Market Research Report
Global Solar Energy Market - 2021-2028
|Global Solar Energy Market - 2021-2028|
Published: June 23, 2021
Content info: 180 Pages
Delivery time: 2 business days
Solar Energy is the infinite amount of energy that can be harnessed from the sun. It is a renewable energy source. The Solar Energy market is estimated to grow with a CAGR of 5.9% in this period.
Increasing investments in the Solar Energy market will act as a driver during the forecasting period.
The biggest factor that is drawing a lot of investments into the Solar Energy market is its sustainability. The source of this energy is the Sun, which, predictably for the next million years, will keep giving us opportunities to harness Solar Energy from it. In areas that receive a more than average percentage of sunlight, an increase in solar investment is expected. Moreover, harnessing and using Solar Energy has a considerably low impact on the environment, unlike the usage of fossil fuels.
Scientifically, Solar Energy has lower greenhouse gas emissions than coal gas or other fossil fuels. Many companies are investing in the Solar Energy market for various requirements.
For example, as of June 2021, Square, led by Twitter co-founder Jack Dorsey, will be investing 5 million dollars into a bitcoin mining site that runs totally on solar power. Victory Square Technologies Inc will be making an investment into Stardust Solar, which works on installing solar PV systems in US and Canada, and considers itself to be one of the major players in the PV installation and training market.
Government support by drafting policies and initiatives is expected to boost the market.
In some countries, the governments have begun drafting policies and creating initiatives to encourage investments and innovation in the Global Solar Energy market. In India itself, a Solar Park scheme has been set up by the MNRE which offers financial support by the government for creating solar power projects that have a capacity of almost 500 MW. This will also create more employment opportunities in the Solar Energy sector. The National Development and Reform Commission in China has started a scheme that provides long term contracts to companies that focus on drawing and using Solar Energy in the country. These initiatives are expected to propel the Solar Energy industry.
The restraining factors to the Solar Energy market include Limited availability of Solar Energy and huge land requirement that is necessary to set up Global Solar Energy harnessing operations.
COVID-19 Impact Analysis
The COVID-19 pandemic has had a lasting impact on the world. It has brought global economies to a halt. Its impact on the Global Solar Energy industry has not been too positive. Considering the case of India, a lot of solar projects were in-progress when the pandemic started. India imports 80% of its solar equipment from China. Evidently, shipping to India was banned temporarily and this has affected the ongoing solar power projects in the country. Worldwide, the Global Solar Energy market is affected due to many issues such as cash flow crunch, unavailability of significantly sized workforce and consistent supply chain disruptions. But on the other hand, the household aspect of this market has begun taking an interest into the Global Solar Energy sector. Demands for storage facilities from households have increased. In the USA, many households are looking into innovative methods to store solar power, as moving out of the house frequently comes with a potential risk of being diagnosed with COVID-19.
Based on Product Type
The global Solar Energy market is segmented by the product type, application, end user and region.
By Product type, the Solar Energy market is classified into Photovoltaic and Thermal Solar.
A further classification of Solar Energy is made based on the type of energy it is converted to. This contains Photovoltaic Solar Power, which is obtained by converting Solar Energy to electricity. Solar thermal energy is obtained by conversion of Solar Energy into heat. Concentrated solar power is a type of thermal energy that is used to generate more solar power electricity.
Of these two, the Photovoltaic solar segment has the highest contribution to market share based on type. This is observed due to an increased usage of PV solar in signalling systems, autonomous lighting, and electricity generation along with other solar powered instruments. According to IRENA (International Renewable Energy Agency), PV solar is estimated to cover a quarter of the global electricity needs by 2050. An investment increase of 68% is predicted by 2050.
A similar increase can be observed in the thermal Solar Energy segment. Currently it is being used for power generation on a large scale in the US. Research done by IRENA shows that in the past decade there has been an increase in the number of thermal solar plants in the world and this trend is expected to continue in the forecasted period.
Based on Application
Based on the application segment, Global Solar Energy market can be segmented into residential, commercial and industrial.
Based on End Use
On the basis of end use, Solar Energy industry is segmented into charging, lighting, electricity generation, and heating.
Geographically, the global solar energy market is segmented into Europe, South America, North America, Asia-Pacific and Middle East and Africa. According to research, the North American continent is the most dominant in the Global Solar Energy market and is estimated to grow at the highest CAGR. For large-scale power generation, the continent relies on renewable energy, particularly hydropower. Hydropower accounts for 63 percent of electricity generation in Canada, and some dams are over 100 years old.
The solar industry generated more than $25 billion in private investment in the American economy in 2019. In 2020, solar energy installations in USA accounted for 43 percent of all new electric capacity added to the grid, the highest share in history and the second year in a row that solar added the most generating capacity to the grid. This growing usage of solar energy in electricity generation allowed it to rapidly increase its share of total US electrical generation, from 0.1 percent in 2010 to more than 3 percent today.
The Asia-Pacific solar market is the fastest growing market. This can be explained with a rising surge in population which demands more energy consumption. In 2019, Asia's solar energy capacity was approximately 330.79 thousand megawatts. This was a significant increase from 2010, when Asia's solar energy capacity was approximately 5.5 megawatts. Since Solar Energy has insignificant environmental influence and is infinitely available, many Asian companies have increased their investments in the market.
Key players operating in the Global Solar Energy market include BrightSource Energy, Yingli Solar, Gintech Energy Corp., Tata Power Solar among others. Competition is intensified by constant product developments, increased revenue generations and constant outflow of opportunities.
Company Profile: TATA Power Solar
Overview: Tata Power Solar is India's largest integrated solar company. It was established by Jamshedji Tata in the second half of the 19th century and has its headquarters in the commercial capital of India, Mumbai.
Product Portfolio: The company manufactures solar cells, solar modules, solar RO systems, solar microgrids along with many other solar products. Their products are made with efficient transportation, transmission and innovative technologies in mind.
1) Tata Power Solar got an order from the NHPC worth 188 crores to set up a 40 MW Solar Power project at Ganjam in Odisha.
2) Tata Power Solar has been given a go-ahead to purchase 51% of the stakes in three power utilities companies in Odisha. These are the Western Electricity Supply Company of Odisha (WESCO), Southern Electricity Supply Company of Odisha (SOUTHCO) and Central Electricity Supply Company of Odisha (CESCO)