Solar PV Panels Market Size
Global Solar PV Panels Market reached US$ 125.78 billion in 2023 and is expected to reach US$ 238.37 billion by 2031, growing with a CAGR of 8.3% during the forecast period 2024-2031.
Solar photovoltaic (PV) panels are devices that convert sunlight into electricity through the photovoltaic effect. These panels are made up of semiconductor materials, typically silicon, that absorb sunlight and generate electrical currents. Solar PV panels are widely used in residential, commercial, and industrial applications to harness renewable energy, reduce electricity costs, and minimize environmental impact.
The growing focus on sustainable energy sources has significantly boosted the demand for solar PV panels. They offer a clean, renewable energy solution, reducing reliance on fossil fuels and contributing to the fight against climate change. With advancements in technology, solar panels are becoming more efficient, cost-effective, and versatile, making them a key component in global energy transitions toward greener, more sustainable energy systems.
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Market Growth Drivers:
Technological Advancements and Cost Reduction
The ongoing advancements in solar PV panel technology have greatly improved efficiency and lowered costs. Innovations in materials, including monocrystalline silicon and perovskite cells, are increasing the ability of Solar PV Panels to convert sunlight into electricity. According to the U.S. Department of Energy (DOE), between 2010 and 2020, the cost of residential, commercial-rooftop, and utility-scale PV systems dropped by 64%, 69%, and 82%, respectively. These reductions have made solar energy one of the most affordable renewable energy options available.
Rising Energy Demand and Climate Goals
Global energy demand is growing, fueled by population growth, urbanization, and industrialization. The International Renewable Energy Agency (IRENA) predicts that achieving global climate targets will require a threefold increase in renewable energy capacity by 2050, with solar PV playing a crucial role. In response, governments around the world are introducing supportive policies and incentives to promote the use of Solar PV Panels. For example, the U.S. Inflation Reduction Act (IRA) of 2022 offers substantial tax credits for solar installations, driving greater adoption in both residential and commercial sectors.
Supply Chain Disruptions and Land Acquisition Issues
The Solar PV Panels market has faced several challenges, including supply chain disruptions, difficulties in acquiring land for large-scale projects, and limited energy storage capacity. The ongoing Russia-Ukraine conflict has worsened these supply chain issues, particularly impacting the availability and cost of key materials like polysilicon and silver, which are crucial for manufacturing solar panels.
Market Segments:
By Technology: Monocrystalline Silicon, Polycrystalline Silicon, Thin-Film Technology, Others
By Grid: On-Grid, Off-Grid, Hybrid
By Installation: Ground-Mounted, Rooftop Solar Panels, Floating Solar Panels, Others
By Application: Residential, Commercial, Industrial, Utility-Scale
By Region: North America, Latin America, Europe, Asia Pacific, Middle East and Africa
Competitive Landscape
- ABB
- Canadian Solar
- Hanwha Q CELL
- Huawei
- JA Solar
- JinkoSolar
- LONGi
- Mitsubishi Electric
- Sharp
- Trina Solar.
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Regional Growth
Strong Government Support In Asia-Pacific
Asia-Pacific leads the global solar PV market, supported by strong government policies and significant corporate investments in solar technology. According to China’s National Energy Administration (NEA), the country’s total solar capacity reached 609.49 GW by the end of 2023, making it the global leader in solar energy. India is also gaining momentum, adding 9.7 GW of solar capacity in 2023. With a total of 72.7 GW of cumulative capacity by the end of the year, India ranked fifth globally for both new installations and total capacity, according to the Ministry of New and Renewable Energy (MNRE).
Government programs like rooftop solar schemes and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) are promoting solar adoption in rural and agricultural areas. Japan continues to be a key market, driven by its feed-in-tariff (FIT) system and high electricity prices, which make solar PV a cost-effective option. According to Japan’s Ministry of Economy, Trade, and Industry (METI), the country aims to reach 108 GW of solar capacity by 2030.
Key Development
In October 2024, Adani Group made a strategic move by merging Adani Infrastructure Private Limited and Mundra Solar Technology Limited into its green hydrogen and wind turbine manufacturing division, Adani New Industries Ltd. (ANIL). This consolidation strengthens Adani’s position in the renewable energy sector, aligning with its commitment to advancing green energy technologies and enhancing its capabilities in solar power project development, engineering, and project management.
In April 2024, ABB launched the ACQ80 solar pump VSD, a cutting-edge solution designed to meet the growing demand for sustainable water pumping systems in the solar PV market. This versatile drive can operate off-grid using solar power or combine AC and DC inputs for continuous operation, making it perfect for agricultural irrigation, livestock watering, and water utilities in areas with limited access to the grid.
Also, in April 2024, Huawei unveiled the LUNA S1, an all-in-one residential storage solution for the solar PV market. This innovative device combines a battery, inverter, optimizer, and energy management system into one compact unit, offering an efficient and seamless energy storage solution for homeowners.
