Solar Tracker Market Size, Share, Growth Analysis, By Product Type (Single axis, Dual axis), By Technology, By Application, By Region - Industry Forecast 2024-2031

Global Solar Tracker Market size was valued at USD 7.4 billion in 2022 and is poised to grow from USD 8.9 billion in 2023 to USD 31.4 billion by 2031, growing at a CAGR of 17.1% during the forecast period (2024-2031).

The global solar tracker market is poised for significant growth, driven by advancements in machine learning and AI technology. A prime example is Nextracker's acquisition of BrightBox Technologies, leading to the development of the TrueCapture smart tracker control system after extensive R&D. However, the industry faced challenges during the Covid-19 pandemic, with rising shipping costs resulting in substantial financial losses for businesses. Consequently, major players are seeking cost-effective shipping solutions to mitigate these challenges. FTC Solar is investigating breakbulk shipping options to reduce logistics expenses, which soared to over $10 million in Q2 2021, impacting profitability. As companies adapt to these economic pressures, the innovation in solar tracking technology continues to reshape the landscape of renewable energy.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Solar Tracker market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Solar Tracker Market Segmental Analysis

North America will maintain the top spot in the global market during the forecast period owing to the United States' 2021 deployment of solar trackers, which will surge the demand for goods throughout the region and increase the operational efficiency of the installed panels. Furthermore, the presence of prominent market players in the region and constant mergers and acquisitions taking place among them will boost the global solar tracker market during the forecast period. For example, the master supply agreement (MSA) between Silicon Ranch, one of the biggest independent power producers in the country, and Nextracker LLC, the leading supplier of intelligent, integrated solar tracker and software solutions, will see 1.5 gigawatts (GW) of Nextracker's solar tracker technology delivered to Silicon Ranch projects through 2024, with options to increase as Silicon Ranch's portfolio expands.

Driver of the Global Solar Tracker Market

The Global Solar Tracker market is primarily driven by advancements in solar technology and sustainable energy solutions, which have enabled rapid deployment and cost-effective decarbonization of the energy sector. The modular nature of solar tracking systems has garnered increasing recognition as a vital component in promoting energy equity for diverse enterprises. For example, Mahindra Sustain's collaboration with NEXTracker for the Sakaka Solar Park, part of Saudi Arabia's renewable energy initiative, highlights the sector's growth potential, aiming for a capacity of 9.5 GW by 2023. Additionally, the International Energy Agency projects a significant increase in renewable energy's share in global power capacity, with solar photovoltaic systems expected to contribute substantially by 2026, making renewable energy a viable alternative to fossil fuels due to its lower carbon emissions.

Restraints in the Global Solar Tracker Market

One significant factor restraining the growth of the global solar tracker market is the rising cost of steel, which is a crucial component of most utility-scale tracking systems. Steel typically makes up over 60% of the total expenses associated with these systems, driving up their overall price. Moreover, in comparison to conventional solar panel installations, the costs of solar tracking systems are considerably higher, which can deter adoption in residential settings where energy demands tend to be lower. For instance, installing 15 ground-mounted solar panels with a power rating of 300 watts can cost around USD 14,625, with an additional USD 500 per module for installation, highlighting the financial barriers that may impede market expansion.

Market Trends of the Global Solar Tracker Market

The Global Solar Tracker market is experiencing significant growth, fueled by the increasing adoption of innovative technologies that enhance operational efficiency and financial performance in renewable energy. By leveraging advanced tracking systems that utilize real-time weather data and terrain analysis, companies like Nextracker are revolutionizing solar energy management. Their integration of over 400,000 sensor-equipped trackers enables predictive maintenance, allowing for proactive detection and resolution of potential issues, thus lowering costs and optimizing performance. This trend not only maximizes energy output but also aligns with global sustainability goals, positioning solar trackers as essential assets in future renewable energy projects.