Growing Investment in Renewable Energy Leads to Market Expansion
Over the last few years, there has been an increase in demand for renewable energy. With governments all over the world working together for initiatives like the Paris Climate Agreement, demand for renewable energy like solar is expected to increase in the coming years. As per the International Energy Agency (IEA), by 2026, global renewable power capacity is expected to increase by more than 60% over 2020 figures, reaching over 4,800 GW, which is equal to the current total global power produced by fossil fuels and nuclear combined. Renewables are anticipated to account for over 95% of global power capacity growth through 2026, with solar PV contributing more than half of it. Renewable capacity rises are expected to be 52% greater from 2022 to 2026, this is due to increased government policy support and more ambitious renewable energy goals mentioned prior to and during the COP26 Climate Change Conference. China, India, United States and major European nations such as Germany and the United Kingdom have all increased their expenditures on renewable energy resources. The federal government of the United States enacted the Inflation Reduction Act in August 2022, a bill that significantly increases support for renewable energy over the following ten years with tax credits and other measures. As renewable energy sources have become more appealing, investments in renewable energy sources have increased significantly in recent years.
Rising Number of Off-Grid Areas Will Drive Market Growth
Off-grid areas have minimal or no access to grid-connected energy. Such locations rely on photovoltaic secondary sources, such as solar energy. Many parts of globe have large areas that are off-grid and don't have access to grid-connected electricity. According to the IEA, 770 million people are now without access to electricity, the majority of whom live in Africa and Asia. Sub-Saharan Africa now accounts for 77% of the world population without access to power, up from 74% prior to the pandemic. This encourages governments in Sub-Saharan Africa to take advantage of solar energy to address electricity requirements in rural and urban regions. As a result, the rising off-grid locations throughout the world are projected to drive this market over the forecast period.
Recent trends in PV Solar Market Industry:
- Development of high-efficiency solar panels and bifacial modules.
- Significant declines in the cost of solar technology and installation.
- Growing adoption of solar technology in smart grids and hybrid systems.
- Strengthened government policies, incentives, and renewable energy.
- Growing market presence in emerging economies as infrastructure.
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Land Use Constraints Will Slow Global Market Growth
The growing need for solar installations is restricted by the limited land resources available. Urbanization, agricultural requirements, and conflicting land uses limit the available land for large solar farms, potentially hindering the expansion of solar technology. Consequently, the industry might have to consider other options, such as incorporating solar panels into current structures or creating advanced technologies to enhance land utilization and support market expansion. The usage of such land for the installation of solar systems may have an impact on ecosystem and biodiversity. Due to ground instability and inaccessibility, it is difficult to install solar photovoltaic plants in wetlands, agricultural land, water bodies and forests. Building big solar power plants requires careful planning regarding land use, transportation access, effects on neighbouring communities, and proximity to power infrastructure.
Strategic Partnerships are Significantly Driving Growth in the Photovoltaic (PV) Solar Market
Technology partners, energy companies and governments are critical to the growth of the PV solar market and strategic social alliances are getting thrust across projects. These collaborations assist in accessing better performing and innovative solar technologies, improving on the logistics, as well as utilizing the existing information to overcome technical and financial challenges. For instance, in March 2022, GCL SI initiated the ‘Casa Blanca’ project in the light of the agreement with Atlas Renewable Energy, Brazil. The business provided the project with 71 MW solar modules which will yield up to 630 million KWh per year. Moreover, achievement of alliances between firms and governments means accessing new funds and legal support which in turn leads to the popularity of solar energy solutions globally.
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Favourable Government Initiatives Create a Lucrative Opportunity for The Market
As of 2022, Asia-Pacific is the world's largest solar PV market and it is anticipated to maintain its dominance throughout the forecast period. In recent years, China's solar photovoltaic sector has risen faster than any other country in this region. In June 2022, China released its 14th Five-Year Plan, that includes an ambitious aim of 33% renewable energy generation by 2025 (up from roughly 29%, which includes an 18% target for wind and solar technology. India announced new 2030 targets of 500 GW of total non-fossil capacity, 50% renewable energy share (more than double the 22% share in 2020), and net zero emissions by 2070, with solar PV being one of the primary technologies used to achieve these goals. Solar photovoltaics have grown rapidly in Japan in recent years, owing to high feed-in tariffs. The solar PV market in this region is anticipated to be driven throughout the forecast period by factors including future solar PV projects, supporting government regulations and decreasing costs of solar photovoltaic panels and associated systems.
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The report provides a detailed overview of the PV solar market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for PV solar market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the PV solar market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the PV solar market. Some key country and region included in the PV solar market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
PV Solar Market Research Report Covers In-depth Analysis on:
- PV solar market detailed segments and segment-wise market breakdown
- PV solar market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in PV solar industry)
- Current, historical and forthcoming 10 years market valuation in terms of PV solar market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- PV solar market demand analysis
- PV solar market pricing analysis over forecast period (by key segment and by region)
- PV solar market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in PV solar market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in PV solar market
- PV solar market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on PV solar market forecast by countries
- Mergers and acquisitions in PV solar market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the projected trends in the PV solar market over the next decade?
The next decade is expected to see increased efficiency in solar panels, energy storage integration, and the expansion of solar installations in residential and commercial sectors, along with competitive pricing.
What factors are driving growth in the PV solar market?
Key growth drivers include government incentives, a shift towards sustainable energy, technological innovations and rising awareness of climate change, which is pushing businesses and consumers toward renewable energy sources.
What are the major challenges facing the PV solar market?
Challenges include regulatory hurdles, competition from other renewable sources and supply chain issues. Additionally, the initial installation cost can deter some potential consumers and businesses.
