Market Overview:

Executive Summary

The solar panels market size was projected to be US$ 168.0 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 183.1 billion. During the forecast period, the global market for solar panels is expected to garner a 9.0% CAGR and reach a size US$ 433.5 billion by 2034.

The solar panels market is witnessing dynamic growth, propelled by diverse module types, grid connectivity options, material compositions, facial types, and applications. The market's module types include mono-crystalline, thin film, and other variations, offering distinct advantages and catering to different consumer needs. Additionally, the choice of grid connectivity, whether on-grid or off-grid, allows for flexibility in adapting solar panel systems to various energy demands and geographic locations.

The market's material types include silicon, organic, and glass, reflecting ongoing advancements in solar panel technology. Silicon-based panels, especially mono-crystalline, continue to dominate the market, while the emergence of organic and glass variants signals a growing focus on sustainable and innovative materials. Facial types such as mono-facial and bifacial panels contribute to the efficiency and versatility of solar energy capture, allowing for increased energy output in diverse environments.

Moreover, the solar panels market extends its impact across residential, commercial, and industrial applications. In the residential sector, increasing awareness of sustainable living and government incentives drive the adoption of solar panels. In the commercial and industrial segments, solar panels are a key player in meeting energy efficiency goals, reducing operational costs, and advancing corporate sustainability initiatives.

In summary, the solar panels market is marked by its dynamic nature, offering a broad array of module types, grid connectivity options, materials, facial types, and applications. This diversity reflects the adaptability and increasing prominence of solar energy solutions across various sectors, underscoring the market's pivotal role in the global transition towards sustainable and clean energy.

Definition

Solar panels, also known as photovoltaic (PV) panels, are devices that convert sunlight into electricity through the photovoltaic effect. These panels consist of multiple solar cells made from semiconductor materials, typically silicon. When exposed to sunlight, these cells generate direct current (DC) electricity because of the interaction between photons of light and electrons in the semiconductor material.

Market Dynamics:

Trend

Increasing Demand from the industrial sector is anticipated to drive the solar panel market.

The solar panel market is experiencing a significant boost due to increasing demand from the industrial sector. As industries worldwide are becoming more conscious of their environmental impact and seeking sustainable energy solutions, solar panels have emerged as a viable option. The industrial sector often requires a substantial amount of energy for various operations, and the rising awareness of environmental sustainability has driven companies to adopt cleaner and renewable energy sources like solar power. This increased demand from industries has led to a surge in solar panel installations, contributing to the overall growth of the solar panel market.

Moreover, government incentives and policies promoting renewable energy adoption have further fueled the demand for solar panels in the industrial sector. Many governments are offering subsidies, tax credits, and other financial incentives to encourage businesses to invest in solar energy. As industries look to reduce their carbon footprint and achieve energy efficiency, the demand for solar panels is expected to continue growing. This trend not only benefits the environment but also supports the expansion of the solar panel market.

Drivers

Solar panel demand dynamics that foster technological advancements in energy generation efficiency.

The growing demand for solar panels is intricately linked to the increasing global focus on sustainable and clean energy sources. As governments, businesses, and individuals embrace the need to reduce carbon footprints and combat climate change, there has been a surge in the adoption of solar panels for electricity generation. This heightened demand serves as a catalyst for technological advancements in solar panel efficiency. Manufacturers and researchers are driven to innovate and enhance the performance of solar cells, resulting in higher energy conversion rates, improved durability, and reduced costs. This positive feedback loop between demand and innovation propels the solar panels market forward, fostering a continuous cycle of research, development, and market expansion.

Additionally, economies of scale play a crucial role in driving down the cost of solar panels, making them more accessible to a broader consumer base. As demand increases, production scales up, leading to reduced manufacturing costs. This cost reduction further stimulates market growth and encourages technological innovation as companies seek to gain a competitive edge. The synergy between increasing demand for sustainable energy solutions and the ongoing technological advancements in solar panel efficiency is, therefore, a key driver for the overall growth and evolution of the solar panels market.

Restraints

Growth is hindered by substantial initial establishment costs, income gaps, and delays in government subsidy support.

Solar panels installed on the roof will reduce the operational expenses of the building over both the immediate and extended periods. A capital expenditure arrangement and a power purchase agreement are the two forms of partnerships that may be utilized to install solar panels on a rooftop. The consumer makes an investment in the solar system, and the energy it produces can be consistently utilized to supply power to the business. Individuals may then sell their excess electricity to the government. This calculation requires a substantial initial investment to observe an electric charge within a brief period. The average cost to install a 4-kilowatt power supply in the East Asia and South Pacific region is $4,300.

Opportunities

The growing emphasis on environmental sustainability and government incentives, presents a significant growth opportunity for the market.

The growing emphasis on environmental sustainability is pushing industries to adopt cleaner and greener energy sources, with solar panels being a prominent choice due to their renewable nature and minimal environmental impact. Businesses are recognizing the long-term benefits of reducing carbon footprints and embracing sustainable practices, thereby creating a demand surge for solar panels in the industrial sector.

Additionally, government incentives play a pivotal role in propelling the growth of the solar panel market. Many governments worldwide are offering financial incentives, tax credits, and subsidies to encourage businesses to invest in renewable energy solutions, particularly solar power. These incentives make solar panel installations more economically viable for industries, fostering increased adoption and contributing significantly to the overall expansion of the solar panel market. The combination of environmental consciousness and supportive government policies creates a synergistic growth opportunity for the market as it aligns with global efforts towards sustainable and eco-friendly practices.

Challenges

The solar panel market faces challenges related to supply chain disruptions, impacting the availability of key components, and causing delays in production.

Supply chain disruptions in the solar panel market can arise due to various factors, affecting the availability of crucial components and causing delays in production. One significant challenge is the global nature of the solar industry's supply chain. Key components, such as silicon wafers, inverters, and other raw materials, are often sourced from different regions worldwide. Events like natural disasters, trade disputes, or geopolitical tensions can disrupt the smooth flow of these components, impacting manufacturing processes.

For instance, if a major supplier in a key region faces disruptions, it can lead to shortages of essential components, creating a domino effect on the entire supply chain. This can result in delays in the production of solar panels, affecting the ability of manufacturers to meet the growing demand. Moreover, the solar industry's rapid growth can sometimes outpace the capacity of suppliers, leading to bottlenecks in the supply chain.

Impact of COVID-19

The COVID-19 pandemic has had a mixed impact on the solar panel market. Initially, the industry experienced disruptions in the supply chain and manufacturing processes due to lockdowns, restrictions, and labor shortages. This led to delays in production, project installations, and logistical challenges. Uncertainties surrounding the economic fallout also temporarily slowed down investment in solar projects.

However, as the pandemic unfolded, there emerged positive influences on the solar panel market. The increased focus on building resilient and sustainable energy systems post-pandemic has accelerated the adoption of renewable energy sources, including solar power. Governments worldwide have recognized the importance of green recovery strategies, leading to enhanced policy support and stimulus packages for renewable energy projects, including solar.

Segmentation Analysis:

Segmentations:

By Module Type

The mono crystalline segment is significantly driving the solar panel market due to its superior efficiency and space utilization. Known for its higher energy conversion rates compared to other module types, Mono Crystalline panels are characterized by a single crystal structure, allowing for a more efficient electron flow. This results in increased electricity generation, making them an attractive choice for both residential and industrial applications. Additionally, their sleek and compact design allows for optimal use of available space, further enhancing their appeal in various installation scenarios. As the demand for high-performance solar solutions grows, the efficiency and space efficiency offered by Mono Crystalline modules position them as a leading driver in the expanding solar panel market.

Thin film solar modules are driving the solar panel market by offering distinct advantages such as flexibility, lightweight design, and lower manufacturing costs compared to traditional crystalline silicon modules. The flexibility of thin film technology allows for versatile applications, including integration into unconventional surfaces like curved or flexible materials, expanding the possibilities for solar energy generation. Moreover, the simpler manufacturing process and reduced material requirements contribute to cost-effectiveness, making thin film modules an attractive choice for both utility-scale projects and distributed installations. As the solar industry seeks innovations to improve efficiency and reduce production costs, the unique characteristics of thin film modules position them as a key driver in advancing the adoption and growth of solar energy solutions.

• Mono Crystalline
• Thin Film
• Other Module Types

By Grid Connectivity

The increasing emphasis on on-grid connectivity is a significant driver for the solar panel market, as it enhances the reliability and efficiency of solar power integration into existing electrical grids. On-grid systems enable seamless power flow between solar installations and the grid, allowing excess energy to be fed back into the network and providing a stable source of electricity. This connectivity aligns with the growing demand for clean energy in urban and industrial settings, promoting the mainstream adoption of solar panels. Governments and utilities are incentivizing on-grid solar installations, further fostering market growth by ensuring a smooth integration of renewable energy sources into the broader power infrastructure.

The increasing demand for off-grid connectivity is a significant driver for the solar panel market as it addresses the energy needs of remote and underserved areas. Off-grid solar solutions offer a sustainable and reliable source of power, enabling communities and businesses to operate independently of traditional grid infrastructure. This demand is propelled by a growing awareness of the economic and environmental advantages of decentralized energy systems, further accelerated by government initiatives and technological advancements. Off-grid solar solutions, often incorporating solar panels, batteries, and efficient energy management systems, are playing a crucial role in expanding access to electricity and fostering sustainable development, contributing substantially to the overall growth of the solar panel market.

• On-Grid
• Off-Grid

By Material Type

The silicon segment is a key driver in the solar panel market due to its widespread adoption and technological advancements. Silicon, particularly in the form of monocrystalline and polycrystalline silicon, dominates the solar panel industry, offering high efficiency and cost-effectiveness. Continuous research and development have led to improvements in silicon-based solar cell technologies, enhancing overall performance and reducing production costs. The scalability and mass production capabilities of silicon-based solar panels make them a preferred choice for both residential and industrial applications, contributing significantly to the growth of the solar panel market. As advancements in silicon technology persist, it is anticipated to further propel the market by providing efficient and affordable solar solutions.

The organic segment is also driving the solar panel market by introducing innovative and sustainable materials for photovoltaic technology. Organic photovoltaic (OPV) cells, composed of carbon-based materials, offer flexibility, lightweight construction, and cost-effectiveness compared to traditional silicon-based solar panels. As industries seek eco-friendly alternatives, the organic material type segment has gained traction, aligning with the global push towards sustainable energy solutions. This development not only contributes to reducing the environmental impact of solar panel production but also widens the market's appeal by providing diverse options suitable for various applications, fostering the overall growth of the solar panel market.

• Silicon
• Organic
• Glass

By Facial Type

The Mono-Facial segment is propelling the growth of the solar panel market owing to its enhanced efficiency and cost-effectiveness. Mono-Facial solar panels capture sunlight only from one side, but advancements in technology have enabled them to achieve higher energy conversion rates compared to their counterparts. The relatively lower manufacturing costs and easier installation make Mono-Facial panels an attractive choice for various solar projects, fostering increased adoption in both residential and industrial applications. As the demand for efficient and economical solar solutions rises, the Mono-Facial segment continues to play a pivotal role in driving the overall expansion of the solar panel market.

The bifacial segment is significantly driving the solar panel market by harnessing sunlight from both sides of the panel, increasing overall energy production. Bifacial panels are designed to capture sunlight from the front and reflected light from surrounding surfaces, such as the ground or nearby structures. This dual-sided efficiency results in enhanced energy yield, making bifacial solar panels particularly attractive for various applications. The versatility and higher output efficiency of bifacial panels have gained traction in the market, especially for utility-scale projects, as they provide a more cost-effective and sustainable solution for harnessing solar energy.

• Mono-Facial
• Bifacial

By Application

The residential segment is a significant driver of the solar panel market as homeowners increasingly seek sustainable and cost-effective energy solutions. Growing awareness of environmental issues, coupled with incentives such as government subsidies and tax credits, has prompted a surge in residential solar panel installations. The desire for energy independence, reduced electricity bills, and a commitment to eco-friendly practices have fueled the demand for residential solar systems, propelling the overall growth of the solar panel market.

The commercial segment is a significant driver of the solar panel market growth as businesses increasingly recognize the economic and environmental benefits of solar energy. With a heightened focus on sustainability, commercial entities are leveraging solar panels to reduce operational costs, enhance energy efficiency, and meet corporate social responsibility goals. Government incentives and favorable policies further incentivize businesses to invest in solar installations, leading to a surge in commercial-scale solar projects. As the commercial sector continues to prioritize clean energy solutions, the demand for solar panels is expected to rise, propelling the overall expansion of the market.

• Residential
• Commercial
• Industrial

Regional Insights:

Geography Chapter

Rising popularity of solar panels in the growing economies in Asia-Pacific region is boosting the demand

Asia-Pacific is the most sizable market and is anticipated to experience significant expansion due to the substantial demand generated by the expanding economies of China and India. The solar panel industry is propelled by the imperative to enhance services and the substantial solar energy sectors. The regions with the most manufacturers of solar panels are Vietnam and China. China has emerged as a global leader in the manufacturing and deployment of solar panels. The nation possesses a sizable solar panel manufacturing industry. Chinese corporations, including Jinkosolar, Trina Solar, and JA Solar, rank among the largest manufacturers of solar panels in the globe. China's considerable market share in the solar panel industry can be attributed, in part, to its robust industrial foundation and commitment to renewable energy.

Rise in urban development projects will increase the sales in Europe.

The market for solar panels in Europe is anticipated to expand significantly over the forecast period. Europe is incorporating solar energy into its sustainable energy strategies. The region has created a conducive environment for the implementation of solar panels through its dedication to reducing greenhouse gas emissions and transitioning to a low-carbon economy. Germany has operated as a frontrunner in the solar panel industry due to the tremendous development its strategy has generated in this sector.

Company Landscape

Prominent companies in the global solar panels market are Sunrun, Pekat Group Bhd., Insolation Energy Ltd., Stilo Energy SA, others. Manufacturers are actively investing in product development and innovation, strategically launching their products in emerging countries to tap into a vast market share.

Partnerships and collaborations are increasingly being adopted by market players to enhance their offerings and promote better interoperability.

Some of the prominent developments by the important companies in this domain are

• In September 2019, A ground breaking ceremony was conducted at Penn State University in the United States of America for a utility-scale solar energy plant with a capacity of 70 MW.
• In October 2019, 670 solar photovoltaic (PV) panels were installed at the Camphill Water Treatment Works, located near Kilbirnie in Scotland, following an investment of £210,000 by Scottish Water Horizons.
• In September 2019, Indian Prime Minister Narendra Modi and other world leaders commenced the Gandhi Solar Park at the United Nations Headquarters in New York. The park was adorned with 193 solar panels, each symbolizing a member of the multilateral organization Gandhi, in observance of Mahatma Gandhi's 150th birthday. The event was called Gandhi@150.

Company Profile

Sunrun Inc. is an American provider of residential-oriented photovoltaic systems and battery energy storage products. The organization was founded in 2007 and maintains its main office in San Francisco, California. Sunrun has predominantly utilized a power purchase agreement (PPA) business model since its inception. Under this model, the company installs and maintains a solar system on a customer's residence, after which it sells power to the customer at a predetermined rate over a term of 20 or 25 years.

This business model enables proprietors to acquire solar panels without incurring any initial expenses; however, it does not provide the advantages (such as tax credits) or certain liabilities associated with system ownership. A substantial number of the company's partners, such as Costco and The Home Depot, grant Sunrun permission to advertise to consumers within their establishments. The company installed solar systems with a capacity of 990 megawatts of electricity in 2023, bringing the total amount of power installed for nearly 800,000 customers to 5.7 gigawatts.

Conclusion:

In conclusion, the solar panel market is experiencing a transformative phase driven by a combination of factors. The global emphasis on environmental sustainability, coupled with the increasing demand for renewable energy sources, has positioned solar panels as a crucial player in the transition towards cleaner and more sustainable power generation. The commercial sector has emerged as a pivotal driving force, with businesses recognizing the economic advantages and environmental stewardship offered by solar energy. Government incentives and policies supporting renewable energy initiatives have further accelerated market growth, making solar panels an attractive investment for various industries.

Despite initial challenges posed by the COVID-19 pandemic, the solar panel market has demonstrated resilience, rebounding with renewed vigour as countries worldwide prioritize green recovery strategies. As technology advances, costs decrease, and the industry continues to innovate, solar panels are becoming increasingly accessible and efficient. Looking ahead, the solar panel market is poised for sustained growth, not only as a response to the urgent need for sustainable energy solutions but also as a testament to the economic viability and long-term benefits offered by harnessing the power of the sun. The trajectory of the solar panel market indicates a promising future, playing a pivotal role in shaping a cleaner, greener, and more sustainable global energy landscape

Scope of the report:

By Module Type

• Mono Crystalline
• Thin Film
• Other Module Types

By Grid Connectivity

• On-Grid
• Off-Grid

By material type

• Silicon
• Organic
• Glass

By Facial Type

• Mono-Facial
• Bifacial

By Application

• Residential
• Commercial
• Industrial

By Key Player

• Sunrun, Inc.
• Pekat Group Bhd.
• Insolation Energy Ltd.
• Stilo Energy SA
• Erato Energy SA
• Enerside Energy SA
• Minutor Energia S A
• Tangshan Haitai New Energy Technology Co., Ltd.
• Siemens Gamesa Renewable Energy SA
• Trina Solar Co., Ltd.
• JA Solar Technology Co., Ltd.
• JinkoSolar Holding Co., Ltd.
• Canadian Solar, Inc.
• Risen Energy Co., Ltd.
• Other Major Players