Solar Energy Market Forecasts to 2030 - Global Analysis By Product Type, Technology, Service Provided, Solar Module, Application, End User and by Geography

According to Stratistics MRC, the Global Solar Energy Market is accounted for $108.13 billion in 2023 and is expected to reach $275.59 billion by 2030 growing at a CAGR of 14.3% during the forecast period. Solar energy is derived from solar radiation and is a renewable and sustainable power source. Solar panels are used to collect this abundant and clean energy, converting sunlight into heat or electricity for a variety of uses. Solar thermal systems use sunlight to create heat for the purpose of producing electricity or heating water, whereas photovoltaic cells in solar panels use sunlight to convert light directly into electrical power, solar energy is a significant player in the shift to a more sustainable and environmentally friendly energy landscape because of its ability to lessen reliance on non-renewable resources and mitigate environmental impact.

According to the International Renewable Energy Agency (IRENA), solar energy is increasingly recognized as a pivotal player in the global shift towards sustainable and clean energy solutions. The association highlights the remarkable potential of harnessing solar power to address environmental concerns, reduce carbon emissions, and foster energy independence.

Market Dynamics:

Driver:

Environmental consciousness and mitigation of climate change

Solar energy is now considered to be at the forefront of clean energy solutions due to the growing global concern over environmental sustainability and the pressing need to mitigate climate change. A growing number of organizations, companies, and people are realizing how important solar energy is for cutting greenhouse gas emissions and lessening the environmental impact of energy production. Additionally, the critical role that solar energy plays in accomplishing climate-related goals is further highlighted by supportive policies and international agreements centered on carbon reduction.

Restraint:

High starting costs and ROI (return on investment)

Although the total cost of solar energy has dropped, the initial outlay is still a major barrier to widespread adoption. By offering targeted financial incentives, tax credits, and advantageous financing options, governments and financial institutions can play a crucial role in addressing this restraint. Furthermore, by lessening the financial burden on people and businesses, new financing models like community solar programs and power purchase agreements (PPAs) can increase the overall return on investment.

Opportunity:

Grid modernization and energy storage solutions

One of the main opportunities for the solar energy industry is the integration of effective energy storage solutions. Modern battery technologies, like lithium-ion and developing alternatives, allow us to store extra solar energy for use in the evenings and at night. The integration of solar energy into current power systems can be made more flexible and reliable by investing in smart grid technologies and grid modernization. Moreover, this leads to the development of an energy infrastructure that is more efficient and resilient.

Threat:

Financial and economic difficulties

Financial crises or downturns in the economy can be very dangerous for the solar energy industry. The affordability of solar installations can be impacted by factors such as market volatility, higher interest rates, and restricted access to financing for both individuals and businesses. Additionally, economic and financial risks can be reduced by creating robust financing models, promoting investment diversification, and establishing cooperation between the public and private sectors.

Covid-19 Impact:

The market for solar energy has been severely impacted by the COVID-19 pandemic, which has caused delays in project timelines, funding, and supply chains. The production and installation of solar components were delayed due to a combination of logistical challenges and an initial slowdown in manufacturing and construction activities. Furthermore, decisions about investments were influenced by changes in priorities and the state of the economy, with certain projects having financial limitations.

The Solar Panels segment is expected to be the largest during the forecast period

It is projected that the solar panel segment will command the largest share of the solar energy market. The process of collecting sunlight and turning it into electricity relies heavily on solar panels, also referred to as photovoltaic (PV) modules. Their dominant position in the market has been facilitated by constant advancements in solar panel technologies, efficiency gains, and a steady decrease in manufacturing costs. Moreover, solar panels have become widely used in the residential, commercial, and industrial sectors due to the growing emphasis on renewable energy and the favorable policies and incentives provided by the government.

The Charging segment is expected to have the highest CAGR during the forecast period

The segment with the highest CAGR is charging. There has been a notable increase in the need for solar energy to power devices that require charging, like electric vehicles (EVs) and portable electronics. The significant growth in this market is attributed to the growing acceptance of electric vehicles and the growing demand for off-grid charging options. In line with the broader trend towards the adoption of clean energy, solar-powered charging devices and EV charging stations offer decentralized and sustainable solutions. Furthermore, the use of solar energy for charging satisfies the increasing need for convenient, environmentally friendly power sources while also addressing environmental concerns.

Region with largest share:

The Asia-Pacific region, especially China, accounted for the largest share of the solar energy market. China has emerged as a prominent participant in the global solar energy industry owing to its massive population and swift economic expansion. Installed solar capacity has increased significantly as a result of the nation's large investments in solar power infrastructure. Additionally, China's adoption of solar energy has been encouraged by beneficial government policies like feed-in tariffs and subsidies.

Region with highest CAGR:

The Middle East and Africa region had the highest CAGR in the solar energy market. A number of factors have contributed to the rapid growth of solar energy installations in the MENA region. The region's high potential for solar irradiation and abundance of solar resources are important factors. The governments of several nations, including Jordan, Saudi Arabia, and the United Arab Emirates, have established significant solar energy projects and set aggressive goals for renewable energy. Additionally, these nations are making the most of their plentiful sunshine to diversify their energy sources, cut back on greenhouse gas emissions, and lessen their reliance on fossil fuels.

Key players in the market

Some of the key players in Solar Energy market include Motech Industries Inc., First Solar, Inc, Azure Power, JinkoSolar Holding Co., Ltd, Hanwha Q Cells Co., Ltd, RGS Energy, Sharp Corporation, Tata Power Solar Systems Ltd., Canadian Solar Inc., ReneSola, SunPower Corporation, Trina Solar Limited, eSolar Inc., Yingli Solar, SolarEdge Technologies and Waaree Grou12.

Key Developments:

In January 2024, First Solar Inc has signed a 167-MW captive power purchase agreement (PPA) to power its new factory in India. The 15-year contract is with Asian renewables supplier Cleantech Solar, which will build 150 MW of solar and 16.8 MW of wind assets in Tamil Nadu. Expected to be fully commissioned by the third quarter of 2024, this solar and wind capacity will supply about 7.3 GWh of power to First Solar's new 3.3-GW vertically integrated plant in Tamil Nadu, covering up to 70% of its anticipated electricity needs.

In June 2023, Independent power producer Azure Power Global signed a Module Supply Agreement (MSA) with Premier Energies Group to procure modules up to 600 MW annually for the next four years. Premier Energies will supply 2.4 GW of solar cells and modules with an estimated order value of over ₹40 billion. According to Premier, the two companies have jointly invested ₹7 billion to deploy a solar cell and solar module production facility, each with 1.25 GW capacity, in Telangana.

In May 2023, JinkoSolar Holding Co., Ltd., has announced that its majority-owned subsidiary, Jiangxi Jinko Solar Co., Ltd., has entered into an equity transfer agreement with Ziyang Major Industry Equity Investment Fund Partnership and Mr. Shihong Dong. According to the agreement, Jiangxi Jinko will sell its entire 100% equity interest in Xinjiang Jinko Solar Co., Ltd., a wholly-owned subsidiary, for a total consideration of RMB 4.3 billion.

Product Types Covered:

• Solar Panels
• Charge Controllers
• Batteries
• Inverter
• Other Product Types

Technologies Covered:

• Photovoltaic Systems
• Concentrated Solar Power Systems
• Harnessing Technology
• Capturing Technology
• Other Technologies

Service Provided Covered:

• New Installation
• MRO

Solar Modules Covered:

• Cadmium Telluride
• Amorphous Silicon Cells
• Monocrystalline
• Polycrystalline
• Other Solar Modules

Applications Covered:

• Electricity Generation
• Lighting
• Heating
• Charging
• Other Applications

End Users Covered:

• Residential
• Commercial
• Industrial
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances