Authored By: Sarah
31 Jan 2025

Solar Photovoltaic Market Forecast 2024-2028

The solar photovoltaic (Pv) market is poised for robust growth, with an anticipated increase of USD 53.5 billion by 2028, at a compound annual growth rate (CAGR) of 8.79%. With key advancements in solar technology, including breakthroughs in thin-film solar cells and photovoltaic inverters, the global emphasis on decarbonization is driving a surge in solar energy adoption. This momentum, alongside the expansion of grid electrification initiatives, positions the solar PV sector as a pivotal player in the renewable energy landscape.

Global solar photovoltaic (PV) market 2024-2028

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Market Segmentation

The solar PV market is segmented into several key categories, each contributing to its growth. The end-user outlook reveals significant market share growth from the ground-mounted segment, which has become the largest segment, valued at USD 42.00 billion in 2018. Residential and commercial segments are also growing, driven by the decreasing costs of solar systems and innovations like perovskite solar cells.

Key End-User Segments

  • Commercial: Increased adoption due to financial incentives and efficiency improvements.
  • Residential: Booming due to the falling costs of PV systems and technological innovations.
  • Utility: Growth in large-scale solar farms to meet rising electricity demand.

Deployment Outlook

  • Ground-mounted: Dominates the market due to its scalability and cost-effectiveness.
  • Rooftop: Growing in urban areas with smaller-scale installations.

Regional Market

The Asia-Pacific (APAC) region is expected to account for 43% of the market share by 2028, driven by leading countries such as China, India, and Japan. China, in particular, is a dominant force, with continued growth spurred by residential installations, electrification of rural areas, and falling system costs. Similarly, India’s expanding solar adoption is accelerated by government incentives like the Production-Linked Incentive (PLI) scheme. Other regions also show promising growth:

  • North America:
    • U.S.
    • Canada
  • Europe:
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC:
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • South America:
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa:
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Dynamics and Drivers

The key driver for the global solar PV market’s growth is increasing government support. Tax incentives, subsidies, and rebates encourage widespread solar adoption, reducing reliance on fossil fuels. In countries like the U.S., China, and India, the shift towards solar energy is further supported by national goals to reduce greenhouse gas emissions and meet renewable energy targets.

Technological advancements are also playing a crucial role, with innovations in PV materials, such as perovskite, enhancing efficiency and reducing costs. These advancements are coupled with AI-driven processes that optimize solar energy production, helping meet the world’s growing energy demands.

Challenges and Competition

Despite these advances, the solar PV market faces stiff competition from alternative energy sources like wind, hydropower, and natural gas. While solar energy relies on daylight, wind energy provides continuous generation, and hydropower offers a low-maintenance, long-lifecycle solution. The intermittent nature of solar power, combined with high initial investment costs, presents a challenge to widespread adoption, particularly in regions with abundant fossil fuels.

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Key Companies in the Solar Photovoltaic (Pv) Market

Some of the key companies of the Solar Photovoltaic (Pv) Market are as follows:

  • ABB Ltd.
  • All Earth Renewables
  • Canadian Solar Inc.
  • Eaton Corp plc
  • EMMVEE SOLAR
  • First Solar Inc.
  • Hanwha Corp.
  • JA Solar Technology Co. Ltd.
  • JinkoSolar Holding Co. Ltd.
  • LONGi Green Energy Technology Co. Ltd.
  • Mitsubishi Electric Corp.
  • Sharp Corp.
  • SMA Solar Technology AG
  • Sungrow Power Supply Co. Ltd.
  • Tongwei Co. Ltd.
  • Trina Solar Co. Ltd.
  • Waaree Energies Ltd.
  • Wuxi Suntech Power Co. Ltd.
  • Yingli Green Energy Holding Co. Ltd.
  • Zhejiang CHINT Electrics Co. Ltd.

Recent Developments

  • December 2024: First Solar launched a new line of advanced PV modules with improved efficiency, aimed at reducing the overall cost of solar energy production.
  • November 2024: Tesla introduced a new solar roof tile integrated with advanced photovoltaic technology, providing homeowners with an aesthetic and sustainable alternative to traditional solar panels.
  • October 2024: SunPower unveiled a new generation of high-performance solar panels specifically designed for commercial applications to enhance energy output.
  • September 2024: Trina Solar completed a large-scale solar project in Europe, demonstrating their latest PV technology to meet regional renewable energy goals.
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