Solar Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the solar energy market size in terms of installed base is expected to increase from 2.35 Terawatt in 2025 to 2.92 Terawatt in 2026 and reach 7.25 Terawatt by 2031, growing at a CAGR of 19.91% over 2026-2031.

This report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), End-User (Residential, Commercial and Industrial, and Utility-Scale), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Global Solar Energy Market Trends and Insights

Utility-Scale PV Cost Parity Accelerating Procurement in Asia

Benchmark auctions in India and China cleared below USD 0.03 per kilowatt-hour in 2024, undercutting legacy coal tariffs by up to 30%. Record annual additions of 330 GW in China and 18 GW in India in 2024 testify to this economics-driven surge. Provincial grid operators responded by fast-tracking ultra-high-voltage transmission corridors linking western resource hubs to eastern load centers. Southeast Asian planners canceled 12 GW of coal projects during 2024-2025 after levelized solar costs fell beneath regulated thermal power prices, further redirecting capital toward photovoltaic-battery hybrids.

IRA-Driven Domestic Manufacturing Boom in the United States

Section 45X production credits under the IRA provide USD 0.04 per watt for cells and USD 0.07 per watt for finished modules, tilting the cost curve toward local fabrication. By end-2024, U.S. module capacity quadrupled to 42 GW across 110 projects, and Qcells secured a USD 1.45 billion federal loan guarantee to develop America's first fully integrated polysilicon-to-module line in more than a decade. First Solar enlarged its Ohio complex to 6 GW and broke ground on a 3.5 GW Alabama plant that leverages cadmium-telluride modules exempt from polysilicon bottlenecks. Although domestic polysilicon output met only one-quarter of 2024 module demand, front-loaded capital spending before the credit sunsets in 2032 should narrow this gap.

Supply-Chain Over-Reliance on Chinese Polysilicon & Wafers

China accounts for 80-90% of polysilicon and 95% of wafer output, with Xinjiang supplying 45% of global capacity. The Uyghur Forced Labor Prevention Act detained over 3,800 solar cargoes at U.S. ports through 2024, creating 8-12-week delivery delays. European tariff investigations followed in 2024, adding more uncertainty. Spot polysilicon prices collapsed from USD 35 per kg in 2022 to USD 6-8 per kg in 2024 as new Chinese capacity came online, crushing margins for many tier-one module makers. Western diversification efforts, including QCells' Georgia polysilicon line and REC Silicon's Washington restart, will still meet less than 15% of ex-China demand by 2027.

Other drivers and restraints analyzed in the detailed report include:

1. Corporate PPA Demand from AI & Data Centers in Europe & North America
2. Hybrid PV-Battery Projects Unlocking New Revenue Stacking Models
3. Grid Congestion & Curtailment in High-Penetration Provinces

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Solar photovoltaic commanded 99.7% of the Solar Energy market share in 2025. Falling levelized costs, down 4.6% in 2024, place PV ahead of gas peakers and onshore wind in many regions. The segment is expected to grow at 19.92% CAGR through 2030, powered by efficiency gains such as perovskite-silicon tandem cells hitting 31.6% laboratory performance. Multi-junction designs could push conversion rates beyond 40%, opening space-constrained rooftops and vehicle-integrated niches. Concentrated Solar Power retained a marginal footprint because solar-plus-battery hybrids now achieve half its levelized cost in high-irradiance regions.

Silicon's cost trajectory keeps eroding the addressable space for thermal tower and trough projects, though CSP still serves process-heat niches. The Solar Energy industry continues to funnel R&D toward wafer-thinning, metallization-free contacts, and back-contact architectures to inch efficiencies closer to 25% across mainstream product lines.

Complete Report Scope:

• By Technology
  • Solar Photovoltaic (PV)
  • Concentrated Solar Power (CSP)
• By Grid Type
  • On-Grid
  • Off-Grid
• By End-User
  • Utility-Scale
  • Commercial and Industrial (C&I)
  • Residential
• By Component (Qualitative Analysis)
  • Solar Modules/Panels
  • Inverters (String, Central, Micro)
  • Mounting and Tracking Systems
  • Balance-of-System and Electricals
  • Energy Storage and Hybrid Integration
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Nordic Countries
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Thailand
    • Indonesia
    • Vietnam
    • Australia
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • South Africa
    • Egypt
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific retained 64.5% of installed capacity in 2025. China's cumulative fleet surpassed 800 GW after adding 330 GW in 2024, with Shandong, Henan, and Jiangsu registering the highest provincial totals. India reached 90 GW, catalyzed by domestic manufacturing incentives that underwrote 40 GW of new factory commitments. Japan, South Korea, and Australia collectively added another 35 GW, with floating, agrivoltaic, and hybrid models compensating for land scarcity and grid bottlenecks.

The Middle East and Africa Solar Energy market is projected to register a 22.7% CAGR through 2031. Saudi Arabia's 4 GW NEOM, the United Arab Emirates' 2 GW Al Dhafra project, and Egypt's 3.6 GW Suez Canal pipeline anchor this upswing, complemented by a surge in African off-grid kits that passed 5 million households by 2024.

North America installed 35 GW in 2024, dominated by 32 GW in the United States, where IRA incentives and state renewable portfolio standards converged. Texas led with 8.5 GW, while California followed at 6.2 GW despite rising curtailment. Canada's 2.8 GW addition leaned on Alberta's merchant market. Mexico's progress stalled at 1.2 GW amid regulatory uncertainty.

Europe added 62 GW in 2024. Germany led with about 15 GW, Spain followed with nearly 9 GW but wrestled with interconnection backlogs, and Poland installed 6 GW driven by small-scale prosumers. The EU's Net-Zero Industry Act set a target of 30 GW of localized manufacturing by 2030; however, only 8 GW of projects had broken ground by year-end 2024.

1. Canadian Solar Inc.
2. JinkoSolar Holding Co. Ltd
3. Trina Solar Co. Ltd
4. LONGi Green Energy Technology Co. Ltd
5. First Solar Inc.
6. JA Solar Technology Co. Ltd
7. SunPower Corporation
8. REC Solar Holdings AS
9. Hanwha Q Cells Co. Ltd
10. Risen Energy Co. Ltd
11. Seraphim Solar System Co. Ltd
12. Tata Power Solar Systems Ltd
13. Sunrun Inc.
14. Enphase Energy Inc.
15. SMA Solar Technology AG
16. Array Technologies Inc.
17. Nextracker Inc.
18. Siemens Energy (CSP)
19. Abengoa SA
20. BrightSource Energy Inc.
21. ACCIONA Energia
22. ENGIE SA
23. ACWA Power

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support