Solar Energy Market

Global Solar Energy Market Report: By Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP), Application (Residential, Non-residential, and Utility) and Region (North America, Europe, Asia-Pacific, Latin America, Middle-East and Africa) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032.

Energy & Power | February 2024 | Report ID: EMR00578 | Pages: 301

Global Solar Energy market is predicted to reach approximately USD 376.24 billion by 2032, at a CAGR of 7.36% from 2024 to 2032.

Solar energy harnesses the power of sunlight through photovoltaic (PV) panels or concentrated solar power (CSP) systems, converting it into electricity or heat for various applications. The market encompasses a diverse range of technologies, including rooftop solar installations, utility-scale solar farms, and off-grid solar solutions, catering to residential, commercial, and industrial sectors worldwide.

The solar energy market has grown significantly in recent years due to factors such as rising environmental concerns, government incentives, and technological advancements. Solar energy is becoming more and more competitive with traditional fossil fuels due to factors like falling solar panel costs, increasing efficiency, and improved storage solutions that have boosted adoption rates. Furthermore, the global shift to renewable energy sources has sparked investments and policy support for the deployment of solar energy across the globe, especially in light of the ambitious climate targets set by governments and international agreements like the Paris Agreement.

 

 

Global Solar Energy report scope and segmentation.

Report Attribute

Details

Estimated Market Value (2023)

USD 198.52 billion

Projected Market Value (2032)

USD 376.24 billion

Base Year

2023

Forecast Years

2024 – 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Technology, By Application, & Region.

Segments Covered

By Technology, By Application, & By Region.

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032.

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others.

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Solar Energy dynamics

Technological advancements, including improvements in solar panel efficiency, energy storage solutions, and smart grid integration, continue to drive down costs and enhance the overall performance of solar energy systems. Moreover, the increasing demand for clean energy and the imperative to reduce carbon emissions have propelled governments worldwide to implement favourable policies and incentives, such as feed-in tariffs, tax credits, and renewable energy mandates, which have bolstered investment in solar energy infrastructure.

The proliferation of solar technology providers and project developers has fueled market competition, which in turn has led to innovation in financing mechanisms, business models, and product offerings, thereby propelling market diversification and growth. Demand for solar energy solutions has also increased as a result of consumers' and businesses' growing awareness of environmental sustainability and corporate social responsibility. This is especially true in the commercial and industrial sectors, where solar power offers advantages in terms of both reputation and cost.

 

Global Solar Energy drivers

  • Declining Costs of Solar Panel:

The steadily falling cost of solar panels is one of the main factors driving the global solar energy market. Over the past ten years, there has been a significant decrease in the cost of solar photovoltaic (PV) modules due to technological advancements, economies of scale, and increased manufacturing efficiencies. Due to its decreased cost, solar energy is now more competitive than traditional fossil fuels, which is encouraging adoption in utility-scale, commercial, and residential applications. As solar technology gets more accessible, more people and businesses can adopt it, which encourages the global deployment and penetration of solar energy systems.

  • Policy Support and Incentives:

The growth and investment in the solar energy market are largely driven by government policies and incentives. To encourage the deployment of solar energy and lower greenhouse gas emissions, numerous nations have put in place renewable energy targets, feed-in tariffs, tax credits, and subsidies. Through the creation of a regulatory environment that is favourable to solar projects, these policies encourage investment from the private sector and promote innovation in solar technology and project financing. International agreements like the Paris Agreement have strengthened pledges to switch to clean energy sources, which has strengthened policy support for the global development of solar energy.

 

Restraints:

  • Intermittency and Grid Integration Challenges:

Solar energy generation is sporadic and weather-dependent, which presents problems for grid stability and reliability despite its many benefits. Sophisticated grid management systems, energy storage options, and adaptable demand-response mechanisms are needed to integrate variable solar power into current electrical grids and balance supply and demand in real time. In order to overcome these grid integration obstacles and allow for increased penetration of renewable energy sources without sacrificing system reliability or grid stability, large investments in regulatory changes and grid infrastructure upgrades are needed.

  • Supply Chain Vulnerabilities:

The solar energy market is highly dependent on complex global supply chains for raw materials, components, and equipment used in solar panel manufacturing and installation. Disruptions in the supply chain, such as trade disputes, geopolitical tensions, or natural disasters, can lead to supply shortages, price volatility, and project delays, impacting the growth and stability of the solar energy market. Mitigating supply chain vulnerabilities requires diversification of sourcing strategies, localizing manufacturing capabilities, and enhancing supply chain resilience through strategic partnerships and investments in domestic and regional manufacturing capacity.

 

Opportunities:

  • Energy Storage Integration:

There are several opportunities to increase grid flexibility, boost system reliability, and optimise the value of solar generation when energy storage technologies are integrated with solar energy systems. The ability to store and dispatch solar power when demand is highest or sunlight is scarce due to advancements in battery storage technologies like lithium-ion batteries, flow batteries, and hydrogen storage reduces dependency on fossil fuel-based peaker plants and increases the penetration of renewable energy in electricity markets.

 

Segment Overview

  • By Type

The global solar energy market is segmented by technology into Solar Photovoltaic (PV) and Concentrated Solar Power (CSP), each offering distinct advantages and applications. Solar PV technology converts sunlight directly into electricity using semiconductor materials, such as silicon-based solar cells, housed within PV panels. PV systems are modular, scalable, and well-suited for various applications, ranging from residential rooftop installations to utility-scale solar farms. On the other hand, Concentrated Solar Power (CSP) systems concentrate sunlight using mirrors or lenses to generate high-temperature heat, which is then used to produce steam and drive turbines for electricity generation. CSP technology is particularly suitable for utility-scale applications, where large-scale solar thermal power plants can be deployed in regions with high solar irradiance and ample land availability.

  • By Application  

In terms of applications, the solar energy market encompasses residential, non-residential, and utility segments, each serving distinct end-users and market dynamics. Residential solar installations involve the deployment of rooftop PV systems on individual homes, enabling homeowners to generate clean electricity for self-consumption or export excess power to the grid through net metering arrangements. Non-residential applications encompass commercial, industrial, and institutional buildings, where solar PV systems are installed on rooftops, carports, or ground-mounted arrays to offset electricity consumption, reduce operating costs, and demonstrate environmental leadership.

The utility segment represents large-scale solar projects developed by utilities, independent power producers (IPPs), and energy developers to supply electricity to the grid for distribution to consumers. Utility-scale solar farms typically consist of megawatt-scale PV arrays or CSP power plants deployed in sunny regions with favourable solar resources and grid infrastructure. These projects benefit from economies of scale, efficient land use, and centralized operations, making them cost-effective contributors to the energy mix.

 

Global Solar Energy Overview by Region

Asia-Pacific stands as a dominant force in the solar energy market, driven by rapid economic growth, supportive government policies, and ambitious renewable energy targets in countries like China, India, and Japan. China, in particular, has emerged as the world's largest solar market, accounting for a significant share of global solar PV installations, spurred by generous subsidies, feed-in tariffs, and favorable regulatory incentives. India's solar market is also experiencing rapid expansion, fuelled by ambitious capacity targets, competitive bidding processes, and declining solar tariffs, which have made solar power increasingly cost-competitive with conventional energy sources.

In Europe, countries such as Germany, Spain, and the United Kingdom have been at the forefront of solar energy adoption, leveraging feed-in tariffs, net metering schemes, and renewable energy directives to drive investment in solar PV installations and promote energy transition objectives. Moreover, the European Union's Green Deal and carbon neutrality goals are expected to further accelerate solar deployment and stimulate innovation in energy storage and grid integration technologies.

North America presents a dynamic solar energy market, with the United States leading in solar capacity additions, driven by federal investment tax credits, state-level renewable portfolio standards, and declining technology costs. Emerging markets in Latin America, such as Mexico, Chile, and Brazil, are also witnessing significant growth in solar energy deployment, driven by favourable solar resources, competitive auction mechanisms, and energy market reforms.

In Africa and the Middle East, countries with abundant solar resources, including Morocco, South Africa, and the United Arab Emirates, are investing in utility-scale solar projects, off-grid electrification initiatives, and renewable energy targets to diversify their energy mix, enhance energy security, and stimulate economic development.

 

 

 

Global Solar Energy market competitive landscape

Leading solar panel manufacturers such as JinkoSolar, Canadian Solar, and LONGi Solar dominate the market with their extensive product portfolios, technological expertise, and economies of scale. These companies continually innovate to improve solar panel efficiency, reduce manufacturing costs, and enhance product reliability to maintain their competitive edge in the market.

In addition to panel manufacturers, a plethora of solar project developers and EPC contractors compete to develop, construct, and commission solar installations across residential, commercial, and utility-scale segments. Companies like SunPower, First Solar, and Sunrun are prominent players in the solar project development space, leveraging their industry experience, project pipelines, and financing capabilities to secure contracts and expand market share. Furthermore, technological advancements in energy storage, smart grid solutions, and digital analytics are driving the emergence of new players offering integrated solar-plus-storage solutions and energy management platforms to optimize system performance and maximize returns on investment.

 

Global Solar Energy Recent Developments

  • Oct 2023, Amazon has unveiled plans for a new 198 megawatt (MW) wind farm situated in Osmanabad, Maharashtra, India. This project marks Amazon's 50th wind and solar venture across India, propelling its total renewable energy capacity past 1.1 gigawatts (GW). Notably, Amazon maintains its status as the foremost corporate purchaser of renewable energy worldwide, a position it has held since 2020.
  • Dec 2023, The Board of Directors at HUL has given the green light for an equity investment of up to 27.73% (and potentially up to 32.24% when factoring in HUL's wholly-owned subsidiaries) in Transition Sustainable Energy Services One Private Limited. This Special Purpose Vehicle (SPV) was established by Brookfield, a prominent global alternative asset manager renowned for its expansive renewable power portfolio. The SPV has been established under the Government's Group Captive Open Access Renewable Energy Scheme.
  • Oct 2023, Sungrow, a prominent global provider of inverters and energy storage systems, showcased its extensive renewable energy solutions and unveiled new products tailored for the Indian market. Given India's pivotal position in transitioning its energy landscape, Sungrow's innovative offerings are poised to enhance the nation's energy infrastructure, facilitating the expansion of efficient, secure, and environmentally friendly energy utilization.  

 

Scope of global Solar Energy report

Global Solar Energy report segmentation

ATTRIBUTE

DETAILS

By Technology   

  • Solar Photovoltaic (PV)
  • Concentrated Solar Power (CSP)

By Application

  • Residential
  • Non-residential
  • Utility

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Solar Energy size and forecast: To identify and estimate the market size for global Solar Energy market segmented by Technology, By Application, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Solar Energy
  • Market Influencing Factors: To find out the factors which are affecting the market of global Solar Energy among consumers.
  • Company Profiling: To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

Global Solar Energy forecast period is 2024 - 2032.
According to global Solar Energy research, the market is expected to grow at a CAGR of ~ 7.36% over the next eight years.
The possible segments in global Solar Energy are based on by Technology, By Application, & by region.
The expected market size for Global Solar Energy is USD 198.52 billion in 2023.
The major players in the market are Trina Solar, First Solar, Yingli Solar, Tata Power Solar System Ltd, Abengoa, Canadian Solar Inc., Waaree Group, General Electric Company, BrightSource Energy, Inc., SunPower Corporation, Convert Italia, Urja Global Limited and eSolar Inc