Photovoltaics (PV) Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Photovoltaics (PV) Market Size & Growth

The photovoltaics (PV) market size is estimated to be USD 96.5 billion in 2023 and is projected to reach USD 155.5 billion by 2028, growing at a CAGR of 10.0% between 2023 to 2028.

The growth of the PV market is driven by the rising number of solar installations attributed to government-led incentives and schemes, growth in the adoption of solar PV systems for residential applications and decreasing cost of PV systems. Meanwhile, increasing inestments in renewewable energy presents a significant opportunity for developing the photovoltaic market.

The photovoltaics industry has witnessed various fast-paced technological developments in recent years. Perovskite is the newest solar material whose crystal structure is good for solar absorption. Perovskite cells also work better than silicon at lower lighting intensities, on cloudy days, or indoors, thus enabling higher conversion efficiency. Recently, metal halide perovskite solar cells have emerged as a promising thin-film PV technology owing to their inherently excellent optical and electronic properties such as large optical absorption coefficient, high carrier mobility, long carrier lifetime, and low mid-gap state density. The past few years have seen rapid exponential progress in their power conversion efficiency, increasing from 3.8% in 2009 to 25.5% in 2020, comparable to the record efficiencies of c-Si.

The perovskite PV technology is potentially very cost-effective because of its low-temperature solution processibility and small material consumption. The globally intensive and collective research has significantly improved perovskite materials’ quality and stability, and device durability increasing prospects for commercialization. This is mainly due to factors such as advancements in deposition processes producing better crystalline and compact perovskite films, understanding of photo- and electronic-physics underlying device operation, and passivation of defects associated with perovskite materials and device structures. Additionally, the perovskite solar cell adoption benefits from lifestyle changes, improved investments, expanding urbanization, and rising consumer spending. In addition, increasing demand for passivated emitter and rear cell (PERC) modules—a technology that aims to achieve higher efficiency than standard solar cells by adding a dielectric passivation layer on the rear of the cell—is likely to offer growth opportunities for the solar photovoltaic market.

Global Photovoltaic Market Share

Photovoltaic Market Forecast to 2028

The photovoltaic (PV) industry is on the cusp of a technological revolution, it has experienced significant technological advancements over the years, driving improvements in efficiency, cost-effectiveness, and sustainability. Perovskite Solar Cells: Perovskite solar cells have gained attention for their potential to offer higher efficiency and lower production costs compared to traditional silicon solar cells. Ongoing research aims to address stability and scalability issues, making perovskite cells a promising area for future development.

Tandem Solar Cells: Tandem solar cells combine multiple layers of different materials to capture a broader spectrum of sunlight and improve overall efficiency. This approach involves stacking solar cell materials with complementary absorption spectra to enhance energy conversion.

Bifacial Solar Panels: Bifacial solar panels can capture sunlight from both the front and rear sides, reflecting off surfaces such as the ground or nearby structures. This design increases overall energy capture, especially in environments with reflective surfaces.

Bifacial Tracking Systems: Bifacial solar panels combined with tracking systems that follow the sun's path throughout the day can significantly increase energy capture. By optimizing the angle and orientation of the panels, bifacial tracking systems enhance overall system efficiency.

Transparent Solar Cells: Transparent solar cells allow light to pass through, enabling their integration into windows, facades, and other transparent surfaces. These cells can generate electricity while maintaining visibility, opening up new possibilities for building-integrated photovoltaics.

Advanced Manufacturing Techniques: Innovations in manufacturing processes, such as roll-to-roll printing and automated assembly, have contributed to cost reductions and increased production efficiency. These advancements help make solar energy more competitive with traditional energy sources.

Artificial Intelligence (AI) and Data Analytics: AI and data analytics are being employed to optimize the operation and maintenance of solar installations. Predictive analytics, machine learning algorithms, and data-driven insights help improve energy forecasting, fault detection, and overall system performance.

Continued research and development in these and other areas are likely to pave the way for even more innovative applications in the photovoltaic industry.

Here are some of the challenges that need to be addressed for deployment of PV modules:

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Photovoltaics Market Dynamics

Drivers: Growing adoption of photovoltaic systems for residential applications

The residential sector is among the major application areas and early adopters of PV systems and products. There is a significant demand for PV products from this sector. The number of residential solar rooftop installations has also witnessed a substantial increase over the years globally. The residential sector is exhibiting a high appetite for the installation of solar systems on account of the increasing willingness of end-users to adopt energy-efficient measures. This can be mainly attributed to the increasing awareness about global climate change and the adverse effects of greenhouse gas emissions. The demand for solar PV panels for residential use has been on the rise due to the rising costs of oil and gas and decreasing costs of solar PV panels, making them a preferable alternative for homeowners.

Restraint: Lack of skilled workforce for PV installation and maintainence

PV installation requires a spectrum of skilled workers, ranging from Ph.D. level scholars in R&D to technicians requiring specialized training and certification to a wide variety of other professionals for supporting all aspects of the PV industry. The industry does not have enough trained installers to handle the implementation of this technology, and the availability of appropriately skilled manpower has been one of the most prominent challenges in the PV arena. On the other hand, end-users of the technology demand for acknowledged standards, quality assurance, and skills certification during the entire development phase of a PV installation. Moreover, there have been fatalities in the past involving technicians falling off the roof during rooftop solar installation and due to electrocution. The solar industry in the US is constantly monitored by the federal government through the Occupational Safety and Health Administration (OSHA), which makes it essential for PV companies to provide necessary training to their technicians and other staff. Also, the target end-users of PV products are not adequately informed or aware of these products. Information about the benefits of these products and installation and regular maintenance-related information must also be conveyed to the said demographic. However, due to the lack of a skilled and informed workforce, these benefits are not being passed on to consumers, which is expected to act as a restraint for the 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..

PV Market Ecosystem

Photovoltaics Market Segmentation

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.

PV market for residential application is expected to grow at a significant CAGR from during forecast period

PV 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 photovoltaics (pv) market during the forecast period

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

Photovoltaics (PV) Industry Regional Analysis

The photovoltaics 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

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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%

Top Photovoltaics (PV) Companies - Key Market Players

Major vendors in the photovoltaic companies such as

• JinkoSolar (China),
• JA Solar (China),
• Trina Solar (China),
• LONGi (China),
• Canadian Solar (Canada),
• 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).

Other companies in the photovoltaic market include are 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).

Photovoltaics (PV) Market Report Scope

Photovoltaic Market Highlights

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

Recent Developments in Photovoltaics (PV) Industry

• In June 2022, JinkoSolar announced that it had executed an agreement to supply approximately one gigawatt of its high-efficiency n-type bifacial Tiger Neo solar panels to China Datang Corporation to power its six utility-scale solar projects located in Hunan and Guangxi provinces.
• 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 March 2022, LONGi introduced a new system known as ‘One Module One Code’, which attaches a specific anti-counterfeiting QR code to each of its modules. This represents major progress in smart management provided by LONGi Lifecycle Quality
• .
• 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.

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