Solar Panel Market Size, Share, Growth, and Industry Analysis, By Type (Copper Indium Gallium Selenide (CIGS) and Amorphous Silicon (a-Si)), By Application (Commercial Application, Residential Application and Mobile Application), and Regional Forecast to 2033

SOLAR PANEL MARKET OVERVIEW

Solar Panel Market was valued at USD 0.612 billion in 2024 and is expected to reach USD 0.665 billion in 2025, growing to USD 1.478 billion by 2033, with a CAGR of 8.9% during the forecast period.

The exponentially evolving solar market, due to the combined effect of increased consciousness about and newer technologies developed in the sphere of renewable energy, is being helped along by a multitude of government incentives, tax credits, etc., giving weight to the promotion of solar energy. The lowered price of solar panels coupled with their effective use has brought them into the belt of competition against fossil fuels and other so-called conventional energy sources. In addition to this, events such as sustainability, the environment, and energy independence contribute to the demand side of the market. Innovations in energy storage and grid integration will only improve large-scale solar power viability.

COVID-19 IMPACT

"COVID 19 Pandemic disruptions spurred solar market growth through investments, energy independence, and innovation"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The operational disruptions resulting from the pandemic on the solar panel market emanated from supply chain interruptions, factory closures, and labor shortages. Delays were experienced in manufacturing and installation projects. However, clean energy investments by governments all over the world found priority among several economic recovery plans and stimulus packages for the adoption of renewables. Such plans significantly contributed to giving markets an upside momentum amid their recovery efforts from the effects of Covid-19 on the solar sector—one that these plans were likely to benefit as well. Demand for solar energy increased as countries embarked on cultivating energy independence and minimizing reliance on fossil fuel use for good. In addition to that, the rising trend toward homeworking augmented the residential installation of solar panels to the extent that growth in the market and demand for home energy solutions received a kick. The crisis highlighted the need for decentralized and resilient energy systems and encouraged more innovation and investment in the solar sector.

LATEST TREND

"Bifacial solar panels drive market growth through efficiency, cost reductions, and demand"

Among the major trends operating in the solar panel market is rapid bifacial solar panel adoption. The bifacial panel, with the ability to produce electricity from both its rear and front sides, grows energy efficiency and overall power output to significant levels. These advanced panels admit sunlight from direct and reflective sources; thus, they perform especially well in environments with a high albedo, such as snowy or sandy territories. A great number of large-scale solar farms have been incorporating bifacial technology with an eye on maximizing energy capture and improving land utilization. Declining production costs, besides technology enhancements on performance and durability improvements, have come to the forefront as reasons for a favorable market for bifacial since the cost is seeing its lowest ever. In addition, increasing demand for solar energy solutions with a higher yield further enhances the push for the technology's acceptance.

SOLAR PANEL MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Copper Indium Gallium Selenide (CIGS) and Amorphous Silicon (a-Si)

• Copper Indium Gallium Selenide (CIGS): CIGS stands for Copper-Indium-Gallium-Selenium. Such panels have high power densities and flexible and adaptable construction they can be used for a variety of applications requiring power. Because CIGS has high absorption efficiency, it operates continuously under low-light conditions for as much energy harvesting as possible on cloudy days. Light and thin-film CIGS panels are commonly used because of their durability and capability to accommodate various innovative applications. Analysis and R&D keep on increasing efficiencies and reducing costs, establishing CIGS as a strong competitor in the solar panel industry.
• Amorphous Silicon (a-Si): Cheap is the word that justifies the use of Amorphous Silicon (a-Si) in recent times for a large variety of new small-scale and large-scale applications. Poor shading performance in cloudy conditions is one major advantage over crystalline panels, allowing a constant flow of solar energy irrespective of diverse weather conditions. Add to this that manufacturing in masses becomes a basic economic attractive feature for them in being used for consumer electronics, wearables, and BIPV apps, thus showing high-scale adaptability. Amorphous silicon energy conversion efficiency as compared to conventional crystalline is, however, way too low to qualify it as a prime energy provider for extensive solar projects. Nonetheless, research work is ongoing to continuously enhance their efficiency through better manufacturing processes.

BY APPLICATION

Based on application, the global market can be categorized into Commercial Application, Residential Application and Mobile Application

• Commercial Applications: Solar panels are primarily consumed in the commercial sector owing to rising electricity prices and sustainability ambitions. Businesses install solar panels for thrusting down operations, thus qualifying themselves for government incentives, making solar energy more commercially viable for the long term. Solar power is being increasingly adopted for distribution centers with respect to some of their CSR and environmental goals. Financial benefits of solar energy in the long run provide demand in this segment, especially as companies seek to lower their carbon footprint. In addition, innovations such as solar carports and integrated solar facades help further widen the commercial solar market.
• Residential Applications: The sector for solar energy is moving fast ahead, owing to the saving concepts adduced for the user and incentives fostered by various governmental agencies furthering cheap installations. Thus, homeowners install solar panels to get themselves off the conventional electricity grid and reduce their billing. In this sense, they also provide for some backup power in case the grid supply fails. Battery storage technology is developing to a level where households can store any excess solar energy generated during the day for their own use when required, thus ensuring energy independence and security. Moreover, reasonable pricing with solar leases and power purchase agreement (PPAs) financing options are promoting the installation of rooftop solar panels in urban and suburban locations. Finally, the integration of smart home systems and app-based monitoring systems helps users optimize their energy consumption effectively.
• Mobile Applications: Solar energy applications include solar gadgets, solar vehicles, and charging stations, granting energy convenience. The growing demand for an off-grid energy solution, particularly during outdoor and distant locations, is now supporting these applications. Solar panels are installed on RVs, boats, and remote telecommunication equipment to supply continuous power in areas with limited access to power grid facilities. Advancements in technology provide mobile solutions for solar applications with higher efficiency, lower weight, and greater versatility. The boosting demand for flexible and foldable solar panels further creates their candidacy for military applications, humanitarian aid, and camping.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTOR

"Government Incentives and Policies"

Countries offer scholarships and tax incentives to encourage consumers to install solar power systems. Other mechanisms include net metering and feed-in tariffs whereby consumers with solar panels installed on their roofs receive a partial discount on their electricity bills. Again, the United States, China, and Germany are the bearers of the torch toward renewable energy targets that have significantly increased their demand for photovoltaic systems. Other policy directives to encourage solar development are therefore strong catalysts for market growth, given the governments' tendency to formulate policies favoring cleaner energy. In addition, there are services for utility-scale solar projects and grants for research in this subject area.

"Reduction in Cost of Solar Panels"

The solar technology advancement, which further matured into mass production, is the primary factor for reducing the prices of solar panels. The cost is now within reach for industries and households to use. The fall in prices of photovoltaic cells has pitched solar energy right into competition with the conventional ways of sourcing energy. Backward integration between the top manufacturers has become very obvious over the last decade, culminating in rivalry for the lowest cost, highest innovation, high efficiency, better durability, and so on. And this competition will certainly increase and culminate in a high acceptability for residential, commercial, and industrial developments for solar energy in the coming times. Besides that, other incentives such as economies of scale and the mechanized production of solar panels promote the lower pricing of solar energy.

RESTRAINING FACTOR

"Solar market growth faces cost hurdles but benefits from financing solutions"

Although prices are falling, high costs for solar panel installation remain the highest hurdle for several buyers and corporations. Many sole use cases find prohibitive barriers to the initial proceeds even without any immediate tax breaks or other possibilities for government support. Roofs, regardless of savings due to reduced electricity bills, until indeed there is recovery corresponding to the payback period. Nonetheless, access to what are perceived as sources of financing, loans, lease options, and PPAs, aimed directly at mitigating the cash-strapped condition at the beginning and inducing others, together with the improvements in solar efficiency and emerging energy storage technologies, can expedite the mission.

OPPORTUNITY

"Developing countries drive solar market growth through infrastructure, investments, and partnerships"

Developing countries with high potential for Solar Panel Market Growth such as India, Afghanistan, and Africa, hold substantial prospects for businesses under the solar panel sector. Both governments and private players are setting up solar infrastructure to address energy demands further, strikingly on corrupted grid access regions. Off-grid solar solutions have nearly filled any electricity void in the countryside and remote places, thereby providing unblemished energy usage. Any solar empowerment partnerships with worldwide bodies coupled with money from internationals aid the expansion in those areas in multiples. Given the technology's numerous advancements in economic affordability, the Eurozone very well will be playing one pivotal role in the industry's near-future growth.

CHALLENGE

"Supply chain issues challenge solar market growth, driving innovation and diversification"

Silicon, rare earth elements, and some significant equipment are holding the solar panel supply line, contributing to supply chain disruptions in the following industries. Restrictions on trade, political unrest, and material shortages inevitably impact both solar production and pricing, leading to an unstable market trend. Manufacturers are in a desperate search for alternative materials and backup locations in production to hedge after the supply line has collapsed. Nevertheless, members of the sustainable sourcing initiatives are also essential to recovery for long-term market stability. Consequently, with the enhancement of material technology and manufacturing efficiency, the technology competitors may lead to a lower focus on dependency on the material.

SOLAR PANEL MARKET REGIONAL INSIGHTS

To Know Key Insights of the Market

Request Free Sample

• NORTH AMERICA

"North America's solar market growth thrives on incentives, policies, and investments"

Strong government support and incentives for technological advances and favorable policies proving beneficial to solar adoption make North America the largest solar market in the world. Such policies emphasize renewable energy and carbon neutrality goals that encourage various sectors to demand more installations of solar solutions. The United StatesSolar Panel Market is quite important with the aforementioned increasing installation of solar farms along with an infusion of investment in residential solar and domestic manufacturing. Investment incentives such as the federal solar tax credit and state-level programs continue to provide investors benefits from the solutions based on solar energy. Mexico and Canada are erecting their systems around solar energy in order to have a more diversified energy mix. The government supports favorable regulations in the region committed to progressive clean energy transition in the region.

• EUROPE

"Europe's solar market growth thrives on regulations, innovation, and green commitments"

In Europe, however, the Solar Panel Market Share segment is very high because the number of environmental regulations becomes rigid, and the renewable energy targets and innovative solar technologies get more and more ambitious. Leading countries in solar energy promotion are Germany, France, and the United Kingdom, followed by governments encouraging market expansion. As well, the European Union initiated the Green Deal that promotes large-scale solar projects concerning infrastructure and technology as an innovation in renewables. Boosting market growth is the new trend of community solar projects, floating solar farms, and solar integration in smart cities. Research and development investments drive advances in solar efficiency and energy storage. With a green commitment to reducing carbon emissions and becoming energy independent, Europe will find its market always growing.

• ASIA

"Asia's solar energy market growth thrives on manufacturing, policies, and investments"

Asia has been at the fore of solar energy markets, with popular participants being China, India, and Japan. It is primarily these three who currently account for a substantial share of global solar energy production and consumption. It is China that plays the biggest role when talking about solar energy. As the world's largest manufacturer of solar panels, around the same time, China also happens to be the world's biggest consumer itself. Its focus, therefore, lies on continuing to push all this volume into global supply chains for consumption. Mass-producing solar technologies makes it possible for humans to keep having access thereto. With ambitious and promising renewable energy targets, government incentives like subsidies and tax incentives, and policies for promoting solar energy, India has quickly embraced solar energy technologies, both rural and urban. Rooftop and floating solar installations went into heavy investment by the country, which is now putting energy security first after Fukushima. Similarly, Vietnam, Thailand, and Indonesia are investing heavily in solar infrastructure to balance increasing energy demand and diversify the energy mix. This rapidly growing solar market rests on a strong-as-steel manufacturing base, favorable policies, and it is witnessing increasing enthusiasm for foreign investments.""

KEY INDUSTRY PLAYERS

"Market growth is driven by innovation, sustainability, and global expansion"

Some of the major key industry players, like First Solar, JinkoSolar, Trina Solar, and Canadian Solar, have tremendous influence on the market, pushing for innovations, efficiency improvements, and expansion of global manufacturing capability. Their investments in R&D made these companies solar cells, which actually are competition with those of other applications. Partnerships, mergers, and acquisitions then help these companies secure a stronghold in the market by extending their customer reach and improving technology. Many of the big players are now actively promoting sustainability, reforming their processes for eco-friendly manufacturing and involvement in the solar recycling initiative to lessen environmental impacts. Emerging markets in Africa and Latin America are furthering accessibility for solar energy across the globe into the areas with the highest energy demand. And this is where the competitive turf would begin to change as market leaders compete to bring out the next-generation solar panels with enhanced energy conversion rates and durability.

LIST OF TOP SOLAR PANEL COMPANIES

• Uni-Solar (U.S)
• MiaSolé (U.S)
• Global Solar (INDIA)
• SoloPower Systems (U.S)
• Flisom· (SWITZERLAND)

KEY INDUSTRY DEVELOPMENT

October 2021: First Solar, in October last year, made an announcement to invest huge dollars into building yet another manufacturing facility for solar energy in Ohio, USA. This investment will create domestic manufacturing capability aimed at fulfilling the demand for the high-efficiency solar panels in the domestic market, this in view of the growing push for ambitious climate goals and energy security. The advanced thin film technology will be a way of improving the efficiencies of solar panels while lowering the costs of materials and maximizing energy output in such a way that the solar energy becomes competitive with conventional sources of energy. This expansion was part of a larger package of America reducing its dependence on foreign solar manufacturing while creating new jobs in clean energy. This has further consolidated First Solar's leadership position in North America but has also had a huge impact on the U.S. solar panel market and clearly establishes the company as a major player in the region moving toward a renewable energy transition. Also, this plant expansion further clears the way for those countries that want to invest and develop localized manufacturing and further contributes towards the country's long-term energy goals.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.