Solar Panels Market Size, Share, Growth, and Industry Analysis, By Type (Crystalline Panel, Thin-film Panel), By Application (Power Utilities, Commercial, Residential), and Regional Insights and Forecast to 2034

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SOLAR PANELS MARKET OVERVIEW

The global solar panels market size was USD 54.50 billion in 2025 and is projected to touch USD 128.04 billion by 2034, exhibiting a CAGR of 10.04% during the forecast period.

The United States Solar Panels market size is projected at USD 17.666 billion in 2025, the Europe Solar Panels market size is projected at USD 16.515 billion in 2025, and the China Solar Panels market size is projected at USD 13.381 billion in 2025.

The solar panel market is an emerging industry where both the demand of renewable energy and reduction in the price of the solar panel are the driving force. In the next one decade, the market size is likely to record high numeric values and the growth rate is likely to be above 20 percent per annum. This increase can be explained by several things including government activities and policies furthering the realization of renewable energy use, technological breakthroughs in solar panel efficiency and reliability, and the decreasing costs on solar panels, due to these solar panels becoming more accessible to the consumer. The market is further fuelled by the growth in awareness surrounding climate change and carbon reduction which many nations have made to ensure that they adopted a low-carbon economy and have ambitious targets to achieve it.

There are several segments of the solar panel industry that can be formed such as residential, commercial, and utility-scale solar panels. The residential segment shall also maintain its dominance in the market due to the adoption of solar panels in buildings and homes which is on the rise. There is also an anticipated strong boost in the commercial segment, with more demand coming in the form of installations of solar panels in office buildings, shopping centers, and other commercial establishments. Utility-scale solar panels can also grow fast as the use of renewable energy is expanding among the utilities and power generation companies. Competitive competition in the market is also anticipated as competition among different market players, which are major established companies and new players is expected to enhance innovation and even lower solar panel prices.

COVID-19 IMPACT

Solar Panels Industry Had a positive Effect Due to increasing demand for renewable energy during COVID-19 Pandemic.

Covid-19 had a notable impact on the Solar Panels market share. Failed supply chains are a sensation caused by the unprecedented and staggering COVID-19 pandemic worldwide as the market reported increased-than-expected demand on all regions after the pandemic starts when compared to its pre-pandemic levels. The abrupt market growth represented by the increase in CAGR can be explained by the fact that the market has recovered regarding growth and demand related to what was experienced before the pandemic.

Due to the COVID-19 pandemic, the solar panels market was affected by this crisis in 2020 and 2021. Owing to lockdowns and disruption of the supply chain as a consequence of the pandemic, the installation and manufacture of solar panels slowed. It led to the reduced demand of solar panels and modules because most countries has restricted non-essential activities, such as the environment of construction and production. Nevertheless, the outlook of the solar panels market in the long term continued to be positive because governments and individuals kept focusing on renewable sources of energy and limiting their dependency on fossil fuel.

The post-pandemic period has been marked by a high recovery of the solar panels market, which has been triggered by soaring renewable energy demands. Policies to facilitate the use of solar power were launched by governments and most countries invested in massive renewable power energy. In addition, the pandemic boosted the trend of remote working and digital communication and the corresponding need in the energy-saving systems and renewable power resources. This has led to a rocket-like increase in the global solar panels market with the number of people investing in the industry in terms of infrastructure and the number of people demanding solar panels booming high.

LATEST TRENDS

Bifacial Solar Panels to Drive Market Growth

The most recent trend pushing solar panels market growth is conversion to bifacial solar panels that can produce electricity not only on the front but also the backside of the panel further boosting energy production by up to 25 percent. This development has witnessed a soar in the consumption of bifacial solar panels. It is of special use in applications in which the back side of the panel can be illuminated compared to the ground-mounted solar farms. Bifacial panels also use less energy and offer the operator of a solar farm the possibility to save costs. The world bifacial solar panel market is forecast to rise at a fast rate in the near future. This trend is promoting growth in the solar panel industry and is projected to be shaping the industry.

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SOLAR PANELS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Crystalline Panel, Thin-film Panel.

• Crystalline Panel: The most popular type of solar panel is Crystalline panels which are produced using crystalline silicon yielding high efficiency and durability. They are unaffordable as compared to the thin-film panels but perform better in low-light environments. They find a great practice in the residential and commercial solar power systems.

• Thin-film Panel: The thin-film solar panels consist of a thin sheet of the photovoltaic material and are lower in cost compared to the crystalline panel with low efficiency. They suit large systems of solar power systems and are applicable in numerous ways such as in the building-integrated photovoltaics. Thin-film panels also have flexibilities and can be applied on curved surfaces.

By Application

Based on application, the global market can be categorized into Power Utilities, Commercial, Residential

• Power Utilities: Power utilities are also using the sun panels to cater a fraction of their energy needs so as to cut on the use of the fossil fuels. This assists in reducing emission of green gases and overall power generation efficiency. Other advantages with solar powered utilities are, a solace component and hence a steady flow of energy.

• Commercial: Commercial Solar power appliances are gaining trend as energy efficient applications are on the rise. Companies are putting the solar panels on their parking structures or rooftops to operate their businesses and cut the electric bills. This eliminates spending money which also helps improve the image of the company as being an environmentally sensitive organization.

• Residential: Solar panels on the roof of the house are increasingly installed by the owners of the houses with the objectives to decrease the carbon-footprint and act on the opposed wind and the solar energy to diminish the power bill. Residential consumers are in a position of placing solar systems on top of their houses to supply their households with energy and even sell any excess energy to the grid lines. This helps save costs on electricity bills as well as leave a good mark in the property value.

MARKET DYNAMICS

Driving Factors

Government Policies and Regulations to Boost the Market

A factor in the Solar Panels market growth is the Government Policies and Regulations. The government regulations and policies are significant in propelling the market of the solar panel with two main contributions namely; tax incentives and net metering laws. Tax advantages like tax credits on installing solar panels induce the consumers to invest on renewable energy generation. Households can sell extra energy to the grid at a rate of lower electricity bills since net metering laws permit them. This would be a win-win-win scenario both to the end-users and the environment. These policies are applied by governments as they strive to achieve renewable energy set goals and provide low carbon footprint. Consequently, this has created a substantial demand in the market of the solar panels.

Technological Advancements to Expand the Market

The other force that propels the solar panel market is technological advancement since there are two more essential aspects efficiency and falling cost. Innovations in the solar panel have contributed to a rise in the level of efficiency where solar panels now produce a higher level of electricity per square meter. This has added to the viability of solar energy as a source of energy as compared to conventional fossil fuels. Further, the price of solar panels has markedly been reduced over the years making them affordable to the consumer. This has brought up the demand of the solar panels to their highest level and renewable energy has become a more viable choice as households and other businesses want renewable energy more now than before. With continuing advances in technology, we can not rule out further enhancement to the solar panel market.

Restraining Factor

Intermittency of solar energy to Potentially Impede Market Growth

The definition of the intermittency of solar energy caused by the weather is a restraining market factor. This entails in the sense that only when the sun is shining, solar panels produce electricity. Gloomy days and the night induce low or no electricity output. Such variability causes solar panels to be incapable of supplying a steady, continuous source of energy. Consequently, such energy sources as batteries and other energy storage means are more and more in demand as sources of backup power. This has an impact on the general efficiency and marketability of the solar panels.

Bifacial Solar Panels with Artificial Intelligence Integration To Create Opportunity for the Product in the Market

Opportunity

The market of solar panel has a noticeable opportunity in the future that integrates artificial intelligence (AI) technology with bifacial solar panels. These sophisticated solar panels will be able to utilize the energy of the back and front module hence resulting in more generation of energy. AI will track and optimise the performance of these panels in real-time and keep them as efficient as possible to minimise energy wasted.

The technology will also allow predictive maintenance, which will result in proactive repair and decrease downtime. The bifacial solar panels with AI incorporation, consequently, will not only expand energy output but it will also decrease costs and help save the environment. This invention will transform the solar panels industry in future.

Energy Harvesting in Space Could Be a Potential Challenge for Consumers

Challenge

The world is changing to renewable energy and solar panels are being stretched to the edge of discovery. Among the largest possible obstacles facing solar panel industry is the study of energy-collection technology in coming up with the idea of sustaining space harshness. The aspirations are to design solar panels, which could be used to produce energy efficiently in the zero-gravity conditions where radiation, high temperatures will be the main problems.

The trick is to design the panels that would survive the severe conditions and perform optimally at the same time. Not only will this achievement allow humankind to explore space sustainably, it will also open up a new epoch in the generation of solar power in space. Those companies which will cope with this challenge will be leaders of the solar panel industry.

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SOLAR PANELS MARKET REGIONAL INSIGHTS

• North America

North America is the fastest-growing region in this market. The United States Solar Panels market has been growing exponentially owing to multiple reasons. The North American market of solar panel is fuelled by United States which has ambitious renewable energy targets. The bright energy demand, supportive policy, and declining costs have established a good situation in adopting solar in the region. Large corporations like Tesla and SunPower control the market whereas small firms like Canadian Solar are also climbing. The solar market in North America is projected to experience a boost in the upcoming years owing to the rising demand of clean energy and reduction in the prices of panels. The best states in solar installation are California, Texas and Florida. The solar industry is still being furthered by state and federal incentives.

• Europe

Germany, Italy, and the UK dominate the solar panel market of Europe owing to the policies implemented to encourage the use of alternative energy sources and help abate carbon emissions. One of the factors promoting the use of solar power in the region is the high energy prices and stringent environmental restrictions being faced by the region. Europe has a high presence of top companies such as Solarworld and SunPower and the emerging players such as REC Group are gaining market share. The solar market in Europe should increase with the rising demand of clean energy and targets of renewable energy as spurred by the European Union. The sun sector in the region should be favored by considering the technological improvement and falling prices of panels. Triumphant in fostering the use of solar energy is Germany with its Energiewende program.

• Asia

As the biggest marketplace, the Asia Pacific region uses solar panels majorly in the countries of China, Japan and Australia. Solar market in China is likely to keep rising because the country has set ambitious targets in renewable energy sources and declining prices of panels. Japan has a solar market due to the desire of the country to cut on carbon emissions and energy efficiency. The solar market in Australia is projected to increase given that this country is experiencing a rising demand of clean energy and an advantageous policy framework. Asia Pacific is highly dominated by top companies such as Trina Solar and Jinko Solar whereas there are upcoming players such as LONGi Solar. Developments in technology and declining prices of the panels will enhance the solar industry in the region.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Key industry players are shaping the solar panels marketplace through strategic innovation and market expansion. These companies are introducing advanced techniques and processes to improve the quality and performance of their offerings. They are also expanding their product lines to include specialized variations, catering to diverse customer preferences. Additionally, they are leveraging digital platforms to increase market reach and enhance distribution efficiency. By investing in research and development, optimizing supply chain operations, and exploring new regional markets, these players are driving growth and setting trends within the solar panels.

List Of Top Solar Panels Companies

• JinkoSolar Holding Co. Ltd. [China]
• Kaneka Corp. [Japan]
• Canadian Solar Inc. [Canada]
• Wuxi Suntech Power Co. Ltd. [China]
• Yingli Green Energy Holding Co. Ltd. [China]

KEY INDUSTRY DEVELOPMENT

November 2022: JinkoSolar has launched a new Tiger Neo N-type TOPCon solar panel which claims a record-breaking high efficiency. The panels are quite capable of more energy conversion, less degradation, and more effective low-light performance. They are produced with the aim of satisfying soaring demand around the world on sustainable and efficient solar energy. Such innovation enhances the leadership of JinkoSolar in the market of solar panels.

REPORT COVERAGE

SWOT analysis is presented in this work at a high level, and helpful recommendations regarding further evolvement of the market are considered. This paper takes an opportunity to review and discuss the market segments and possible applications that have the potential to influence the market growth in the future years. The solar panels with better portability is expected to gain high growth rates due to better consumer adoption trends, increasing application areas, and more innovative product developments. Yet, there might be some problems like, for instance, the shortage of raw materials or higher prices for them. However, the growing popularity of specialized offerings and tendencies towards enhancing quality foster the growth of the market. All of them are progressing through technology and innovative strategies in developments as well as in supply chain and market. Due to changes in the market environment and growing demand for variety, the solar panels has a promising development since it constantly develops and expands its application.