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

Solar Energy generation increased by 22%, an amount of 179*TWh in 2021 to exceed 1,000*TWh overall power. Solar PV is one of the world's lowest-cost options for electricity generation. Solar PV accounts for nearly 3.6% of electricity generation globally and it is the third largest renewable electricity technology behind wind and hydropower. The rise in solar technology has led to innovative products that are integrated with solar panels. Products such as solar lights have even been incorporated into various government projects around the world.

The Solar Appliances Market is expected to grow at a strong CAGR of 12.8% during the forecast period owing to the rising sale of solar panels and increasing investment in the renewable sector. Moreover, the need to meet net zero emission goals across the globe in various countries and rising consumer awareness towards environmentally friendly energy is acting as a catalyst in the growth of the Solar Appliances Market globally during the projected period. Solar power generation needs to grow by a CAGR of 25% for the period of 2022-30 in order to meet the targets set by the Net Zero Emissions 2050 policy.

Countries worldwide are heavily investing in renewable energy to meet their renewable energy targets. The solar energy market is one of the prominent sources of energy that has seen a massive boom in the last decade. For instance, In the USA, one of the leading nations for solar power, solar has experienced an average annual growth rate of 33% in the last decade alone. Thanks to strong federal policies like the Solar Investment Tax Credit, rapidly declining costs, and increasing demand across the private and public sectors for clean electricity, more than 140 gigawatts of solar capacity are installed nationwide, enough to power 25 million homes.

Based on Type, the Solar Appliances market is bifurcated into Solar Photovoltaic and Solar Thermal segments. The Solar Photovoltaic segment acquired a majority share in the Solar Appliances market and is expected to register a substantial growth rate during the forecast period. A Solar Photovoltaic appliance is an appliance that is connected to electricity-generating solar panels mounted on a building, structure, or on the appliance itself. Most Solar Photovoltaic appliances are usually residential and commercial. Solar Photovoltaic systems are growing on account of the massive integration of these solar appliances in government projects which is acting as a major driver during the forecast period.

Based on Appliance, the Solar Appliances market is divided into Solar Lighting & fan, Solar water heater, solar freezer, solar inverter & generator and others segments. The solar inverter & generator segment acquired a substantial share as backup energy is one of the main reasons people shift towards solar energy. The solar lighting and fan segment would showcase high growth on account of their rising adoption in government projects as the majority of countries are shifting towards renewable energy. The rising green laws are acting as a catalyst in the growth of Solar Lighting & fans globally during the forecast period.

Based on Application, the Solar Appliances market is divided into Residential, Commercial, and Industrial segments. The Commercial segment acquired a majority share in the Solar Appliances market and is expected to showcase a substantial growth rate during the forecast period. Commercial PV remains the most competitive source of PV generation globally. Moreover, Solar PV is the main choice for the private sector if they want to invest in renewable energy. Companies investing in distributed (including Solar Photovoltaic) solar PV installations on their commercial buildings and premises are responsible for around 30% of the total installed PV capacity, moreover, Companies are entering into corporate power purchase agreements with solar PV plant operators. Solar appliances bought by Government contracts which make up a substantial source of investment in the solar appliance market are also included in the commercial segment.

For a better understanding of the market adoption of the Solar Appliances industry, the market is analyzed based on its worldwide presence in countries such as North & South America (U.S.A., Brazil, Rest of North & South America), Europe (Germany, Netherland, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Rest of World. APAC registered the highest market share in the Solar Appliances market and is expected to witness an influential CAGR in the forecasted period. It is mainly owing to many Solar energy projects taking place in China, India, Australia, and Japan. Moreover, favorable government policies, regulations, and investments in achieving renewable energy targets set by various countries are driving the market. For instance: In Australia, the Australian government will provide AUD 14 million to support 5B's AUD 33.4 million strategic technology innovation project through the Australian Renewable Energy Agency; In Japan, the Japanese government allocated 8 billion yen in the 2021 national budget to support the introduction of independent solar power generation equipment and storage batteries including electric vehicles through on-site PPA; and in India, the Government of India announced an additional capital infusion of Rs. 10 billion to the Solar Energy Corporation of India and Rs.15 billion to the Indian Renewable Energy Development Agency.

Some of the major players operating in the market include: Solaria, Canadian Solar, Trina Solar, SunPower, LG Solar, Hanwha Q Cells, JinkoSolar, First Solar, Schneider Electric, and Yingli Solar.