Industry Overview
The global solar energy market valued at USD 63 billion in 2022 is estimated to grow during the forecast period of 2022-30. Further, it is anticipated that with a strong CAGR of 21% the market size will reach USD 310 billion by the end of 2030.
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Water is the source of energy, but due to its essentiality for everything, rapid increasing population all around the world is continuously affecting the footprints of water. As a result, the water level is continuously dropping. Additionally, industrial expansion all around the globe is continuously driving a need for the energy & power sector to invent a limitless resource of energy. Sun is the boundless source of heat and energy hence extensively used for the generation of solar energy. Solar energy is the radiant energy that the sun emits and can be captured, using a variety of technologies like solar heating, photovoltaic cells, and others. It is a practical renewable energy source that is effective at reducing global warming's rising greenhouse gas emissions. Increased environmental degradation and the availability of government incentives and tax breaks for solar panel installation impact the solar energy market growth and are estimated to support that during the forecast period as well. Additionally, solar energy systems' reduced water footprint has increased demand for them in the sectors that produce electricity. Due to an increase in rooftop installations, followed by an increase in applications in the architectural sector, the demand for solar cells has significantly increased. Additionally, it is anticipated that increased demand for concentrated solar power systems will result from the use of parabolic troughs and solar power towers in the production of electricity and it will impact the forecasted market growth.
Covid-19 Impact
COVID-19 was the biggest market challenge for Energy and power sectors to grow. Due to this various market investors had to change strategy. Since China was the COVID-19 epicenter, production facilities there were closed, and significant ship container companies stopped operating out of Chinese ports, despite the fact that the majority of the components or raw materials used in the solar sector are imported from there. As a result of these disruptions, the economy came to a halt, employee health worries increased, and the supply chain was disrupted, all of which had a negative impact on market growth.
Market Segment
Insight by Grid
The solar energy market based on Grid is bifurcated into the following categories:
• Grid
• Off Grid
During the progression period of 2022-30, the development of the off-grid type segment is anticipated to be positively impacted by the rising energy demand from remote locations around the world as well as the formulation and strict application of various regulatory policies for decentralizing the power generation sector.
Grid-connected PV systems' low operating and maintenance costs and lack of complexity are to blame for the on-grid type segment's monopolistic position in the market. Since their excess electricity is sent to networks, on-grid PV systems are inexpensive. With these technologies, there is no longer a need for nearby battery storage.
Insight by Technology
On the basis of technology solar energy market is segmented into the following segments:
Photovoltaic System
- Mono-si
- Thin-film
- Multi-si
- Other
Concentrated solar power system
- Parabolic Trough
- Solar power Tower
- Fresnel Reflectors
- Dishing Sterling
The Photovoltaic system has the largest market share. The increasing use of this technology is the result of falling PV technology costs, better panel efficiency, and increased energy output. Additionally, due to high efficiency, small design, and durability, mono-si technology is anticipated to drive the market scope of entrants to join. Recently 120 GW new solar PV projects have been launched by various leading market participants.
Insight by Application
The global market of solar energy is segmented into the following categories
- Residential
- Commercial
- Industrial
The industrial sector among all types of solar energy applications dominates the global market. Expansion in various industrial verticals and a straight reduction in the water level are estimated to support the industrial sector to generate the share of the largest revenue to the energy market during the forecasted period. In order to support the solar energy market growth, Masdar and the Ethiopian government inked an MoU in March 2022 to build 500MW worth of solar power facilities there. Additionally, due to end-users' awareness of environment-friendly sources residential market is raising the adoption of rooftop solar adoption. As a result, the residential sector will also comprehensively support the solar energy market to grow in the future.
Insight by End User
Based on end-user the solar energy market is bifurcated into the following categories:
- Electricity generation
- Water Heating
- Charging Appliance
The segment of electricity generation holds the dominating in position in solar energy market and shares the largest revenue to the global market. The reason behind this contribution is the rapid reduction in conventional resources of electricity manufacturing and the diversion of public and private electricity manufacturing units towards solar energy systems.
Solar Energy Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018–2022
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Base Year Considered
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2022
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Forecast Period
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2023 - 2030
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Market Size in 2021
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$63 Billion
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Revenue Forecast in 2030
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$310 Billion
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Growth Rate
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CAGR 21%
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Segments Covered in the Report
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By Solar Type, By Technology, By Application, By End User
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia-Pacific, Middle East, and Rest of the World
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Industry Dynamics
Growth drivers
Several businesses are creating renewable energy installations because of environmental restrictions. Additionally, countries all over the world are aiming to transform the contaminated environment into an ecological one and are attempting to do so by reducing carbon emissions. Sustainable energy in the form of solar electricity is one of the reasonably priced ways to reduce carbon emissions. As a result, many nations are making significant investments in the solar energy market. Additionally, the installation of renewable energy sources is greatly aided by enabling government legislation. Policies like the Federal Investment Tax Credit (FiT), Investment Tax Credits (ITC), and Capital Subsidies are important policies promoting solar installation in many nations, including the U.S., China, and EU nations.
Challenges
The cost of the inverter, solar batteries, wiring, installation, and solar panels are all included in the price of installing solar panels. This is a significant issue that will limit the expansion of the market over the forecast period.
Opportunity
Photovoltaic storage technology must be developed to increase the capacity of PV systems to replace the existing conventional sources. Storage grid adoption is anticipated to increase along with the need for PV installations, which will in turn fuel demand for lithium-ion batteries for solar energy storage and drive the growth of the solar energy sector.
Due to an increase in installations and use in solar panels, the segment for amorphous silicon cells is anticipated to grow at the fastest rate. Additionally, the development of more affordable solar panels is predicted to boost demand for copper indium gallium selenide during the projection period. Additionally, during the forecast period, it is anticipated that low-cost manufacturing and an increase in solar module efficiency will drive up demand for cadmium telluride.
Geographical Overview
The Asia-Pacific region dominates the market and is anticipated to continue its impressive position during the forecast period. The market growth in this region is estimated to be fueled by high electricity demand, growing living standards, and sufficient sun irradiation. China as the top market leader in Asia Pacific alone put in about 48 GW of solar plants in 2021.
Europe is the second-largest market for solar energy. In 2020, the nations of the European Union (EU) installed about 18.2 GW of solar PV installations. The major drivers of the market's expansion in Europe include favorable rules, targets for renewable energy, and an increase in the number of solar farms. USA has installed 19 GW of solar plants throughout North America. During the predicted period, the Middle East & Africa region also have a substantial contribution as in 2021, it deployed almost 1.5 GW of solar PV projects, and numerous solar projects are now being built there.
Recent Development by market key players
A pilot project called Project Nexus was teamed up on in March 2022 by the California Department of Water Resources, utility Turlock Irrigation District (TID), Marin County, California-based water and energy project developer Solar AquaGrid, and the University of California.
Construction of an 8.9-MW floating solar system at Millburn, New Jersey, which is anticipated to be the largest floating array in the country, was begun by NJR Clean Energy Ventures (CEV) in May 2022. 16,510 solar panels will likely be erected on a reservoir at the New Jersey American Water Canoe Brook Water Treatment Plant as part of the project, which makes use of a floating racking technology. Through a power purchase agreement with CEV, the clean energy produced by the array will meet almost 95% of the facility's yearly power requirements.
The US Energy Information Agency (EIA) estimates that utility-scale power production facilities in the US generated approximately 4,116 billion kilowatt-hours (kWh) (or approximately 4.12 trillion kWh) of energy in 2021. This power generation uses fossil fuels for around 61% of its production, nuclear power for about 19%, and renewable energy for about 20%.
Key Players covered in this report
The solar energy market based on a wide range of products and a sizable distribution network is segmented and widespread all across the globe and Canadian Solar Inc., Trina Solar, and First Solar. Abengoa Solar, S.A., Acciona Energia, S.A., Borrego Solar Systems, Inc., Areva S.A., BrightSource Energy, Inc., Evergreen Solar, Inc., Canadian Solar Inc., Kyocera Solar, Inc., eSolar, and First Solar, Inc. are of the top competitors in the solar energy sector.
The Solar Energy Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2023–2030.
Segments Covered in the Report
- By Solar Type
- Monocrystalline
- Polycrystalline
- Cadmium Telluride
- Amorphous Silicon Cells
- Others
- By Technology
- Photovoltaic system
- Mono-si
- Thin-Film
- Multi-si
- Other
- Concentrated Solar Power System
- Parabolic
- Solar Power Tower
- Fresnel Reflectors
- Dishing Stirling
- By Application
- Residential
- Non-Residential
- Utility
- By End User
- Electricity Generation
- Lighting
- Heating
- Charging
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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