Photovoltaic Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for solar cells will be worth about $95 billion in 2023, and will grow to $ 126 billion in 2030, at a compound annual growth rate of 9. 0 percent. This is a reflection of the increasing use of solar energy as a viable alternative to fossil fuels, a shift that is driven by the urgent need to combat climate change. The growing demand for clean energy is complemented by government support and policy initiatives. The market is also driven by technological developments, including improvements in the efficiency of solar cells, the development of energy storage solutions, and the evolution of smart grids. The leading companies, such as First Solar, Sunpower, and Canadian Solar, are investing heavily in R & D to improve the performance of their products and to reduce costs. Their strategic alliances and investments in next-generation solar technology will further strengthen their positions in the market. The market for solar cells is set to continue to grow, a growth that is based on technological development and policy support.

Regional Market Size

Regional Deep Dive

The photovoltaic (PV) market is growing rapidly across the world, driven by increasing demand for clean energy, technological advancements, and supportive government policies. Each region has its own unique characteristics that affect the market’s growth. These include varying levels of solar irradiance, regulatory frameworks, and economic conditions. The market will continue to grow as countries strive to meet climate goals and reduce carbon emissions. As the technology evolves, new financing models will further enhance its appeal.

Europe

• The European Union's Green Deal aims to make Europe the first climate-neutral continent by 2050, driving substantial investments in solar energy technologies and infrastructure.
• Germany continues to be a leader in the PV market, with the government implementing feed-in tariffs and auction systems that encourage the adoption of solar energy among residential and commercial users.

Asia Pacific

• China remains the world's largest producer and consumer of solar panels, with companies like JinkoSolar and Trina Solar dominating the market, supported by government policies that promote renewable energy.
• India's ambitious target to achieve 100 GW of solar power by 2022 has led to significant investments in solar parks and rooftop solar installations, with the Solar Energy Corporation of India (SECI) facilitating large-scale projects.

Latin America

• Brazil is emerging as a key player in the PV market, with the government implementing net metering policies that encourage residential solar installations and attract foreign investment.
• Chile's Atacama Desert, known for its high solar irradiance, has become a hotspot for solar energy projects, with companies like Enel Green Power investing heavily in large-scale solar farms.

North America

• The U.S. has seen a surge in utility-scale solar projects, with companies like NextEra Energy and First Solar leading the charge, supported by federal tax incentives such as the Investment Tax Credit (ITC).
• California's ambitious goal to achieve 100% clean energy by 2045 has spurred significant investments in solar infrastructure, with the state accounting for nearly half of the total solar capacity installed in the U.S.

Middle East And Africa

• The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the largest renewable energy projects in the region, showcasing the potential for solar energy in arid climates.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has successfully attracted international investment, leading to a rapid increase in solar capacity across the country.

Did You Know?

“As of 2023, the global solar PV capacity has surpassed 1,000 GW, enough to power over 200 million homes worldwide.” — International Energy Agency (IEA)

Segmental Market Size

The market for photovoltaics (PV) is booming, thanks to the growing demand for alternative energy and the technological advances in the industry. A number of factors are driving this growth, including greater public awareness of sustainable development, the existence of tax incentives, the introduction of renewable energy targets and technological developments that have made the systems more efficient and cheaper. In regions such as California and Germany, large-scale solar farms and the increasing number of residential systems are evidence of the maturity of the market. Companies such as First Solar and SunPower are at the forefront of the industry, which is now being deployed on a large scale. These applications are now mainly rooftop systems, commercial systems and utility-scale systems that are increasingly being integrated into the grid. In the longer term, the sector will benefit from the growing demand for energy and the need to limit greenhouse gas emissions. In addition, the development of smart grids and the improvement in energy storage are reshaping the market, enabling more efficient energy production and consumption.

Future Outlook

The solar market will be growing from 2023 to 2030. It is expected to grow from $95 billion to $126 billion, at a compound annual growth rate of 9.0 percent. It is a combination of the growing demand for energy from renewable sources, the advancement of solar technology and the support of government policies to reduce greenhouse gas emissions. The share of solar energy in the world's electricity generation will reach 20 percent in 2030, up from 10 percent in 2023, which will lead to a significant increase in penetration in all regions, especially in Asia-Pacific and North America. The key technology drivers will be the development of more efficient photovoltaic cells, such as bifacial and perovskite solar cells, which will increase the energy conversion efficiency and reduce the cost of solar energy. In addition, the integration of energy storage and smart grid technology will facilitate the adoption of solar energy, making it more convenient for both commercial and residential users. Government policies, such as subsidies and subsidies, will also stimulate the market. The new trend of community-based solar projects and the rise of solar-as-a-service will change the competition and give consumers more convenient and flexible ways to use solar energy.