Global Solar PV Panels Market - 2024-2031

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.

The global Solar PV Panels market is experiencing robust growth, driven by increasing demand for renewable energy sources, favorable government policies and advancements in solar technology. Solar PV Panels or photovoltaic panels, are essential components of solar energy systems, converting sunlight into electricity through the photovoltaic effect. These panels are widely used in residential, commercial and utility-scale applications, contributing significantly to global efforts to transition toward cleaner and more sustainable energy systems.

The market is further propelled by initiatives to meet carbon reduction targets set by international frameworks like the Paris Agreement. According to the International Energy Agency (IEA), solar PV is expected to account for nearly 80% of the growth in renewable capacity additions by 2030. Declining costs of solar PV panels and supportive government policies are crucial factors driving this growth. As nations prioritize sustainability, Solar PV Panels will remain at the forefront of renewable energy solutions, transforming the global energy landscape.

Asia-Pacific has emerged as the fastest-growing market for solar photovoltaic (PV) panels, largely due to significant installations in major countries such as China, India and Japan. In 2023, China alone accounted for an impressive 57% (253 GW) of global solar installations, equating to the total capacity added worldwide in 2022. The cost of solar panels has dramatically decreased over the past decade, with prices dropping by approximately 82% from 2010 to 2022. This reduction has made solar energy a more accessible and economically viable option for both residential and commercial users in Asia-Pacific.

Dynamics

Technological Advancements and Cost Reduction

The continuous evolution of solar PV panel technology has significantly enhanced efficiency and reduced costs. Innovations in materials such as monocrystalline silicon and perovskite cells are making Solar PV Panels more efficient in converting sunlight into electricity. According to the U.S. Department of Energy (DOE), there has been a 64%, 69% and 82% reduction in the cost of residential, commercial-rooftop and utility-scale PV systems, respectively, between 2010 and 2020, making solar energy one of the most cost-effective renewable energy sources.

The declining cost of battery storage systems has also made Solar PV Panels more viable, enabling reliable energy storage and addressing intermittency issues. For example, Tesla's Powerwall and similar products allow households and businesses to store solar energy for use during non-sunny periods, enhancing energy independence and resilience. This integration not only boosts energy independence for households and businesses but also contributes to resilience in energy supply.

Rising Energy Demand and Climate Goals

Global energy demand is rising, driven by population growth, urbanization and industrialization. The International Renewable Energy Agency (IRENA) estimates that meeting global climate goals will require renewable energy capacity to increase threefold by 2050, with solar PV playing a pivotal role. Similarly, Governments worldwide are implementing favorable policies and incentives to encourage the adoption of Solar PV Panels. The U.S. Inflation Reduction Act (IRA) of 2022 provides significant tax credits for solar installations, boosting both residential and commercial adoption.

Countries like China, India and the United States are leading solar PV adoption. For instance, China installed 125 GW of solar capacity in 2023, accounting for nearly 55% of global solar additions, as reported by the National Energy Administration (NEA) of China. Similarly, India's Ministry of New and Renewable Energy (MNRE) has set an ambitious target of 280 GW of solar capacity by 2030 under its National Solar Mission.

Supply Chain Disruptions and Land Acquisition Issues

The Solar PV Panels market has experienced significant challenges including supply chain disruptions, land acquisition difficulties for large-scale projects and limited energy storage capacities. The ongoing Russia-Ukraine conflict has further exacerbated these supply chain issues, particularly affecting the availability and prices of critical materials such as polysilicon and silver, which are essential for solar panel production.

Moreover, the intermittent nature of solar energy presents additional challenges for grid stability. Without efficient energy storage solutions, excess energy generated during peak sunlight hours cannot be stored for later use, thus affecting the reliability of solar power systems. Similarly, Land acquisition for large-scale solar projects poses a significant hurdle. As the need for expansive installations grows, conflicts with land use priorities and environmental concerns become more pronounced.

Segment Analysis

The global solar PV panel market is segmented based on technology, grid, installation, application and region.

Rising Demand in Residential Consumers Due to Reduce Electricity Bills and Achieve Energy Independence

The residential sector is increasingly recognized as a pivotal contributor to the growth of the Solar PV Panels market, driven by homeowners' desires to reduce electricity costs and achieve energy independence. In 2023, the Solar Energy Industries Association (SEIA) reported that the US solar market installed 32.4 GWdc of capacity in 2023, a remarkable 51% increase from 2022, reflecting a broader trend of adopting renewable energy solutions.

This surge in installations can be attributed to several interrelated factors, including the rising costs of traditional energy sources, the decreasing prices of solar technology and supportive government policies that incentivize solar adoption. Moreover, the residential sector's momentum is bolstered by advancements in solar technology and financing options that make solar installations more accessible. As homeowners become more aware of climate change and its implications, there is a growing willingness to invest in energy-efficient measures.

According to the Solar Energy Industries Association (SEIA), the U.S. solar industry added a record-shattering 32.4 gigawatts (GW) of new electric generating capacity in 2023, a 37% increase from the previous record set in 2021 and a 51% increase from 2022. This expansion is indicative of a broader shift towards renewable energy sources as households seek alternatives to conventional power grids.

Geographical Penetration

Strong Government Support In Asia-Pacific

Asia-Pacific also holds the largest market share, driven by strong government support and corporate investments in solar PV technologies. According to China's NEA, the country's cumulative solar capacity reached 609.49 GW by the end of 2023, making it the world leader in solar energy. India is also emerging as a major player, in 2023, India added 9.7 GW of solar PV capacity, ranking fifth globally for new installations and cumulative capacity, which reached 72.7 GW by the end of the year, as per MNRE.

Government initiatives such as rooftop solar schemes and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme are driving adoption in rural and agricultural areas. Furthermore, Japan remains a significant market due to its feed-in-tariff (FIT) system and high electricity prices, making solar PV a cost-competitive alternative. According to the Ministry of Economy, Trade and Industry (METI) of Japan, the country aims to achieve 108 GW of solar capacity by 2030.

Competitive Landscape

The major global players in the market include ABB, Canadian Solar, Hanwha Q CELL, Huawei, JA Solar, JinkoSolar, LONGi, Mitsubishi Electric, Sharp and Trina Solar.

Sustainability Analysis

The solar photovoltaic (PV) industry plays a crucial role in achieving sustainability goals by significantly reducing greenhouse gas emissions and reliance on fossil fuels. According to the Carbon Trust, substituting coal-based electricity with solar PV can lead to an impressive 80% reduction in emissions. The industry is also addressing concerns about solar panel waste through advancements in recycling technologies, bolstered by initiatives like the EU's Waste Electrical and Electronic Equipment (WEEE) directive.

This directive mandates that manufacturers are responsible for the disposal and recycling of solar panels, ensuring that the environmental impact of end-of-life products is minimized. Innovations in manufacturing processes are further decreasing the carbon footprint associated with solar panel production, enhancing the overall sustainability of the industry. As a result, the solar PV sector not only contributes to cleaner energy generation but also promotes responsible waste management practices, making it a vital component of the transition towards a more sustainable future.

AI Impact in the Solar PV Panels Market

Integration of Artificial Intelligence (AI) into the solar photovoltaic (PV) market is transforming solar energy production, management and consumption. AI technologies significantly enhance solar forecasting by analyzing vast datasets, including historical weather patterns and real-time meteorological data. For instance, pilot project in India, AI-driven forecasting models reduced the gap between predicted and actual solar power generation by 30%.

Similarly, AI is revolutionizing the manufacturing processes of solar panels by improving quality control and reducing production costs. Advanced computer vision technologies are employed to inspect solar modules during production, detecting defects that may affect efficiency. For instance, Deeptech solar startup Renkube is developing an AI-powered light-harvesting glass that helps panels gather more sunlight and redirect it to solar cells to increase energy yield.

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
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In October 2024, Adani Group strategically merged Adani Infrastructure Private Limited and Mundra Solar Technology Limited into its green hydrogen and wind turbine manufacturing arm, Adani New Industries Ltd. (ANIL), to bolster its position in the renewable energy sector. This move aligns with Adani's commitment to advancing green energy technologies, with the amalgamation enhancing its capabilities in solar power project development, engineering and project management.
• In April 2024, ABB introduced the ACQ80 solar pump VSD, an innovative solution tailored to the growing demand for sustainable water pumping systems in the solar PV market. This versatile drive can operate off-grid using solar power or blend AC and DC inputs for uninterrupted operation, making it ideal for agricultural irrigation, livestock watering and water utilities in areas with limited grid coverage.
• In April 2024, Huawei introduced the LUNA S1, a new all-in-one residential storage solution for the solar PV market, integrating a battery, inverter, optimizer and energy management system in a single device.

Why Purchase the Report?

• To visualize the global solar PV panel market segmentation based on technology, grid, installation, application and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the solar PV panel market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global solar PV panel market report would provide approximately 70 tables, 65 figures and 207 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies