Solar Vehicle Market: Current Analysis and Forecast (2023-2030)

A solar vehicle is defined as an electric vehicle powered completely or significantly by direct solar energy. Usually, photovoltaic (PV) cells contained in solar panels convert the sun's energy directly into electric energy. The term "solar vehicle" usually implies that solar energy is used to power all or part of a vehicle's propulsion. Solar power may also be used to provide power for communications or controls or other auxiliary functions. Many players in the market are launching new products with technologically advanced features. For instance, in Nov 2022, Munich-based Sono Motors launched a Sion solar electric car in Finland. Also, in Jun 2022, Lightyear launched its world's first solar car with a 1000 km range by the end of 2022.

The Solar Vehicle Market is expected to grow at a steady rate of around 3% owing to the increasing adoption of the latest technology for vehicles coupled with the growing demand for energy-efficient sources and alternatives to fuel. For instance, in Aug 2019, Hyundai launched its first car with a solar roof charging system to improve fuel efficiency while preventing battery discharge and reducing CO2 emissions. Major companies in the market are adding Solar to their vehicles for reducing carbon-emission factors. For instance, in Aug 2022, Ford secured 650 megawatts of solar energy for carbon-free vehicle production in Michigan to reduce carbon neutrality.

Based on electric vehicle type, the market is segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), and Plug-in Hybrid Electric Vehicle (PHEV). Hybrid Electric Vehicle (HEV) category is expected to grow with a significant CAGR during the forecast period. This is mainly owing to the fact people are switching to HEVs due to which the need for solar vehicles, which can make use of both solar and electricity from the grid, is growing. Leading an opportunity for producers of solar cars to expand their product line and provide consumers with more sustainable, efficient options.

On the basis of battery type, the market is categorized into Lithium Ion, Lead Acid, and Lead Carbon. Among these, the Lithium Ion is expected to grow with a significant CAGR during the forecast period. This is mainly due to the presence of all necessary characteristics required for the operation of these vehicles offered by lithium ion battery. The battery has high energy density and a fast discharge capacity so that the charge cycle can be easily charged. In addition, a Lithium Ion battery offers the most efficient performance and makes it suitable for such vehicles with a high-power conversion ratio.

Based on solar panel, the solar vehicle market has been classified into Monocrystalline and Polycrystalline. The Monocrystalline category is expected to grow with a significant CAGR during the forecast period. This is mainly due to the factors that they are highly efficient and durable which makes them an attractive choice. Monocrystalline solar panels have higher energy efficiency so that they can produce more electricity from the same amount of sunlight. Furthermore, to meet the requirements of vehicles that need a durable and continuous source of energy, monocrystalline panels have an extra period of life that's greater than what is possible with all types of solar panels. Thus, such factors are expected to increase the demand for Monocrystalline solar vehicle in the market.

On the basis of end-user, the market is categorized into Passenger Vehicle and Commercial Vehicle. Among these, the Passenger Vehicle is expected to grow with a significant CAGR during the forecast period. To help improve the quality and range of Solar Passenger Vehicles, companies are looking at developing more effective panels and energy storage systems. In addition, there is growing demand from consumers for eco-friendly vehicles that could trigger a boom in solar power cars in passenger vehicles.

For a better understanding of the market adoption of the Solar Vehicle industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, Russia, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing concerns about air pollution, the need to reduce greenhouse gas emissions, and government initiatives to promote the use of electric and solar-powered vehicles in the region. The government of China has implemented several policies and initiatives to support the use of electric and solar-powered vehicles, including subsidies and tax incentives for manufacturers and consumers. This has led to a significant rise in the production and adoption of electric and solar vehicles in China. Other countries in the region, such as Japan, South Korea, and India, are expected to witness growth in this market in the forecasted years. These countries have also implemented policies and initiatives to promote the use of electric and solar-powered vehicles and there is growing interest among consumers in adopting these technologies. For instance, in Feb 2023, Pune startup to launch India's first solar electric car Eva in 2024. The car is designed to accommodate two adults and a child; contains 150-watt solar panels on the sunroof that can give it 10-12 km of range every day. It can be charged in four hours at home with a regular house socket and with a DC fast-charging option, it reaches 80 percent charge in 45 minutes.

Some of the major players operating in the market include: SONO MOTORS GmbH; Volkswagen; Ford Motor Company; Nissan Motor Co., Ltd.; Mahindra&Mahindra Ltd; Hyundai Motor Company; Tesla; Lightyear Technologies B.V.; Alke; VENTURI.