by Solar photovoltaic (PV) panels are used to convert sunlight directly into electricity, and are extremely useful for generating renewable energy at both large and small scales. Rapid industrialization and urbanization have led to growing demand for reliable and cheap energy sources, boosting adoption of solar PV panels across various end-use industries.
The global solar PV panels market is estimated to be valued at US$ 305.81 billion in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the solar PV panels market are JinkoSolar, Longi Green Energy Technology Co., Ltd., Canadian Solar Inc., Trina Solar Co., Ltd, JA Solar Technology Co., Ltd.
Growing focus on renewable energy sources to reduce dependence on fossil fuels presents significant growth opportunities in the market. Supportive government policies including tax benefits and feed-in-tariff schemes are expected to accelerate solar PV adoption in various countries.
Major players are expanding their manufacturing capacities and geographical reach through acquisitions and partnerships to cater to the increasing global demand for solar PV panels. Growing off-grid installation in remote areas without access to electricity grid is also driving market expansion.
Market drivers
Supportive government policies aimed at promoting use of clean energy through incentives and targets for renewable purchase are a key factor driving demand for Solar PV Panels Market Growth. Dropping prices of solar panels along with technological advancements have made solar electricity cost-competitive with grid electricity, further boosting market growth. Rapid industrialization across developing nations also presents an opportunity for widespread adoption of solar PV panels for power generation.
PEST Analysis
Political: Government initiatives and policies promoting use of renewable energy sources are expected to drive growth of the solar PV panels market. Many countries offer subsidies and tax benefits for setting up solar power projects.
Economic: Declining price of solar panels in recent years and competitive cost of solar power generation compared to fossil fuels is boosting demand from commercial sectors. Various financing options are also aiding market growth.
Social: Increasing public awareness about the need to adopt cleaner energy sources for environmental protection is supporting adoption of solar energy solutions for both domestic and non-domestic use.
Technological: Continuous improvements in solar cell panel efficiencies and new thin-film technologies are helping overcome challenges like spaceconstraints. Monocrystalline cells which capture light effectively have emerged as a popular technology. Development of bifacial solar modules is also expanding deployment opportunities.
The Asia Pacific market accounts for the largest share in terms of value due to presence of major solar panel manufacturers in countries like China, Taiwan and India along with rapid installations across Japan, South Korea and other Southeast Asian nations. In Europe, Germany leads solar photovoltaic deployment and is a lucrative regional market. Latin America witnessed fastest regional growth over the past few years led by solar power contracts and auctions in Brazil, Chile and Mexico trying to reduce their dependence on fossil fuels.
In terms of fastest growth, MEA region is estimated to emerge as an attractive investment destination for solar PV companies. Favorable climatic conditions for solar power generation coupled with large unexplored potential and supportive political initiatives by Gulf nations as well as South Africa to diversify their energy mix present enormous opportunities for industry participants in upcoming years.
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
