Solar Panel Market

The global Solar Panel Market was valued at USD 152.1 Billion in 2022 and is projected to reach a value of USD 264.0 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 8.2% between 2023 and 2030.

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A Solar Panel is a device that uses photovoltaic (PV) cells to convert sunlight into electricity. PV cells are composed of substances that generate electrons in response to exposure to light. Direct current (DC) electricity is generated when electrons travel through a circuit, which can be utilized by various devices or stored in batteries. Solar Panel are also known as solar electric panels, PV modules, and solar cell panels. The market is anticipated to be driven by the increasing use of Solar Panel in the European region, particularly in Spain and Italy, whose strategic location exposes them to the most sunlight throughout the year. In 2022, the United States became the greatest market in North America. Due to its expanding PV panel consumption, the United States is one of the largest countries in the world in terms of PV panel adoption. This market is anticipated to expand at a significant CAGR during the forecast period.

During the projected period, the cumulative installed capacity of solar energy is anticipated to increase due to factors such as large PV projects currently under construction and in the planning stage, as well as several government support measures. One of the main factors driving the adoption of solar PV systems in the commercial, industrial, and residential sectors is a growing awareness among individuals regarding using low carbon-intensive technologies to limit their carbon footprint. In addition, the extension of the Investment Tax Credit (ITC) for residential solar photovoltaic (PV) installations to 26% by 2022 and 22% by 2023 is expected to stimulate the industry's development in the coming years.

The Solar Investment Tax Credit (ITC) is a federal tax incentive enacted by law to incentivize solar energy deployment in the United States. This federal tax credit is claimed by residential, commercial, and utility-scale investors in solar energy installations against their tax liability. Solar or photovoltaic cells are primarily used to convert solar energy into an electron flow. These cells convert sunlight into electricity that can be used to power equipment or recharge batteries. In the beginning, spacecraft and orbiting satellites were powered by photovoltaic cells. However, they have been progressively utilized for grid-connected electricity generation in recent years.

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Economic Insights

The global economy is affected by the Ukraine crisis, economic sanctions imposed by the United States and its allies on Russia, and Russia's response. The impact of the Russo-Ukrainian conflict on Russian-Western civil space relations is detrimental to industry growth. War has a greater impact than civil cooperation. The war hurts space and technology imports and exports, thereby influencing the economy and national security. Worst of all, the Russia-Ukraine conflict has revealed the military advantages of commercial space systems, making them likely targets for belligerents and possibly necessitating countermeasures from private corporations that administer them.

Top Market Trends

1. Rising Need for Off-Grid Solutions: During the projected period, the global solar energy market is expected to experience growth due to the adoption of solar PV systems, the decreasing cost of Solar Panel and installation, and supportive government policies. However, the market growth is expected to be impeded during the research period due to various factors, including the increasing utilization of alternative clean energy sources like gas-fired power plants and onshore and offshore wind projects. Despite this, the market is anticipated to experience numerous prospects due to the declining costs of solar photovoltaic (PV) equipment and the implementation of global initiatives to reduce carbon emissions, leading to a rise in off-grid solar utilization. The Asia-Pacific region has notably dominated the solar energy market due to its escalating solar installations. This trend is anticipated to persist, with the region projected to emerge as the most extensive and rapidly expanding market for solar energy during the forecast period.
2. Increasing Acceptance to Widen due to Rising Number of Installations: Over the next five years, solar photovoltaic (PV) is projected to have the highest annual capacity additions among renewable energy sources, surpassing wind and hydro. The International Energy Agency (IEA) reports that solar photovoltaic (PV) generation experienced a 23% increase in 2020, resulting in 821 TWh. This marks the second-largest absolute growth in generation among all renewable technologies, with the wind being the only exception. As a result of this augmentation, the proportion of solar photovoltaic energy in worldwide electricity production surpasses 3%. The solar photovoltaic market is anticipated to experience growth in the projected timeframe due to the persistent cost reductions in technology and the expanding economies of China, India, and other nations in the Asia-Pacific and Europe regions. This growth can be attributed to policy changes and a heightened emphasis on achieving diverse capacity targets. The solar photovoltaic industry has significantly reduced costs over the last six years by leveraging economies of scale. The proliferation of equipment in the market led to a significant price reduction, particularly in the Solar Panel sector, which experienced an exponential decline. This phenomenon has contributed to the widespread adoption of solar photovoltaic (PV) systems.​

Market Segmentation

The global Solar Panel market can be categorized into the following segments: Technology, Grid, Application, Product Type, and Region. Based on Technology, the market can be categorized into Thin Film, Crystalline Silicon, and Other Technologies. Additionally, by Grid, the market can be segmented across On Grid and Off Grid. Based on Application, the market can be categorized into Residential, Commercial, and Industrial. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Technology

Thin-Film Solar Panels to Account for Higher Ratio of Sales Due to Their Lightweight Nature

The thin-film segment was the leading contributor to the global market's revenue in 2022, primarily due to its slender construction, robust endurance, and utilization of pliable and lightweight materials. Thin-film photovoltaic (PV) panels are widely utilized in commercial and utility-scale ventures due to their lightweight nature, which results in decreased installation expenses. During the forecast period, it is anticipated that the crystalline silicon segment will experience significant growth due to factors such as the prolonged lifespan of panels, a favorable weight-volume ratio, and the cost-effectiveness of producing silicon semiconductors. Monocrystalline photovoltaic panels are fabricated using premium silicon and exhibit superior spatial efficiency compared to thin-film photovoltaic panels. Nevertheless, businesses that produce monocrystalline panels focus exclusively on the high-end market segment due to the substantial initial investment required for these panels.

Based on Grid

Off-Grids Systems to Grow Rapidly Due to Lower Operating and Maintenance Costs

During the forecast period, the off-grid segment is anticipated to record the highest CAGR in revenue growth. In the coming years, the rising energy demand from remote regions around the globe and the formulation and strict implementation of various regulatory policies for decentralizing the power generation sector is anticipated to impact the off-grid type segment's growth positively. The dominant position of the on-grid type segment can be attributed to the low operating and maintenance costs and simplicity of grid-connected PV systems. As the excess energy generated by on-grid PV systems is transmitted to the grid, their costs are low. These systems eliminate the need to deploy battery storage nearby.

Based on Application

Industrial Applications to Dominate Growth Trajectory Due to Rising Demand for Green Energy

Regarding revenue, the industrial application segment dominated the market in 2022. Increasing demand for clean electricity is anticipated to increase the number of utility projects and propel the expansion of the PV modules market in the industrial sector. Commercial solar PV panels have a duration of 15 to 20 years. They can be used to power industrial buildings in off-grid or remote areas and for pre-heating ventilation air and water heating in offices and other businesses. Rapid adoption of photovoltaic (PV) modules in corporate offices, hotels, and hospitals, along with increased power demand in communication base stations and data centers, is anticipated to drive product demand in the commercial sector.

Based on Region

Asia Pacific to Account for Maximum Share Due to Rising Number of Installations from Emerging Economies

It is anticipated to maintain its dominance throughout the projected period. The increasing installation of solar power projects in China and India is responsible for the rising demand for solar PV panels in Asia-Pacific. These are the most important Solar Panel markets worldwide and in Asia-Pacific. In recent years, Asia-Pacific has been the leading market for solar energy installations. China significantly contributes to expanding the solar energy market in Asia-Pacific and worldwide. China's installed solar PV capacity increased by 21% between 2020 and 2022, reaching approximately 306.4 GW. China's newly installed solar PV capacity reached roughly 53 GW in 2021, according to the National Energy Administration (NEA). Approximately 29 GW of this capacity came from distributed solar power generation initiatives, while the remainder came from large-scale solar plants.

In 2022, North America held a significant market share. As more efficient solar cells have become available on the market, industrial solar cell power generation in North America has increased. In addition, the intensifying competition in the market has contributed to the decreased price of produced electricity and the expansion of Solar Panel options. During the forecast period, these factors are anticipated to increase the region's demand for solar PV panels. During the forecast period, the solar PV market in Mexico is anticipated to be driven by the increasing solar energy installations due to the projects announced in the LTAs for 2015-2018, the rising demand for decentralized solar energy systems, and the ambitious renewable energy targets.

Competitive Landscape

Due to many established firms, competition in the worldwide industry is fierce. Significant elements controlling competition in the solar PV panels business include access to technology, skilled labor, and robust R&D. Canadian Utilities, an ATCO subsidiary, announced in November 2020 that the second and final phase of Canada's largest off-grid solar project had been completed. A 600 kW sun farm was part of the first phase, while a 2,200 kW solar farm was part of the second. Because of this, the country's need for solar PV panels is predicted to grow soon.

The key players in the global Solar Panel market include - Jinko Solar (China), JA Solar (China), Trina Solar (China), LONGi Solar (China), Canadian Solar (Canada), SunPower Corporation (U.S.), First Solar (U.S.), Hanwha Q-CELLS (South Korea), Risen Energy (China), Talesun (China) among others.

Recent Market Developments

• March 2022: The California Department of Water Resources, the utility Turlock Irrigation District (TID), the water and energy project developer Solar AquaGrid of Marin County, California, and the University of California are collaborating on Project Nexus.
• May 2022: In Millburn, New Jersey, construction has begun on what is expected to be the largest floating solar array in the United States, an 8.9-MW installation by NJR Clean Energy Ventures (CEV). This project will equip a reservoir at the New Jersey American Water Canoe Brook Water Treatment Plant with a floating mounting system and 16,510 Solar Panel. Through a power purchase agreement with CEV, the array will provide nearly all of the facility's annual power requirements with renewable energy.

Segmentation of the Global Solar Panel Market