Solar Panel Market | Global Size & Upcoming Industry Trends (2024-2032)

Solar Panel Market Synopsis

Solar Panel Market Size Was Valued at USD 34.16 Billion in 2023 and is Projected to Reach USD 54.84 Billion by 2032, Growing at a CAGR of 5.4% From 2024-2032.

A Solar Panel is a device that converts Sunlight into Electricity by using Photovoltaic cells that produce electrons when exposed to light. They are generally arranged in groups which are called arrays or systems. Solar panel manufacturers are partnered with micro-inverter companies to create AC modules and power optimizer companies are partnered with module manufacturers to create smart modules.

• Solar panels are used to generate power that can be useful in the dairy industry for the process of sterilization, Pasteurization, pressurization, concentration, drying, boiler feedwater, and also useful for cooling and bleaching. The textile industry depends on the extensive use of solar panels for efficient use of solar energy it is generally used for processes like bleaching, dyeing, drying, degreasing, pressing, etc. It is also used in the Paper Industry, where the heat required to provide the heat which is utilized for processes like drying the papers, boiler feed water, bleaching, etc.
• They are also used in Chemical industries where these solar panels absorb the heat and that heat is used for the production of soaps, synthetic rubber, processing heat, preheating water, etc. It is also used in the Beverage Industry for processes like washing, pasteurization, and sterilization. These panels are used in the timber industry in the processes of drying, for the thermodiffusion of beams, pre-heating of water, and in the preparation of pulp. Plastic Industry also has major use to generate heat in the process such as preparation, distillation, separation, extension, drying, and blending of plastics.

Solar Panel Market Trend Analysis

A Regulatory Shift Towards Solar Installations

• Fact to Growing environmental concerns and the need to transition towards renewable energy sources, there has been a more significant regulatory shift towards incentivizing solar installations in the solar panel market. Governments around the world are implementing policies such as tax incentives, feed-in tariffs, and other renewable energy mandates to promote the adoption of solar energy.
• In the Year 2023, solar PV alone accounted for three-quarters of renewable capacity additions worldwide. Renewable power capacity additions will continue to increase in the next five years, with solar PV and wind accounting for a record of about 96% of it because their generation costs are lower than both fossil and non-fossil alternatives in most countries and policies continue to support them.
• These regulations aim to make solar installations more financially attractive for residential and commercial consumers, stimulating the demand for solar panels. Additionally, there's a growing emphasis on integrating solar energy with the existing power grid, where the regulatory frameworks are being updated to facilitate grid connections and ensure fair compensation for solar energy producers. This Innovation is driving the solar panel market and bringing advancements in Innovation in Solar Technology.

The solar photovoltaic (PV) market has seen enormous growth in recent years. In 2023, the global new installed PV capacity was about 276 gigawatts. The newly installed solar PV capacity was the highest in the Asia Pacific region that year.

Technological Advancements

• The solar panel market has witnessed the way of significant technological advancements in recent years, creating multiple opportunities for the renewable energy sector. These advancements have not only improved the efficiency and affordability of solar panels but also expanded their applications in various sectors making them a viable source of clean energy.
• The Installation of high-efficiency photovoltaic cells is one of the key technological advancements in the solar panel market. These cells are capable of converting a higher percentage of sunlight into electricity, thus increasing the overall energy output of solar panels. This increased efficiency has made solar power more economically viable and attractive to businesses and also the consumers.
• Moreover, the integration of solar panels with energy storage systems has revolutionized the sector. The Batteries and other storage technologies allow surplus energy generated to be stored during the day and used during peak demand periods or the night. This has addressed one of the major limitations of solar power, addressing the way for its widespread adoption and reducing reliance on traditional grid systems.

Solar Panel Market Segment Analysis:

Solar Panel Market is Segmented on the basis of type, application, Installation Type, Grid Connectivity, and end-users.

By Type, Monocrystalline segment is expected to dominate the market during the forecast period

• Most Industries and Consumers are selecting the Monocrystalline type of Solar Panels as a choice due to several factors. solar panels. These usually outperform in converting the maximum percentage of sunlight into electricity, which results in greater energy production per unit area due to their Single-crystal structure.
• This enhanced structural integrity is making them an appealing choice for those people who are seeking increased reliability and longevity in their solar energy systems, this makes these panels a cost-effective investment in the long run, as they require very less replacements and maintenance. This is the best choice for those who are looking for a more modern and sleek aesthetic, monocrystalline solar panels. They’re typically black and have a more uniform appearance.
• One of the key reasons for the dominance of Monocrystalline panels is their higher conversion efficiency when compared to other options like Polycrystalline or Thin-Film panels, they have gained popularity due to their overall performance and efficiency. The higher energy generation and reliable power supply, that is leading to a greater demand for Monocrystalline panels.

By End-User, the Industrial segment held the largest share in 2023

• Industrial solar power systems which are increasingly used by various sectors like textile, cement, steel, ceramic, paper, chemical, and dairy industries to cut down their electricity expenses, these industrial Solar Panels have a return on investment of about 4 to 5 years which will generate a better output as compared to an inferior solar panel.
• Industries can use solar panels day and night, as it has both On-Grid and Off-Grid Solar Panel systems which makes it Lucrative. Since space is generally not a constraint for Rooftop Solar Installations in Industries, it makes it as a viable option for the high electric load requirements. Industrial companies with solar power systems also get to avail of tax benefits by the way of depreciation, capital subsidies, and other incentives as applicable. In certain union territories and states, some percentage of the total sanctioned electric load has to be generated from Solar Systems.
• By using solar energy, industries can reduce their dependence on conventional grid electricity and its associated costs. This is particularly beneficial for industries that have large energy requirements to operate on a 24/7 basis the whole day. One more key factor driving the dominance of the Industrial segment is the rising focus on sustainability and renewable energy sources where Industries are seeking to reduce their carbon footprint and maintain an eco-friendly environment. Hence, in this way, the Industrial segment is held to be the largest share of the solar panel market.

Solar Panel Market Regional Insights:

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

• The Asia Pacific countries, like as China, India, Japan, and Australia, are witnessing significant economic growth and industrial development, resulting in increasing the energy demand for Solar panels which offer a clean and renewable energy option to meet this demand, which is making them a preferred choice for both governments and industries in this region.
• In the solar modules, monocrystalline solar panels lead the Asia Pacific solar power market by holding a 44% market share. This has led to an increase in production capacity, lower costs, and enhanced market competitiveness. In 2022, India’s government had already facilitated the installation of over 56 GW of solar capacity, aiming for 100 GW. Many countries in the region have also implemented favorable feed-in tariffs, tax incentives, and subsidies to encourage the adoption of solar power.
• This has led to an increase in the Solar Panel manufacturing industries in countries like China. The Asia Pacific region is expected to dominate the solar panel market over the forecast period due to an increase in energy demand, supportive government policies, abundant sunlight, and the growing deployment of solar panels in both utility-scale and distributed generation sectors.

Solar Panel Market Top Key Players:

• Jinko Solar Holding Co., Ltd. (China)
• Trina Solar Co., Ltd. (China)
• Canadian Solar Inc. (Canada)
• Ja Solar Holdings Co., Ltd. (China)
• Hanwha Q Cells Co., Ltd. (South Korea)
• First Solar, Inc. (USA)
• Risen Energy Co., Ltd. (China)
• Gcl System Integration Technology Co., Ltd. (China)
• Sunpower Corporation (USA)
• Longi Green Energy Technology Co., Ltd. (China)
• Yingli Green Energy Holding Company Limited (China)
• Talesun Solar (China)
• Renesola Ltd. (China)
• Gcl-Poly Energy Holdings Limited (China)
• Suntech Power Holdings Co., Ltd. (China)
• Shunfeng International Clean Energy Limited (China)
• Hareon Solar Technology Co., Ltd. (China)
• Spic Energy Co., Ltd. (China)
• Byd Company Limited (China)
• Wuxi Suntech Power Co., Ltd. (China)
• Suntech Power Japan Corporation (Japan)
• Chint Solar (Zhejiang) Co., Ltd. (China)
• Kyocera Corporation (Japan)
• Jolywood (Taizhou) Solar Technology Co., Ltd. (China)
• Neo Solar Power Corporation (Taiwan) and Other Active Players.

Key Industry Developments in the Solar Panel Market:

• In April 2024, JinkoSolar, the world’s leading PV and ESS supplier, announced that it has again topped the PV Tech 2024 Q1 Module Tech Bankability Report, earning a "AAA" rating as long it has been committed to Technological innovation as it has achieved significant growth in operating and financial performance in the previous year.
• In April 2024, Trina Solar, a global leader in PV modules and smart energy solutions, announced that its Waterloo Terrace project which is the benchmark for innovation and sustainability has received the “Top Energy Innovation of the Year Award” in the Environment and Energy Leader Awards program.