Global Solar Energy Market Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Global Solar Energy Market Outlook

The global solar energy market size reached nearly 205.13 GW in 2023. The market is assessed to grow at a CAGR of 7.7% between 2024 and 2032, reaching around 400.22 GW by 2032.

Key Takeaways

• Three-quarters of all renewable capacity additions globally in 2023 came from solar PV alone.

• Power generation from solar PV increased to a record 270 TWh in 2022, up 26% from 2021.

• The capacity of solar energy in India, a country in south Asia, peaked at about 63.1.7 GW in 2022, up from a capacity of about 13.5 GW in the previous year.

Solar energy is the term used to describe the heat and light emitted by the sun that can be captured and transformed into useful types of energy. It is a form of renewable energy that utilises the sun's immense power as a sustainable and clean source of electricity and heat.

The process of capturing solar energy involves the use of solar panels, also known as photovoltaic (PV) panels. Photovoltaic cells present in the PV panels are made of semiconductor material, which absorbs some photons from sunlight while others are reflected off the cell. These absorbed are then used to generate electric current through the photovoltaic effect. As the demand for photovoltaic installations rises, storage grid adoption is anticipated to soar, fuelling solar energy market demand along with the need for lithium-ion batteries for solar energy storage.

Key Trends and Developments

Growing energy demand, transition towards renewable energy, and government regulations are propelligbthe market growth

September 2023

BP commences the construction of its 187 MWdc Peacock solar project, in Texas. The project is aimed to aid the global transition towards lower carbon energy.

July 2023

A revolutionary innovation was made regarding solar power cells, which propelled the energy efficiency of the cells past 30%. The innovation involves adding another layer of semiconductor, known as perovskite, on top of the silicon layer. This will allow the solar power cells to capture a broader spectrum of light.

March 2023

A framework agreement for Operations and Maintenance (O&M) has been signed by BELECTRIC and NextEnergy Solar Fund for solar farms having a combined capacity of at least 150 Megawatts Peak (MWp).

January 2022

The logistics-to-energy conglomerate led by Gautam Adani established ANIL as a new company to work on green hydrogen projects, produce low-carbon electricity, and make solar panels, wind turbines, and batteries.

Growing Energy Demand

The growing energy demand coupled with the increasing population around the world has been a major factor propelling the global solar energy market growth. Governments and energy companies are increasingly focusing on more sustainable energy generation alternatives, owing to the constant depletion of fossil fuels.

Transition towards renewable energy sources

The global transition towards renewable energy sources is fostering a more decentralised energy landscape. Solar energy, particularly distributed generation, empowers consumers to become prosumers, generating their electricity and potentially feeding excess energy back into the grid.

Government regulations and policies

Governments around the world are also implementing strict regulations to reduce carbon emissions and promote solar energy adoption. These policies include feed-in tariffs, tax credits, grants, and renewable portfolio standards.

Rising focus on environmental issues

One of the major solar energy market trends enhancing the value of the market includes the growing concerns about the exploitation of fossil fuels. The rising focus on environmental issues has increased awareness about solar energy as a clean and sustainable energy alternative.

Rising environmental concerns caused on by the release of harmful greenhouse gases that cause air pollution are predicted to increase demand for solar energy, a clean and sustainable energy source. For instance, converting from fossil fuels to solar power could result in a large reduction in carbon dioxide emissions, which raise global temperatures and promote climate change. IRising temperatures cause more extreme weather conditions, such as increasing sea levels, glacier melt, and altered ecosystems. Using solar energy reduces greenhouse gas emissions and the need for fossil fuels, which in turn reduces the carbon footprint.

The continuous decrease in the cost of solar panels and associated equipment has emerged as a major solar energy market driver. Improvements in manufacturing efficiency, economies of scale, and technological advancements have helped to significantly lower the cost of solar systems. As a result, solar energy is now more widely available and economically viable for a range of uses, such as utility-scale use and residential and commercial applications.

Global Solar Energy Market Segmentation

Global Solar Energy Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Solar Photovoltaic
  • Mono-Si
  • Thin Film
  • Multi-Si
  • Others
• Concentrated Solar Power
  • Parabolic Trough
  • Power Tower
  • Linear Fresnel

Market Breakup by Solar Module

• Monocrystalline

• Polycrystalline

• Thin-Film Solar Modules

• Others

Market Breakup by Application

• Residential

• Commercial and Industrial

• Utility

Market Breakup by Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East and Africa

Utility sector is a leading segment due to the growing development of utility-scale solar facilities

The utility sector is likely to be a significant segment of the market. The primary factors contributing to the segment's growth are the increasing construction of utility-scale solar plants and the greater operational effectiveness of photovoltaic (PV) panels in comparison to other options.

Photovoltaic power plants of considerable scale, comprised of multiple PV arrays, serve as an advantageous asset for utilities. These plants can be built relatively quickly compared to traditional power plants, thanks to streamlined installation processes and simplified electrical connectivity. This efficiency in construction allows utilities to expedite the deployment of solar energy, meeting energy demands more rapidly while leveraging the flexibility and speed inherent in photovoltaic technologies.

According to our solar energy market analysis, it is anticipated that solar energy generation will be increasingly adopted in residential applications owing to the rising demand for energy in homes and the evolving perspective of people about sustainable living. Its scalability allows homeowners to generate electricity for their use and reduce the reliance on conventional grids while addressing the escalating energy demands of modern households.

Solar photovoltaics are growing in popularity due to its low cost and technological advancements

Solar PV systems use semiconductor-based solar panels, usually silicon, to directly convert sunlight into electricity. Direct current (DC) power is produced when sunshine strikes the solar cells, exciting electrons. In houses, companies, and the electrical grid, this direct current (DC) electricity is transformed into alternating current (AC) using an inverter.

The International Renewable Energy Agency reported that between 2022 and 2021, the installed capacity of solar photovoltaics worldwide climbed by more than 22%, while concentrated solar power systems had a 2% growth in installed capacity. This indicates that solar photovoltaics have been more widely used than concentrated solar power systems. Solar photovoltaics (PV) is anticipated to play a major role in helping Australia meet its 2030 objective of producing 82% of its electricity from renewable sources, such as wind and solar PV, increasing the solar energy market share.

Competitive Landscape

The market players are increasing their collaboration and research and development activities to gain a competitive edge in the market.

Adani Green Energy Limited, one of the leading providers of renewable energy, is a subsidiary of the Adani Group. Established in 2015, with its headquarters situated in Ahmedabad, India, the company has grown to become a prominent player in the renewable energy industry. AGEL is dedicated to the creation, management, and upkeep of renewable energy projects both domestically and internationally.

Acciona SA is a conglomerate based in Spain that specializes in renewable energy and sustainable infrastructure. The business is international in scope and works in a number of industries, such as services, infrastructure, energy, and water. It also emphasizes the planning, building, and management of renewable energy initiatives.

Canadian Solar Inc. is a well-known worldwide participant in the solar energy industry with its headquarters located in Canada. Well-known for being one of the top producers of solar photovoltaic (PV) modules, the business is also a major supplier of complete solar energy solutions. Since its founding in 2001, the business has focused heavily on sustainability in all aspects of its operations.

SunPower Corporation is an American company that was established in 1985 and is based in California. It offers solar technology and energy services. The business produces, develops, and sells batteries, micro inverters, and AC panels, among other things.

Other market players include JA Solar Technology Co., Ltd., Sunrun Inc., Kaneka Corporation, Tata Power Solar Systems Ltd., Suntech Power Holdings Co., Ltd., and JinkoSolar Holding Co., Ltd, among others.

North America is the leading region owing to the escalating energy demands and increasing use of clean energy sources

The North America solar energy market is gaining increased support from policymakers, businesses, and consumers, owing to the positive view regarding the deployment and use of clean energy sources.

Moreover, major players in the region are increasingly investing in the research and development of advanced energy storage technologies, smart grid systems, and the integration of renewable sources into existing energy infrastructure, which further enhances the development of clean energy.

The solar energy market in North America is primarily led by the United States, which is experiencing significant growth owing to escalating electricity demands. This expansion is facilitated by several pivotal factors, including the decreasing costs associated with solar power generation, advancements in battery storage technology, and the enhanced proficiency of grid operators.

During the forecast period, the Asia Pacific region is anticipated to have significant growth. A number of countries in the region, such as China, India, and Japan, have set aggressive goals for renewable energy and supportive laws to encourage the use of solar power. Robust policy frameworks and strong government support have enabled the solar energy sector to grow in the region.

For instance, the International Renewable Energy Agency projects that the installed capacity of solar energy would rise by more than 110 GW between 2021 and 2022. The installed capacity expanded from around 485 GW in 2021 to 597 GW in 2022, with China and India holding the lion's share of the installed capacity.

Key Highlights of the Report

Solar Energy Market Report Snapshots

Solar Energy Market Size

Solar Energy Market Growth

Solar Energy Companies