by The solar PV panel market has witnessed considerable growth over the past few years owing to the growing demand for renewable energy sources. Solar PV panels directly convert sunlight into electricity via photovoltaic effect without any mechanical moving parts. With improved efficiencies of solar PV cells and modules, homeowners and commercial spaces have widely adopted solar PV panels to meet their electricity needs.
The global solar PV panels market is estimated to be valued at US$ 305.81 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the solar PV panels market are JinkoSolar, Trina Solar, Canadian Solar, LONGi Solar and Risen Energy.
There exist significant opportunities in industrial and commercial sectors for deploying large solar PV power projects. Declining costs of solar PV modules and supportive government policies promoting solar rooftop installations also present key growth opportunities.
Technological advancements such as increased efficiencies of solar PV modules, development of bifacial solar PV panels and floating solar PV projects are further propelling the adoption of solar PV technology.
Market drivers
Favorable government policies and subsidies promoting renewable energy adoption across regions are a key driver for the Solar PV Panels Market Demand. Local content requirements by governments in manufacturing solar PV modules also encourage domestic manufacturing of solar PV components. Growing emphasis on achieving decarbonization targets and reducing reliance on fossil fuels through large-scale solar PV projects infrastructure development programs augment the demand for solar PV panels. Initiatives towards universal electrification through decentralized renewable energy further accelerates the deployment of solar home lighting systems and off-grid applications using solar PV technology.
Current challenges in the solar PV panels market
The high upfront cost of installation remains one of the key challenges impeding mass adoption of solar PV panels. However, costs have reduced significantly over the past decade due to technological advances and economies of scale. Intermittency issues associated with reliance on sunlight also acts as a barrier. Energy storage solutions need to become more viable for solar power to be utilized around the clock. Dependence on fossil fuel-based conventional power during times of low solar generation impacts the economic feasibility as well. Additionally, limited local manufacturing capabilities and import dependence for raw materials and components increases overall project costs for many countries.
SWOT Analysis
Strength: Renewable and clean source of energy with negligible operating costs.Solar power also has a long operational lifespan of over 25 years.
Weakness: Intermittency due to reliance on sunlight poses grid stability issues. High upfront capital costs remain a barrier for widespread deployment.
Opportunity: Growing policy support in the form of incentives and mandates. Increasing focus on decentralized renewable energy expands addressable markets. Adoption in off-grid and backup power applications in developing nations.
Threats: Fluctuations in polysilicon prices impact module costs. Growing trade barriers and geopolitical risks associated with dominant manufacturing nations. Impending sunset of incentive programs in key existing markets.
In terms of value, the Asia Pacific region currently accounts for over 50% of the global solar PV panels market led by massive demand from China, Japan and India. China alone contributes to over 30% of worldwide panel installations owing to its status as the largest global manufacturer as well as a major market.
The Middle East and Africa region is anticipated to be the fastest growing geographical segment for solar PV panels over the coming years on account of abundant solar resources and growing energy demand. Government initiatives to promote renewable energy are encouraging significant new solar capacity additions across the Middle East, North Africa and Sub-Saharan Africa. These initiatives aim to tap the enormous solar power potential of the region to meet both electrification goals as well as domestic energy demand.
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn
