Solar Power Panel Market

Solar Power Panel Market Size

The global Solar Power Panel Market size was valued at USD 16.32 billion in 2022 and is projected to reach USD 28.33 billion by 2030, growing at a CAGR of 8.0% from 2023 to 2030. The solar power panel market growth is driven by the proliferating demand for clean energy around the world. Governments around the world offer incentives and tariff reductions to encourage the installation of solar panels. These incentives aim to promote the use of renewable energy sources and reduce greenhouse gas emissions. Market growth is supported by growing investments in the renewable energy sector. Over the last two decades, investment in solar energy projects has improved significantly, which has increased the demand for solar panels.

The rising demand for clean energy worldwide is a major factor in the solar panel market. Many countries are moving away from fossil fuels and adopting renewable energy sources, including solar energy. Government policies and tax incentives play a key role in promoting market growth. These policies encourage solar adoption by providing financial support, feed-in tariffs, or net metering programs. The development of floating solar energy technology, where solar panels can be mounted above the surface of the water, is driving the growth of the market. This technology allows the use of solar panels in land areas with limited access, which opens up new opportunities for solar power generation. The key market restraint for the global solar panel market is the high cost of installation of solar panels.

Analyst’s Review 

Many governments have set renewable energy plans and regulations that promote the use of solar panels. Solar panels, for instance, are expected to generate nearly one-third of the world's total electricity demand in the future, according to the International Energy Agency. The growing focus on lowering carbon emissions and transitioning to sustainable energy sources has driven the demand for solar panels. The proliferating demand for solar panels is due to the increasing adoption of solar energy systems in residential, commercial, and industrial applications. This demand is propelled by factors such as energy cost savings, environmental concerns, and energy independence. The combination of lower costs and government incentives has increased the demand for solar panels. In addition, government initiatives to improve the availability of off-grid energy, increasing penetration of portable and wireless energy-efficient devices, and raising concerns about depleting energy sources such as fossil fuels have also contributed to the growth of this market.

Market Definition

Photovoltaic (PV) panels, also referred to as solar power panels, are used to convert sunlight directly into electrical energy. These panels are typically composed of numerous solar cells made of semiconductor materials such as silicon. When sunlight strikes the solar cells, it creates an electric field that allows electrons to flow, resulting in DC (direct current) power. This electricity can then power houses, businesses, or other electrical devices. Solar power panels are a vital component of solar power systems, which help harness solar energy. Installing solar panels can help you generate electricity from the sun, reducing the dependence on the traditional electricity grid and potentially reducing energy bills. Solar panels offer the opportunity to produce electricity by themselves, allowing better control of energy consumption and reducing dependence on external energy sources. 

Market Dynamics

The growing demand for clean energy is giving a significant boost to the growth of renewable energy sources, including solar energy. As more countries and organizations prioritize sustainability and reduce their carbon footprint, the demand for clean energy sources has expanded. Governments, industries, and individuals are broadening the importance of switching to renewable energy sources to mitigate the environmental impact of traditional energy production. The growth rate of renewable energy is faster than that of other energy sources, and solar electricity alone significantly increases global energy production capacity. Clean energy sources offer the opportunity to be less dependent on fossil fuels and foreign energy sources, which accelerates the demand for solar power panels.

The complicated process of manufacturing solar panels is hindering the growth of the market. Since solar energy is one of the abundantly available renewable sources to provide electricity generation and reduce the burden of fossil fuel consumption, problems or challenges in the manufacturing of solar panels have caused adverse effects. The manufacturing of solar panels uses a wide range of materials, such as silicon tetrachloride and other harmful substances, which act as one of the main sources of waste in the manufacture, the need for effective treatment or disposal. In addition, huge amounts or tons of toxic waste such as cadmium and lead are produced, which can ultimately make the production process difficult and unfriendly. Such factors ultimately curbed the growth of the solar power market.

Segmentation Analysis

The global solar power panel market is segmented based on type, technology, end-user, and geography.

By Type

Based on type, the solar power panel market is bifurcated into on-grid and off-grid. The off-grid segment is projected to dominate the market during the forecast period, owing to mounting energy demand from isolated locations across the globe. The implementation of numerous regulatory policies to decentralize the power generation sector is boosting the expansion of the off-grid segment. Low operating and maintenance cost is the key factor contributing to the expansion of the on-grid segment in the market.

By Technology

Based on technology, the solar power panel market is segmented into monocrystalline solar panels, polycrystalline solar panels, and thin-film panels. The polycrystalline solar panels segment accounted for the highest market share in 2022. The use of polycrystalline solar panels in a wide range of applications, high efficiency, and technological advancements boost the segment growth.

By End-User

Based on end-user segment, the solar power panel market is classified into residential, commercial, and utility. The commercial segment is dominating the industry driven by the propelling demand for highly efficient and sustainable energy sources drives the market growth. The increasing adoption of commercial segment is forecasted to accelerate due to the growing adoption in offices, businesses, and other commercial buildings.

Solar Power Panel Market Regional Analysis

Based on regional analysis, the global solar power panel market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia-Pacific is the fastest-growing region is expected to maintain its significant growth pace throughout the forecast period. This is attributed to the presence of key players and a huge consumer base in the region. Additionally, the demand for solar panel installation has accelerated significantly in China, Japan, India, and South Korea due to accelerating adoption of distributed energy systems in the region, which, in turn, is expected to boost market growth. The technological advancements, falling costs, and growing awareness of the benefits of clean energy are driving this global shift towards a more sustainable and green energy future. The market is anticipated to grow rapidly due to government policies and incentives to promote solar panels across the region.

Competitive Landscape

The global solar power panel industry study will provide valuable insights with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions.

List of Key Companies in Solar Power Panel Market

• Bluetti Power
• Canadian Solar
• Energizer
• First Solar
• Jinko Solar
• NextEra Energy Resources, LLC
• Panasonic Corporation
• Trina Solar
• TotalEnergies
• LONGi

Key Industry Developments 

• In March 2023: BLUETTI will soon launch its new PV420 solar panel in Europe and the UK, giving a big boost to the solar industry across the continent. The PV420 produces the highest amount of energy compared to any solar panel that BLUETT has ever produced.
• In April 2022: Energizer Solar launched solar products targeting the European renewable energy market and REC Group introduced a high-efficiency solar panel. The launch was in response to the growing consumer demand for comprehensive renewable energy solutions.

The Global Solar Power Panel Market is segmented as:

By Type

• On-grid
• Off-grid

By Technology

• Monocrystalline Solar Panels
• Polycrystalline Solar Panels
• Thin-film Panels

By End-User

• Residential
• Commercial
• Utility

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America