Global Photovoltaic Market Segmentation, By Component (Modules, Inverters, Balance of System (BOS)), System (High Concentration Photovoltaic (HCPV), Low Concentration Photovoltaic (LCPV)), Material (Silicon and Compounds), Cell Type (Full-Cell PV Modules and Half-Cell PV Modules), Installation Type (Ground Mounted, Building-Integrated Photovoltaics (BIPV), and Floating PV), Application (Residential, Commercial and Industrial, and Utilities) – Industry Trends and Forecast to 2031.
Photovoltaic Market Analysis
The photovoltaic market is witnessing significant growth driven by technological advancements and innovative methods. One such advancement is the development of bifacial solar panels, which capture sunlight from both sides, enhancing energy efficiency by up to 30%. Additionally, perovskite solar cells are emerging as a game-changer due to their high efficiency and lower production costs compared to traditional silicon-based cells. The integration of artificial intelligence (AI) and machine learning (ML) in optimizing energy production and predictive maintenance is also gaining traction, improving system reliability and performance.
The usage of photovoltaic systems is expanding beyond traditional applications, including integration into building materials (Building Integrated Photovoltaics, or BIPV) and the rise of agrivoltaics, where solar panels are used in conjunction with agricultural activities. These advancements are not only increasing the adoption of photovoltaic technologies but are also making solar energy more accessible and affordable, driving substantial market growth and supporting global sustainability goals.
Photovoltaic Market Size
The global photovoltaic market size was valued at USD 96.96 billion in 2023 and is projected to reach USD 179.47 billion by 2031, with a CAGR of 8.00% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Photovoltaic Market Trends
“Solar Energy Adoption in Emerging Markets”
The photovoltaic market is experiencing significant growth, driven by the increasing adoption of solar energy in emerging markets. Governments in countries such as India and Brazil are heavily investing in solar infrastructure to meet energy demands while reducing carbon footprints. For instance, India’s ambitious target of 500 GW of renewable energy by 2030, with a large share from solar, is spurring demand for photovoltaic technology. Additionally, declining costs of photovoltaic panels and favorable policies, such as tax incentives and subsidies, are making solar energy more accessible and attractive, further boosting the market's expansion in these regions.
Report Scope and Photovoltaic Market Segmentation
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Attributes
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Photovoltaic Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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JA Solar Technology Co., Ltd. (China), Schneider Electric (France), Siemens (Germany), Mitsubishi Electric Corporation (Japan), General Electric Company (U.S.), OMRON Corporation (Japan), SMA Solar Technology AG (Germany), Delta Energy Systems (Germany), Enphase Energy (U.S.), SolarEdge (Israel), Huawei Technologies Co., Ltd. (China), Shenzhen Kstar Science & Technology Co., Ltd. (China), ENF Ltd. (U.K.), SUNGROW (China), Trina Solar (China), LONGi (China), Canadian Solar (Canada), Qcells (South Korea), SHARP CORPORATION (Japan), and LG Electronics (South Korea)
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
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Photovoltaic Market Definition
Photovoltaic (PV) technology converts sunlight directly into electricity using solar cells, which are typically made of semiconductor materials such as silicon. When sunlight hits these cells, it excites electrons, creating an electric current. This process is known as the photovoltaic effect. PV systems are widely used in solar panels for residential, commercial, and industrial applications, contributing to renewable energy generation. As a clean, sustainable energy source, photovoltaics play a crucial role in reducing carbon emissions and combating climate change, with advancements continually improving their efficiency and affordability for widespread adoption.
Photovoltaic Market Dynamics
Drivers
- Rising Energy Demand
Rising global energy demand, especially in developing regions, is driving the need for sustainable energy solutions such as photovoltaics. As countries such as India and Brazil experience rapid industrialization and urbanization, their energy consumption surges. For instance, In August 2024, IREDA and BHEL discussed collaboration to expedite India's renewable energy growth. Officials, including IREDA CMD Pradip Kumar Das and BHEL CMD Koppu Sadashiv Murthy, focused on enhancing project execution speed and financing solutions. Their partnership aligns with India's 500 GW non-fossil fuel capacity target by 2030 and supports the Viksit Bharat 2047 vision.
- Increasing Urbanization and Electrification Initiatives
Rapid urbanization and rural electrification projects in emerging economies, such as India and sub-Saharan Africa, are significantly boosting the demand for photovoltaic (PV) systems. For instance, India's Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) aims to electrify rural areas with solar power, boosting PV deployment. This trend is essential for providing reliable, clean energy in expanding urban and underserved rural regions, accelerating the adoption of photovoltaic systems and contributing to market growth.
Opportunities
- Grid Parity Achievements
As photovoltaic (PV) technology reaches grid parity in regions such as parts of India and the U.S., where solar power costs match or drop below traditional energy sources, it opens substantial market opportunities. For instance, in California, solar energy has achieved grid parity, leading to increased adoption by both consumers and utilities. This financial viability encourages further investments in solar infrastructure and expansion of the market.
- Advancement in Technology
Technological advancements in photovoltaic (PV) systems create significant market opportunities. For instance, the development of bifacial solar panels, which capture sunlight from both sides, has enhanced energy output by up to 30% compared to traditional panels. Additionally, advancements in high-efficiency cells, such as those using perovskite materials, are pushing the boundaries of energy conversion rates. These innovations drive increased adoption and offer growth opportunities in the solar energy sector.
Restraints/Challenges
- Requirement of Space
Photovoltaic (PV) installations need considerable space for panel placement, which can be a significant constraint in densely populated or urban areas. Limited space restricts the scalability of solar power systems, making it challenging to expand solar capacity in these environments. This spatial limitation hinders the growth of the photovoltaic market, particularly in regions where land availability is scarce.
- Material and Resource Constraints
The production of photovoltaic panels relies on materials such as silicon and rare metals. Fluctuations in the supply and cost of these materials can significantly impact the production and pricing of solar panels. Limited availability or high costs of essential components can hinder market growth, affecting the affordability and scalability of photovoltaic systems.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Photovoltaic Market Scope
The market is segmented on the basis of component, system, material, cell type, installation type, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Component
- Modules
- Organic Photovoltaic (OPV)
- Inorganic Photovoltaic (IPV)
- Hybrid Photovoltaic
- Inverters
- Balance of System (BOS)
- Connection and Cable
- Junctions Boxes
- Safety Equipment
- Trackers
- Batteries
- Monitoring System
- Others
- Mounting Structure
- Metering Systems
- Power Optimizers
System
- High Concentration Photovoltaic (HCPV)
- Low Concentration Photovoltaic (LCPV)
Material
- Silicon
- Crystalline Silicon (C-SI)
- Monocrystalline
- Multi-Crystalline/Polycrystalline
- Thin Film
- Amorphous
- Nanocrystalline
- Compounds
- Cadmium Telluride (CDTE)
- Copper Indium Gallium Selenide (CIGS)
- Gallium Arsenide (GAAS)
- Indium Phosphide (INP)
- Perovskite
- Others
Cell Type
- Full-Cell PV Modules
- Half-Cell PV Modules
Installation Type
- Ground Mounted
- Building-Integrated Photovoltaics (BIPV)
- Rooftops
- Window
- Floating PV
Application
- Residential
- Commercial and Industrial
- Utilities
Photovoltaic Market Regional Analysis
The market is analyzed and market size insights and trends are provided by component, system, material, cell type, installation type, and application as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
Asia-Pacific is expected to dominate the photovoltaic market due to the significant presence of key players and robust adoption of PV modules. Emerging economies such as China, Japan, and India drive this growth with their ambitious renewable energy goals and substantial investments in solar infrastructure, boosting the region’s market share.
North America is expected to expand at a significant growth rate in the photovoltaic market over the forecast period, driven by strong government incentives and support from key industry players. This growth is supported by advancements in technology and increased investments in renewable energy initiatives, boosting the adoption of solar power.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Photovoltaic Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Photovoltaic Market Leaders Operating in the Market Are:
- JA Solar Technology Co., Ltd. (China)
- Schneider Electric (France)
- Siemens (Germany)
- Mitsubishi Electric Corporation (Japan)
- General Electric Company (U.S.)
- OMRON Corporation (Japan)
- SMA Solar Technology AG (Germany)
- Delta Energy Systems (Germany)
- Enphase Energy (U.S.)
- SolarEdge (Israel)
- Huawei Technologies Co., Ltd. (China)
- Shenzhen Kstar Science & Technology Co., Ltd. (China)
- ENF Ltd. (U.K.)
- SUNGROW (China)
- Trinasolar (China)
- LONGi (China)
- Canadian Solar (Canada)
- Qcells (South Korea)
- SHARP CORPORATION (Japan)
- LG Electronics (South Korea)
Latest Developments in Photovoltaic Market
- In May 2023, SJVN Ltd., a state-owned enterprise, secured a 100 MW solar power project worth USD 73.24 million from Rajasthan Urja Vikas Nigam Ltd. This achievement came through an open competitive tariff bidding and e-Reverse Auction (e-RA) process. SJVN Green Energy Ltd. (SGEL), a wholly-owned subsidiary of SJVN, led the successful bid
- In November 2022, European Energy, a Danish solar park developer, initiated plans for a 128.5 MW solar park near Helsingborg, southern Sweden. The park is anticipated to generate 175 GWh of electricity annually. Project construction is expected to conclude by 2023, with the plant commencing operations in 2024
- In March 2022, Canadian Solar announced the commencement of mass production for its new 54-cell format module featuring 182 mm cells. This module is designed for residential, commercial, and industrial rooftop solar installations. The development marks a significant step forward in solar technology, enhancing efficiency and performance for diverse applications
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