Solar Panel Market Overview
Global Solar Panel Market reached US$ 165.2 million in 2022 and is expected to reach US$ 642.3 million by 2031 growing with a CAGR of 18.5% during the forecast period 2024-2031. Solar panels consist of photovoltaic cell assemblies that are simple to install or set up, resulting in great portability. Government initiatives for off-grid energy access, increased penetration of portable and wireless energy efficient gadgets and growing concerns about the depletion of energy sources such as fossil fuels have all led to the global solar panel market's expansion.
During the forecast period 2024-2031, the commercial application sector is expected to account for more than 1/3rd of the global solar panel market. With rising power demand in data centres and communication base stations, rising use of solar energy as a source of energy in corporate offices, hospitals and hotels is likely to fuel demand for solar panels in the commercial sector.
Market Scope
| Metrics | Details |
| CAGR | 18.5% |
| Size Available for Years | 2023-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product, Mountings, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Demand for Green Energy in Commercial & Industrial Sectors
Owing to the widespread desire for green energy organizations in the commercial and industrial sectors are among the biggest users of solar photovoltaic panels. In many industries, installation economies of scale compensate for any reduction in panel efficiency, keeping solar PV systems profitable for large-scale generation. Due to net metering programmes for grid-connected systems and the availability of energy storage solutions for off-grid systems, the residential sector continues to gain traction in solar PV panel installations.
Many businesses have begun to build new solar PV plants and are expanding the capacity of their current installations. For example, Silicon Ranch said in February 2023 that it will increase the energy output capacity of its solar power plant. In addition, First Solar will offer 1.5 GW of sophisticated thin-film solar modules made in U.S., in addition to previous agreements that provide for the installation of 4 GW of solar PV panels by 2027.
The Growing Investments on Solar Powered Consumer Electronics
Increasing investments in solar-powered consumer electronics is a key factor driving the growth of global solar panel market. Several significant consumer electronics brand market players, including Samsung, Huawei and Xiaomi, among many others, are focusing on producing solar-powered smart wearables, smartphones, entertainment devices and so on.
It has contributed to the demand for solar power modules, chargers and related components, thus driving the market expansion. In August 2019, Chinese top consumer brand Xiaomi filed a patent showing a smartphone design utilizing solar panels at the back as part of its smartphone innovation, in addition to delivering an extended battery life.
High Costs and Land & Space Requirements
Solar panel systems require an adequate amount of land or rooftop space in order to generate sufficient energy. Finding suitable location for large-scale solar installations can be difficult in densely populated urban areas or places with limited available land. Rooftop installations could be hampered by structural constraints or shadowing from neighboring structures.
Although the cost of solar panels has fallen over the years, for many individuals, businesses and governments, it can still be a major upfront expenditure. The initial installation and equipment costs, as well as the related infrastructure requirements, might be a barrier to wider adoption, particularly in areas with minimal financial resources.
Market Segment Analysis
The global solar panel market is segmented based on product, mountings, application and region.
The High Efficiency and Benefits of Crystalline Solar Panels
During the forecast period crystalline solar panels product is expected to grow at the highest rate in the global solar panel market. Solar panel cells are made from a single or multiple crystalline silicon, resulting in a more pure composition than other available types. As a result of those factors, crystalline-based solar panels offer higher power efficiency, as well as the capacity to work with optimisation in high heat and low light locations contributing to their market expansion.
The multiple benefits, including the need for minimal space, high level efficiency of up to 20%, long lasting solar cell performance with a high life expectancy and the capacity to perform despite cloudy weather conditions, make it ideal for outdoor camping, hiking and related application areas, driving market growth. In March 2021, REDARC reveiled its development of monocrystalline portable folding panels having a unique unglazed structure and market-leading cell efficiency.
Market Geographical Share
The Growing Investments in Asia-Pacific
With increasing investments and governmental incentives to promote solar energy transition, Asia-Pacific is expected to account for roughly 1/4th of the global solar panel market in 2022. High R&D investments in consumer electronic items with solar charging capabilities, such as smartphones, refrigerators, wireless headphones, Bluetooth speakers and others, can also aid in market expansion over time.
Xiaomi, a Chinese smartphone maker, unveiled its plans to develop on a solar panel smartphone model in February 2020, which will incorporate small solar panels for maximum autonomy. In September 2021, the Indian government announced intentions to add up to 175 GW of renewable energy, including 100 GW for solar energy in 2022. Such government efforts towards solar energy for increasing the country's renewable share are expected to drive the market growth.
Market Key Players
The major global players include Jinko Solar, Trina Solar, Canadian Solar, JA Solar, Hanwha Q cells, GCL System Integration, Longi Solar, Shunfeng International Clean Energy Limited, KyoCera Solar and Yingli Solar.
COVID-19 Impact On Market
COVID Impact
The pandemic impacted the global supply chain, including the manufacturing and delivery of solar panel components. It highlighted the necessity for stable localised energy supply, with renewable energy at the forefront, due to the decline in maritime trade, which has limited gas, oil and coal supplies. The pandemic's economic uncertainties and financial constraints decreased demand for solar panels.
The future outlook for solar in U.S. has changed substantially as a result of the COVID-19 outbreak. Through June 2020, the industry employed 188,000 people rather than the 302,000 predicted - a 38% decrease. The job losses could wipe out five years of solar industry growth, returning the employment to levels not seen since 2014.
Due to the uncertain economic outlook, both residential and commercial clients were reluctant to engage in solar installations. Overall, the COVID-19 pandemic has had a significant impact on the solar business, causing challenges such as cash flow shortages, payment recovery from distribution firms, working capital need, personnel availability and supply chain interruptions.
Russia-Ukraine War Impact
Before the Russia-Ukraine conflict, the global solar business was on the rise. Solar energy was becoming increasingly popular as an alternative to traditional types of energy and the sector was booming. The war has had a significant influence on the solar business in terms of both output and demand. The war has had a significant impact on solar production in Ukraine.
Many of the country's solar factories have been destroyed or damaged and the few that remain in operation are having difficulty obtaining raw materials and components. It has resulted in a significant decline in Ukraine's solar panel production. Countries have emphasised reducing their reliance on Russian gas, particularly by shifting to renewable energy. According to the International Energy Agency (IEA), Russian energy traded globally could fall from 20% in 2021 to 13% by 2030.
By Product
- Crystalline Solar Panels
- Thin-Film Solar Panels
- Smart Solar Panels
By Mountings
- Roof Top
- Ground
- Solar Tracker
- Fixed Rack Systems
By Application
- Commercial
- Residential
- Utility
By Region
- North America
- U.S.
- 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 June 2023, Canadian Solar Inc., headquartered in Guelph, Ontario, has announced the opening of a solar PV module manufacturing plant in Mesquite, Texas. Canadian Solar is constructing a cutting-edge solar photovoltaic module production facility with an annual output of 5 GW or around 20,000 high-power modules per day. The new facility will cost more than US$ 250 million to build and production will begin around the end of 2023.
- In May 2022, NJR Clean Energy Ventures (CEV), which invests in and operates energy projects that generate clean power, offer low-carbon energy solutions and help in energy & cost savings, will start building an 8.9-MW floating solar installation in Millburn, New Jersey, the largest floating array in U.S. The project will use a floating racking system and 16,510 solar panels will be installed on a reservoir in the American Water Canoe Brook Water Treatment Facility in New Jersey.
- In September 2021, Bluetti, a maker of solar-powered devices, announced the release of two solar panels, the PV120 and PV200, as part of their portable power solution. The development took place to enable power emergency circumstances while also ensuring power station uses.
Why Purchase the Report?
- To visualize the global solar panel market segmentation based on product, mountings, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of solar panel market level with 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 panel market report would provide approximately 61 tables, 58 figures and 204 pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
