Solar Panels Market - Global Outlook & Forecast 2024-2029

Solar Panels Market - Global Outlook & Forecast 2024-2029

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

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.

Segmentation by Grid Type

• On-grid
• Off-grid

INSIGHTS BY END-USER

The global solar panel market by end-user is segmented into commercial, utilities & energy companies, industrial, residential, agriculture, 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.

Segmentation by End-user

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

INSIGHT BY TYPE

The monocrystalline solar panel type segment dominated the global 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.

Segmentation by Type

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

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 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.

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)

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.

Segmentation by Installation

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

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.

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

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.

Key Company Profiles

• JinkoSolar
• 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

Hanwha SolarOne

Suntech Power

Soltecture GmbH

Talesun Solar

JA SOLAR TECHNOLOGY CO., LTD

Boviet Solar Technology Co., Ltd.

Recom Technologies

Solar East Holdings Co., Ltd.

First Solar, Inc

Hanergy Thin Film Power Group

Longi Green Energy Technology Co., Ltd.

Yingli Green Energy

REC Group

Enphase Energy

SolarEdge Technologies, Inc.

Seraphim Solar System Co., Ltd.

LG Electronics

Panasonic Solar

Silfab Solar

Qcells

Axitec Solar

Heliene

HT-SAAE

Hyundai Heavy Industries Green Energy

Astronergy

Sharp 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

KEY QUESTIONS ANSWERED:

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

2. How big is the solar panel market?

3. What are the significant trends in the solar panel industry?

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

5. Which region dominates the global solar panel market share? Show more