According to Custom Market Insights (CMI), the global Solar PV (Photovoltaic) market was valued at approximately USD 161.15 billion in 2021 and is expected to reach USD 253.11 billion by the end of 2022. By 2030, the market is projected to reach USD 306.16 billion, representing a compound annual growth rate (CAGR) of approximately 8.3% during the forecast period from 2022 to 2030.

Photovoltaic (PV) cells, also known as solar cells, convert solar energy into a flow of electrons, which generates electricity. The energy from sunlight is directly captured and converted into electrical energy that can be used to charge equipment’s batteries. Initially, photovoltaic (PV) cells were used primarily in spacecraft and organic satellites. Over the past few years, these cells have also been used to generate electricity through grid connections. The solar panel consists of a photovoltaic system made from crystalline silicon cells, which are capable of converting light energy into electric energy. Crystalline silicon cells are widely used in most solar panels, accounting for about 95% of the market, with the remaining 5% relying on experimental organic photovoltaic cells.

You can browse the full “Solar Photovoltaic (PV) Market Size, Trends and Insights By Technology (Thin Film, Crystalline), By Product (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon, Copper Indium Gallium Di-Selenide), By Connectivity (On-Grid, Off-Grid), By Mounting (Ground-mounted, Rooftop), By End-use (Residential, Commercial & Industrial, Utility), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2022–2030” report at: https://www.custommarketinsights.com/report/solar-photovoltaic-market/.

Market Dynamics

Growth Drivers

The growth of solar panel energy production can be attributed to several factors. Increased awareness of the need for a pollutant-free environment and the growing potential of the industry are some of the key driving forces behind its growth. Solar PV panels serve as an effective and valuable alternative to fossil fuels, which take thousands of years to become usable resources. In contrast, photovoltaic (PV) systems offer low-carbon-intensive technologies, making them highly suitable for residential, commercial, and industrial sectors.

Silicone cells are the primary components used in PV systems. Silicone is an ideal material for use in solar panels due to its affordability and durability. The long lifespan of silicone-based solar panels makes them a durable investment over time, contributing to the growing adoption of solar PV technology.

Restraints

One of the primary challenges faced by the solar PV market is the large amount of land required for setting up solar power panels and their subsequent power generation. Certain environmental concerns associated with the use of land for solar panel installation can also impede market growth. Using land in restricted areas such as wetlands, forests, or water bodies may not be feasible due to environmental or technical reasons. These land-use challenges limit the widespread deployment of solar PV panels and could affect the market’s growth in the future.

Opportunities

Governments around the world have introduced several schemes, incentives, and reforms to promote solar energy, including tariffs, auctions, and tax exemptions, all of which encourage the adoption of photovoltaic technology. These government initiatives, coupled with technological advancements and the rising demands of environmentally-conscious consumers, create significant opportunities for market growth. The reduction in pollution-producing substances, coupled with increased industrial competitiveness and lower costs, further boosts the growth prospects for solar PV panels.

Challenges

Despite these opportunities, there are several challenges that could affect the growth of the solar PV market. The high cost of deploying modern solar technologies, particularly related to production and installation, continues to be a challenge. Additionally, the maintenance of these solar power systems incurs additional costs for manufacturers and end-users. The lack of skilled workers to manage these advanced technologies also poses a challenge, as a trained labor force is required to handle the complex nature of solar panel installation and maintenance. Furthermore, the rising incidence of cybercrime and data theft can make the solar PV infrastructure vulnerable, leading to concerns regarding the security of critical information stored in the grid.

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Segmental Highlights

By Technology

The global solar photovoltaic market is segmented into two key technologies: thin-film and crystalline silicon. Among these, the thin-film segment has emerged as a dominant player in the global PV market due to its lightweight and flexible nature. Thin-film solar panels are widely adopted in the commercial and utility sectors because of their narrow, flexible design and lower installation costs.

By Mounting

The market is further categorized into ground-mounted and rooftop solar panels. The ground-mounted segment holds the largest market share, driven by the growing installation of high-capacity ground-mounted solar panels, which is expected to drive significant market growth during the forecast period.

By Grid Connectivity

Based on connectivity, the market is divided into on-grid and off-grid systems. The off-grid segment is expected to dominate the market during the forecast period, driven by the growing demand for solar power solutions in remote and isolated locations. Off-grid systems are also favored for their low operational maintenance costs and ability to generate electricity at a low cost, which is transmitted to power grids without the need for a storage battery.

By End-user

The solar photovoltaic market is segmented by end-user into residential, commercial & industrial, and utility sectors. The utility sector is expected to hold the largest market share, driven by increasing investments from both government and commercial sectors in solar PV systems. Large-scale projects like solar power plants, parks, and other solar structures are driving growth in this segment due to their ability to provide high-efficiency solutions with lower Levelized Cost of Energy (LCOE) and reduced manufacturing and installation costs.

Regional Snapshots

Asia-Pacific

The Asia-Pacific region holds the largest market share in the solar photovoltaic market, with significant growth expected throughout the forecast period. The rise in demand for solar panels across the region is driven by government initiatives and the rapid installation of solar power plants in countries like India and China. These countries have heavily invested in solar energy infrastructure, which has boosted the overall market for solar panels in the region.

North America

In North America, significant growth is expected in the solar PV market due to strong competition among key players and the ongoing launch of cost-efficient solar panels. The region has benefited from government schemes and reforms such as Feed-in tariffs, net metering, and investment subsidies, which have expanded the adoption of solar PV technology.

Mexico and Other Regions

In Mexico, the adoption of solar energy is increasing due to ongoing projects, such as the LTA (Long-Term Auction) projects from 2015-2018, which have expanded solar panel installations in the country. Mexico is projected to continue increasing its solar power generation capacity in the coming years. In Africa and the Middle East, large-scale solar power plants are being established, with expectations for continued growth in these regions.

Key Market Players in Solar PV Market

The global solar PV market is home to numerous companies contributing to the expansion of the solar panel industry on both regional and global scales. These companies focus on research and development, technology sourcing, and maintaining a skilled workforce to drive industrial growth.

Prominent players in the global solar PV market include:

  • SunPower Corporation

  • First Solar

  • Jinko Solar

  • JA Solar

  • Trina Solar

  • Hanwha Q-Cells

  • Risen Energy

  • Talesun

  • LONGI Solar

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