Solar Photovoltaic (PV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Solar Photovoltaic (PV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global solar photovoltaic (PV) installed capacity is expected to register a CAGR of more than 8.5%, reaching almost 4.4 GW by 2026, up from 2.7 GW in 2019. The COVID-19 outbreak had a very slight impact on the market growth and negatively affected the supply chain in Q1 and Q2 2020. In 2020, the global solar PV capacity additions were estimated to be around 107 GW, representing stable growth from 2019. The major factor driving the global solar PV market is the declining cost of solar PV and associated systems. In 2019, solar PV module prices reduced by nearly 73%, as compared to that in 2010. The decline can be mainly attributed to the improvement in material efficiency, production optimization, and economies of scale. However, factors like the growth of other renewable technologies such as wind and bioenergy are expected to hinder the market growth during the forecast period.

Key Highlights

• The solar photovoltaic market is majorly dominated by the ground-mounted segment than the rooftop segment due to higher capacity installations in the ground-mounted segment across the world. The higher demand for utility-scale is expected to continue during the forecast period, with strong demand from China and many emerging markets around the world installing notable amounts that are mostly ground-mounted.
• The efforts by several governments across the emerging nations in the regions like Africa and Southeast Asia to provide 100% electricity access in remote areas coupled with off-grid applications and technological advancements in the solar PV modules are expected to create an ample amount of opportunities in the near future.
• With leading countries like China, Japan, and India, Asia-Pacific is expected to dominate the market during the forecast period.

Key Market TrendsGround-mounted Solar PV to Dominate the Market

• In 2019, the ground-mounted solar PV accounted for more than 53% of the global solar PV capacity, with countries like China, the United States, Germany, and India leading the market growth.
• The ground-mounted solar PV segment's dominance can be attributed to the factors such as the increasing number of utility-scale projects, solar energy targets, and declining costs of solar PV installations.
• Countries across the world are planning to develop large-scale solar PV projects in order to reduce their reliance on fossil fuel-based power generation and to diversify their energy mix.
• In January 2021, Sembcorp Energy India Ltd announced that it had won a new 400 MW solar power project in the Indian state of Rajasthan. Similarly, in February 2021, construction began on the Samson Solar Energy Center, the largest planned solar energy farm in the United States. The solar farm is expected to have 1,013 MW of generating capacity and is expected to be completed by 2023.
• Therefore, upcoming large-scale utility solar PV projects are expected to drive the ground-mounted solar PV segment during the forecast period.

Asia-Pacific to Dominate the Market

• As of 2019, Asia-Pacific is the largest solar PV market across the world, accounting for more than 55% of the global installed solar PV capacity, and it is expected to continue its dominance during the forecast period as well. China, Japan, and India are the key markets in the region with the largest installed capacities as of 2019.
• The Chinese solar photovoltaic industry has grown faster than any other country in the region over the past few years. As of 2019, China's solar energy capacity reached 205.2 GW, representing an increase of 17.6% compared to the previous year's value.
• With the increasing demand for electricity and green energy, India, under the scheme, the Jawaharlal Nehru National Solar Mission (JNNSW), has set the target of deploying 20 GW of grid-connected solar power by 2022.
• In 2019, Japan ranked second in the world, behind China, in solar capacity and generated around 5% of the country’s electricity generation. In 2019, the country had 61.84 GW capacity for solar PV, and under the Long-term Energy Supply and Demand Outlook for FY 2030, the Ministry of Economy, Trade, and Industry of Japan is aiming to increase the share of renewable energy share to 24% by 2030, which is expected to increase the solar PV market in the country.
• Factors such as upcoming solar PV projects, supportive government policies, and declining costs of solar PV modules and associated systems are expected to drive the solar PV market in the region during the forecast period.

Competitive Landscape

The solar photovoltaic (PV) market is fragmented. Some of the major players operating in the solar photovoltaic (PV) market include JinkoSolar Holding Co. Ltd, Canadian Solar Inc., SunPower Corporation, Trina Solar Ltd, First Solar Inc., Suntech Power Holding Co. Ltd, Sharp Corporation, Hanwha Q Cells Co Ltd, and JA Solar Holdings Co. Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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