The Solar PV 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 PV Market

Market Summary

The solar photovoltaic (PV) market represents a critical segment within the global energy and power industry, focused on the conversion of sunlight into electricity using semiconductor materials. This market encompasses the entire value chain, from the production of polysilicon and the manufacturing of solar cells and modules to the development, engineering, procurement, and construction (EPC) of solar power plants, both utility-scale and distributed. The industry is characterized by rapid technological advancements aimed at improving conversion efficiency and reducing the levelized cost of electricity (LCOE), making solar power increasingly competitive with conventional fossil fuel-based generation. Key market participants include established manufacturers from China, who dominate production capacity, alongside innovative technology firms from the United States, Europe, and other regions developing high-efficiency cell architectures. The demand for solar PV is fundamentally driven by the global transition towards clean, renewable energy sources to mitigate climate change, supported by governmental policies, corporate sustainability goals, and declining costs. The market is dynamic, with trends such as bifacial modules, perovskite tandem cells, and integrated storage solutions shaping its future trajectory.

Key Highlights

The solar PV market is distinguished by several pivotal developments that underscore its growth and evolution. Technological innovation remains a primary highlight, with manufacturers consistently breaking records for cell and module efficiency using passivated emitter and rear cell (PERC), tunnel oxide passivated contact (TOPCon), and heterojunction (HJT) technologies. This relentless pursuit of efficiency gains directly contributes to lower energy costs and improved project economics. Another significant highlight is the massive scale of deployment, particularly in key markets like China, the United States, and the European Union, where gigawatt-scale solar farms are becoming commonplace. Furthermore, the market is witnessing a strong trend towards digitalization and smart solar solutions, incorporating artificial intelligence and Internet of Things (IoT) for advanced monitoring, predictive maintenance, and optimal energy yield. The expansion of the market beyond traditional utility-scale applications into commercial, industrial, and residential rooftops, as well as innovative floating PV and building-integrated photovoltaics (BIPV), highlights its versatility and adaptability. The increasing involvement of major energy corporations and oil & gas giants diversifying into solar PV further validates its central role in the future energy mix.

Drivers, Opportunities & Restraints

The growth of the solar PV market is propelled by a confluence of powerful drivers. Paramount among these is the global imperative for decarbonization and the energy transition, codified in international agreements like the Paris Accord, which is prompting nations to set ambitious renewable energy targets. Supportive government policies, including tax incentives, feed-in tariffs, and renewable portfolio standards, provide crucial financial impetus for project development. The continuously declining cost of solar modules and balance of system components, a result of economies of scale and manufacturing improvements, has made solar power the cheapest source of electricity in many parts of the world. Concurrently, rising electricity demand and energy security concerns are pushing countries to diversify their power generation sources towards domestic and renewable options. The market also presents substantial opportunities, particularly in the integration of energy storage systems to address intermittency, the development of green hydrogen production powered by solar, and the untapped potential in emerging economies across Asia, Africa, and Latin America. However, the market faces notable restraints, including supply chain volatility and dependency on a concentrated manufacturing base, which can lead to price fluctuations and import tariffs. Grid integration challenges, land acquisition issues, and the intermittent nature of solar power itself also pose significant hurdles to unfettered growth. Navigating these complex dynamics is essential for sustained market expansion.

Concentration Insights

The solar PV market exhibits a high degree of concentration in its manufacturing segment, particularly in the upstream stages of the value chain. The production of polysilicon, wafers, cells, and modules is overwhelmingly dominated by companies based in China and other parts of Asia, which benefit from established supply chains, significant government support, and massive economies of scale. Leading manufacturers such as LONGi Green Energy Technology, Jinko Solar, Trina Solar, and JA Solar hold a commanding share of global module production capacity and shipment volumes. This concentration provides cost advantages but also introduces risks related to geopolitical tensions, trade policies, and supply chain disruptions, as witnessed with tariffs and forced labor concerns. In contrast, the downstream segment, which includes project development, EPC services, and operation & maintenance, is more fragmented and features a diverse array of players. This includes specialized solar developers, utility companies, oil majors like BP and Shell expanding into renewables, and independent power producers. The concentration landscape is gradually evolving with policy initiatives in the United States (Inflation Reduction Act) and India (Production Linked Incentive scheme) aimed at fostering domestic manufacturing capabilities to create a more geographically diversified and resilient supply chain.

Type Insights

The solar PV market is segmented by technology type, primarily distinguished by the module material and cell architecture. Crystalline silicon technology, encompassing both monocrystalline and polycrystalline variants, continues to dominate the market, accounting for the vast majority of global installations. Monocrystalline silicon, particularly mono PERC (Passivated Emitter and Rear Cell), is the prevailing high-efficiency technology favored for its superior performance and lower degradation rates, making it the standard for most new utility-scale, commercial, and residential projects. Polycrystalline silicon, while less efficient, historically competed on cost but has seen its market share erode significantly. The other major category is thin-film technology, which includes cadmium telluride (CdTe), amorphous silicon (a-Si), and copper indium gallium selenide (CIGS). CdTe, championed by First Solar, holds a notable market share, especially in large-scale utility projects in certain regions due to its competitive cost, temperature coefficient advantages, and lower light-induced degradation. The market is also witnessing the emergence and gradual commercialization of advanced and next-generation technologies, including heterojunction (HJT) cells, which combine crystalline silicon with thin-film layers for very high efficiencies, and tunnel oxide passivated contact (TOPCon) cells, which are seen as the natural evolution of PERC technology. Perovskite solar cells represent a promising future technology with potential for ultra-high efficiencies and low-cost production.

Application Insights

Solar PV systems are deployed across a diverse range of applications, each with distinct characteristics and demand drivers. The utility-scale application represents the largest segment in terms of installed capacity. These are massive power plants, often exceeding hundreds of megawatts, developed to sell electricity wholesale to utilities. They are driven by competitive power purchase agreements (PPAs), government auctions, and utility decarbonization goals. The second major segment is commercial and industrial (C&I) applications, where businesses install solar arrays on their premises, such as warehouse rooftops or adjacent land, to offset their electricity consumption, reduce energy costs, and meet corporate sustainability targets. Behind-the-meter systems for C&I users are a key growth area. The residential application involves the installation of rooftop solar systems on individual homes. This segment is driven by net metering policies, falling equipment costs, and increasing consumer awareness of renewable energy. Beyond these three core segments, other applications are gaining traction. These include off-grid solar for rural electrification and powering remote infrastructure, building-integrated photovoltaics (BIPV) where solar elements are incorporated into building materials like facades or roofs, and floating photovoltaics (FPV), which involves installing solar arrays on bodies of water to conserve land and benefit from cooling effects.

Regional Insights

The adoption and growth of solar PV vary significantly across different global regions, influenced by solar irradiance, policy frameworks, electricity demand, and infrastructure. The Asia-Pacific region is the undisputed leader in both the production and installation of solar PV, with China being the single largest market globally. China's dominance is fueled by strong domestic policy support, a massive manufacturing base, and ambitious renewable energy targets. Other key markets in the region include India, which is executing one of the world's largest renewable expansion programs, Japan, Australia, and South Korea. North America, particularly the United States, is a major and steadily growing market, driven by federal investment tax credits (ITC), state-level renewable portfolio standards, and declining costs. Europe represents another mature and high-growth market, reinvigorated by the REPowerEU plan aimed at accelerating the energy transition and reducing dependence on fossil fuels. Countries like Germany, Spain, the Netherlands, and Poland are leading installations. The Middle East and Africa region holds immense potential due to high solar irradiation, with markets like Saudi Arabia, the UAE, and South Africa launching major solar initiatives. Latin American markets, including Brazil, Chile, and Mexico, are also experiencing robust growth driven by auctions and favorable conditions for utility-scale projects.

Company Insights

The competitive landscape of the solar PV market features a mix of vertically integrated giants, specialized technology firms, and downstream developers. In the manufacturing domain, Chinese companies maintain a position of strength. LONGi Green Energy Technology is a global leader in monocrystalline wafer and module production, renowned for its technological innovation and scale. Jinko Solar and Trina Solar are also titans in module manufacturing and shipment, with a strong global presence. JA Solar is another key player with significant production capacity. From a Western perspective, First Solar is a prominent and unique player as the leading Western-owned manufacturer, specializing in cadmium telluride (CdTe) thin-film technology, which is a differentiator in the market. Canadian Solar operates a hybrid model with significant manufacturing and a strong project development arm. Beyond pure-play manufacturers, the market includes major energy companies that have become significant players in project development and ownership. This includes European utilities like Enel Green Power and Iberdrola, as well as oil majors such as TotalEnergies, BP, and Shell, which are actively building large solar portfolios as part of their energy transition strategies. Inverter technology, a critical component, is led by companies like Huawei, Sungrow, SMA Solar Technology, and Power Electronics.

Recent Developments

The solar PV market is in a constant state of flux, marked by significant recent developments that shape its direction. A major trend is the policy-driven push for supply chain diversification and domestic manufacturing. The U.S. Inflation Reduction Act (IRA) has unleashed massive investments in new manufacturing facilities for polysilicon, wafers, cells, and modules within the United States, with companies like First Solar, Qcells, and Enphase Energy announcing multi-billion dollar expansions. Similarly, India's Production Linked Incentive (PLI) scheme is boosting local manufacturing capacity. Technologically, the industry is rapidly transitioning from mainstream PERC technology to more advanced n-type cells like TOPCon and HJT, which offer higher efficiencies and better performance. Major manufacturers are aggressively ramping up production lines for these next-generation technologies. Furthermore, the integration of energy storage with solar PV is becoming standard, particularly for utility-scale projects and commercial applications, to provide dispatchable power. Corporate procurement of solar energy through virtual power purchase agreements (VPPAs) has also seen explosive growth, with major tech and retail companies securing gigawatts of solar capacity. The market is also responding to heightened focus on supply chain sustainability and traceability, with increased scrutiny on manufacturing origins and carbon footprints.

Report Segmentation

This comprehensive market research report on the Solar PV Market provides a detailed and structured analysis segmented across multiple dimensions to offer granular insights. The report is meticulously categorized by technology type, delving into the dynamics of crystalline silicon modules, including monocrystalline and polycrystalline, and thin-film technologies such as cadmium telluride (CdTe), amorphous silicon (a-Si), and copper indium gallium selenide (CIGS). It further segments the market by application, providing in-depth coverage of utility-scale power generation, commercial and industrial (C&I) installations, residential rooftop systems, and other emerging applications like off-grid solar and floating PV. A crucial component of the segmentation is by component, analyzing the markets for modules, inverters (central, string, micro), mounting systems, and balance of system components. Geographically, the report offers a thorough regional analysis, breaking down the market size, trends, and forecasts for key regions including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, with further country-level analysis for major markets within these regions. This multi-faceted segmentation allows stakeholders to pinpoint growth opportunities, understand competitive dynamics, and assess market potential for specific technologies, applications, and geographies.

FAQs

What are the key factors driving the growth of the solar PV market? The growth is primarily driven by the global energy transition towards renewables to combat climate change, supportive government policies and incentives, continuously declining costs of solar technology making it highly competitive, rising electricity demand, and increasing corporate adoption for sustainability goals.

Which companies are the leading players in the solar panel manufacturing industry? The leading manufacturers globally are predominantly based in China and include LONGi Green Energy Technology, Jinko Solar, Trina Solar, and JA Solar. First Solar is a major Western manufacturer specializing in thin-film technology.

What are the different types of solar PV technologies available? The main types are crystalline silicon, which includes efficient monocrystalline and cost-competitive polycrystalline panels, and thin-film technologies like Cadmium Telluride (CdTe), Amorphous Silicon (a-Si), and Copper Indium Gallium Selenide (CIGS). Next-gen technologies like HJT and TOPCon are gaining traction.

How is the solar energy market expected to evolve in the next five years? The market is expected to see sustained strong growth, accelerated by policy support in key regions like the US and EU. Technology will shift towards higher-efficiency n-type cells (TOPCon/HJT), and integration with energy storage will become increasingly critical for grid stability.

What are the major challenges faced by the solar power industry? Key challenges include supply chain concentration and volatility, grid integration issues for intermittent power, need for significant investment in grid modernization, land use concerns, and competition from other renewable sources.

Which regions are the largest markets for solar PV installations? The Asia-Pacific region, led by China, is the largest market. North America (primarily the US) and Europe are other major and growing markets. Emerging regions like the Middle East, Latin America, and parts of Africa also present significant growth potential.

Citius Research has developed a research report titled “Solar PV 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 PV 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 PV 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 PV Market Segmentation

Regions Covered

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

Solar PV Market Analysis

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

• Overview of Solar PV Market
• Research Methodology
• Executive Summary
• Market Dynamics of Solar PV 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 PV Market
• Cost and Gross Margin Analysis of Solar PV Market
• Solar PV 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 PV 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 PV Market Key Stakeholders

Below are the key stakeholders for the Solar PV Market:

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

Solar PV Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Solar PV 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 PV 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 PV 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.

Frequently Asked Questions