Global Solar Panel Market - 2023-2030

Market Overview

Global Solar Panel Market reached US$ 165.2 million in 2022 and is expected to reach US$ 642.3 million by 2030 growing with a CAGR of 18.5% during the forecast period 2023-2030. Growing demand for renewable clean electricity, combined with government policy tax rebates and subsidies to install solar panels, is likely to drive the global solar panels market in the forecast period.

Thin-film solar panels are estimated to account for roughly 25.1% of the global solar panel market during the forecast period, owing to their higher durability and compact form. Furthermore, the panels are both flexible and lightweight. Owing to its low installation costs, thin-film solar PV panels are mostly used in utility-scale and commercial applications. As they can be mass-produced, the panels are known as cost-effective replacements for silicon-based solar PV panels.

Market Dynamics

Increasing Demand for Green Energy in Commercial & Industrial Sectors

Many governments across the world are implementing regulations and incentives to stimulate the use of solar energy, especially in the commercial and industrial sectors. Tax credits, grants, feed-in tariffs and net metering programmes are examples of incentives that can make solar installations more financially feasible for businesses. Market for solar panels in the commercial and industrial sectors is also driven by government rules and requirements for renewable energy procurement or carbon reduction targets.

U.S. government has launched a number of new incentive programmes to encourage the use of solar and other renewable technology. According to the Solar Energy Industries Association, U.S. solar industry has invested US$ 33 billion by 2021, with a total installed capacity of 23.6 GW across the country. Solar power is becoming an essential component of organizations' energy strategies since they prioritize sustainability and embrace renewable energy alternatives.

Growing Investments on Solar Powered Consumer Electronics

Adoption of solar panels helps in the charging of consumer products such as cellphones, computers and others with convenience and portability, while reducing the need for additional plugs. In March 2021, UBON, a well-known Indian gadget accessories and consumer electronics business, announced the launching of the SP-115X, a portable solar powered wireless speaker.

The solar powered wireless speaker was created to provide several connecting options, USB charging, power backup and a splash proof body. Such reasons are expected to boost the demand for solar charging, fueling the demand for portable solar panels in the long run. Significant technological advances in the solar panel sector, including as increases in efficiency, durability and aesthetics of solar panels, have driven its demand in consumer electronics.

Infrastructure Limitations and Regulatory Barriers

Integrating solar power into existing power systems can be difficult. Solar energy is intermittent, weather-dependent and may not match with peak energy demand. Significant expenditures and infrastructure changes are required to modify and adapt electricity systems to manage distributed generation, energy storage and bidirectional power flow.

In some areas, policy and regulatory frameworks may not be fully supportive or consistent with regard to solar energy implementation. It might cause investor uncertainty, postpone project approvals or apply stringent rules that hamper the expansion of the global solar panel market. Tariffs, trade restrictions and bureaucratic processes can all hinder international solar panel trades.

COVID-19 Impact Analysis

Lockdown measures, production closures and international trade restrictions all contributed to delays in the production and supply of solar panels. Governments around the world concentrated their attention and resources on coping with the pandemic's immediate health and economic consequences. The shift in priorities slowed the implementation or revision of renewable energy laws, incentives and subsidies that encourage the use of solar panels.

Due to the economic downturn, the renewable energy sector is expected to see a significant decrease in investment, placing many renewable energy projects on hold. Furthermore, with the huge reduction in the pricing of fossil fuel commodities, the competition is not favourable to renewable energy.

Meanwhile, numerous projects have been left without crucial components due to supply chain issues. For example, U.S. installed only 3 gigatonnes (GW) of solar capacity in Q2 2020, a 37% decrease from pre-COVID projections. The Q2 2020 solar deployment losses are comparable to powering 288,000 houses and a total economic investment of US$ 3.2 billion.

Russia-Ukraine War Impact Analysis

Concerns over energy security have been raised as a result of the conflict, especially in Europe. Ukraine is a transit country for natural gas pipelines that supply Europe and any disruptions to the pipelines could lead to a greater emphasis on broadening energy sources, including renewable energy like solar power. The war has also reduced demand for solar panels. Given the region's insecurity, many consumers and companies are unwilling to invest in solar energy.

It has resulted in a surplus of panels on the market and a corresponding drop in prices. The Russia-Ukraine conflict has had a significant influence on the global solar industry. Production has dropped dramatically, while demand has also dropped. It has resulted in decreased solar panel prices and an uncertain future for players in the industry.

However, countries are attempting to find measures for dealing with the losses. In December 2022, Ukraine signed an agreement for two years with the IEA "to assist the country's energy system in recovering from the destruction" caused by the Russian invasion. It is focused on hydrogen, renewables, power-system security and biogas, as well as cross-border initiatives.

Segment Analysis

The global solar panel market is segmented based on product, mountings, application and region.

The Rising Product Launches in Residential Sector

The residential application is projected to account for around 25% share of the global solar panel market in 2022. The increased use of solar PV panels in the residential sector can be attributed to a variety of advantages, including fewer carbon footprints, lower electricity costs and higher home values. Consumers that use solar systems are eligible for government-sponsored tax breaks.

The introduction of new home solar PV panel products is likely to drive the product demand during the forecast period. For example, in December 2022, Soloes introduced ANTARES BI 144 solar panels, which have a high radiation capacity and are resistant to the harmful effects of sunlight.

Geographical Analysis

The Rising Demand from Residential and Utility Sector in North America

North America is anticipated to hold more than 1/3rd of the global solar panel market during the forecast period 2023-2030. Residential consumer capacity expansion, along with the introduction of new utility projects, is likely to boost the product penetration across the country during the forecast period. U.S. government has launched a number of new incentive programmes to encourage the use of solar and other renewable technology.

For example, U.S. government launched the Inflation Reduction Act (IRA) in August 2022, allocating US$ 369 billion to promote the renewable energy sector. The market in U.S. is predicted to grow rapidly due to strong federal initiatives like as the solar investment tax credit, increased demand for green electricity in both the public and private sectors and decreasing panel costs.

Rising demand for clean energy is expected to fuel the growth of utility projects as well as the expansion of the solar panels market in the region's industrial sector. According to the Solar Energy Industries Association, there will be 6,000 solar projects in U.S. with a total capacity of 182 GW by 2022.

Competitive Landscape

The major global players include: Jinko Solar, Trina Solar, Canadian Solar, JA Solar, Hanwha Q cells, GCL System Integration, Longi Solar, Shunfeng International Clean Energy Limited, KyoCera Solar and Yingli Solar.

Why Purchase the Report?

• To visualize the global solar panel market segmentation based on product, mountings, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of solar panel market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global solar panel market report would provide approximately 61 tables, 58 figures and 204 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies