Agrivoltaic

Global Agrivoltaic Market to Reach US$7.3 Billion by 2030

The global market for Agrivoltaic estimated at US$5.7 Billion in the year 2024, is expected to reach US$7.3 Billion by 2030, growing at a CAGR of 4.3% over the analysis period 2024-2030. Fixed System Design, one of the segments analyzed in the report, is expected to record a 5.3% CAGR and reach US$4.2 Billion by the end of the analysis period. Growth in the Dynamic System Design segment is estimated at 3.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.5 Billion While China is Forecast to Grow at 8.1% CAGR

The Agrivoltaic market in the U.S. is estimated at US$1.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.5 Billion by the year 2030 trailing a CAGR of 8.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.7% and 3.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.5% CAGR.

Global Agrivoltaic Market – Key Trends & Drivers Summarized

Why Is Agrivoltaics Emerging as a Sustainable Solution for Agriculture and Energy Production?
Agrivoltaics, the practice of integrating solar photovoltaic (PV) panels with agricultural activities, is gaining traction as a sustainable solution to optimize land use and address the growing global demand for food and renewable energy. With the increasing pressure on agricultural land due to population growth, climate change, and urbanization, agrivoltaics offers a dual-purpose approach that enables farmers to cultivate crops while simultaneously generating clean energy. The concept involves installing solar panels above or alongside crops to provide partial shading, reducing water evaporation and protecting crops from extreme weather conditions such as heatwaves and droughts. This synergy between agriculture and solar energy production enhances land productivity and aligns with global sustainability goals by reducing the carbon footprint of both sectors.

As agrivoltaic technology matures, it is being adopted across diverse agricultural applications, including open-field farming, greenhouse cultivation, and livestock grazing. Farmers are increasingly recognizing the economic benefits of agrivoltaics, as the energy generated can be used to power irrigation systems, greenhouse climate controls, and other farm operations, leading to reduced operational costs. Moreover, the growing interest from governments and policymakers in promoting sustainable farming practices has resulted in favorable regulatory frameworks, financial incentives, and research initiatives that support the adoption of agrivoltaic systems. The expanding awareness of energy-efficient farming solutions, coupled with advancements in solar panel design and energy storage technologies, is driving significant interest in agrivoltaics as a viable and scalable solution for modern agriculture.

How Are Technological Advancements Enhancing Agrivoltaic Systems?
Technological advancements in agrivoltaic systems are playing a crucial role in optimizing energy generation while ensuring minimal disruption to agricultural productivity. The development of bifacial solar panels, which capture sunlight from both sides, has significantly improved energy efficiency, making agrivoltaic installations more economically viable. Additionally, the introduction of adjustable and transparent solar panels allows for better light penetration, enabling crops to receive the necessary sunlight for photosynthesis while generating electricity simultaneously. Innovations in tracking systems have further enhanced energy output by enabling solar panels to follow the sun`s movement throughout the day, maximizing efficiency without obstructing agricultural activities.

Smart farm management systems, which integrate agrivoltaic installations with IoT-based sensors and AI-powered analytics, are also transforming the sector. These systems enable real-time monitoring of soil moisture, crop health, and energy production, allowing farmers to make data-driven decisions to optimize yields and energy usage. Advances in battery storage technology are providing farmers with the flexibility to store excess solar power for use during non-sunny periods, ensuring a reliable power supply for farm operations. Furthermore, research into crop-specific shading requirements and panel positioning is helping optimize agrivoltaic designs to accommodate different types of crops and farming practices, enhancing the overall efficiency of these systems.

What Are the Emerging Trends Driving the Agrivoltaic Market?
Several emerging trends are shaping the agrivoltaic market, driven by the increasing need for sustainable agricultural practices and renewable energy solutions. One prominent trend is the rising adoption of vertical and elevated solar installations, which maximize land utilization while allowing agricultural machinery and livestock to operate efficiently underneath. Vertical agrivoltaic systems, particularly suited for vineyard and orchard farming, enable farmers to maintain traditional cultivation methods while benefiting from renewable energy production. Another significant trend is the growing collaboration between energy companies and agricultural enterprises to develop large-scale agrivoltaic projects that provide clean energy to the grid while supporting local food production.

The adoption of agrivoltaic systems in urban and peri-urban areas is also gaining momentum, as city planners and agricultural entrepreneurs look for innovative ways to integrate food production into urban landscapes. Rooftop and vertical farming agrivoltaic projects are becoming increasingly popular in densely populated cities, contributing to local food security while reducing energy costs. Additionally, the rising consumer preference for sustainable and locally sourced produce is encouraging farmers to adopt agrivoltaic solutions as a means to differentiate their products in the market. Governments and NGOs are also driving interest in agrivoltaics through educational initiatives and demonstration projects that showcase the long-term benefits of these systems for food security and climate resilience.

What Are the Key Factors Driving the Growth of the Agrivoltaic Market?
The growth in the agrivoltaic market is driven by several factors, including advancements in solar technology, increasing demand for sustainable farming solutions, and evolving consumer preferences for eco-friendly agricultural products. The declining cost of solar panels and energy storage systems has made agrivoltaics a financially viable option for farmers looking to enhance their operational efficiency and reduce reliance on fossil fuels. The integration of agrivoltaic systems with precision farming technologies and smart irrigation systems is further driving adoption, enabling farmers to optimize resource use and maximize crop yields. Additionally, the growing focus on food security and climate adaptation has encouraged policymakers to introduce subsidies, tax incentives, and regulatory frameworks that support agrivoltaic adoption. The increasing awareness of the benefits of dual land use, along with the rising number of pilot projects and commercial installations, is expected to propel the market forward, making agrivoltaics a key component of the future sustainable agriculture landscape.

SCOPE OF STUDY:

The report analyzes the Agrivoltaic market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
System Design (Fixed System Design, Dynamic System Design); Harvest Type (Root Crops Harvest, Vegetables Harvest, Fruits Harvest)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• Akuo Energy SAS
• BayWa AG
• Boralex Inc.
• Insolight SA
• JA Solar Technology Co., Ltd.
• Lightsource bp Renewable Energy Investments Limited.
• Mackin Energy Japan Co., Ltd.
• Mirai Solar Company
• Namaste Solar Electric, Inc.
• Next2Sun Technology GmbH
• REM TEC s.r.l.
• Sandbox Solar LLC
• Solaria Energia Y Medio Ambiente, S.A
• Statkraft AS
• Sun Agri
• SunSeed APV Private Limited
• ZIMMERMANN PV-Steel Group GmbH & Co. KG

TARIFF IMPACT FACTOR

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