PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901489
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901489
Photovoltaics market size was valued at US$ 104,678.12 Million in 2024, expanding at a CAGR of 9.2% from 2025 to 2032.
Photovoltaics (PV) convert sunlight into electricity using semiconductor-based modules - primarily crystalline silicon - paired with inverters and Balance-of-System (BOS) components, enabling grid-connected or off-grid power generation. In 2023, solar PV added a record = 420 GW globally, making up roughly 40% of all new electricity-generation capacity that year per the International Energy Agency (IEA). This scale, along with a 90% drop in module prices over the past decade, underlines PV's role as a mainstream utility, commercial, industrial, and residential power solution. Key opportunities include large utility-scale solar farms, distributed rooftop and virtual power-plant deployments, adoption of high-efficiency N-type and bifacial modules, and localized manufacturing to safeguard module supply-chains.
Photovoltaics Market- Market Dynamics
Accelerating global solar target mandates, rising corporate renewables demand, and expanding electrification to drive market demand
The global Photovoltaics market is strongly driven by expanding national renewable-energy mandates, rapidly increasing corporate procurement of clean electricity, and surging electrification demand across transportation and industry. More than 130 countries now have net-zero commitments, pushing aggressive solar deployment targets, while global solar capacity additions are forecast to reach 820 GW by 2028, according to the IEA Renewables 2023 Report. Corporate sustainability procurement is also accelerating adoption, with RE100 companies committing to 100% renewable electricity now representing over 400 major global firms, significantly increasing utility-scale and C&I solar investments. Meanwhile, widespread electrification of manufacturing, EV charging networks, and digital infrastructure continues to expand power consumption; global electricity demand is projected to rise 3.4% annually through 2026 (IEA 2024), intensifying the need for scalable, low-cost solar capacity. Together, government policy pressure, corporate decarbonization commitments, and electricity demand growth strongly reinforce long-term PV deployment momentum.
The Global Photovoltaics Market is segmented on the basis of Type, Component, Cell Type, Material Type, Propulsion, Application, and Region.
The market is divided into three categories based on Component: Modules, Inverters, and Balance of Systems (BOS). While global revenue shares vary by system scale, research commentary indicates that PV modules currently account for the largest portion of system cost, typically 35-50% of total solar installation spending, making them the largest revenue-generating component. Modules dominate due to large-scale manufacturing capacity expansions, price competitiveness from N-type and bifacial technologies, and extensive utility-scale deployment. However, inverters are experiencing faster value growth due to rising demand for hybrid string inverters, DC-coupled storage architectures, grid-support functions, and rapid residential and C&I solar electrification. According to the IEA Solar PV Tracking Report 2024, global solar installations surpassed 413 GW in 2023, intensifying the need for advanced inverter capabilities to support grid stability and distributed power flows.
The market is divided into five categories based on Material Type: Silicon, Copper Indium Gallium Selenide (CIGS), Perovskite, Quantum Dot, and Organic Photovoltaics. Silicon holds the largest market share due to its mature supply chain, proven field performance, and economies of scale, with crystalline silicon technology representing more than 95% of global PV production in 2023 (IEA PVPS 2024). However, Perovskite materials are expected to witness the fastest growth driven by efficiency breakthroughs surpassing 33.9% in tandem structures (NREL 2024) and lower manufacturing costs. Their lightweight form factor and compatibility with flexible substrates position perovskites for future applications in BIPV facades, automotive integration, aerospace, and portable power electronics.
Photovoltaics Market- Geographical Insights
Global PV adoption is shaped by regional solar policies, manufacturing capacity, and demand-side dynamics. Asia-Pacific remains the dominant region, led by China, India, and Southeast Asia, driven by rapid utility-scale installations, rooftop solar programs, and local module manufacturing. In 2023, Asia-Pacific accounted for nearly 55% of global PV capacity additions, reflecting both domestic demand and export-oriented module supply. Asia-Pacific is also expected to grow fastest over the forecast period as economic growth, rural electrification, and renewable mandates converge. Meanwhile, North America shows the strongest near-term growth potential, buoyed by federal tax credits under the Inflation Reduction Act, rising corporate and residential rooftop adoption, and accelerated build-out in sun-rich states such as Texas, California, and Florida. Europe, Latin America, and the Middle East & Africa remain important emerging markets, driven by regulatory decarbonization targets, growing grid instability, and rising distributed solar demand, especially in underserved or remote regions.
China Photovoltaics Market-Country Insights
China is the global powerhouse of photovoltaic deployment and manufacturing. In 2023, China accounted for over 60% of new global PV capacity additions, and module production capacity exceeded 510 GW/year, making it the world's largest producer and installer of solar panels. The country's vertically integrated supply chain - spanning polysilicon, wafers, cells, and modules - enables rapid scaling and cost advantages. Domestic demand is supported by aggressive national targets under the 14th Five-Year Plan and carbon-neutrality goals, driving both utility-scale farms and distributed rooftop installations. As a result, Chinese PV manufacturers and EPC firms, such as LONGi, Trina Solar, JinkoSolar, JA Solar, and others, benefit from massive economies of scale, export capacity, and strong local deployment pipelines, positioning China as the central hub for global photovoltaic growth and technological innovation.
Accelerating global solar deployment targets and rapid module efficiency advancements are intensifying competition across the photovoltaics industry. Leading players in the market include LONGi Green Energy Technology Co., Ltd., JinkoSolar Holding Co., Ltd., Trina Solar Co., Ltd., Canadian Solar Inc., First Solar, Inc., JA Solar Technology Co., Ltd., and Hanwha Q CELLS. These companies focus heavily on technology differentiation, particularly through TOPCon, HJT, bifacial, and tandem cell efficiency upgrades, alongside scale-driven cost optimization. Common strategies include vertical manufacturing integration, aggressive capacity expansions, long-term power-purchase and utility partnerships, and supply-chain localization to mitigate geopolitical and trade risks. Mergers & acquisitions, R&D investments, and intellectual-property protection help strengthen product portfolios and accelerate next-generation PV cell development. Sustainability, recycling initiatives, and bankability certifications are central to maintaining global competitiveness and securing utility-scale contracts.
In September 2025, Grew Solar unveiled a new line of high-efficiency PV modules at the RE 2025 event, aimed at expanding its footprint in global markets. The modules feature improved energy yield and durability, positioning the firm for broader deployment across utility, commercial, and rooftop segments worldwide.
In August 2025, TCL Solar and VP Solar formed a strategic partnership to jointly develop and distribute photovoltaic solutions globally, combining TCL's manufacturing expertise with VP Solar's distribution network - aiming to scale PV deployment across commercial, residential, and utility-scale projects.