Solar PV Panels Market Share Analysis Report, 2022-2030
The global Solar PV Panels market size was estimated at USD 157.63 billion in 2022 and is expected to surpass around USD 337.18 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 7.9% during the forecast period 2023 to 2032.
Key Pointers:
Solar PV Panels Market Report Scope
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Report Coverage |
Details |
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Market Size in 2023 |
USD 170.08 Billion |
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Market Size by 2032 |
USD 337.18 Billion |
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Growth Rate from 2023 to 2032 |
CAGR of 7.9% |
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Base year |
2022 |
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Forecast period |
2023 to 2032 |
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Segments covered |
Technology, grid, application |
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Regional scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
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Key companies profiled |
Jinko Solar; JA Solar; Trina Solar; LONGi Solar; Canadian Solar; SunPower Corporation; First Solar; Hanwha Q-CELLS; Risen Energy; Talesun |
The increasing use of solar panels in the European region, especially countries such as Spain and Italy, whose strategic geographic location exposes them to the maximum amount of sunlight throughout the year, is expected to drive the market. The U.S. emerged as the largest market in North America in 2021. The U.S. is recognized as one of the largest countries in terms of adoption of PV panels globally, owing to rising consumption of PV panels in the country. This market is projected to grow at a significant CAGR during the forecast period. Factors such as substantial PV projects under construction and in the planning stage, coupled with several government support measures, are expected to increase the cumulative installed capacity of solar energy during the projection period.
Increasing awareness among people regarding the use of low carbon-intensive technologies to limit carbon footprint is one of the major factors driving the adoption of solar PV systems in the commercial, industrial and residential sectors. Furthermore, the extension of Investment Tax Credit (ITC) for residential solar PV installations at 26% by 2022 and 22% by 2023, is anticipated to boost the growth of the industry in the coming years.
The Solar Investment Tax Credit (ITC) is a federal tax incentive enacted into law to encourage the deployment of solar energy in the United States. This federal tax credit is claimed against the tax liability of residential, commercial, and utility-scale investors in solar energy projects.
Photovoltaic cells or solar cells are primarily employed to convert solar energy into a flow of electrons. These cells produce electricity from sunlight, which can be used to power equipment or recharge batteries. Initially, photovoltaic cells were used to power spacecraft and orbiting satellites. However, over the past few years, they are being increasingly used for grid-connected electricity generation. Photovoltaic systems aim to maximize productivity for better performance. These factors are expected to enhance the growth of the market during the forecast period.
In Canada, after recovery from the COVID-19 pandemic, the market is expected to witness policy changes from the government to accelerate the growth of the domestic solar energy market. Factors such as upcoming solar projects and government support to reduce the reliance on fossil fuels are expected to promote the use of renewable energy sources. This is anticipated to foster the demand for solar PV panels in the country during the projection period.
Technology Insights
In terms of revenue, the thin-film segment accounted for the largest revenue share of 43.09% in the global market in 2022, owing to its narrow design, strong durability, and manufacturing from flexible & lightweight materials. Based on technology, the solar PV panels market has been segmented into thin film, crystalline silicon, and others. Thin-film solar PV panels find major application in commercial and utility-scale projects as these lightweight panels have reduced installation costs.
The crystalline silicon segment is projected to witness substantial growth during the forecast period owing to the extended lifecycle of panels, low weight volume ratio, and low-cost manufacturing of silicon semiconductors. Monocrystalline solar PV panels are made from the highest-grade silicon and possess higher space efficiency compared to thin-film solar PV panels. However, companies manufacturing monocrystalline panels target only the premium segment of the market owing to high initial investment for these panels.
Grid Insights
In terms of revenue, the off grid segment is projected to ascend at the highest CAGR of 16.5% during the forecast period. Based on grid, the market has been segmented into on grid and off grid. The rising energy demand from isolated locations worldwide, along with the formulation and stringent implementation of various regulatory policies for decentralizing the power generation sector, is expected to positively influence the growth of the off-grid type segment in the coming years.
The dominant position of the on-grid type segment in the market can be attributed to the low operating and maintenance costs of grid-connected PV systems and their non-complexity. On-grid PV systems have low costs as the excess electricity generated by them is transmitted to grids. These systems eliminate the requirement of installing battery storage near them.
Application Insights
With regards to revenue, the industrial application segment led the market in 2022 by accounting for a share of 41.19% of the market. Based on application, the market has been segmented into residential, commercial, and industrial. The growing demand for clean electricity is expected to increase the number of utility projects and fuel the PV modules market growth across industrial sector.
The commercial solar PV panels have a lifespan of 15-20 years and can be used to power industrial buildings in off-grid or remote locations, pre-heating ventilation air, and water heating in offices, businesses, and others. The rapid adoption of PV modules in corporate offices, hotels, and hospitals, coupled with increased power demand in communication base stations and data centers, is expected to drive product demand across the commercial sector.
The residential application segment is expected to grow at the highest CAGR during the forecast period. Rooftop solar PV equipped with an energy battery storage system provides reliable secondary power in residential households, thereby boosting product demand across the segment.
The deployment of large-scale storage systems to protect against peak demand power changes has resulted in the adoption of extra-large rooftop solar PV systems to store the desired power in batteries. Increasing energy demand due to population growth and industrialization is expected to stimulate the growth of the regional market.
Regional Insights
Asia Pacific accounted for the largest market share of 55.19% in terms of revenue, in 2022; i2t is expected to remain dominant during the projection period. The increasing demand for solar PV panels in Asia Pacific is attributed to the rising installation of solar power projects in China and India. These countries are the key markets for solar panels both globally and in Asia Pacific.
North America occupied a significant market share in 2022. In North America, power generation from industrial sector solar cells has increased over the years as more efficient solar cells are in the market. In addition, the intensifying competition in the market has helped reduce the price of electricity produced, as well as increase the variety of solar panels. These factors are expected to bolster the demand for solar PV panels in the region during the forecast period.
In Mexico, increasing solar energy installations owing to the projects announced in the LTAs during 2015-2018, rising demand for decentralized solar energy systems, and the ambitious renewable energy targets are expected to drive the solar PV market during the forecast period. In the Middle East and Africa, the growth is attributed to the large-scale solar power plants under construction that are expected to be operational in the coming years. Various guidelines are being implemented in different countries to support the growth of solar power, with the aim of converting to renewable energy in the future.
Some of the prominent players in the Solar PV Panels Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Solar PV Panels market.
By Technology
By Grid
By Application
By Region
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers