The Solar Photovoltaic Market size was estimated at USD 185 billion in 2023 and is projected to reach USD 350 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9.50% during the forecast period (2024-2030).

Solar Photovoltaic Market

Market Summary

The solar photovoltaic market represents a critical segment of the global energy and power industry, focused on converting sunlight directly into electricity using semiconductor materials. This market encompasses the entire value chain, from the production of polysilicon and the manufacturing of PV cells and modules to the development of balance of system components and the installation and operation of solar power plants. The industry has evolved significantly over the past decade, transitioning from a niche technology to a mainstream energy source driven by technological advancements, cost reductions, and supportive government policies worldwide. Key participants include manufacturers, project developers, EPC contractors, and utilities, all working towards enhancing efficiency, reliability, and scalability of solar power systems. The market is characterized by intense competition, continuous innovation, and a growing emphasis on sustainability and energy independence. As nations strive to meet climate goals and reduce carbon emissions, solar photovoltaics are increasingly integral to energy strategies, supporting both grid-connected and off-grid applications across residential, commercial, industrial, and utility scales.

Key Highlights

Notable highlights in the solar photovoltaic market include the rapid decline in the levelized cost of electricity, making solar power increasingly competitive with conventional energy sources. Technological innovations such as bifacial modules, PERC cells, and heterojunction technology have significantly improved module efficiency and energy yield. There is a strong trend towards larger wafer sizes, with M10 and G12 formats becoming industry standards, enabling higher power output per module. The integration of energy storage systems with solar PV installations is gaining momentum, addressing intermittency issues and enhancing grid stability. Supply chain dynamics, particularly in polysilicon and wafer production, continue to influence market prices and availability. Major markets such as China, the United States, and the European Union are driving demand through ambitious renewable energy targets and incentives, while emerging economies in Asia, Latin America, and Africa are witnessing accelerated adoption due to falling costs and energy access initiatives.

Drivers, Opportunities & Restraints

Key drivers propelling the solar photovoltaic market include supportive government policies and regulations, such as feed-in tariffs, tax credits, and renewable portfolio standards, which incentivize investment and deployment. Growing environmental awareness and corporate sustainability commitments are accelerating the adoption of clean energy solutions. Technological advancements leading to higher efficiencies and lower production costs are making solar power more accessible. Opportunities abound in the development of floating solar projects, agrivoltaics, and building-integrated photovoltaics, which optimize land use and create dual-purpose applications. The expansion of green hydrogen production, which utilizes solar power for electrolysis, presents a significant growth avenue. However, the market faces restraints including supply chain vulnerabilities, trade barriers, and import duties that can disrupt material flows and increase costs. Grid integration challenges, such as intermittency and the need for grid modernization, pose technical and financial hurdles. Additionally, regulatory uncertainty and policy changes in key markets can impact project economics and investor confidence.

Concentration Insights

The solar photovoltaic market exhibits a high degree of concentration in certain segments of the value chain, particularly in upstream manufacturing. China dominates the production of polysilicon, wafers, cells, and modules, accounting for a substantial majority of global manufacturing capacity. Leading Chinese manufacturers include JinkoSolar, LONGi Solar, and Trina Solar, which have extensive vertical integration and economies of scale. In contrast, the downstream segment, including project development and EPC services, is more fragmented with numerous regional and local players. Countries like the United States and India are implementing policies to encourage domestic manufacturing to reduce reliance on imports and build resilient supply chains. Concentration is also evident in technology adoption, with monocrystalline PERC technology being the predominant choice for new installations due to its high efficiency and cost-effectiveness. Emerging technologies like TOPCon and HJT are gaining traction but remain concentrated among innovative manufacturers investing in next-generation production lines.

Type Insights

The solar photovoltaic market is segmented by technology into crystalline silicon and thin-film modules. Crystalline silicon, which includes monocrystalline and polycrystalline variants, holds the largest market share due to its high efficiency, reliability, and well-established manufacturing processes. Monocrystalline modules, particularly those using PERC technology, are preferred for their superior performance and space efficiency. Polycrystalline modules, while less efficient, have been historically cost-competitive. Thin-film technologies, such as cadmium telluride (CdTe), copper indium gallium selenide (CIGS), and amorphous silicon, offer advantages like flexibility, lightweight properties, and better performance in high-temperature and low-light conditions. CdTe technology, championed by companies like First Solar, is widely used in utility-scale projects. Emerging technologies like perovskite solar cells are in the research and development phase, promising higher efficiencies and lower production costs in the future. The choice of technology depends on application-specific requirements, including efficiency, cost, durability, and environmental conditions.

Application Insights

Solar photovoltaic systems are deployed across diverse applications, including residential, commercial and industrial, and utility-scale sectors. The residential segment involves rooftop installations on homes, driven by net metering policies, falling equipment costs, and consumer desire for energy independence. Commercial and industrial applications include solar installations on warehouses, factories, and office buildings, often through power purchase agreements or leasing models that reduce upfront costs. Utility-scale projects, typically exceeding 1 MW in capacity, are developed by independent power producers and utilities to supply electricity to the grid, benefiting from economies of scale and long-term power contracts. Off-grid and remote applications, such as solar home systems and mini-grids, provide electricity access in underserved regions. Additionally, solar PV is increasingly integrated into transportation infrastructure, such as solar-powered charging stations for electric vehicles, and into agricultural practices through agrivoltaics, which combine crop cultivation with solar energy generation.

Regional Insights

The Asia-Pacific region dominates the solar photovoltaic market, led by China, which is the largest producer and consumer of solar energy. China's massive manufacturing base and supportive government policies have fueled rapid deployment. India is another key market, with ambitious targets under the National Solar Mission driving growth. In North America, the United States is a major player, supported by federal investment tax credits and state-level renewable energy mandates. Europe is experiencing a solar renaissance, with countries like Germany, Spain, and the Netherlands expanding capacities to meet EU climate goals. The Middle East and Africa are emerging markets, with nations like Saudi Arabia, the UAE, and South Africa investing in large-scale projects to diversify their energy mix. Latin America, particularly Chile and Brazil, is also witnessing significant growth due to favorable solar resources and competitive auction mechanisms. Each region presents unique opportunities and challenges influenced by policy frameworks, grid infrastructure, and natural solar potential.

Company Insights

Prominent companies in the solar photovoltaic market include JinkoSolar, known for its high-efficiency modules and extensive global sales network. LONGi Solar is a leader in monocrystalline wafer and module production, focusing on technological innovation and vertical integration. Trina Solar offers a comprehensive portfolio of PV products and solutions, with a strong emphasis on research and development. Canadian Solar is notable for its module manufacturing and project development capabilities, with a significant presence in utility-scale markets. First Solar specializes in thin-film cadmium telluride modules, catering to utility-scale projects with its advanced technology. SunPower, now Maxeon Solar Technologies, is recognized for its high-performance interdigitated back contact cells. Other key players include Hanwha Q CELLS, JA Solar, and Risen Energy, all contributing to market growth through capacity expansions and technological advancements. These companies compete on factors such as efficiency, durability, cost, warranty terms, and sustainability practices.

Recent Developments

Recent developments in the solar photovoltaic market include significant capacity expansions by major manufacturers, particularly in Southeast Asia and India, to mitigate supply chain risks and cater to growing demand. There is increased investment in research and development aimed at pushing cell efficiencies beyond 25% through technologies like TOPCon, HJT, and tandem cells. Corporate power purchase agreements are becoming more prevalent, with large technology and retail companies committing to solar energy to meet sustainability goals. Policy developments, such as the U.S. Inflation Reduction Act, are providing long-term certainty and incentives for domestic manufacturing and deployment. The industry is also focusing on sustainability, with initiatives to reduce the carbon footprint of manufacturing processes and improve end-of-life management through recycling programs. Additionally, advancements in digitalization and artificial intelligence are enhancing project design, operation, and maintenance, leading to higher energy yields and lower operational costs.

Report Segmentation

This comprehensive report on the solar photovoltaic market provides detailed analysis and forecasts across multiple segments. It covers market dynamics by technology, including crystalline silicon and thin-film modules, with further breakdown into monocrystalline and polycrystalline types. The application segment analyzes residential, commercial and industrial, and utility-scale sectors, along with off-grid and emerging applications. Geographical segmentation offers insights into regional markets across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. The report also examines the competitive landscape, profiling key players and their strategies, market shares, and product portfolios. Additional segments include analysis by component, such as modules, inverters, and balance of system, and by mounting type, including ground-mounted, rooftop, and floating solar systems. This structured approach enables stakeholders to identify growth opportunities, assess risks, and make informed strategic decisions.

FAQs

What are the main components of a solar photovoltaic system? A solar photovoltaic system primarily consists of solar panels, which contain photovoltaic cells that convert sunlight into electricity. Other key components include inverters that convert direct current to alternating current, mounting structures to secure the panels, wiring and electrical components for connectivity, and often monitoring systems to track performance. For off-grid or hybrid systems, batteries for energy storage are also essential.

How does solar photovoltaic technology work? Solar photovoltaic technology works through the photovoltaic effect, where photons from sunlight strike semiconductor material in solar cells, knocking electrons loose and creating an electric current. This direct current is then converted to alternating current by an inverter, making it usable for household appliances or for feeding into the electrical grid. The process is clean, silent, and requires no moving parts.

What factors affect the efficiency of solar panels? The efficiency of solar panels is influenced by the type of technology used, with monocrystalline generally being more efficient than polycrystalline or thin-film. Environmental factors such as temperature, shading, and the angle and orientation of installation also play significant roles. Additionally, dust, dirt, and snow can reduce efficiency by blocking sunlight, necessitating regular maintenance for optimal performance.

What are the benefits of using solar energy? Solar energy offers numerous benefits, including reduction in electricity bills, low environmental impact with no greenhouse gas emissions during operation, and energy independence from fossil fuels. It also provides scalability from small residential systems to large utility plants, and has low operating costs once installed. Furthermore, it can enhance energy security and create jobs in manufacturing, installation, and maintenance.

How long do solar panels typically last? Solar panels are designed to be durable and typically come with warranties lasting 25 to 30 years, guaranteeing a certain level of performance. While their efficiency may degrade slightly over time, often around 0.5% to 1% per year, they can continue to generate electricity well beyond their warranty period, with many systems operational for 30 years or more with proper maintenance.

What is net metering and how does it work? Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. When a system produces more electricity than is being consumed, the excess is sent to the grid, and the meter runs backward, providing credits. These credits can then be used to draw electricity from the grid at times when the system is not producing enough, such as at night, reducing the overall electricity bill.

Citius Research has developed a research report titled “Solar Photovoltaic Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Solar Photovoltaic Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Solar Photovoltaic Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Solar Photovoltaic Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Solar Photovoltaic Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Solar Photovoltaic Market
• Research Methodology
• Executive Summary
• Market Dynamics of Solar Photovoltaic Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Solar Photovoltaic Market
• Cost and Gross Margin Analysis of Solar Photovoltaic Market
• Solar Photovoltaic Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Solar Photovoltaic Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Solar Photovoltaic Market Key Stakeholders

Below are the key stakeholders for the Solar Photovoltaic Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Solar Photovoltaic Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Solar Photovoltaic Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Solar Photovoltaic Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Solar Photovoltaic Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

Citius Research provides free customization of reports as per your need. This report can be personalized to meet your requirements. Get in touch with our sales team, who will guarantee you to get a report that suits your necessities.

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