PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462710
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462710
According to Stratistics MRC, the Global Building-integrated Photovoltaics Market is accounted for $19.5 billion in 2023 and is expected to reach $92.3 billion by 2030 growing at a CAGR of 24.8% during the forecast period. Building-integrated photovoltaics (BIPV) seamlessly integrate solar cells into building materials, such as roofs, facades, or windows, to generate electricity. This innovative technology offers dual functionality, serving both structural and energy generation purposes. By utilizing underutilized building surfaces, BIPV systems maximize energy production while minimizing the need for additional land. With advancements in design and manufacturing, these solutions now come in various forms, blending aesthetics with sustainability.
According to the Fraunhofer Institute for Solar Energy Systems, Germany's global annual monocrystalline PV production share was around 80%, the highest among all other technologies.
Rising energy demand
As populations grow and urbanization accelerates, there's a heightened need for reliable electricity generation. Building-integrated photovoltaics addresses this demand by offering on-site renewable energy production integrated directly into buildings, reducing reliance on traditional power sources. This integration not only meets immediate energy needs but also contributes to long-term sustainability goals, mitigating carbon emissions and enhancing energy security. Consequently, the escalating energy demand acts as a significant driver, fostering greater adoption of building-integrated photovoltaics systems in both residential and commercial construction projects.
Higher upfront cost compared to traditional rooftop solar panels
While building-integrated photovoltaics offers aesthetic and architectural benefits by seamlessly integrating solar technology into building materials, its initial investment often exceeds that of conventional rooftop installations. This cost disparity may deter potential adopters, particularly in cost-sensitive markets, leading to slower adoption rates. Additionally, the perceived risk associated with the upfront investment could hinder widespread adoption, despite the long-term energy and cost-saving benefits.
Growing trend toward sustainable building standards
Sustainable building standards, such as LEED certification, prioritize energy efficiency and environmental responsibility, driving demand for renewable energy solutions like building-integrated photovoltaics. Integrating this system into building designs allows developers to meet stringent sustainability criteria while simultaneously generating clean energy on-site. This trend not only enhances the market appeal of building-integrated photovoltaics systems but also accelerates their adoption in both new construction and retrofit projects.
Lack of awareness and expertise
Many potential customers, including building developers, architects, and homeowners, may not be familiar with building-integrated photovoltaics technology or its benefits. Additionally, there is often a shortage of professionals with the necessary expertise to design, install, and maintain building-integrated photovoltaics systems effectively. This lack of awareness and expertise can lead to misconceptions, uncertainty, and reluctance to invest in building-integrated photovoltaics solutions thus hampers the growth of the market.
Covid-19 Impact
Initially, disruptions in supply chains, construction activities, and economic uncertainties hampered BIPV deployment. However, as the crisis underscored the importance of resilient and sustainable infrastructure, interest in building-integrated photovoltaics surged. Governments worldwide allocated stimulus funds towards green recovery initiatives, including renewable energy projects, driving market growth. Moreover, remote work trends led to increased focus on energy-efficient buildings, further stimulating demand for BIPV solutions. Despite initial setbacks, the pandemic ultimately accelerated the transition towards sustainable energy practices, positioning BIPV for long-term expansion.
The rooftop segment is expected to be the largest during the forecast period
The rooftop segment is estimated to have a lucrative growth, owing to their expansive surface area offers ample space for solar arrays, maximizing energy generation potential. Integration of BIPV into rooftops enhances building sustainability, reduces reliance on traditional energy sources, and mitigates carbon emissions. Moreover, rooftop installations facilitate decentralized energy production, promoting resilience and grid independence. As a result, the prevalence of suitable rooftops drives market growth, fostering innovation in BIPV technology and installation practices while accelerating the transition towards renewable energy adoption in the built environment.
The crystalline silicon PV segment is expected to have the highest CAGR during the forecast period
The crystalline silicon PV segment is anticipated to witness the highest CAGR growth during the forecast period, as the most widely deployed PV technology, crystalline silicon offers established efficiency, reliability, and cost-effectiveness, making it a preferred choice for BIPV applications. Its versatility allows for seamless integration into various building materials, including roofing, facades, and windows, enhancing aesthetic appeal while harnessing solar energy. The widespread availability and continuous advancements in crystalline silicon PV contribute to market scalability, driving down costs and expanding accessibility. Consequently, its prevalence bolsters the BIPV market.
Asia Pacific is projected to hold the largest market share during the forecast period owing to the countries like China, Japan, South Korea, and Australia are driving this growth, spurred by increasing urbanization, rising energy demand, and government incentives for renewable energy adoption. Moreover, China, with its ambitious renewable energy goals and large-scale infrastructure projects, has been a major player in the APAC BIPV market. Japan has also been a significant market, particularly in residential BIPV installations. South Korea and Australia have shown increasing interest in BIPV, driven by sustainability initiatives and incentives.
North America is projected to have the highest CAGR over the forecast period, owing to stringent energy efficiency standards and environmental regulations were driving demand for sustainable building solutions, including BIPV, in many North American jurisdictions. Additionally, some regions were mandating the integration of renewable energy systems into new construction projects. Furthermore growing competition among BIPV manufacturers and installers was leading to innovation in product design, cost reduction, and service offerings, thereby expanding the market and driving down prices.
Key players in the market
Some of the key players in the Building-integrated Photovoltaics Market include ONYX Solar Group LLC, Solarday, Merck KGaA, AGC Inc., Changzhou Almaden Co. Ltd, Ertex Solartechnik GmbH, Hanergy Holding Group Limited, Canadian Solar Inc., Belectric, Greatcell Solar Limited, Carmanah Technologies Corporation, Heliatek Gmbh, Tesla Inc, Solaria Corporation, NanoPV Solar Inc., ViaSolis, Polysolar Domestic, Issol SA and Nanoflex Power Corporation
In January 2024, Merck and China Resources Power Enter into Long-Term Green Power Agreement to Reduce Carbon Footprint in China. This initiative advances Merck's goal of increasing its worldwide purchased electricity from renewable sources to 80% by 2030 and becoming climate-neutral by 2040.
In January 2024, Merck Expands Colorectal Cancer Portfolio Through Licensing Agreement with Inspirna. Strategic agreement builds on the heritage of ERBITUX(R) (cetuximab) and complements the company's expertise and ongoing development programs in colorectal cancer.