. The country has experienced significant growth in recent years, driven by factors such as declining costs and increasing acceptance of solar energy.

Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Photovoltaic Market industry. China has been leading the way in PV installations. The country’s government has implemented ambitious targets to promote renewable energy, driving significant growth and India is another major market for PV, with a growing focus on solar energy as a solution to its energy challenges. The government has introduced various policies and incentives to encourage solar adoption.

Competitive Landscape

The global Photovoltaic Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Abengoa
• Acciona
• Canadian Solar
• First Solar
• JA solar Company
• Renesola
• Sharp Corporation
• Trina solar
• Kyocera Corporation
• Mitsubishi

Key Development

In March 2024, Waaree Energies on Monday announced its partnership with Sprng Energy to supply 220 megawatts (MW) of solar PV modules. The partnership involves Waaree Energies supplying 220 MW of AHNAY Series Bi-55 545Wp modules for Sprng Energy’s Gujarat project, as a part of the Shell Group.

In January 2024, LONGi Green Energy Technology Co., Ltd. entered a strategic cooperation agreement with Nio to collaboratively advance the usage of photovoltaic-generated clean energy in electric vehicle (EV) charging stations. The partnership was made to establish an industry-leading integrated station for solar energy storage and EV charging, which led to carbon neutrality goals in the transportation sector.

Scope of the Report

Global Photovoltaic Market, by Type

• Modules
• Inverters
• Balance of System

Global Photovoltaic Market, by Cell Type

• Full Cell PV Type.
• Half Cell PV modules

Global Photovoltaic Market, by Application

• Residential
• Commercial & Industrial
• Utilities

Global Photovoltaic Market, by Installation Type

• Ground Mounted
• Building-Integrated Photovoltaics
• Floating PV

Global Photovoltaic Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $178.88 Billion
CAGR	11.85% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Cell Type, Application, Installation Type
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Abengoa, Acciona, Canadian Solar, First Solar, JA solar Company, Renesola, Sharp Corporation, Trina solar, Kyocera Corporation and Mitsubishi
Key Market Opportunities	• Development of Advanced Energy Storage Solutions • Technological Innovations in Photovoltaic Materials
Key Market Drivers	• Declining Costs of Solar PV Systems • Energy Security and Independence

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Photovoltaic Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Photovoltaic Market historical market size for the year 2021, and forecast from 2023 to 2033
• Photovoltaic Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Photovoltaic Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.