PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485816
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485816
Agrivoltaics Market size was valued at USD 2,981.09 million in 2023, expanding at a CAGR of 10.21% from 2024 to 2032.
Agrivoltaics offers a novel approach to mitigate the impacts linked to the primary sector by enhancing crop efficiency and minimizing environmental consequences, among various other advantages. By optimizing land utilization, agrivoltaic installations serve a dual purpose of farming and power generation. This approach promotes decentralized energy production and self-consumption, as the electricity generated can be utilized to meet the energy needs of these farms, thereby reducing energy reliance and associated expenses. An excellent example of agrivoltaics in practice presently is the implementation of photovoltaic greenhouses. In this development, the photovoltaic panels are installed on the outer surface of the greenhouse's plastic roof, acting as a canopy that maintains ideal humidity and temperature conditions within.
Agrivoltaics Market- Market Dynamics
The rising Adoption of renewable energy is expected to drive the growth of the market
Agrivoltaics offers an appealing solution as it enables farmers to simultaneously produce renewable energy and cultivate crops. With the world's growing emphasis on sustainability and the fight against climate change, renewable energy sources such as solar power are gaining popularity. According to the International Energy Agency (IEA), renewable capacity is projected to account for 35% of global power generation by 2025. Additionally, the Energy Information Administration anticipates that solar power will contribute to over half of the new capacity in the United States by 2023. Moreover, ongoing research and innovation in Agrivoltaics technology present promising opportunities for market growth. However, the compatibility with existing farming practices may pose a constraint on the expansion of the market.
Agrivoltaics Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 10.21% over the forecast period (2024-2032)
Based on System Design segmentation, Fixed Solar Panels was predicted to show maximum market share in the year 2023
Based on Cell Type segmentation, Monocrystalline was the leading type in 2023
Based on Crop Type segmentation, Leafy greens were the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Agrivoltaics Market is segmented based on System Design, Cell Type, Crop Type, Power Output, and Region.
The market is categorized into two groups according to System Design: Fixed Solar Panels and Dynamic. Fixed Solar Panels hold the majority in the market. Fixed solar panels provide stability and durability, making them ideal for long-term agrivoltaic installations. Their stationary nature simplifies maintenance and minimizes the chances of mechanical failure in comparison to tracking systems.
The market is categorized into two sections according to Cell Type: Monocrystalline and Polycrystalline. Monocrystalline holds the majority share in the market. Monocrystalline solar panels are known for their superior efficiency rates in comparison to other solar panel types, enabling them to produce more electricity per square meter of surface area. This high efficiency is especially advantageous in agrivoltaic systems, where space constraints may exist.
The market is categorized into three groups according to the type of crops: Fruits, Leafy Greens, and Root Crops. Leafy Greens hold the majority share in the market. Leafy greens possess a high water demand, and the scarcity of water is a major issue in the field of agriculture. The presence of solar panels in agrivoltaic systems provides shade, which aids in minimizing water evaporation from the soil. Consequently, this leads to enhanced water preservation. This advantage is especially advantageous for leafy greens, as they are more prone to experiencing drought stress.
The market is categorized into three sections based on Power Output: Up to 10 MWp, 10.1 to 50 MWp, and More than 50 MWp. Within each power output category, agrivoltaic projects offer advantages such as land optimization, agricultural coexistence, renewable energy generation, and economic diversification. However, the extent of these benefits grows with the project's size.
Agrivoltaics Market- Geographical Insights
The market for Agrivoltaics is spread out across various regions globally, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further segmented based on the countries participating in the industry. North America stands out as the leading region in the market, showcasing significant progress in agricultural methods. Despite possessing vast agricultural land, North America encounters challenges like population growth, urbanization, and competing land uses that affect traditional farming practices. Agrivoltaics emerges as a solution by enabling farmers to enhance land utilization efficiency, produce renewable energy, and sustain agricultural output on the same land. The integration of precision agriculture technology can result in cost reductions of up to 15% and yield enhancements of up to 13%. As per agricultural data, 45% of farms in the US utilize a yield monitor, a prevalent precision agricultural tool. Europe follows as the second-largest region for market expansion, primarily fueled by concerns related to escalating water scarcity and swift climate change.
The competitive landscape of the agrivoltaics market is heavily influenced by companies that produce solar panels. Solar panel manufacturers compete based on criteria like efficiency, durability, cost-effectiveness, and technological advancements. Additionally, research institutions and academia play a significant role in advancing the agrivoltaics market through scientific research, innovation, and knowledge sharing. These entities focus on studying agrivoltaic systems, crop-solar interactions, and system optimization to drive progress in the industry. Competition within research institutions and academia is centered on securing research funding, publication impact, and intellectual property moralities.
European societies are confronted with the formidable challenge of achieving net-zero emissions by 2050. To accomplish this ambitious goal, it is imperative to utilize all available tools and viable solutions to enhance the proportion of clean energy production while minimizing any further harm to the environment. An exceptional opportunity lies in the intelligent integration of two existing resources: agricultural activity and solar energy generation through photovoltaic (PV) panels.
Boralex, a renewable energy producer, is collaborating with Sun'Agri, a pioneer of agrivoltaism and a global leader, to work together on developing agrivoltaics in France and Europe. Their partnership aims to create innovative solar power plants that not only generate clean energy but also provide protection to farms against the growing threat of adverse weather conditions.
GLOBAL AGRIVOLTAICS MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Agrivoltaic Solution LLC
Sun Agri
REM TEC
Enel Green Power
Boralex
BayWa AG
TotalEnergies
Mackin Energy
Sunrise Power Solutions
Suntech Power Holdings
Others