Global Solar Photovoltaic System Market Overview:
As per MRFR analysis, the Solar Photovoltaic System Market Size was estimated at 188.12 (USD Billion) in 2022. The Solar Photovoltaic System Market Industry is expected to grow from 202.87 (USD Billion) in 2023 to 400.0 (USD Billion) by 2032. The Solar Photovoltaic System Market CAGR (growth rate) is expected to be around 7.84% during the forecast period (2024 - 2032).
Key Solar Photovoltaic System Market Trends Highlighted
The global solar photovoltaic system market is poised to experience robust growth in the coming years due to increasing environmental consciousness, technological advancements, and supportive government policies. The surge in demand for renewable energy sources to mitigate climate change is a key driver of market expansion. Moreover, the declining costs of solar panels and advancements in energy storage solutions are making solar photovoltaic systems more cost-effective and efficient.
Recent market trends indicate a growing demand for off-grid and distributed photovoltaic systems, particularly in regions with limited access to traditional energy sources. The rise of smart grids and the integration of artificial intelligence (AI) and Internet of Things (IoT) technologies are further enhancing the efficiency and reliability of solar photovoltaic systems. Additionally, the increasing adoption of electric vehicles is expected to create new opportunities for the market, as solar-generated electricity can be used to power these vehicles, reducing transportation-related emissions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Solar Photovoltaic System Market Drivers
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Increasing Demand for Renewable Energy
The global increasing demand for the global solar photovoltaic system market. Solar photovoltaic system is a technology that is used to convert light from the sun into electricity that is used to power various applications. The use of this system is environmentally friendly. One of the major benefits or advantages of using this solar photovoltaic system is it is a clean and renewable source of energy and does not generate or emit greenhouse gas emissions during its use compared to over sources of energy.
This also reduces the use of other sources non renewable energy or fossil fuels. There are no other by product’s from using this solar photovoltaic system. Most governments in the world are imposing some rules and tax advantages and have policies that are driving this solar photovoltaic system market and making the solar system products and services more in reach or affordable of the increased demands of the business or consumer.
This is done in order to reduce the use of non-renewable sources of energy that are harmful to the environment or the gases emitted into the environment. This system has both the demands increasing due to the energy security or energy source must be diversified. This is the main reason why the global solar photovoltaic system Market is increasing at a rapid pace or extent.
Technological Advancements and Cost Reductions
The global solar photovoltaic system market is growing due to technological advancement. First of all, the efficiency of the solar panels has been substantially increased, leading to a significant amount of power generation and less cost of the system. Moreover, the new bifacial solar panels and perovskites solar cells are hoped to lead to less cost and better performance of the technology. Consequently, this innovation leads to solar photovoltaic systems being more competitive as an energy source.
Government Policies and Incentives
Government policies and incentives are the main factors for accelerating the growth of the solar photovoltaic system market worldwide. The adoption of solar photovoltaic systems by both businesses and consumers has definitely been driven by government policies in recent years. Governments worldwide have been launching a range of policies, such as feed-in tariffs, tax credits, and net metering programs, to incentivize the adoption of solar photovoltaic systems.
Solar photovoltaic systems have thus become more affordable for both businesses and consumers. Furthermore, many governments have become ambitious in terms of renewable energy consumption. They have been implementing policies for promoting solar photovoltaic infrastructure, and thus, these policies are driving the market.
Solar Photovoltaic System Market Segment Insights:
Solar Photovoltaic System Market Technology Insights
Technologies Global Solar Photovoltaic System Market by Technology in 2023 The Technology segment is classified as Mono-Crystalline Silicon, Poly-Crystalline Silicon, Thin-Film Silicon, and Concentrated Solar Photovoltaic in the Global Solar Photovoltaic System Market. Mono-Crystalline Silicon led the market in 2023, with a revenue share of over 40% of the Global Solar Photovoltaic System Market revenue owing to high efficiency, durability, and cost-effectiveness. Furthermore, Mono-Crystalline Silicon is preferred in homes, businesses, and industries.
Although Poly-Crystalline Silicon is not as efficient as Mono-Crystalline Technology, it costs less and is easier to manufacture. Therefore, over the projection period, Poly-Crystalline is anticipated to grow at a steady rate. Thin-Film Silicon, which is light in weight, flexible, and well-suited for installation in large areas, is the most likely form to become popular in new and growing markets. The other technological approach is the Concentrated Solar Photovoltaic, which is more efficient than any other technological approach because it concentrates and delivers sunrays beyond the limit and the generated electricity is stored and used when required; however, it would only be used for small projects due to the high cost of manufacturing.
Global Solar Photovoltaic System Market Moreover, over the projection period, the Global Solar Photovoltaic System Market’s transactional value is expected to increase to almost $250 billion by 2027. Over the projection period, the market is expected to expand at a CAGR of about 8%. The market is driven by various factors, including governments’ incentives, advances in technology, and increasing concerns about the environment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Solar Photovoltaic System Market System Type Insights
The market is segmented by system type into grid-connected and off-grid. The grid-connected segment accounted for a larger share of the market in 2023 and is expected to continue to dominate the market through 2032. The growth of the grid-connected segment is attributed to the increasing demand for renewable energy sources and the falling costs of solar panels.
The off-grid segment is expected to grow at a faster rate during the forecast period due to the increasing demand for solar energy in remote areas and developing countries. In 2023, the grid-connected segment was valued at 120.0 billion USD, while the off-grid segment was valued at 82.87 billion USD.By 2032, the grid-connected segment is expected to reach a value of 240.0 billion USD, while the off-grid segment is expected to reach a value of 160.0 billion USD.
Solar Photovoltaic System Market Application Insights
The Global Solar Photovoltaic System Market is segmented by application into residential, commercial, industrial, and utility-scale. In 2023, the residential segment held the largest market share, accounting for over 35% of the global revenue. The commercial segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing adoption of solar photovoltaic systems in commercial buildings.
The industrial segment is also expected to grow at a significant rate due to the growing demand for renewable energy sources in the industrial sector.The utility-scale segment is expected to account for a significant share of the market by 2032 due to the increasing number of utility-scale solar photovoltaic projects being developed worldwide.
Solar Photovoltaic System Market Mounting Type Insights
The mounting type segment of the Global Solar Photovoltaic System Market is segmented into Rooftop, Ground-Mounted, and Building-Integrated. Among these, the Rooftop segment held the largest market share in 2023, accounting for approximately 45% of the global market revenue. The growth of this segment is attributed to the increasing adoption of rooftop solar systems in residential and commercial buildings due to factors such as government incentives, rising energy costs, and growing awareness of environmental sustainability.
The Ground-Mounted segment is expected to witness significant growth during the forecast period, owing to its advantages such as higher efficiency, ease of installation, and lower maintenance costs.The Building-Integrated segment is also expected to gain traction in the coming years, driven by the increasing demand for aesthetically pleasing and energy-efficient building designs.
Solar Photovoltaic System Market Regional Insights
The regional segmentation of the Global Solar Photovoltaic System Market offers valuable insights into the market's geographical distribution and growth potential. North America holds a significant market share, driven by increasing government incentives, growing environmental awareness, and technological advancements. Europe, with its ambitious renewable energy targets, is poised for steady growth.
APAC presents a promising market owing to rapid urbanization, rising energy demand, and supportive government policies. South America and MEA regions are expected to witness considerable growth as they tap into their abundant solar resources and strive to meet their energy needs sustainably.The Global Solar Photovoltaic System Market segmentation provides a comprehensive analysis of market dynamics, enabling stakeholders to make informed decisions and capitalize on regional opportunities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Solar Photovoltaic System Market Key Players And Competitive Insights:
Key players in the Solar Photovoltaic System Market world are constantly developing and launching new products to serve the ever-increasing demand for renewable energy solutions. Top players in the Solar Photovoltaic System Market industry are continuously focusing on research and development activities to enhance the efficiency and reduce the manufacturing costs of these solar photovoltaic systems.
The Solar Photovoltaic System Market is a highly competitive industry, and the future is expected to remain the same, with a relatively fragmented competitive landscape, as many other top players are expected to enter the sector.The first major competitive player is JinkoSolar. JukkoSolar is a leading Chinese solar photovoltaic module manufacturer and supplier, serving the domestic and international needs of the market.
The company has the largest portfolio of solar photovoltaic products, including monocrystalline and polycrystalline modules, solar cells, and wafers. JinkoSolar products are used for a variety of uses in many industrial, commercial, and residential installations.
In fact, with the intense competition of Goldsun, the company over the years along with the company’s customers, the company now has more than 1000 technicians globally working on the development of cheap and more cost-effective operational solar products. as products were already regarded as an efficient energy generation, goldsun is heavily focused on developing new materials, technologies, and processes to further improve the efficiency of its photovoltaic products in operation.
The second major competitive player would be Trina Solar since Trina Solar is also a Chinese company serving both the domestic and international solar photovoltaic module market. Also, Trina Solar has the largest and most comprehensive portfolio of monocrystalline and polycrystalline modules, as well as solar cells and wafers and these products are also used in many industrial, commercial, and residential installations. Overall, Trina Solar also has a high commitment to research and development.EN The Top Players in the Solar Photovoltaic System Market World’.
Key Companies in the Solar Photovoltaic System Market Include:
- ABB
- Seres
- LONGi Solar
- JinkoSolar
- Power Electronics
- Trina Solar
- NEXTracker
- JA Solar
- First Solar
- SunPower
- Hanwha Q CELLS
- REC Group
- Risen Energy
- Array Technologies
- Canadian Solar
Solar Photovoltaic System Market Industry Developments
Recent developments in the global solar photovoltaic system market indicate a surge in demand for renewable energy solutions. Governments worldwide are implementing supportive policies, including incentives and tax breaks, to promote solar adoption.
Technological advancements, such as the development of high-efficiency solar panels and cost reductions in manufacturing, are making solar energy more accessible and cost-effective. The market is witnessing strategic partnerships and acquisitions among key players to strengthen their market position and expand their product offerings. Ongoing research and development efforts are focused on improving solar cell efficiency, reducing system costs, and enhancing energy storage capabilities. These advancements are expected to drive the growth of the solar photovoltaic system market in the coming years.
Solar Photovoltaic System Market Segmentation
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Solar Photovoltaic System Market Technology Outlook
- Mono-Crystalline Silicon
- Poly-Crystalline Silicon
- Thin-Film Silicon
- Concentrated Solar Photovoltaic (CPV)
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Solar Photovoltaic System Market System Type Outlook
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Solar Photovoltaic System Market Application Outlook
- Residential
- Commercial
- Industrial
- Utility-Scale
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Solar Photovoltaic System Market Mounting Type Outlook
- Rooftop
- Ground-Mounted
- Building-Integrated
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Solar Photovoltaic System Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
188.12(USD Billion) |
| Market Size 2023 |
202.87(USD Billion) |
| Market Size 2032 |
400.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.84% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
ABB, Seres, LONGi Solar, JinkoSolar, Power Electronics, Trina Solar, NEXTracker, JA Solar, First Solar, SunPower, Hanwha Q CELLS, REC Group, Risen Energy, Array Technologies, Canadian Solar |
| Segments Covered |
Technology, System Type, Application, Mounting Type, Regional |
| Key Market Opportunities |
Largescale solar farms Residential solar power systems Commercial solar installations Utility-scale solar energy Solar power for developing countries |
| Key Market Dynamics |
Increasing government incentives Declining cost of solar panels Growing demand for renewable energy Technological advancements Net metering policies |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Solar Photovoltaic System Market size was valued at USD 155.28 billion in 2023 and is projected to reach USD 400.0 billion by 2032, exhibiting a CAGR of 7.84% during the forecast period.
The Asia-Pacific region is expected to dominate the market with a share of over 50% in 2023. China is the major contributor to the market growth in this region due to supportive government policies, increasing demand for renewable energy, and growing investments in solar projects.
Rising concerns over climate change and environmental pollution, coupled with increasing government initiatives and incentives to promote renewable energy adoption, are primarily driving the growth of the Solar Photovoltaic System Market.
The utility-scale segment is expected to hold the largest market share during the forecast period. This growth is attributed to the increasing adoption of solar PV systems by utility companies to meet the growing demand for electricity.
Some of the key players in the Solar Photovoltaic System Market include JinkoSolar, LONGi Solar, Trina Solar, Canadian Solar, First Solar, and JA Solar, among others.
The Solar Photovoltaic System Market is anticipated to grow at a CAGR of 7.84% from 2024 to 2032, owing to increasing awareness about the benefits of solar energy, technological advancements, and supportive government policies.
High upfront investment costs, the intermittent nature of solar power generation, and the lack of skilled professionals in some regions are some of the factors that may restrain the growth of the Solar Photovoltaic System Market.
The integration of artificial intelligence (AI) and machine learning (ML) in solar PV systems is an emerging trend, enabling real-time monitoring, predictive maintenance, and optimization of system performance.
Intermittency of solar power generation, grid integration issues, and the need for large land areas for utility-scale solar projects are some of the challenges faced by the Solar Photovoltaic System Market.
The future of the Solar Photovoltaic System Market appears promising, driven by growing environmental concerns, technological advancements, and increasing government support for renewable energy. The market is expected to witness significant growth in the coming years as countries worldwide strive to transition to sustainable energy sources.
