Solar Panel Market - Global Outlook & Forecast 2024-2029

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THE GLOBAL SOLAR PANEL MARKET SIZE IS EXPECTED TO REACH USD 273.15 BILLION BY 2029 FROM USD 187.69 BILLION IN 2023, GROWING AT A CAGR OF 6.45% DURING THE FORECAST PERIOD.

The Solar Panel Market Size, Share, & Trends Analysis Report By

·       Grid Type: On-grid and Off-grid   

·       End-user: Commercial, Utilities and Energy Companies, Industrial, Residential, Agriculture Sectors, Military and Defence Sectors, and Others

·       Type: Monocrystalline Solar Panel, Polycrystalline Solar Panel, Thin-film Solar Panel, Bifacial Solar Panel, and Others

·       Power Capacity: Small-Scale Solar Panels (<10 kW), Medium-Scale Solar Panels (10 kW - 100 kW), Large-Scale Solar Panels (100 kW - 1 MW), and Utility-Scale Solar Panels (>1 MW)

·       Installation: Rooftop Solar Panels, Ground-Mounted Solar Panels, BPIV, and Others

·       Geography: North America, Europe, APAC, Latin America, and Middle East & Africa

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.

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GLOBAL SOLAR PANEL MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
Market Size (2029)USD 273.15 Billion
Market Size (2023)USD 187.69 Billion
CAGR (2023-2029)6.45%
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
SEGMENTS BYGrid Type, End-user, Type, Power Capacity, Installation, and Geography
GEOGRAPHIC ANALYSIS North America, Europe, APAC, Latin America, and Middle East & Africa
KEY PLAYERSJinkoSolar, Canadian Solar, Trina Solar, SunPower Corp, Hanwha Q Cells, Aiko Solar, LONGi Solar, Risen Energy, Kaneka Corporation, and Shell International Ltd
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MARKET INSIGHTS

The global solar panel market size was valued at USD 187.69 billion in 2023 and is expected to reach USD 273.15 billion by 2029, growing at a CAGR of 6.45% during the forecast period.  The global solar panel market is expected to grow in the coming years due to increasing awareness of climate change and ongoing innovations in PV panel design, materials, and manufacturing processes. Further, continuous advancements in solar panel technology, such as improved efficiency and lifespan, are driving market growth and expanding the scope of applications. Incorporating solar panel technology into consumer goods and home appliances presents a significant growth opportunity driven by improved output power, reliability, and cost reduction.

Solar panel's primary function is to provide adequate illumination for various activities and tasks conducted within commercial spaces. The growing number of solar power plants attached to the grid through an on-grid solar inverter favors market development. Moreover, expanding installations of off-grid solar panels in industrial, commercial, and residential sectors influence the solar panel market value, generating vast demand for safe and reliable power source converters. Furthermore, buildings account for up to 24% of greenhouse gas discharges and over 40% of the primary electricity use worldwide. These numbers are growing YOY due to the rising world population and improving living standards. The global landscape will likely encounter energy shortages, and negative climate changes are quite apparent. It has been recognized with sufficient evidence that the present energy generation system is not sustainable. There is a need to shift to renewable sources, such as solar energy, for clean and sustainable energy.

Furthermore, renovations, infrastructural development, and remodeling of existing commercial and residential buildings will also support the solar panel market's growth. In mature markets, such as North America and Europe, the growth is mainly driven by product innovations introduced by the key players. The growth of infrastructural construction projects was set to speed up significantly post-2021. These infrastructural projects in Europe are estimated to reach a total investment of about USD 14.8 trillion and are expected to be completed by 2040, creating a massive demand for solar panels at these locations in Europe. Also, the Chinese market has witnessed a spurt in multiple real estate projects and public-private investments in various residential, industrial, and commercial development zones due to the boom in urbanization.

MARKET TRENDS & OPPORTUNITIES

Advancements in Solar Technology
Solar panel technology has made massive strides that have made it easier to acquire solar panels. Efficiency has become a part of the specifications consideration, which means current panels produce more electricity from the limited sunlight that always falls on the panel’s surface. Manufacturing methods have improved, reducing costs and lowering the economic barrier to entry, enabling more people to invest in solar power. Silicon solar cells dominate the market and have undergone continuous refinement and improvement. Advances in silicon wafer manufacturing, such as developing monocrystalline and polycrystalline silicon cells, have increased cell efficiency and reduced production costs. Also, new advancements in solar panel technology increase market demand by making solar energy more efficient, durable, affordable, and versatile. As these technologies evolve, they will be critical in accelerating the transition to a clean, sustainable energy future. Furthermore, innovative designs, applications, and supportive government policies and incentives have further accelerated the growth of the solar panel market.

Growth of Green Building Activities
A green building creates structures using environmentally sustainable and resource-efficient processes throughout the building's lifecycle, from siting to design, construction, operation, maintenance, renovation, and deconstruction. Green buildings are also known as sustainable and high-performance buildings. Solar panels are an effective way for a building to meet its sustainability standards. These solar panels can provide abundant eco-friendly energy resources, reducing or eliminating the need for electric consumption. As a result, solar-powered buildings contribute to green building certifications, such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method), by meeting criteria related to energy efficiency, renewable energy use, and environmental performance.

INDUSTRY RESTRAINTS

High Initial Cost
Raw materials constitute the largest cost component in the manufacture of solar panels. Moreover, raw materials account for 50−60% of the overall cost of the final products. The prices of major raw materials, such as glass, plastic, timber, and aluminum, used to manufacture solar panels have increased significantly over the past few years. The volatility of raw material prices seriously threatens vendor profit margins in the solar panel market. Other operating expenses, such as labor costs, have risen steadily over the past few years. Adding to all these costs, cheaper and cost-effective solar panels and modules made by Chinese and other international manufacturers have harmed the profits of the major market vendors. All these factors burden vendors who have strived to produce affordable and value-added products to cope with the intense market competition.

SEGMENTATION INSIGHTS

INSIGHTS BY GRID TYPE
The global solar panel market by grid type is categorized as on-grid and off-grid. The on-grid segment held the largest segmental market share in 2023. On-grid systems are typically the most cost-effective option since they do not require expensive battery storage. Also, on-grid systems are easier to install and maintain compared to off-grid systems. Furthermore, the on-grid solar panel makes two-way interaction with the power grid available. This means the solar panel will supply the grid with excess energy and pull out energy when necessary. Moreover, it detects any disruptions in the power grid, allowing the solar system to switch to a safe mode. Also, regulatory policies and incentives play a significant role in adopting on-grid solar systems, including net metering policies, feed-in tariffs, and tax incentives.

INSIGHTS BY END-USER
The global solar panel market by end-user is segmented into commercial, utilities & energy companies, industrial, residential, agriculture sectors, military and defense sectors, and others. The utilities and energy companies segment holds the dominant segmental market share. The utility market involves utility-scale solar plants, photovoltaic power plants, battery energy storage plants, green power station demonstration projects, and PV Power plants by entities (organizations, sole traders, and partnerships) that provide natural gas, steam supply, electric power, water supply, and sewage removal services. Solar panels are highly utilized in utility sectors for several reasons. Firstly, they offer a sustainable and renewable energy source, which aligns with the growing global emphasis on reducing carbon emissions and combating climate change. This makes them attractive for utility companies aiming to meet renewable energy targets and minimize their environmental impact. Secondly, solar panels can be installed in various locations, from large-scale solar farms to rooftop installations, providing flexibility in deployment. This scalability allows utility companies to adapt their solar energy production to match demand, helping to stabilize the grid and reduce reliance on fossil fuels during peak times. These factors help boost the segmental market share during the forecast period.

INSIGHT BY TYPE
The monocrystalline solar panel type segment dominated the global solar panel market share in 2023. Monocrystalline solar panels are made from single-crystal silicon and are known for their high efficiency and sleek appearance. They typically have higher power output and better performance than other solar panels in low-light conditions. Monocrystalline panels are the most efficient type of solar panels available on the market and have higher efficiency rates than other types like polycrystalline or thin-film solar panels. This means they can produce more electricity per square meter of space. Also, monocrystalline solar panels are space-efficient and require the least space compared to their counterparts, making them ideal for installations where space is limited.

INSIGHT BY POWER CAPACITY
Solar panels are in various sizes to meet energy needs, from individual households to large-scale power plants. Understanding the market dynamics of solar panels in different scale categories is essential for analyzing their adoption and growth trends. Small-scale solar panels, typically with capacities less than 10 kilowatts (kW), are primarily used for residential installations, small businesses, and off-grid applications. Small-scale solar panel systems provide an accessible and cost-effective way for individuals and organizations to generate electricity and reduce grid dependency. Furthermore, the small-scale solar panels (<10 kW) power capacity segment held the most significant share of the global solar panel market in 2023. Also, growing concerns about climate change and environmental sustainability drive the adoption of small-scale Solar panels. Consumers seek cleaner and renewable energy alternatives to reduce their carbon footprint.

INSIGHTS BY INSTALLATION
The global solar panel market by installation is segmented into rooftop solar panels, ground-mounted solar panels, BPIV, and others. The rooftop solar panels segment holds the most prominent global market share. Over the long term, factors such as rising demand in commercial and industrial and government activity towards renewable energy integration are expected to drive segment growth. Also, rooftop solar panels offer homeowners and businesses energy independence by providing a decentralized source of electricity and reducing reliance on the grid. Further, developing countries like India introduced the Grid Connected Solar Rooftop Scheme to encourage solar rooftop facilities by the state and central government. India planned to reach a cumulative installed capacity of about 40,000 MW from Grid Connected Rooftop solar panel projects by the end of March 2026. These factors will help propel segmental market growth in the coming years.

GEOGRAPHICAL ANALYSIS

APAC accounted for the highest share of the global solar panel market in 2023 due to the presence of countries like China, Japan, South Korea, India, and other emerging countries, which are the manufacturing hubs for electronics. Also, the demand for solar panels in the region is driven by stringent regulations for emission standards, better fuel economy, and concerns over sustainability. Furthermore, the region is home to many recognized players and has a high level of technological improvement. The APAC solar panel market is driven by consumer demand for advanced products and services, and there is a substantial investment in R&D to support this demand.

Europe holds a significant share of the global solar panel market, driven by the growth in installation in new buildings and higher demand from renovations and retrofit activities. Major factors have spiked the sales rate for solar panels in Europe: rising average construction spending, increased retail building construction projects, rising government spending on sustainable building development, industrial developments, rapid urbanization, changing climatic conditions, and growth in disposable income across European countries. Also, in the North American solar panel industry, strong economic growth, the establishment of new businesses, company expansions, and increased construction activities have mainly driven the demand for solar panels.

COMPETITIVE LANDSCAPE

The global solar panel market is highly competitive, with many public and private companies. These vendors typically compete on key parameters such as product design, quality, reliability, support services, and price. Rapid technological advancements adversely impact market vendors as consumers expect continuous innovations and product upgrades. The present scenario drives vendors to alter and refine their unique value proposition to achieve a strong market presence. Further, some of the major vendors dominating the global solar panel market include JinkoSolar, Canadian Solar, Trina Solar, SunPower Corp, Hanwha Q Cells, Aiko Solar, LONGi Solar, Risen Energy, Kaneka Corporation, and Shell International Ltd. These brands have many product offerings and a widespread presence in the global market. The major vendors are adopting innovative technologies to retain their strong market position.

Frequently Asked Questions

What is the growth rate of the global solar panel market?

The global solar panel market is expected to grow at a CAGR of 6.45% from 2023 to 2029.

How big is the solar panel market?

The global solar panel market size was valued at USD 187.69 billion in 2023 and is expected to reach USD 273.15 billion by 2029.

What are the significant trends in the solar panel industry?

Profit volatility in APAC, regulation on energy efficiency driving solar panel demand, advancements in solar technology, rise in commercial construction and projects, and rising demand for clean energy are significant trends in the solar panel industry.

Who are the key players in the global solar panel market?

JinkoSolar, Canadian Solar, Trina Solar, SunPower Corp, Hanwha Q Cells, Aiko Solar, LONGi Solar, Risen Energy, Kaneka Corporation, and Shell International Ltd are the key players in the global solar panel market.

Which region dominates the global solar panel market share?

APAC held the largest global solar panel market share, accounting for a share of over 36% in 2023.

The global solar panel market size is expected to grow at a CAGR of approximately 6.45% from 2023 to 2029.

The following factors are likely to contribute to the growth of the global solar panel market during the forecast period:

  • Growth of Green Building Activities
  • Incorporation of Solar panel in Rooftop
  • Increased Construction in the Hospitality Industry
  • Favorable Government Policies and Incentives

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the global solar panel market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the industry.

Key Company Profiles

  • JinkoSolar
    • Business Overview
    • Product Offerings
    • Key Strategies
    • Key Strengths
    • Key Opportunities
  • Canadian Solar
  • Trina Solar
  • SunPower Corp
  • Hanwha Q Cells
  • Aiko Solar
  • LONGi Solar
  • Risen Energy
  • Kaneka Corporation
  • Shell International Ltd

Other Prominent Vendors

  • GCL-Poly Energy Holdings Limited
    • Business Overview
    • Product Offerings
  • Hanwha SolarOne
  • Suntech Power
  • Soltecture GmbH
  • Talesun Solar
  • Tongwei Solar
  • Yingkou Jinchen Machinery Co., Ltd
  • Haitai New Energy
  • BYD Company Ltd.
  • TBEA Xinjiang SunOasis Co., Ltd
  • Znshine PV-Tech Co., Ltd
  • Chint Solar (Zhejiang) Co., Ltd.
  • GS-Solar Company Ltd
  • Hareon Solar Technology Co., Ltd.
  • Neo Solar Power Corporation
  • Phono Solar Technology Co., Ltd
  • Tianjin Zhonghuan Semiconductor Co., Ltd
  • China Shuifa Singyes Energy Holdings LTD
  • Shanghai Aerospace Automobile Electromechanical Co., Ltd
  • Bloom Energy Corp
  • Suzlon Energy Ltd
  • Solarworld Aktiengesellschaft
  • Maxeon Solar Technologies Ltd

Segmentation by Grid Type

  • On-grid
  • Off-grid

Segmentation by End-user

  • Commercial
  • Utilities and Energy Companies
  • Industrial
  • Residential
  • Agriculture Sectors
  • Military and Defence Sectors
  • Others

Segmentation by Type

  • Monocrystalline Solar Panel
  • Polycrystalline Solar Panel
  • Thin-film Solar Panel
  • Bifacial Solar Panel
  • Others

Segmentation by Power Capacity

  • Small-Scale Solar Panels (<10 kW)
  • Medium-Scale Solar Panels (10 kW - 100 kW)
  • Large-Scale Solar Panels (100 kW - 1 MW)
  • Utility-Scale Solar Panels (>1 MW)

Segmentation by Installation

  • Rooftop Solar Panels
  • Ground-Mounted Solar Panels
  • BPIV
  • Others

Segmentation by Geography

  • APAC
    • China
    • Japan
    • India
    • Australia
    • South Korea
  • Europe
    • Germany
    • France
    • Russia
    • The U.K.
    • Norway
    • Denmark
    • Italy
    • Poland
    • Spain
  • North America
    • The U.S.
    • Canada
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
  • Latin America
    • Brazil
    • Mexico
    • Argentina

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Frequently Asked Questions

What is the growth rate of the global solar panel market?

The global solar panel market is expected to grow at a CAGR of 6.45% from 2023 to 2029.

How big is the solar panel market?

The global solar panel market size was valued at USD 187.69 billion in 2023 and is expected to reach USD 273.15 billion by 2029.

What are the significant trends in the solar panel industry?

Profit volatility in APAC, regulation on energy efficiency driving solar panel demand, advancements in solar technology, rise in commercial construction and projects, and rising demand for clean energy are significant trends in the solar panel industry.

Who are the key players in the global solar panel market?

JinkoSolar, Canadian Solar, Trina Solar, SunPower Corp, Hanwha Q Cells, Aiko Solar, LONGi Solar, Risen Energy, Kaneka Corporation, and Shell International Ltd are the key players in the global solar panel market.

Which region dominates the global solar panel market share?

APAC held the largest global solar panel market share, accounting for a share of over 36% in 2023.