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Solar Photovoltaic (PV) Market

Published Feb 01, 2026
Length 137 Pages
SKU # IMRC20873714

Description

The global solar photovoltaic (PV) market size reached 1,585.1 TWh in 2025. Looking forward, IMARC Group estimates the market to reach 5,009.6 TWh by 2034, exhibiting a CAGR of 13.64% during 2026-2034. Asia Pacific currently dominates the market, holding a market share of over 55.0% in 2025. The implementation of favorable government policies to promote sustainability, the rising consumer environmental concerns, the escalating demand for renewable energy, and the inflating need for minimizing climate-related disruptions are some of the key factors driving the expansion of the solar photovoltaic (PV) market share.

Many countries have made energy independence a top priority, and solar energy can help them get there. Countries that rely on imported fossil fuels face geopolitical concerns, price fluctuations, and supply chain disruptions. Solar energy offers a dependable and locally supplied option that is not dependent on external variables. Installing solar panels allows homeowners to generate their own electricity, minimizing reliance on the grid and potentially saving money on utility costs. For example, the Solar Energy Industries Association (SEIA) and Wood Mackenzie predicted that solar would account for 53% of all new electric generating capacity in 2023, or more than half of yearly capacity additions. Expanding solar energy infrastructure can help countries reduce their reliance on foreign energy, improve energy security, and stabilize their economies. The goal for energy independence motivates both individuals and governments to invest in solar energy as a long-term solution to meeting their energy needs without relying on foreign supplies.

According to the solar photovoltaic (PV) industry forecast, the United States stands out as a main market disruptor with a 95.00% share. The government of the country is actively supporting the solar PV industry through various incentives and regulations targeted at lowering carbon emissions and growing renewable energy generation. These incentives include subsidies, tax credits, grants, and rebates, all of which help consumers finance solar energy. For example, the Inflation Reduction Act (IRA) provides a 30% tax credit for projects under 1MW or that meet the prevailing wage and apprenticeship conditions. Additionally, they have set ambitious renewable energy targets, pushing for the development of solar power as a major source of clean energy. These policies help reduce the financial burden on consumers, making solar PV an increasingly viable option for homeowners, businesses, and even large-scale energy producers.

Solar Photovoltaic (PV) Market Trends:

Incentives and Policies by Government Bodies

As per the solar photovoltaic (PV) market outlook, government authorities across the globe are launching favorable financial incentives, including rebates, feed-in tariffs, tax credits, subsidies, etc., that minimize the initial investments related to the installations of solar photovoltaics. In line with this, they are launching policies, such as net metering, which enables commercial and residential owners of solar systems to sell excess electricity back to the grid. Moreover, government bodies across the globe are implementing strict regulations to reduce carbon emissions and setting renewable energy targets, thereby driving the solar photovoltaic market (PV) growth. For example, in India, the National Institute of Solar Energy (NISE) estimated the country's solar potential to be at 748 GW, assuming that Solar PV modules would cover 3% of the wasted area. Furthermore, solar energy has taken center stage in India's National Action Plan on Climate Change, with the National Solar Mission (NSM) being one of the primary missions. Furthermore, India's Nationally Determined Contributions (NDCs) aim to reach around 50% of cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, as well as a 45% reduction in emissions from 2005 levels. These policies encourage commercial and residential users and extensive investments from utility providers and corporations.

Numerous Technological Advancements

Numerous innovations, such as enhancements in the efficiency of solar panels, which enable more electricity to be generated from the same amount of sunlight, are acting as significant growth-inducing factors. For instance, a team of researchers and scientists from the University of Surrey in the United Kingdom developed a wafer-thin solar panel produced from organic materials that can be printed on demand. These solar panels are capable of absorbing 25% more energy as compared to their counterparts, including silicon-based solar PV cells. Furthermore, to enable the storage of excess energy for use when sunlight is not available, a team of researchers from the ARC Centre and UNSW Sydney found a way for solar PV cells to work even at night by adopting infrared technology.

Environmental Consciousness and Climate Change Concerns

The increasing consumer consciousness towards minimizing the impact of fossil fuels on the environment is propelling the solar photovoltaic (PV) systems market demand. In line with this, key players are focusing on improving designs and adopting novel materials, which is further driving the market growth. For example, Tawalbeh et al. from the University of Sharjah's Department of Sustainable and Renewable Energy Engineering found that recycling solar cell components and upgrading PV design may cut GHG emissions by up to 42%. Additionally, by developing novel materials with improved properties, enhancing cell lifespans, avoiding hazardous components, and making careful site selection, the negative environmental impacts of PV systems can be considerably minimized. These mitigation actions will restrict solid waste accumulation and save essential water resources. This, in turn, is projected to fuel the market for solar photovoltaic (PV).

Solar Photovoltaic (PV) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global solar photovoltaic (PV) market, along with forecast at the global, regional, and country levels from 2026-2034. The market has been categorized based on type, grid type, deployment, and end user.

Analysis by Type:
  • Thin Film
  • Multi-Si
  • Mono-Si
As per the solar photovoltaic market trends, thin-flim leads the industry share in 2025. The thin-film solar PV panels segment includes various technologies, such as amorphous silicon, cadmium telluride (CdTe), and copper indium gallium selenide (CIGS). On the other hand, multi-crystalline silicon (multi-Si) solar PV panels are manufactured from multiple silicon crystals melted together. Furthermore, mono-crystalline silicon (mono-Si) solar panels, made from a single, continuous crystal structure, are known for their high efficiency and sleek black appearance.

Analysis by Grid Type:
  • On-Grid
  • Off-Grid
Based on the report, on-grid accounted for the maximum solar photovoltaic (PV) market share of 85.0%. On-grid, also referred to as grid-tied, solar photovoltaic (PV) systems are gaining momentum, due to their cost-effectiveness, simplicity, and the capacity to use the grid as a virtual battery, thus doing away with energy storage in batteries. Consequently, government bodies also promote the use of on-grid solar PV systems, which boosts the market growth in this segmentation.

Analysis by Deployment:
  • Ground-mounted
  • Rooftop Solar
According to the report, the ground-mounted holds the biggest solar photovoltaic (PV) market share in the industry. Key factors behind this are a rise in the utility-scale projects, targets on solar energy set by government bodies, and diminishing the cost of the installation of solar PVs. Government agencies around the globe have been constructing massive solar PV plants to cut their dependence on fossil fuel-based electricity generation and create diversity in the power source mix. A memorandum of understanding was signed in May 2023 between the Niger government and Savannah Energy Niger Solar Ltd., a fully owned subsidiary of British independent power supplier Savannah Energy Plc, for the construction of two solar photovoltaic generating projects. The two power plants were reported to have an installed capacity of up to 200 MW. The two proposed solar plants would be connected to the South-Central section of Niger's electricity grid.

Analysis by End User:
  • Residential
  • Commercial
  • Utility
According to the report, utility represented the largest segment. The increasing number of large-scale solar farms and the growing mass electricity generation projects are primary factors fueling the utility segment in the solar photovoltaic (PV) market. These large-scale projects contribute significantly to national grids, providing renewable energy to a broad customer base. The utility segment benefits from economies of scale, resulting in lower costs per watt and making solar energy more competitive with conventional energy sources.

Regional Analysis:
  • North America
  • United States
  • Canada
  • Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
  • Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
  • Latin America
  • Brazil
  • Mexico
  • Others
  • Middle East and Africa
Asia Pacific held the largest market share of 55.0% in the report. It is a major region in the solar photovoltaic (PV) market. The reasons for this include abundant sunlight, favorable government incentives, and the increasing consumer inclination towards renewable energy to meet the escalating power demands of its large and growing population. Furthermore, China is a global leader in solar photovoltaic (PV) manufacturing. India's aggressive solar targets further complement the dominance of the region. The New Delhi government, for example, approved a draft of its Solar Policy 2022 in December 2022, increasing installed capacity from 2,000 MW to 6,000 MW in just two years. The plan called for the Delhi Solar Cell to establish a centralized, one-stop state portal that would offer details on the advantages of solar photovoltaic systems. Additionally, Cainiao Network, the logistics division of Alibaba Group, began using distributed solar power generated by rooftop solar panels put in its bonded warehouses in China in March 2022 to power its operations. The company erected PV power generating systems with a 7.862 MW energy storage capacity on the rooftops of 100,000 square meters of warehouses. The annual power output comes to over 8 million kilowatts per hour, enough to power more than 3,000 homes. Project developments along with labor and material accessibility at lower prices is forecasted to boost the demand for solar photovoltaics in North America over the stated period.

Key Regional Takeaways:

North America Solar Photovoltaic (PV) Market Analysis

North America is witnessing strong growth in the solar PV market, driven by supportive policies, tax incentives, and a growing emphasis on sustainability. The U.S. benefits from the federal Investment Tax Credit (ITC), which offers significant financial incentives for both residential and commercial installations. In addition, states like California, Texas, and Florida have become major hubs for solar development due to high solar potential and favorable regulations. With a focus on energy independence and reducing carbon footprints, North America’s solar market is expected to continue expanding, especially with ongoing advancements in storage technologies and increasing corporate investments in renewable energy.

United States Solar Photovoltaic (PV) Market Analysis

The United States is leading the market in North America with 95.00% with market share. The U.S. solar photovoltaic (PV) market is in a vigorous growth phase, which is mainly the result of increasing demand for renewable energy and a favorable policy regime. The International Energy Agency (IEA) states that during 2022, shipments of solar PV panels increased by 10% compared to 2021 levels and attained an all-time high of 31.7 million peak kilowatts (kWp). The growth of the industry is further driven by federal tax incentives, state-level renewable energy mandates, and corporate commitments to sustainability. Technological improvements in PV efficiency and a drop in production costs have also made solar energy more feasible. Large utility projects and distributed solar installations are another factor that further supports the goal of 100% clean electricity by 2035 in the United States. In addition, investments in solar manufacturing and deployment have been further spurred by the Inflation Reduction Act. Energy storage integration also improves grid reliability and enables an even larger addition of solar power to the supply mix. Continued investments and policy support are likely to sustain the strong growth trajectory of the U.S. solar PV market, definitely strengthening its position in the country's clean energy transition.

Europe Solar Photovoltaic (PV) Market Analysis

Expansion across the European solar photovoltaic market growth as part of ambitious climate goals continues to grow strongly within the region. The energy sector accounts for well over 75% of all greenhouse gas emissions in the European Union, prompting the European Commission to call upon accelerated switch to renewable energies. To gain at least 55% cut in net emissions of greenhouse gas by 2030 and the EU becoming fully climate-neutral in 2050, the Commission is accelerating their development into residential, commercial as well as large utility-scale photovoltaic schemes.

Supportive policies, such as the EU Solar Energy Strategy, will push installed solar capacity to over 600 GW by 2030. Declining costs of solar technology, along with innovations in energy storage, are driving adoption further. Initiatives like the REPowerEU plan are also promoting domestic solar manufacturing and reducing reliance on fossil fuel imports. With strong government support, corporate investment, and technological advancements, the European solar PV market is to play a vital role in the continent's clean energy transition.

Asia Pacific Solar Photovoltaic (PV) Market Analysis

With a total investment of USD 1.61 billion, 11 businesses were awarded a total capacity of 39,600 MW in 2023 under the Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules, according to the Ministry of New and Renewable Energy (MNRE). This initiative will not only contribute to the regional self-sufficiency in the manufacturing of solar but also contribute to the percentage of renewable energy. The PLI scheme is also encouraging the production of high-efficiency modules to build a robust supply chain for solar products. Asia-Pacific countries are leading the global installation of solar power, and India, China, and Japan have been investing much in domestic manufacturing and solar infrastructure. Favorable government policies, falling cost of the technology, and an increasing demand for clean energy help to accelerate market growth. It supports the pursuit of regional objectives to ensure that energy security will be reached in the direction of a more sustainable and resilient energy system.

Latin America Solar Photovoltaic (PV) Market Analysis

The Latin America Solar Photovoltaic market is rapidly expanding with large-scale solar projects such as the São Gonçalo Solar Facility in Brazil's semiarid region. With more than 2.2 million solar panels, the São Gonçalo project is currently the largest solar plant under construction in South America, Enel Green Power said. This development is in line with the region's commitment to renewable energy and sustainable development. The addition of clean energy remains part of the overall strategic priority on the side of the Latin American governments to better achieve climate objectives. Firstly, solar power bears a crucially important role when it comes to reducing greenhouse emissions to achieve one's energy security. Additionally, financial incentives such as favorable policies and reduced expenses of solar technologies spur more interest in investing more in the production of solar generation. Brazil, along with Mexico and Chile, is witnessing huge investments that are boosting the region's status as an emerging leader in the production of solar energy. This will continue to propel growth in the Latin America solar photovoltaic market in the future.

Middle East and Africa Solar Photovoltaic (PV) Market Analysis

The Middle East and Africa Solar PV market is headed for a period of rapid growth. In May 2022, Emirates Water and Electricity Co. (EWEC) revealed the ongoing construction of the 1.5 GW Al Ajban PV project, one of the largest greenfield solar power plants, as evidence of its focus on increasing renewable capacity in the region. Within the sixth phase of the 5 GW Mohammed bin Rashid Al Maktoum Solar Park, the Dubai Electricity and Water Authority (DEWA) submitted an award in September 2022 for a 900 MW power plant. All these activities resonate with the overall objectives the Middle East is aiming for, namely diversifying its energy mix and reducing reliance on fossil fuels. Demand growth in the Middle East and Africa is expected to gain momentum in the years to come due to the emphasis on sustainability and energy security along with favorable government policies and investment in large utility-scale solar schemes.

Competitive Landscape:

Key players in the solar PV market are involved in different strategies to enhance their position in the market and take advantage of the rising demand for renewable energy. The key strategies include investments in research and development (R&D) for the improvement of efficiency and reducing the cost of solar panels, manufacturing capacity expansions, and finding new materials and technologies. These firms are forming strategic partnerships and collaborations to enter new markets and take advantage of one another's strengths. In addition, they are focusing on sustainability and corporate social responsibility (CSR) for the improvement of their brand image and appeal towards environmentally conscious consumers.

The report provides a comprehensive analysis of the competitive landscape in the solar photovoltaic (PV) market with detailed profiles of all major companies, including:
  • Acciona
  • Canadian Solar
  • First Solar
  • JA Solar Technology Co. Ltd.
  • Jinko Solar Co., Ltd.
  • KYOCERA Corporation
  • LONGi Green Energy Technology Co. Ltd.
  • Renesola
  • Sharp Corporation
  • Tata Power Solar Systems Ltd.
  • TCL Electronics
  • Trinasolar
  • Wuxi Suntech Power Co., Ltd.
Key Questions Answered in This Report

1.How big is the solar photovoltaic (PV) market?

2.What is the future outlook of solar photovoltaic (PV) market?

3.What are the key factors driving the solar photovoltaic (PV) market?

4.Which region accounts for the largest solar photovoltaic (PV) market share?

5.Which are the leading companies in the global solar photovoltaic (PV) market?

Table of Contents

137 Pages
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 Global Solar Photovoltaic (PV) Market
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Forecast
6 Market Breakup by Type
6.1 Thin Film
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Multi-Si
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Mono-Si
6.3.1 Market Trends
6.3.2 Market Forecast
7 Market Breakup by Grid Type
7.1 On-Grid
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Off-Grid
7.2.1 Market Trends
7.2.2 Market Forecast
8 Market Breakup by Deployment
8.1 Ground-mounted
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Rooftop Solar
8.2.1 Market Trends
8.2.2 Market Forecast
9 Market Breakup by End User
9.1 Residential
9.1.1 Market Trends
9.1.2 Market Forecast
9.2 Commercial
9.2.1 Market Trends
9.2.2 Market Forecast
9.3 Utility
9.3.1 Market Trends
9.3.2 Market Forecast
10 Market Breakup by Region
10.1 North America
10.1.1 United States
10.1.1.1 Market Trends
10.1.1.2 Market Forecast
10.1.2 Canada
10.1.2.1 Market Trends
10.1.2.2 Market Forecast
10.2 Asia-Pacific
10.2.1 China
10.2.1.1 Market Trends
10.2.1.2 Market Forecast
10.2.2 Japan
10.2.2.1 Market Trends
10.2.2.2 Market Forecast
10.2.3 India
10.2.3.1 Market Trends
10.2.3.2 Market Forecast
10.2.4 South Korea
10.2.4.1 Market Trends
10.2.4.2 Market Forecast
10.2.5 Australia
10.2.5.1 Market Trends
10.2.5.2 Market Forecast
10.2.6 Indonesia
10.2.6.1 Market Trends
10.2.6.2 Market Forecast
10.2.7 Others
10.2.7.1 Market Trends
10.2.7.2 Market Forecast
10.3 Europe
10.3.1 Germany
10.3.1.1 Market Trends
10.3.1.2 Market Forecast
10.3.2 France
10.3.2.1 Market Trends
10.3.2.2 Market Forecast
10.3.3 United Kingdom
10.3.3.1 Market Trends
10.3.3.2 Market Forecast
10.3.4 Italy
10.3.4.1 Market Trends
10.3.4.2 Market Forecast
10.3.5 Spain
10.3.5.1 Market Trends
10.3.5.2 Market Forecast
10.3.6 Russia
10.3.6.1 Market Trends
10.3.6.2 Market Forecast
10.3.7 Others
10.3.7.1 Market Trends
10.3.7.2 Market Forecast
10.4 Latin America
10.4.1 Brazil
10.4.1.1 Market Trends
10.4.1.2 Market Forecast
10.4.2 Mexico
10.4.2.1 Market Trends
10.4.2.2 Market Forecast
10.4.3 Others
10.4.3.1 Market Trends
10.4.3.2 Market Forecast
10.5 Middle East and Africa
10.5.1 Market Trends
10.5.2 Market Breakup by Country
10.5.3 Market Forecast
11 SWOT Analysis
11.1 Overview
11.2 Strengths
11.3 Weaknesses
11.4 Opportunities
11.5 Threats
12 Value Chain Analysis
13 Porters Five Forces Analysis
13.1 Overview
13.2 Bargaining Power of Buyers
13.3 Bargaining Power of Suppliers
13.4 Degree of Competition
13.5 Threat of New Entrants
13.6 Threat of Substitutes
14 Price Analysis
15 Competitive Landscape
15.1 Market Structure
15.2 Key Players
15.3 Profiles of Key Players
15.3.1 Acciona
15.3.1.1 Company Overview
15.3.1.2 Product Portfolio
15.3.2 Canadian Solar
15.3.2.1 Company Overview
15.3.2.2 Product Portfolio
15.3.2.3 Financials
15.3.2.4 SWOT Analysis
15.3.3 First Solar
15.3.3.1 Company Overview
15.3.3.2 Product Portfolio
15.3.3.3 Financials
15.3.3.4 SWOT Analysis
15.3.4 JA Solar Technology Co. Ltd.
15.3.4.1 Company Overview
15.3.4.2 Product Portfolio
15.3.5 Jinko Solar Co., Ltd.
15.3.5.1 Company Overview
15.3.5.2 Product Portfolio
15.3.6 KYOCERA Corporation
15.3.6.1 Company Overview
15.3.6.2 Product Portfolio
15.3.6.3 Financials
15.3.6.4 SWOT Analysis
15.3.7 LONGi Green Energy Technology Co. Ltd.
15.3.7.1 Company Overview
15.3.7.2 Product Portfolio
15.3.7.3 Financials
15.3.8 Renesola
15.3.8.1 Company Overview
15.3.8.2 Product Portfolio
15.3.8.3 Financials
15.3.8.4 SWOT Analysis
15.3.9 Sharp Corporation
15.3.9.1 Company Overview
15.3.9.2 Product Portfolio
15.3.9.3 Financials
15.3.9.4 SWOT Analysis
15.3.10 Tata Power Solar Systems Ltd.
15.3.10.1 Company Overview
15.3.10.2 Product Portfolio
15.3.11 TCL Electronics
15.3.11.1 Company Overview
15.3.11.2 Product Portfolio
15.3.11.3 Financials
15.3.11.4 SWOT Analysis
15.3.12 Trinasolar
15.3.12.1 Company Overview
15.3.12.2 Product Portfolio
15.3.12.3 Financials
15.3.12.4 SWOT Analysis
15.3.13 Wuxi Suntech Power Co., Ltd.
15.3.13.1 Company Overview
15.3.13.2 Product Portfolio
15.3.13.3 Financials
15.3.13.4 SWOT Analysis
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