The global BIPV market size was valued at USD 3.5 billion in 2020 and is expected to reach USD 8.7 billion by 2026 representing a CAGR of 16% during the forecast period. The modular photovoltaics with dynamic visual and thermal properties for the façade and windows will drive the global BIPV market. The global market has observed rapid growth in Europe, North America, and parts of APAC in recent years. With the improvement in infrastructure, lux residential complexes, commercial office spaces, airports, and hospitals, the demand for sustainable energy products, including BIPV, is growing. The market has historically been concentrated in the US and Europe and accounted for the highest installations; however, emerging economies are currently contributing toward the BIPV demand significantly. The application of BIPV products in the residential sector is expected to increase with the growth in awareness and increase in disposable incomes in developing regions. Along with the rising demand for new installations, the developed regions' market is witnessing an increased demand from retrofit projects.
Futuristic inventions in mainstream solar and other complementary technologies are likely to boost investor confidence in the market, increasing funding for R&D activities. Technology start-ups are expected to venture into the building integrated photovoltaics market and adopt advanced and modern technology with demonstrable features. Existing vendors will continue to improvise their product portfolio with upgrades. Thus, innovative and efficient solar panels will fuel the market growth during the forecast period.
- Advances in solar technology and stringency in climate preservation regulations are likely to drive the global BIPV market's growth during the forecast period.
- The demand for BIPV materials in building façade and windows increases on account of the high efficiency of adaptive and modular photovoltaics and the introduction of intelligent daylighting systems.
- The Middle East & Africa region is expected to generate incremental revenue of $61 million driven by adopting sustainable energy practices in commercial construction projects.
- The commercial segment is expected to pose an absolute growth of 149% during the forecast period due to the growth in flexible working spaces and the implementation of zero-energy building mandates.
- The outbreak of the COVID-19 pandemic has immensely affected the global BIPV market due to the decline in infrastructural activities across the world.
GLOBAL BUILDING INTEGRATED PHOTOVOLTAICS MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY TECHNOLOGY
Crystalline silicon BIPV products dominated the building integrated photovoltaics market share of over 73% in 2020. Monocrystalline and polycrystalline modules witnessed high application in roofs. However, the growth in thin-film technologies is expected to capture a major share of first-generation silicon cells during the forecast period. The thin-film segment is expected to pose an absolute growth of 192% during the forecast period with the rise in preference for foil-based flexible modules. Crystalline-silicon products are ideal for residential buildings due to high-efficiency coefficients. As residential buildings have space constraints, crystalline silicon PV products become the most preferred material choice for buildings, especially roofs.
Increased innovations and advances in thin-film manufacturing are boosting the demand for thin-film photovoltaic glass panels among consumers. These panels are highly flexible and are suitable for several BIPV applications as they can be easily integrated within the building envelope. They are ideal in portable solar systems owing to their functionalities. They are likely to observe an increased implementation in large commercial buildings. However, limited performance delivery and low efficiency are considered the challenge for the growth of the technology.
INSIGHTS BY APPLICATION
In 2020, BIPV roof products dominated the market with a share of over 63% due to innovations in crystalline technology. The customized portfolio for shingles and flexible thin-film foils is accelerating the demand for residential rooftops. Transparent solar modules could be the next major opportunity in the market. They usually consist of transparent crystalline modules and can be used as window glazing in sunspaces and have the feasibility to be integrated with roofs. However, the steep increase in the demand for BIPV roof products is challenged due to the lack of standardization in photovoltaic tiles. The roof products have high potential in western economies due to slanting roof designs. The application of thin-film BIPV and façade, on the other hand, is higher in APAC and MEA regions, where the roof design is relatively flat.
Façade and windows are the fastest-growing that are expected to generate incremental revenue of over $2 billion during the forecast period. The increased scope in curtain wall, transparent glazing, colored BIPV modules, organic PV cells is expected to boost installation during the next five years. Solar modules and tiles with thin-film technologies could act as a major driver for the growth of window and façade applications.
INSIGHTS BY END-USERS
With the implementation of solar power panels in building codes becoming compulsory, commercial buildings are expected to integrate PV systems in the building envelope. The adoption of BIPV products in commercial buildings offers dual benefits - acting as a structurally sound outer layer of the building and reducing power expenses to generate electricity for self-consumption. The commercial segment was the largest end-user expected to pose an absolute growth of 149% during the forecast period. The growth in flexible working spaces and increased importance of zero-energy practices could boost commercial BIPV products.
The residential segment is considered to be unexplored for BIPV products, especially for roofs. Favorable government initiatives for green building schemes, attractive incentives for BIPV installations, the rise in awareness of renewable energy technology could support the installations in the residential sector. Japan, Germany, Hawaii, and parts of the US are witnessing the adoption of solar systems with batteries as they have the highest retail electricity rates. Residents in these countries tend to store surplus energy to reduce grid dependence. Therefore, energy storage is likely to become an enabling technology, which is likely to boost the adoption of BIPV in the residential segment.
INSIGHTS BY GEOGRAPHY
The Europe BIPV market is expected to grow at a CAGR of over 14% during the forecast period. As solar energy is the cheapest electricity source in the Nordics, the momentum for PV is growing in the region. The growth of BIPV has been steady and optimistic in countries such as Norway, Sweden despite the absence of special subsidies and wide policies. The BIPV system as a building envelope material is economically feasible in Norway that is driving the adoption. Homeowners in the Netherlands have shown keen interest in PV modules. Europe is one of the largest markets in installed PV capacities and annual installations across the world. Institutions and industries in Europe are increasingly adopting eco-friendly or green technology to reduce carbon footprints from buildings. Buildings have become exceedingly complex with the incorporation of smart technology. While the beneficial economic factors can drive the demand for BIPV installation in Europe, certain policies and regulations could hamper the demand for BIPV installation. Reduction in incentives and subsidies and decrease or removal of feed-in-tariff rates can adversely affect market growth in the region.
INSIGHTS BY VENDORS
The global building integrated photovoltaics market observes a flurry of activities, with new entrants queuing up to enter it. However, high initial capital investments hamper new players' entry as the development and commercialization of high-efficiency BIPV modules technology remains a capital-intensive affair. As the building integrated photovoltaics (BIPV) market grows with the growing adoption of solar energy in residential and commercial buildings, it is expected that vendors invest in enhancing their product portfolio during the forecast period. The incorporation of recyclability in manufacturing processes can enhance the significance of vendors in terms of sustainability and eco-friendliness. With solar energy witnessing traction, the potential for reducing energy costs is significantly high.
The building-integrated photovoltaic market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Crystalline Silicon
- North America
- South Korea
- Latin America
- Middle East & Africa