Photovoltaic Market

[325 Pages Report] The photovoltaic market is projected to grow from USD 96.5 billion in 2023 to reach USD 155.5 billion by 2028; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.0% from 2023 to 2028.

The rise in the number of solar installations owing to government-led incentives and schemes, growth in the adoption of PV systems for residential applications, decrease in the cost of PV systems and energy storage devices is expected to propel the growth of the photovoltaic market. However, issues related to land acquisition for deployment of solar projects is a major factor limiting the growth of the photovoltaic market.

Photovoltaic Market Forecast to 2028

To know about the assumptions considered for the study, Request for Free Sample Report

Photovoltaic Market Dynamics

Drivers: Decreasing cost of PV systems and energy storage devices

The prices of solar systems and PV products have been decreasing continually over the past few years. The installation cost of these systems is undoubtedly higher than the conventional alternatives. However, once installed, these systems require very little maintenance and incur lower operational costs. A large number of players are present in the PV market. These players are constantly launching innovative and efficient products at competitive prices. This has resulted in a decline in the prices of PV products. Other factors that are leading to a drop in the prices of PV/solar systems include decreasing raw material prices, government subsidies, and large-scale production of the said systems. The decline can be mainly attributed to the improvement in material efficiency, production optimization, and economies of scale.

Restraint: Safety risks associated with high DC voltages

In traditional PV systems, PV panels, wires, and other equipment are energized with high DC voltages. Installers, maintenance personnel, and firefighters are at risk because of this high DC voltages.

Solar inverters with PV arrays involve high DC voltages, making it difficult to isolate DC electric devices from PV arrays using DC isolation switches. PV modules, when connected in series, create a high voltage, which can be dangerous for installers during system installation. Under the condition of short-circuit current, there is a possibility of electric arcs, which can result in fire and a resulting threat to people in the vicinity of a PV system. As these DC arcs are difficult to extinguish, there is a risk posed to the firefighters. Damage can be caused by this fire to the DC cables in PV arrays, thereby leading inverters to shut down automatically while manually isolating DC cables and other components. Safety mechanisms mandated by the National Electric Code (NEC) and the Electrical Safety Authority (ESA) of the US do not eliminate all risks, which hamper the growth of the inverter market.

Opportunity: Increasing investments in renewable energy

There has been a rise in demand for renewable energy over the past couple of years. With governments across the world coming together for initiatives such as the Paris Climate Agreement, the demand for renewable energy, such as solar, is set to rise in the coming years. According to the International Energy Agency (IEA), by 2026, global renewable electricity capacity is expected to rise by more than 60% from 2020 levels to over 4,800 GW, equivalent to the current total global power capacity of fossil fuels and nuclear combined. Renewables are set to account for almost 95% of the increase in global power capacity through 2026, with solar PV alone providing more than half. The amount of renewable capacity added throughout 2021 to 2026 is expected to be 50% higher than from 2015 to 2020. The amount of energy produced via renewable sources surpassed 8,000 TWh in 2021, a record 500 TWh over 2020 while PV solar output grew by 170 TWh. This is driven by stronger support from government policies and more ambitious clean energy goals announced before and during the COP26 Climate Change Conference. China, India, the US, and major European countries, including Germany and the UK, have increased their investments in renewable energy resources. As renewable energy sources have become increasingly attractive, investments in new renewable power projects have grown significantly in the past few years. Solar energy costs are already below retail electricity prices in major countries such as China, and the cost of solar power is anticipated to fall further by 15% to 35% by 2024, which is expected to spur the demand for PV systems.

Challenge: Issues related to land acquisition for deployment of solar projects

When it comes to obtaining a land parcel for a solar plant, there are numerous legalities to consider. The land is governed by various issues of environment, wildlife, legal title, ceiling limit, SEBI monitored assets of PACL, government land allotment, state laws on ancestral property sale, and more. The conflicts between conservationists and land seekers are unavoidable, and this presents an enormous challenge for the inception of solar projects. Private players are generally prohibited from acquiring large tracts of land in rural areas due to the existence of state land-ceiling laws. Hence, there are systematic measures that address these gaps in land allotment for large-scale solar projects toward a more sustainable response to the exponential rise in renewable investments. Solar or PV systems for utility applications require large areas of land. Some estimates show that the land requirements for utility-scale PV systems are in the range of 5 acres per megawatt (depending on the technology and availability of sunlight), which indicates a hike in the requirement for serviceable land in the coming years. This might evoke concerns regarding land degradation and habitat loss in some locations. Unlike wind power, there is a minimal possibility for solar projects to share land for agricultural uses. The acquisition of operational land is a major challenge, especially in developing countries such as India and China-major markets for PVs. However, this problem can be solved by setting up solar plants on low-quality lands such as brownfields, abandoned mining land, or existing transportation and transmission corridors. Also, floating PVs can be appropriately deployed in places where land acquisition is a problem.

Photovoltaic Ecosystem

Inverters to exhibit highest growth during the forecast period.

The market for inverters is expected to grow at the highest CAGR during the forecast period. The growth of the PV inverters market can be attributed to their increasing adoption in residential and utilities applications. In the last few years, inverter technologies have significantly advanced such that in addition to converting DC to AC, they offer several other capabilities and services to ensure that the inverter can operate at an optimal performance level. This includes controlling and monitoring the entire plant. Thus, PV inverters ensure that PV modules always function at their radiation- and temperature-dependent maximum power while continuously monitoring the power grid for adherence to various safety standards. This includes controlling and monitoring the entire system. With the increasing adoption of rooftop solar systems across the world, the demand for inverters is also rising, which, in turn, is expected to drive the inverters market.

Photovoltaic marketfor residential application is expected to grow at a significant CAGR from during forecast period

The market for the residential application is projected to grow at a significant CAGR during the forecast period. This is due to the declining cost of PV systems in the past few years. For residential applications, PV systems are installed on the rooftop or where adequate sunlight is available in order to fulfill the home electricity needs. Governments across various countries such as India, China, and the US provide incentives and tax rebate to residential users to install PV systems, which is expected to foster the growth of the market for PV systems in residential applications during the forecast period. . For example, China's National Development and Reform Commission (NDRC) has allocated RMB 500 million (USD 78.1 million) for the incentive scheme for residential PV in 2021. With the current subsidy level of RMB0.03 per watt, this total amount will feed around 16 GW of residential PV, according to government estimations.

Photovoltaic market for full-cell PV modules to hold a larger share during forecast period

Full-cell PV modules are expected to hold a larger market share during the forecast period. This module is an assembly of photovoltaic cells mounted in a framework for installation. In traditional full-cell solar panels, cells are wired together in rows, known as series wiring. In series wiring schemes, if one cell in a row is shaded and not producing energy, the entire row of cells will stop producing power. Standard panels typically have 3 separate rows of cells wired together, so the shade of one cell on one row would eliminate one-third of the panel’s power production. The advancements in the materials used and technology in designing PV module have led to the growth of full-cell photovoltaic modules. For instance, Swiss start-up Insolight is using integrated lenses as optical boosters in the panels’ protective glass to concentrate light beams by 200 times while reaching an efficiency of 30%.

Balance of System (BOS) component segment to hold the largest share of the photovoltaic market during the forecast period

By component, the BOS segment held the largest market share in 2022 and is expected to exhibit a similar growth trend during the forecast period. BOS includes electrical BOS, structural BOS, and installation costs. BOS is an essential component of PV systems. Other electrical and structural BOS include trackers, solar cables, batteries, mounting structures, monitoring, and metering systems. Solar trackers have been gaining popularity in the recent past, mainly due to the higher returns solar panel developers achieve on their solar investments. In the last five years, innovations centered around enhanced designs, improved reliability and durability in challenging environments, higher efficiency, and enhanced module capacity have driven the solar tracking solutions market. In addition, government incentives in the form of solar rebates and feed-in tariffs favor the adoption of solar trackers, which, in turn, drive the adoption of these type of equipment for solar PV systems.

Photovoltaic market in Asia Pacific estimated to grow at the fastest rate during the forecast period

The photovoltaic market in Asia Pacific is projected to grow at the highest CAGR during the forecast period. This is due to presence of key players such as JinkoSolar (China), JA Solar (China), Trina Solar (China), and LONGi (China) in Asia Pacific. The growth in the adoption of PV modules in countries such as China, Japan, and India is contributing the growth of the market. The Asia Pacific region is the largest producer and consumer of PV modules and related PV components. Several initiatives and favorable policies launched by governments of different countries in Asia Pacific to promote the use of solar energy are expected to result in an increased demand for PV systems in the region during the forecast period. As per the International and Renewable Energy Agency (IRENA), rapid urbanization and industrialization are increasing energy demand and, thus, creating opportunities for the countries in the region to boost their renewable energy potential.

Photovoltaic Market by Region

To know about the assumptions considered for the study, download the pdf brochure

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key industry experts in the photovoltaic space. The break-up of primary participants for the report has been shown below:

• By Company Type: Tier 1 – 40%, Tier 2 – 40%, and Tier 3 – 20%
• By Designation: C-level Executives – 40%, Directors –40%, and Others – 20%
• By Region: North America –30%, Asia Pacific– 40%, Europe – 20%, and RoW – 10%

Key Market Players

Major vendors in the photovoltaic market include JinkoSolar (China), JA Solar (China), Trina Solar (China), LONGi (China), Canadian Solar (Canada), First Solar (US), Hanwha Q CELLS (South Korea), Wuxi Suntech Power (China), Sharp (Japan), Mitsubishi Electric (Japan), ABB (Switzerland), Huawei (China), SMA Solar Technology (Germany), Sungrow Power Supply (China). Array Technologies (US), Chint Solar (China), GCL System Integration Technology (China), NEXTracker (US), Risen Energy (China), Tongwei Solar (China), Eaton Corp. (Ireland), LG Electronics (South Korea), Power Electronics (Spain), Fimer (Italy), AllEarth Renewables (US), Emmvee Photovoltaic Power Private Limited (India), ShunFeng International Clean Energy (China), Waaree Energies Ltd. (India) and Yingli Solar (China) are among a few emerging companies in the photovoltaic market.

Get online access to the report on the World's First Market Intelligence Cloud

• Easy to Download Historical Data & Forecast Numbers
• Company Analysis Dashboard for high growth potential opportunities
• Research Analyst Access for customization & queries
• Competitor Analysis with Interactive dashboard
• Latest News, Updates & Trend analysis

Request Sample

Click on image to enlarge

Scope of the Report

Photovoltaic Market Highlights

This research report categorizes the photovoltaic market based on Component, Material, Cell Type, Installation Type, Application, and Region

Recent Developments

• In March 2022, Canadian Solar announced it has started the mass production of new 54-cell format module with 182 mm cell for residential, commercial, and industrial rooftop solar systems. CS6R-MS, the new module type under HiKu6 series, has the power output of up to 420 W and module efficiency of up to 21.5%. The CS6R-MS module is especially suitable for rooftop solar applications given its small module size (1.95 m² ? 30 mm), lightweight (21.3 kg), and outstanding aesthetic design for a homogenous appearance
• In February 2022, LONGi (China), announced that it has released a new module, the Hi-MO 5m 54c. With 54 cells, this new Hi-MO 5m module is designed mainly for residential and C&I rooftop systems, produces a maximum power output of 415W, and achieves an efficiency of 21.25%.
•  In January 2022, TrinaTracker, a business unit of Trina Solar (China) launched Vanguard 1P single-row tracker at the World Future Energy Summit in Abu Dhabi. The new Vanguard 1P series, fully compatible with ultra-high-power modules ranging from 400W to 670W+, enables new application scenarios for TrinaTracker.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst