Solar Energy Market Overview
- In 2023, solar energy market was estimated to be worth USD 198.6 billion.
- By 2034, the target market is expected to grow to USD 540.3 billion.
- Target market is expanding at a CAGR of 7.2%
Market Overview:
Solar energy market is expanding rapidly due to growing environmental concerns and the shift to renewable energy sources the target market. A key aspect of the solution to lowering carbon emissions and dependency on fossil fuels is solar energy which is abundant and renewable. Technology development, falling solar panel prices are all boosting the use of solar power in the industrial, commercial as well as residential sectors.
Key Takeaways:
- North America held the largest share of the market in 2024.
- Asia-Pacific is projected to be the fastest-growing market in the coming years.
- By technology, the photovoltaic (PV) segment accounted for the largest share of the solar energy market in 2024.
- The concentrated solar power (CSP) segment is forecast to grow at a CAGR of 12% during the forecast period.
- By application, the residential segment dominated the market globally in 2024.
- Solar installations worldwide surpassed 1,000 GW of capacity in 2023, with projections to double by 2030.
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Solar Energy Market Dynamics
Key Drivers of Target Market:
Increasing Government Initiatives:
Many governments are implementing policies to promote renewable energy which includes subsidies, tax credits and also grants for solar energy projects.
- For instance, in July 2024, the European Union announced the expansion of its Green Deal which aims to increase the share of renewable energy with a strong focus on solar to combat climate change.
Corporate Sustainability Initiatives:
Many companies are prioritizing sustainability and committing to renewable energy targets. This shift towards greener practices is driving significant investments in solar energy systems to achieve corporate sustainability goals.
- For instance, in August 2024, tech giant Google announced plans to power all its global data centers with 100% renewable energy primarily through solar power showcasing the growing trend among corporations to transition to sustainable energy sources.
Restrains:
Competition from Alternative Energy Sources
Intermittency and Reliability Issues:
Solar energy generation is dependent on sunlight, making it intermittent and less reliable than traditional energy sources and further this can lead to challenges in meeting energy demands during cloudy days or at night.
- Counterbalance Statements: One of the major solutions to intermittency is the rapid advancement of battery storage systems. For example, Tesla announced the development of its new Megapack 2.0 which is a large-scale battery storage solution designed to store excess solar energy and provide backup power during periods of low sunlight that enhances solar reliability.
Opportunities:
Floating Solar Farms:
Utilizing large water bodies to install solar panels is an emerging factor that reduces land usage and increases solar generation efficiency by utilizing the natural cooling effect of water and also it avoids conflict over land resources.
- For instance, in August 2024, the world's largest floating solar power plant, with a capacity of 600 MW, is set to be established in Omkareshwar, Madhya Pradesh. This innovative initiative is an important step towards India's sustainable energy production because it intends to harness solar energy on a huge scale.
Solar Energy Market Segmentation
The market is segmented based on Technology, Components, Application, End-User, and Region.
By Technology |
By Component |
By Application |
By End User |
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Technology Insights:
On the basis of Technology, solar energy Market is segmented into Photovoltaic (PV) Solar Energy, Thin-Film Solar Cells, Floating Solar Technology, Concentrated Solar Power (CSP), and Others. Photovoltaic (PV) solar energy is expected to dominate the target market growth as it is widely adopted for both small-scale and large-scale applications due to its cost-effectiveness and ease of installation.
- For Instance, in August 2024, the Gemini Solar Project in Nevada which is the largest PV solar project in U.S. has reached a major construction milestone. It is also expected to be fully operational by 2025, powering over 260,000 homes.
Component Insights:
The solar energy market by component is segmented into solar panels, inverters, mounting structures, and other components. Solar panels is expected to dominate the target market growth as solar panels are the core of any solar power system, converting sunlight into electricity.
Application Insights:
The solar energy market by application is segmented into Commercial, Industrial, Residential, and Utility-Scale. Utility scale is expected to dominate the target market growth as the utility-scale sector contributes to approximately 55-60% of total solar energy capacity globally.
End-User Insights:
The solar energy market by end user is segmented into Power Generation, Heating, Lighting, and Others. Power generation is expected to dominate the target market growth due to its widespread use in utility-scale and residential applications. Solar power plants contribute significantly to national grids, with around 90% of the total solar energy produced being used for electricity generation globally.
Regional Insights
North America: In this region, the U.S. government has implemented various tax incentives such as the Investment Tax Credit (ITC) which allows homeowners and business to deduct a significant percentage of their solar installation costs from their federal taxes.
Asia Pacific: This region is considered to be the fastest growing region in the target market as countries like China, India and many more are leading the charge significantly increasing their solar power capacities to meet rising energy demands and environmental goals.
Solar Energy Market Report Scope:
Attribute |
Details |
Market Size 2024 |
USD 286.2 Billion |
Projected Market Size 2034 |
USD 540.3 Billion |
CAGR Growth Rate |
7.2% (2024-2034) |
Base year for estimation |
2023 |
Forecast period |
2024 – 2034 |
Market representation |
Revenue in USD Billion & CAGR from 2024 to 2034 |
Regional scope |
North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered in the Report:
This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Technology, Component, Application, End-User, and Region.
Segmentation:
By Technology:
- Photovoltaic (PV) Solar Energy
- Thin-Film Solar Cells
- Floating Solar Technology
- Concentrated Solar Power (CSP)
- Others
By Component:
- Solar Panels
- Inverters
- Mounting Structures
- Other Components
By Application:
- Commercial
- Industrial
- Residential
- Utility-Scale
By End-User:
- Power Generation
- Heating
- Lighting
- Others
By Region:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
Solar Energy Market Key Players
The key players operating in the solar energy market include SunPower Corporation, Canadian Solar, JinkoSolar, LONGi Solar, Hanwha Q CELLS, JA Solar, SolarEdge Technologies, Enphase Energy, Vivint Solar, NextEra Energy, Brookfield Renewable Partners, Risen Energy, Vestas Wind Systems, First Solar, Siemens Gamesa Renewable Energy, Trina Solar and Acciona Energy.
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Solar Energy Market Key Issues Addressed
- In September 2024, Vaisala launched Vaisala Compass, a weather-based decision-making platform for the renewable energy industry. The Vaisala Compass platform ultimately provides a comprehensive suite of tools to optimize the entire life cycle of wind and solar energy projects, from initial site assessment through operations.
- In September 2024, Q ENERGY commissions a new solar farm in Montfort, Alpes-de-Haute-Provence. This 5 MW project is named Les Broules 2 and joins a first installation that is completed in 2019 in the same commune. The new plant is part of a regional strategy to boost renewable electricity production and improve the energy resilience of rural areas.
- In January 2024, Prime Minister Narendra Modi announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems. This isn’t the first scheme for promoting the installation of rooftop solar power systems, though, also in 2014, the government launched the Rooftop Solar Program that aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022 — watt is a unit of power and is calculated as the amount of energy used over time, specifically one Joule per second.
- In April 2024, India’s Ministry of New and Renewable Energy (MNRE) has published its latest figures for clean power capacity additions in the country, which show that the country added 15GW of new solar capacity in the 12 months.
- According to the research report from SunSource Energy Pvt. Ltd., The Union Territory of Lakshadweep saw a historic moment as the Honourable Prime Minister of India, Shri Narendra Modi, unveiled the first on-grid solar project in the territory, featuring a state-of-the-art Battery Energy Storage System (BESS).
- In November 2021, Panasonic announced the latest innovation in its robust solar energy portfolio of Total Home Energy Solution offerings, the EverVolt 2.0. A result of Panasonic’s ongoing commitment to developing advanced solar and energy storage technologies, EverVolt 2.0 offers enhancements for greater customization, and features a convenient modular footprint and weatherproof design.
Analyst View:
The industry for solar energy is placed for substantial growth due to rising environmental concerns and government initiatives promoting renewable energy. Solar installations are expected to increase with advancements in energy storage solutions which makes solar more reliable and efficient. The most major thing that is to be highlighted is the importance of policy support, grid integration as well as innovation in materials like perovskite solar cells in boosting the future of the target market.
Solar Energy Market Company Profile
- SunPower Corporation
- Canadian Solar
- JinkoSolar
- LONGi Solar
- Hanwha Q CELLS
- JA Solar
- SolarEdge Technologies
- Enphase Energy
- Vivint Solar
- NextEra Energy
- Brookfield Renewable Partners
- Risen Energy
- Vestas Wind Systems
- First Solar
- Siemens Gamesa Renewable Energy
- Trina Solar
- Acciona Energy
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Solar Energy Market Highlights
FAQs
Solar Energy Market Size was valued at USD 286.2 Billion in 2024 and is expected to reach USD 540.3 Billion by 2034 growing at a CAGR of 7.2%
The Market is segmented into Technology, Component, Application, End-User, and Region.
The Market is segmented by region North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa. North America is expected to dominate the Market.
The key players operating in the Solar Energy Market include SunPower Corporation, Canadian Solar, JinkoSolar, LONGi Solar, Hanwha Q CELLS, JA Solar, SolarEdge Technologies, Enphase Energy, Vivint Solar, NextEra Energy, Brookfield Renewable Partners, Risen Energy, Vestas Wind Systems, First Solar, Siemens Gamesa Renewable Energy, Trina Solar and Acciona Energy.