May 29, 2024
EV Solar Modules Market

The Global EV Solar Modules Market Is Estimated To Driven By Trend Towards Clean Energy

The EV solar modules market plays a crucial role in enabling the electric vehicle industry’s shift towards more sustainable power sources. EV solar modules, also known as solar panels for electric vehicles, can be integrated into the car body or roof to charge the battery while the vehicle is parked and provide a supplemental renewable energy source. As EV adoption rises globally due to growing environmental awareness and falling battery costs, solar modules allow electric vehicles to harness clean, free sunlight to extend their driving range.

The global EV solar modules market is estimated to be valued at US$ 1,829.8 Mn in 2024 and is expected to exhibit a 19% CAGR over the forecast period 2024 to 2031.

EV solar modules directly convert sunlight into electricity through photovoltaic cells, providing a complementary charging option to plug-in sources. When integrated into EV Solar Modules Market on the roof or other body parts can generate enough energy on average to drive approximately 1000 miles per year depending on the module size and location. This assists in reducing dependency on external chargers and fossil fuel-powered electricity, meeting the rising energy demands of EVs while lowering their carbon footprint. The advantages of extended range and portable renewable energy make solar modules appealing to both individual drivers and fleet operators. The Global EV solar modules market is driven by the need for more sustainable electric vehicle technologies and complementary power solutions to accelerate mass adoption.

Key Takeaways

Key players operating in the EV solar modules market are Volkswagen, Jinko Solar, Trina Solar, Canadian Solar, JA Solar, Hanwha Q CELLS, LONGi Solar, REC Group, LG Electronics, SunPower, Capsolar, Innolia, and Maxeon Solar Technologies.
Growing environmental awareness and policy support for clean mobility are increasing demand for electric vehicles. As EV sales rise globally, the need for supplementary renewable energy integration and charging options is driving interest in solar modules.
Major automakers are expanding global production and sourcing of EV solar modules. Partnerships between solar technology providers and automotive OEMs indicate the market potential as a mass-market sustainable aftermarket product and original equipment.

Market Key Trends

One of the key trends in the EV solar modules market is the focus on high-efficiency cells and lightweight, durable module designs optimized for vehicular integration. Leading manufacturers are developing new models with ultra-thin form factors, flexible materials, and higher power outputs per square meter to maximize energy generation within size and weight constraints of vehicle rooftops and other body parts. This will allow solar to contribute more meaningfully to electric driving ranges.

Porter’s Analysis

Threat of new entrants: Module manufacturing has significant investments in factories and equipment, so the barrier for new entrants is high. However, the threat could increase if other big industries enter this space.
Bargaining power of buyers: Buyers have moderate power as there are many suppliers, but the growing market demand offsets this power to some extent.
Bargaining power of suppliers: Suppliers have moderate-to-high bargaining power due to global scale, substantial resources, and growing supply capacity in China and other Asian countries. However, high market expansion balances their power.
Threat of new substitutes: New energy technologies like fuel cells or wireless charging pose a long-term threat but have not proven commercially viable for most EVs at present.
Competitive rivalry: Rivalry is high among module producers due to overcapacity and price competition, driving suppliers to engage in non-price competition like technological innovation and integrated product offerings.

Geographical Regions

North America and Europe account for the largest share of the global EV solar module market currently due to the high adoption of electric vehicles in countries like the US, Germany, and the UK. However, Asia Pacific, particularly China, is emerging as the fastest growing regional market given the huge investments and expansion plans of Chinese module suppliers as well as Chinese automobile manufacturers pushing for electric vehicles domestically and through exports. Some key factors propelling demand include government incentives and emissions regulations along with decreasing costs of both modules and electric vehicles making them more affordable alternatives.

Currently, the highest concentration of the EV solar module market value-wise is in Asia Pacific due to China’s dominance in EV sales, module production, and investments to boost the scope for solar-powered electric vehicles through collaboration between solar and automotive industries. China alone contributes to over 50% of revenues globally. However, Europe is projected to witness the fastest market growth during the forecast period on account of stringent EU norms around vehicle emissions and plans of leading European OEMs to ramp up their electric vehicle portfolios, opening up opportunities for innovative solar-based auxiliary charging solutions to be adopted more widely across passenger and commercial electric vehicles. India also holds significant potential for market expansion in the coming years.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research.
2. We have leveraged AI tools to mine information and compile it.