Solar Powered Vehicle Market

• Low Fossil Fuel Supply and Declining Air Quality Index to Propel the Market Growth

According to estimates, 135 million Americans would reside in counties with dangerous levels of air pollution in 2021. The US, one of the largest economies in the world, consumes around 25% of the coal, 27% of the natural gas, and 26% of the oil that is accessible worldwide. Every year, pollution causes the deaths of around 100 million people worldwide. Governments are offering incentives on electric vehicles to combat these problems and enhance the area's air quality. 

In the event that there is no solar energy available, solar-powered cars would also be equipped with a charger so that they may still function. The growth of the electric car market has been significantly influenced by government subsidies for the adoption of electric vehicles. Additionally, all of the subsidies are probably applicable to solar cars as well, which is anticipated to boost the market for solar-powered vehicles. Thus, this factor is driving the market CAGR.

Solar-powered vehicles are automatically charged by ingesting sunshine. It has a powertrain that is quite comparable to the one in electric cars. Solar-powered automobiles are different from electric cars in that they don't need a charging station. It has to be charged at a charging station only when it is dark outside. Due to the significantly low maintenance and operating costs of solar-powered vehicles, the market is anticipated to grow at a considerable rate throughout the projected period. 

The number of solar automobiles is anticipated to reach 1,646 in 2022 and is projected to increase at a 15.2% CAGR. Solar-powered vehicles operate virtually silently, reducing noise pollution. The market for solar-powered vehicles is forecast to grow as it is anticipated that solar-powered vehicles would be even more cost-effective than electric vehicles.

This is predicted to increase demand for solar-powered vehicles relative to fuel-powered vehicles, which would support the market's expansion over the forecast period. Thus, it is anticipated that this aspect will accelerate solar-powered vehicle market revenue globally.

The escalating prices of conventional fuels are driving consumers towards alternative energy sources, notably solar-powered vehicles. The Global Solar-Powered Vehicle Market Industry is benefiting from this shift as individuals seek cost-effective and sustainable transportation options. With fuel prices fluctuating and often rising, the economic appeal of solar vehicles becomes more pronounced. This trend is particularly evident in regions heavily reliant on imported oil, where solar-powered vehicles present a viable solution to mitigate fuel dependency. As awareness of this economic advantage grows, the market is likely to see increased adoption rates, further solidifying its position in the automotive sector.

The Global Solar-Powered Vehicle Market Industry is poised for substantial growth, with projections indicating a market value of 1.48 USD Billion in 2024 and an anticipated increase to 10.6 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 19.64% from 2025 to 2035, highlighting the increasing adoption of solar-powered vehicles. As technological advancements continue to enhance vehicle efficiency and government policies support sustainable transportation, the market is likely to expand significantly. These projections underscore the potential for solar-powered vehicles to become a mainstream choice in the automotive industry.

Technological innovations play a crucial role in the Global Solar-Powered Vehicle Market Industry. Advancements in solar panel efficiency and battery storage technology are enhancing the viability of solar-powered vehicles. For example, the development of lightweight materials and improved photovoltaic cells is enabling vehicles to harness more solar energy. Companies are increasingly integrating these technologies into their designs, which could lead to a more competitive market landscape. As these innovations continue to evolve, they are likely to attract investment and consumer interest, further driving market growth towards an anticipated value of 10.6 USD Billion by 2035.

The Global Solar-Powered Vehicle Market Industry is experiencing growth driven by increasing environmental awareness among consumers and governments. As climate change becomes a pressing issue, there is a notable shift towards sustainable transportation solutions. Governments worldwide are implementing stringent regulations to reduce carbon emissions, which is propelling the demand for solar-powered vehicles. For instance, countries like Germany and the Netherlands are investing heavily in solar technology for vehicles, aiming to decrease their carbon footprints. This trend is expected to contribute to the market's expansion, with projections indicating a market value of 1.48 USD Billion in 2024.

Government incentives and subsidies are pivotal in fostering growth within the Global Solar-Powered Vehicle Market Industry. Many governments are offering financial incentives to consumers who purchase solar-powered vehicles, thereby reducing the overall cost and encouraging adoption. For instance, tax credits and rebates are common in various countries, making solar vehicles more accessible to the average consumer. These initiatives not only stimulate demand but also support manufacturers in expanding their production capabilities. As a result, the market is projected to grow at a compound annual growth rate of 19.64% from 2025 to 2035, reflecting the positive impact of these policies.

Urbanization and increasing population density are significant factors influencing the Global Solar-Powered Vehicle Market Industry. As cities become more congested, the demand for efficient and sustainable transportation solutions rises. Solar-powered vehicles offer a practical alternative, particularly in urban environments where traditional vehicles contribute to pollution and traffic congestion. The integration of solar technology into urban planning initiatives is becoming more common, with cities exploring ways to incorporate solar infrastructure. This trend is expected to drive market growth as urban populations seek cleaner and more efficient transportation options.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific solar-powered vehicle market accounted for USD 0.4 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period because of the increase in battery and hybrid vehicle manufacturing and sales in China and Japan. Increased disposable income in some Asian countries, including India, may also contribute to the region's strong market expansion throughout the anticipated timeframe.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Solar-Powered Vehicle Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe solar-powered vehicle market accounts for the fastest growing market share. Some of the drivers propelling the market in Europe are the rising popularity of electric vehicles, the use of renewable energy sources to power automobiles, and the increase in government funding in solar energy projects. 

Every automobile sold in Europe in the near future will be an electric vehicle, according to a report by the financial organisation ING, which is based in Europe. Further, the UK solar-powered vehicle market held the largest market share, and the Germany solar-powered vehicle market was the fastest-growing market in the region.

North America solar-powered vehicle market is expected to grow at a substantial CAGR from 2022 to 2030 is linked to elements like cheap battery prices and the growing use of solar panels in hybrid electric vehicles. Government investments in solar energy projects as well as the quick commercialization of electric vehicles have given companies in the solar-powered vehicle business multiple revenue sources. Moreover, US solar-powered vehicle market held the largest market share, and the Canada solar-powered vehicle market was the fastest-growing market in this region

Major market players are spending a lot on R&D to increase their product lines, which will help the solar-powered vehicle industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the global solar-powered vehicle industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, solar-powered vehicle industry has provided medicine with some of the most significant benefits. The solar-powered vehicle market major player such as Guangzhou Jcar Industrial Company Ltd (China), Hanergy Holding Group (China), Venturi Eclectic (France), Sono Motors GmbH (Germany), Ford Motor Company (US), Mahindra & Mahindra (India), Cruise Car (US), The Solar Electric Vehicle Company (US), Kiira Motors Corporation (KMC) (Uganda) and Immortus (Australia).

The German start-up Sono Motors is currently developing the Sion, a fully electric automobile that is solar powered. Its solar cells or the electrical grid can both be used to recharge its batteries. In July 2022, the first solar electric vehicle (SEV), known as the Sion, will be produced, according to Sono Motors GmbH, a solar-powered mobility startup. The company has also unveiled a "Solar Bus Kit" for fleets of public transportation that provides a solution to lower fuel use and greenhouse gas emissions in inner cities.

The headquarters of the American multinational automaker Ford Motor Company are in Dearborn, Michigan. Henry Ford formed it, and on June 16, 1903, it became a legal entity. In July 2021, to go along with its F-150 Lightning electric vehicle and other planned EVs, Ford is getting ready to release a number of solar and smart energy products. Ford stated that high demand, including reservations, for its most recent vehicle introductions, such as the electric Mustang Mach-E crossover and the revamped F-150 SUV, has left it "spring-loaded" for growth throughout the second half of the year and beyond.