Solar Energy Solutions Market Size, Share, Growth, And Industry Analysis by Type (Photovoltaic Cells, Concentrated Solar Power Systems) by Application (Agriculture & Horticulture, Architecture, Transportation & Others) Regional Forecast By 2031

Updated On: 08 April 2024

Solar Energy Solutions Market Report Overview

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The global solar energy solutions market size was USD 15.86102 billion in 2021. As per our research, the market is expected to reach 107.36 billion by 2031, exhibiting a CAGR of 21.31 % during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with solar energy solutions market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Solar energy is the radiant energy that the sun emits and may be harnessed by a variety of technologies, including photovoltaic cells, solar heating, and more. It is a viable source of renewable energy that effectively combats both rising greenhouse emigrations and global warming. Environmental degradation and increased government incentives and duty rebates for solar panel installation are the main factors driving the market growth for solar energy. Additionally, solar energy systems' reduced water footprint has increased demand in the industries that produce electricity. Increased rooftop installations have greatly increased the need for solar cells, which has in turn led to increased activity in the architectural industry. The rising cost of fossil fuels is one of the main reasons driving the expansion of the global solar power industry. the increasing environmental worries over carbon emissions and greenhouse gases.

Additionally, throughout the anticipated period, the worldwide solar energy solutions market size will increase due to the expanding government efforts and supportive policies to reduce the negative effects of harmful gas emissions. Government tax breaks and incentives to install solar panels are increasing, while environmental degradation is becoming worse. These factors are what are driving the expansion of the solar energy business. Additionally, solar energy systems' reduced water footprint has increased demand for them in the power generation industries. The demand for solar cells has greatly increased as a result of an increase in rooftop installations, which was then followed by an increase in applications in the architectural industry. Furthermore, it is anticipated that the need for concentrated solar energy solutions would be driven by the demand for solar power towers and parabolic troughs in the generation of energy.

COVID-19 Impact: Solar Projects To Be Significantly Affected By COVID-19 Supply Chain Disruptions

Global lockdowns caused by the COVID-19 have stifled economies, disrupted supply networks, and suspended the majority of projects. Eighty percent of solar equipment, including inverters, are imported into India from China. Due to lockdowns and equipment shortages, the majority of solar projects in India are being delayed, creating a significant backlog for completing orders. For instance, the pandemic caused the Government of Seychelles to postpone building of their floating solar photovoltaic power facility until July 2020. Additionally, throughout this pandemic, India's demand for power is reported to be declining. The solar business will suffer from this as well. The Arabian producer of clean and renewable energy solutions, Fotowatio Renewable Ventures, has revealed plans to sell its stake in the Indian solar industry. 

Latest Trends

"Global Electricity Demand Growth Will Drive Market Trends"

Because of booming economies and rising populations, there is a significant growth in the demand for power worldwide. Increased infrastructural needs and rising living standards are driving up demand for power production. For instance, according to Enerdata, China's power demand climbed by 4.5% in 2019 over 2018 in that country. Most nations are building new solar power facilities or expanding the capacity of their current ones in order to satisfy the rising demand. During the projected period, this is anticipated to fuel the expansion of the solar energy solutions market size.

Additionally, the implementation of government programmes like feed-in tariffs and renewable portfolio requirements is anticipated to fuel the expansion of the solar energy solutions market throughout the course of the projected period. For instance, the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) was established by the Indian government in 2019 with the goal of promoting solar pumps throughout the nation. By 2022, the scheme is expected to boost the total solar capacity to 28 GW. During the projected period, the expansion of the solar energy solutions market growth is anticipated to be fueled by such government efforts. 

Solar Energy Solutions Market SEGMENTATION

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• By type

Depending on solar energy solutions given are types: Photovoltaic Cells, Concentrated Solar Power Systems. The Photovoltaic Cells type will capture the maximum market share through 2031.

• By Application

The market is divided in Agriculture & Horticulture, Architecture, Transportation & Others based on application. The global solar energy solutions market  players in cover segment like Agriculture & Horticulture will dominate the market share during 2021-2031.

Driving Factors

"Growing Solar Energy Investments To Drive The Market Growth"

Many businesses are building renewable energy facilities as a result of environmental laws. In order to lower their carbon emissions, some nations are concentrating on eco-friendly power generation techniques. One of the affordable options for sustainable energy is solar power. As a result, several nations are making significant investments in solar energy. New solar projects of more than 67 GW were built in Asia Pacific in 2019. As a result, the amazing annual installation of solar capacity is promoting the expansion of the worldwide market. In addition to this, several nations provide incentives and subsidies to businesses and people that install solar energy systems. The market participants now have several options to grow their businesses. The U.S. Department of Energy (DOE), for instance, offers financial support and technical help to businesses for the creation and introduction of solar energy systems. For the businesses involved in the solar energy sector, this is anticipated to open up attractive new market opportunities. Furthermore, due to its environmental friendliness, governments all over the world are concentrating on boosting the usage of solar energy. The Indian government, for instance, intended in 2019 to boost the country's solar power output from 22.8 GW to 175 GW by 2022. In the upcoming years, it is anticipated that these government measures would fuel solar energy solutions market growth.

"Supportive Government Programmes And Regulations To Foster Market Growth"

Government policies that are supportive are crucial for installing renewable energy. FiT, investment tax credits, and capital subsidies are important policies that promote solar installation in many nations, including the United States, China, and EU nations. For instance, the National Development and Reform Commission of China (NDRC) announced solar FIT payments for large-scale projects in May 2019. Commercial and industrial solar PV systems with surplus electricity transmitted back into the grid that were originally intended for private consumption are subject to a FiT of RMB 0.10/kWh. The solar business is supported by a number of laws in the US, including the Investment Tax Credit (ITC) and the Solar Renewable Energy Credit (SREC). In accordance with the ITC, solar PV systems built by December 2023 are eligible for a 30% federal tax credit. Users can get credits for solar-generated power through the SREC programme. Additionally, the EU is investing in the creation and implementation of renewable energy policies as part of its considerable promotion of the installation of renewable energy sources. For instance, the European Commission announced the European Clean Energy Package in October 2018 with the goal of increasing Europe's proportion of renewable energy and improving its energy efficiency.

Restraining Factors

"Limitations On Land Use To Limit Market Growth"

Large solar projects need a lot of area, such as utility-scale or large industrial-scale facilities. Additionally, any considerations like the availability of solar radiation limit the choice of land. Due to poor accessibility and unstable soil, solar projects cannot be erected on agricultural or forest property. Distance from the power grid and equipment transportation are other considerations influencing where to build. Additionally, there are certain restrictions on land usage that can prevent the solar energy solutions market growth. These include land use laws, zoning limitations, and roadblocks like construction projects and military bases. The size, location, and kind of solar installations that are permitted in a particular region may be restricted by zoning regulations, which can be highly complex. Land use rules may mandate a minimum set-back or forbid the installation of particular solar system types, which might have an impact on the market's expansion. Finally, urbanisation can reduce the amount of land that is available for solar projects and provide barriers like shadowing and other impediments.

Solar Energy Solutions Market Regional Insights

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"Asia Pacific Is Anticipated To Develop At The Fastest Rate And Occupy The Largest Proportion Of The Worldwide Market "

The largest solar power market in terms of solar energy solutions market share was in Asia Pacific. More than half of the world's population resides in Asia and the Pacific, creating a sizable customer base. The top four nations that use solar energy the most are China, Japan, South Korea, and India. One of the key macroeconomic drivers of the solar power market's expansion in Asia Pacific is the region's growing urbanisation, rising disposable income, hectic lifestyle, expanding internet penetration, and rising smartphone use. Additionally, the industry is being supported by a sizable young population as well as increased desire for sustainable development and renewable energy. The potential for growth is tremendous in nations like China and India. 

However, technological developments have lowered the cost of installation and made it affordable compared to brand-new coal and gas power plants. Over the projection period, North America is anticipated to see constant CAGRs. Numerous nations in the area have committed to increasing the proportion of solar energy in overall energy production, which is anticipated to raise product demand throughout the projected period. Over the next several years, North America is also anticipated to have consistent growth. Countries with strong solar potential and above-average sunshine include the United States and Canada. During the projection period, demand from nations with significant solar potential is anticipated to fuel solar energy solutions market share.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Esolar Inc (U.S)
• Gintech Energy Corp (Taiwan)
• Acciona Energia S.A (Spain)
• Abengoa Solar S.A. (Spain)
• Bright source Energy Inc. (U.S)
• Sunpower Corporation (U.S)
• Tata Power Solar (India)
• Kaneka Corp (Japan)
• Wuxi Suntech Power Co. Ltd. (China)
• Canadian Solar Inc. (Canada)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.