Solar Energy Market Synopsis

Solar Energy Market Size Was Valued at USD  84.67 Billion in 2023, and is Projected to Reach USD  264.67 Billion by 2032, Growing at a CAGR of 13.50% From 2024-2032.

Solar energy can be defined as the sunlight and the heat that are collected in various forms including solar power, photovoltaic cells as well as solar thermal systems. It is a source of power capable of being regenerate, the energy that can be utilized for electric power or for heat. Solar energy is eco-friendly since it does not involve the continued utilization of fossil energy sources hence no contribution to the green gases. This type of energy has the potential to diminish climate change and is employed globally in the residential, commercial, and industrial spheres.

• The solar energy market has shown tremendous growth sector in the last year by several factors, including technology development, cost reductions, and rising environmental concerns. Sun energy, produced by photovoltaic (PV) cells and solar thermal collectirs, has become one of the crucial technologies in the process of moving to a sustainable energy future. National and local authorities globally have introduced measures that encourage the use of solar energy since it has readily available and renewable resources that can be harnessed to generate electricity while lowering green house emission and dependence on non-renewable sources such as the conventional electricity from the utility company. In this regard, China, the United States, and Germany have positioned themselves as leaders in terms of the installed capacity of solar energy and spent significant amounts on creating and expanding this capacity.
• Linked to the physical factor is the solar panel cost factor that has significantly lowered and created a pressing need for the solar energy market. Prospects for enhanced technological improvement and establishing new economies of scale have made market prices of PV cells cheaper as compared to other energy sources. Moreover, the recent progress in storage systems improved the prospects of solar power as it has previously been one of the more significant drawbacks of solar energy – irregularity. This could be achieved if the solar energy was stored which was not possible due to poor storage technologies, hence, solar power could only be harvested where the sun is shining.
• This has also contributed to market growth by creating larger environmental concerns and the search for cleaner power. Due to the realization of the impacts of climate change, there are disturbing trends in pressing the governments and industries into utilizing the clean energy. This implies that the use of clean energy in the form of solar energy could go a long way in solving the issues of high carbon footprint. Furthermore, the public has developed more consciousness towards green energy, and there has been an influx of financing for solar solutions, whether distributed for use by residents and small businesses or large-scale projects.
• Concerning the architectural level, solar panels are installed on rooftops in the residential structures helped by the useful financial packages in the form of tax credits, rebates, and net metering. These measures have assisted in the integration of solar energy in the homes, thereby promoting the decentralization of energy production . Companies and industries are also incorporating solar power into their electricity usage to minimize expenses and correlate to the increasingly green reputation. Businesses are also pledging more utilization of renewable energy and so this is putting pressure for companies to invest in solar systems.
• This helped identify growth potential in Asia, Africa and Latin American solar energy markets. These are the regions that receive high levels of solar radiation and are experiencing growth in their energy consumption rates, indicating potentials for utility-scale solar power plants. These solar initiatives are being driven through international collaborations and investment in the power sector hence aiming at empowering residents of the aforementioned regions with adequate electricity.
• However, there are challenges, some of which include; Whilst these challenges may appear as limitations to the solar energy market, they should be considered as areas that require improvements. The commitment towards policies is important to achieve sustainable long-term goals to the market because policies that are not stable slows down investment. Besides, utility scale PV systems are connected to existing grid and this has some impacts since the management of the solar energy is variable.
• In the years to come, the solar energy market can be anticipated for further growth. Thus, the use of solar power is expected to further increase due to emerging technologies , conducive policies as well as developing environmental friendly attitudes. Some of the advanced PV technologies currently in development including bifacial panels, perovskite solar cells, and floating solar farms are projected to even deliver better results at lower costs in the future. The focus towards the use of sustainable energy around the world means that the option of solar power is one of the most important energy sources with regard to the energy mix in the future.

Solar Energy Market Trend Analysis

Integration of Solar Energy with Smart Grids and IoT

• Solar energy integration with smart grids and the IoT is evolving the market with advanced and effective generation and distribution systems. Through a supply and demand mechanism actually, the smart grids or the electricity networks which incorporate the digital communication technology to detect changes in local usage make it easier to incorporate solar power. The various parties are involved in this ecosystem by providing IoT devices like smart meters and sensors that help in providing real-time data in energy consumption and production. By having this data, there’s a better understanding of the energy consumption patterns, and wastage is significantly minimized since more accurate forecasts of energy consumption can be made.
• Besides, smart solar panels, and inverters are IoT based, which can be controlled and monitored, thus promoting less maintenance and downtime. Moreover, smart grids can also forecast potential problems and make corresponding managed changes in the flow of electricity, thus creating an efficient and secure power system through the use of analytical tools and machine learning methods. This integration certainly promotes the use of solar energy through the efficiency of smart grids and IoT together with promoting the IoT and Smart grid infrastructures thus fuelling the solar energy market growth and diversification.

Technological Innovations and Efficiency Improvements

• The factors that are considered to be behind this include technological enhancements and efforts to optimize solar energy production. The new trend in generating electricity from PV was the improvement in efficiency of the solar cells, for instance perovskite and bifacial panels that have drastically enhanced the efficiency rates hence the competition with conventional energy sources. The application of artificial intelligence and Machine learning in the operation of solar power systems has enhanced the management of energy as a commodity resulting in improved efficiency, effectiveness and reliability in power production and distribution.
• Furthermore, new types of energy storage technologies: lithium-ion and solid-state batteries have effectively put off the criticism of solar power as being unstable due to intermittency. Technological advancements in the method of production like integrated circuits for the automated production line and the quality of materials used has reduced the overall cost of solar panels to bring them within the reach of many consumers. In addition, smart grid technology to enhance the adoption, and net metering policies to incorporate spro in the current energy framework to encourage its use. These advancements are not only increasing the effectiveness and bringing down the costs related to solar energy generation but are also supporting the global shift toward renewable power sources and lower levels of greenhouse emissions.

Solar Energy Market Segment Analysis:

Solar Energy Market Segmented based on Technology , Solar Module, and End-User.

By Technology , Photovoltaic Systems segment is expected to dominate the market during the forecast period

• The solar energy market is primarily divided into two main technological categories: PV solar power systems and the CSP solar power systems. Similarly, photovoltaic systems, in which sunlight is converted directly into electricity using semiconductor materials, has the largest market share because of the diverse applications such as residential solar, commercial solar power plant, utility scale solar power plant, etc and due to the gradual decreasing cost of installation. Changes such as increased conversion efficiencies of silicon based photovoltaic systems, emergence of bifacial modules and thin film solar cells among others have bolstered their use internationally.
• Concentrated Solar Power is a system where mirrors or lenses are used to focus the sun light to a smaller area to produce high temperatures to produce electricity through steam turbines and the technology though not very popular represents a good number of the MW rated solar power plants. CSP systems are desired for including thermal energy storage, which enables the fulfillment of the energy demand even if the sun is not out which make CSP a reliable and dispatchable renewable energy source. CSP projects, though they have higher initial costs and a prerequisite of being best in areas with high direct sun exposure, are newly sprouting in situations with focused high direct sun, more so in the US, Spain and the Middle East. Altogether, PV and CSP technologies hold the key to the future advancements in the generation of clean energy, where each has a specific role in the energy mix for global power system diversification and security.

By Solar Module , Monocrystalline segment held the largest share in 2023

• The Solar Energy Market can be segmented by different types of Solar Module Technologies, namely Cadmium Telluride, Amorphous Silicon Cells, Monocrystalline, Polycrystalline and others. Cadmium Telluride (CdTe) type of PV modules has a high efficiency factor and relatively low manufacturing cost, and therefore it is widely used in utility-scale applications. Amorphous silicon cells are less efficient as compared to crystalline silicon cells but they come with benefits such as flexibilities and relatively low cost of production hence suitable for applications such as the building integrated photovoltaics (BIPV). Monocrystalline solar panels, with a single-crystal structure, have the highest efficiency and service life, although they are more expensive to manufacture, and are perfect for most residential and commercial applications on rooftops.
• Mono-crystalline panels are composed of silicon crystals and are among the most efficient panels, while multi-crystalline silicon panels are cheaper and are more commonly used in residential and commercial buildings. The rest category includes up-and-coming and niche solar applications such as thin film and organic solar cells which are expected to be more affordable and versatile for installation on diverse surfaces. The number and variety of solar modules mirror the highly fluid and constantly shifting state of the solar energy market due to technological growth and people’s calls for energy solutions that are friendly to the environment.

Solar Energy Market Regional Insights:

Asia Pacific  is Expected to Dominate the Market Over the Forecast period

• According the analysis of market segment the Asia Pacific region will dominate the solar energy market during the forecast period for the following reasons. Firstly, it refers to the area which can be characterized by the rather high level of industrialization and urbanization, pointing to the constantly increasing demand for effective and CO2-free power. Renewable energy and particularly solar energy adoption has also been encouraged in Asian Pacific countries by their governments through the formulation of various policies, subsidies. Nevertheless, because of steady advancement of technology, solar energy is a cheap source of energy more so given the fact that some of the countries in the said region receive a lot of sunshine. Out of all the countries that strongly use solar energy, some primary examples are China, India, Japan, and Australia, which spend money on massive solar stations and homeownership solar panels.
•  Similarly, the developing consumer and business appreciation regarding effects of solar energy on the environment also advances the usage of solar energy. Hence Asia Pacific is not only the biggest consumer of solar energy in the existing world market share but also is having bright future on increasing its market share in the coming year and providing major share in shifting the world towards renewable energy.

Active Key Players in the Solar Energy Market

• Hanwha Q Cells Co., Ltd. (South Korea)
• SunPower Corporation (United States)
• Canadian Solar (Canada)
• First Solar, Inc. (United States)
• Trina Solar (China)
• SolarEdge Technologies (Israel)
• Enphase Energy, Inc. (United States)
• Yingli Green Energy Holding Company Limited (China)
• JA Solar Holdings Co. Ltd. (China)
• JinkoSolar Holding Co., Ltd. (China), Other Key Players.

Key Industry Developments in the Solar Energy Market

• February 2024: ReNew Energy Global PLC, an Indian decarbonization solutions company, collaborated with Singapore’s Sembcorp Industries Ltd to sell 350 MW of solar energy projects. The deal is estimated to be valued at around USD 241 million.
• October 2023: The Solar Energy Corporation of India (SECI) launched a tender in the Indian market to develop about 1 GW of interstate transmission grid-connected solar projects. The solar projects to be developed were likely to witness the signing off of a 25-year power purchase agreement between developers and SECI. The onset of such gigawatt-scale solar tenders and the development of projects are expected to create a spur in the solar energy market in the future.
• March 2023: BELECTRIC Solar Ltd UK and NextEnergy Solar Fund signed a framework agreement for over 150 MWp in O&M, following a competitive tendering process conducted by WiseEnergy. After signing a framework agreement for the next three years, BELECTRIC was to add an anticipated portfolio of at least ten solar farms in the United Kingdom with a total capacity of 150 MWp to its O&M footprint. The solar power plants range from 5 MW to 34 MW in capacity and are located in several counties across England, including Dorset, Lincolnshire, and East Sussex.

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Solar Energy Market by Technology
 4.1 Solar Energy Market Snapshot and Growth Engine
 4.2 Solar Energy Market Overview
 4.3 Photovoltaic Systems
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Photovoltaic Systems: Geographic Segmentation Analysis
 4.4 Concentrated Solar Power Systems
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Concentrated Solar Power Systems: Geographic Segmentation Analysis

Chapter 5: Solar Energy Market by Solar Module
 5.1 Solar Energy Market Snapshot and Growth Engine
 5.2 Solar Energy Market Overview
 5.3 Cadmium Telluride
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Cadmium Telluride: Geographic Segmentation Analysis
 5.4 Amorphous Silicon Cells
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Amorphous Silicon Cells: Geographic Segmentation Analysis
 5.5 Monocrystalline
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Monocrystalline: Geographic Segmentation Analysis
 5.6 Polycrystalline
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Polycrystalline: Geographic Segmentation Analysis
 5.7 Others
  5.7.1 Introduction and Market Overview
  5.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.7.3 Key Market Trends, Growth Factors and Opportunities
  5.7.4 Others: Geographic Segmentation Analysis

Chapter 6: Solar Energy Market by End Use
 6.1 Solar Energy Market Snapshot and Growth Engine
 6.2 Solar Energy Market Overview
 6.3 Electricity Generation
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Electricity Generation: Geographic Segmentation Analysis
 6.4 Lighting
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Lighting: Geographic Segmentation Analysis
 6.5 Heating
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Heating: Geographic Segmentation Analysis
 6.6  Charging
  6.6.1 Introduction and Market Overview
  6.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.6.3 Key Market Trends, Growth Factors and Opportunities
  6.6.4  Charging: Geographic Segmentation Analysis

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Benchmarking
  7.1.2 Solar Energy Market Share by Manufacturer (2023)
  7.1.3 Industry BCG Matrix
  7.1.4 Heat Map Analysis
  7.1.5 Mergers and Acquisitions
  
 7.2 HANWHA Q CELLS CO LTD (SOUTH KOREA)
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Role of the Company in the Market
  7.2.5 Sustainability and Social Responsibility
  7.2.6 Operating Business Segments
  7.2.7 Product Portfolio
  7.2.8 Business Performance
  7.2.9 Key Strategic Moves and Recent Developments
  7.2.10 SWOT Analysis
 7.3 SUNPOWER CORPORATION (UNITED STATES)
 7.4 CANADIAN SOLAR (CANADA)
 7.5 FIRST SOLAR INC (UNITED STATES)
 7.6 TRINA SOLAR (CHINA)
 7.7 SOLAREDGE TECHNOLOGIES (ISRAEL)
 7.8 ENPHASE ENERGY INC (UNITED STATES)
 7.9 YINGLI GREEN ENERGY HOLDING COMPANY LIMITED (CHINA)
 7.10 JA SOLAR HOLDINGS CO LTD (CHINA)
 7.11 JINKOSOLAR HOLDING CO LTD (CHINA)
 7.12 OTHER KEY PLAYERS

Chapter 8: Global Solar Energy Market By Region
 8.1 Overview
 8.2. North America Solar Energy Market
  8.2.1 Key Market Trends, Growth Factors and Opportunities
  8.2.2 Top Key Companies
  8.2.3 Historic and Forecasted Market Size by Segments
  8.2.4 Historic and Forecasted Market Size By Technology
   8.2.4.1 Photovoltaic Systems
   8.2.4.2 Concentrated Solar Power Systems
  8.2.5 Historic and Forecasted Market Size By Solar Module
   8.2.5.1 Cadmium Telluride
   8.2.5.2 Amorphous Silicon Cells
   8.2.5.3 Monocrystalline
   8.2.5.4 Polycrystalline
   8.2.5.5 Others
  8.2.6 Historic and Forecasted Market Size By End Use
   8.2.6.1 Electricity Generation
   8.2.6.2 Lighting
   8.2.6.3 Heating
   8.2.6.4  Charging
  8.2.7 Historic and Forecast Market Size by Country
   8.2.7.1 US
   8.2.7.2 Canada
   8.2.7.3 Mexico
 8.3. Eastern Europe Solar Energy Market
  8.3.1 Key Market Trends, Growth Factors and Opportunities
  8.3.2 Top Key Companies
  8.3.3 Historic and Forecasted Market Size by Segments
  8.3.4 Historic and Forecasted Market Size By Technology
   8.3.4.1 Photovoltaic Systems
   8.3.4.2 Concentrated Solar Power Systems
  8.3.5 Historic and Forecasted Market Size By Solar Module
   8.3.5.1 Cadmium Telluride
   8.3.5.2 Amorphous Silicon Cells
   8.3.5.3 Monocrystalline
   8.3.5.4 Polycrystalline
   8.3.5.5 Others
  8.3.6 Historic and Forecasted Market Size By End Use
   8.3.6.1 Electricity Generation
   8.3.6.2 Lighting
   8.3.6.3 Heating
   8.3.6.4  Charging
  8.3.7 Historic and Forecast Market Size by Country
   8.3.7.1 Bulgaria
   8.3.7.2 The Czech Republic
   8.3.7.3 Hungary
   8.3.7.4 Poland
   8.3.7.5 Romania
   8.3.7.6 Rest of Eastern Europe
 8.4. Western Europe Solar Energy Market
  8.4.1 Key Market Trends, Growth Factors and Opportunities
  8.4.2 Top Key Companies
  8.4.3 Historic and Forecasted Market Size by Segments
  8.4.4 Historic and Forecasted Market Size By Technology
   8.4.4.1 Photovoltaic Systems
   8.4.4.2 Concentrated Solar Power Systems
  8.4.5 Historic and Forecasted Market Size By Solar Module
   8.4.5.1 Cadmium Telluride
   8.4.5.2 Amorphous Silicon Cells
   8.4.5.3 Monocrystalline
   8.4.5.4 Polycrystalline
   8.4.5.5 Others
  8.4.6 Historic and Forecasted Market Size By End Use
   8.4.6.1 Electricity Generation
   8.4.6.2 Lighting
   8.4.6.3 Heating
   8.4.6.4  Charging
  8.4.7 Historic and Forecast Market Size by Country
   8.4.7.1 Germany
   8.4.7.2 UK
   8.4.7.3 France
   8.4.7.4 Netherlands
   8.4.7.5 Italy
   8.4.7.6 Russia
   8.4.7.7 Spain
   8.4.7.8 Rest of Western Europe
 8.5. Asia Pacific Solar Energy Market
  8.5.1 Key Market Trends, Growth Factors and Opportunities
  8.5.2 Top Key Companies
  8.5.3 Historic and Forecasted Market Size by Segments
  8.5.4 Historic and Forecasted Market Size By Technology
   8.5.4.1 Photovoltaic Systems
   8.5.4.2 Concentrated Solar Power Systems
  8.5.5 Historic and Forecasted Market Size By Solar Module
   8.5.5.1 Cadmium Telluride
   8.5.5.2 Amorphous Silicon Cells
   8.5.5.3 Monocrystalline
   8.5.5.4 Polycrystalline
   8.5.5.5 Others
  8.5.6 Historic and Forecasted Market Size By End Use
   8.5.6.1 Electricity Generation
   8.5.6.2 Lighting
   8.5.6.3 Heating
   8.5.6.4  Charging
  8.5.7 Historic and Forecast Market Size by Country
   8.5.7.1 China
   8.5.7.2 India
   8.5.7.3 Japan
   8.5.7.4 South Korea
   8.5.7.5 Malaysia
   8.5.7.6 Thailand
   8.5.7.7 Vietnam
   8.5.7.8 The Philippines
   8.5.7.9 Australia
   8.5.7.10 New Zealand
   8.5.7.11 Rest of APAC
 8.6. Middle East & Africa Solar Energy Market
  8.6.1 Key Market Trends, Growth Factors and Opportunities
  8.6.2 Top Key Companies
  8.6.3 Historic and Forecasted Market Size by Segments
  8.6.4 Historic and Forecasted Market Size By Technology
   8.6.4.1 Photovoltaic Systems
   8.6.4.2 Concentrated Solar Power Systems
  8.6.5 Historic and Forecasted Market Size By Solar Module
   8.6.5.1 Cadmium Telluride
   8.6.5.2 Amorphous Silicon Cells
   8.6.5.3 Monocrystalline
   8.6.5.4 Polycrystalline
   8.6.5.5 Others
  8.6.6 Historic and Forecasted Market Size By End Use
   8.6.6.1 Electricity Generation
   8.6.6.2 Lighting
   8.6.6.3 Heating
   8.6.6.4  Charging
  8.6.7 Historic and Forecast Market Size by Country
   8.6.7.1 Turkey
   8.6.7.2 Bahrain
   8.6.7.3 Kuwait
   8.6.7.4 Saudi Arabia
   8.6.7.5 Qatar
   8.6.7.6 UAE
   8.6.7.7 Israel
   8.6.7.8 South Africa
 8.7. South America Solar Energy Market
  8.7.1 Key Market Trends, Growth Factors and Opportunities
  8.7.2 Top Key Companies
  8.7.3 Historic and Forecasted Market Size by Segments
  8.7.4 Historic and Forecasted Market Size By Technology
   8.7.4.1 Photovoltaic Systems
   8.7.4.2 Concentrated Solar Power Systems
  8.7.5 Historic and Forecasted Market Size By Solar Module
   8.7.5.1 Cadmium Telluride
   8.7.5.2 Amorphous Silicon Cells
   8.7.5.3 Monocrystalline
   8.7.5.4 Polycrystalline
   8.7.5.5 Others
  8.7.6 Historic and Forecasted Market Size By End Use
   8.7.6.1 Electricity Generation
   8.7.6.2 Lighting
   8.7.6.3 Heating
   8.7.6.4  Charging
  8.7.7 Historic and Forecast Market Size by Country
   8.7.7.1 Brazil
   8.7.7.2 Argentina
   8.7.7.3 Rest of SA

Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies

Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research