The global solar energy systems market size is estimated at USD 255.40 billion in 2024 and is predicted to be worth around USD 1,146.25 billion by 2034, at a CAGR of 16.4% from 2024 to 2034.
The solar energy systems market refers to the industry segment that includes the production, distribution, and installation of solar energy systems. Solar technologies use photovoltaic panels or mirrors to concentrate solar radiation and transform it into electricity. This energy can be converted into electricity, stored in batteries, or used for thermal storage. There are resources accessible for solar radiation, photovoltaic and concentrated solar-thermal power technologies, electrical grid system integration, and non-hardware factors.
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The Solar Energy Technologies Office of the United States Department of Energy is at the forefront of creative research and development in these fields. The sun emits solar radiation, also known as electromagnetic radiation, and its intensity varies over the Earth. Solar technologies absorb and convert this radiation into usable energy sources.
Solar Energy Systems Market Highlights
- Asia-Pacific dominated the solar energy systems market with the largest market share of 60% in 2023.
- North America is expected to grow at a significant rate during the forecast period.
- By product, the solar panel segment has contributed the biggest market share of 43% in 2023.
- By product, the batteries segment is expected to grow at the fastest rate during the forecast period.
- By end-use, the utility segment accounted for the highest market share of 67% in 2023.
- By end-use, the industrial segment is expected to grow at a significant rate during the forecast period.
- By source, the new installation segment has recorded more than 97% of the market share in 2023.
Solar Energy Systems Market Segmental Analysis
Analysis by Regions
Asia-Pacific has generated more than 60% of the market share in 2023.
The Asia Pacific solar energy systems market size is predicted to be valued at USD 153.24 billion in 2024 and is anticipated to reach around USD 687.75 billion by 2034. The market is poised to grow at a double-digit CAGR of 16.4% between 2024 and 2034.
The Indian government founded the International Solar Alliance to promote clean energy and reduce reliance on fossil fuels. Countries around the world are interested in joining the alliance. The Asia Pacific solar market is predicted to expand substantially over the next decade because of increased solar system installation, government initiatives, feed-in-tariff laws, and public knowledge of solar energy’s benefits. The region’s solar power equipment market is also predicted to expand due to rising demand, increasing urbanization, industrialization, and economic growth. Overall, the Asia-Pacific solar market is likely to grow.
North America is expected to grow at a significant rate during the forecast.
Regulatory frameworks and policies in place to encourage renewable energy sources such as solar and wind power. The industry is expanding due to rising demand, reducing solar module costs, government initiatives, environmental policies, investor interest, upgraded technology, and capacity objectives established by US states. Solar energy is currently economically competitive with traditional energy sources in California, Hawaii, Texas, and Minnesota.
- For instance, in May 2024, Enphase Energy, a leading producer of microinverter-based solar and battery systems, observed an increase in deployments of IQ8™ Commercial Microinverters among North American installers.
- In July 2024, Beacon Venture Capital and Solar United Network Group, based in Indonesia, collaborated to fund ION Energy Company Limited, a Thai solar energy business, in a $3 million Series A financing.
Analysis by Product
The solar panel segment occupied more than 43% of market share in 2023.
The solar panel has numerous advantages, including being clean and green, not reliant on other energy sources, requiring little maintenance, being safer than conventional power sources, being renewable, lowering electricity bills, and being used for a variety of purposes such as delivering electricity to areas without electricity, providing clean water, and performing household tasks. It is also a renewable energy source; thus, it may be used anywhere in the world.
Solar panels can be used for a variety of purposes, including supplying electricity to areas without it, producing clean water, and powering spacecraft. The growing usage of solar energy is predicted to spur rapid technical advancement, making it a desirable alternative for energy conservation.
The batteries segment is expected to grow at a significant rate during the forecast period.
The solar battery Is an essential component of a solar power system, storing excess electricity produced by solar panels. It is used to power a residential solar panel battery system when the solar panels do not produce enough electricity.
The battery’s objective is to allow customers to consume more of the solar energy they produce. Without battery storage, surplus solar power is transferred to the grid, causing the system to generate power and distribute it to others without benefiting from the panels’ electricity. The overall advantages of adopting solar battery storage include better efficiency, lower prices, and the potential to create more electricity when necessary.
Analysis by End-use
The utility segment has captured the biggest market share of 67% in 2023.
Utility-scale solar projects are large, large-scale installations with a capacity of over 1MW, typically sold to utility companies rather than end users. These projects require significant funding, land space, and cooperation from stakeholders.
Benefits include low upkeep costs, lower energy costs, high stability, job creation, and energy independence. They can cope better with irradiance variances and house battery energy storage systems, ensuring grid stability. Additionally, these projects can provide power to underserved communities and provide energy independence.
The industrial segment is expected to grow at a significant rate during the forecast period.
Commercial solar systems provide several advantages, including cost savings, better sustainability, greater property value, energy independence, long-term savings, and positive PR. Businesses can save money on energy expenditures, and the Indian government provides incentives and subsidies to encourage the use of solar energy.
Solar energy can also help reduce carbon footprints, attract eco-conscious clients, and boost property value. Furthermore, solar systems can give energy independence, minimizing reliance on the national energy grid while providing long-term savings. Furthermore, solar systems can improve public relations as customers become more conscious of environmental issues and seek out companies that lower their carbon impact. Overall, solar energy solutions can help Indian firms become more adaptable and sustainable.
Analysis by Source
The new installation segment has contributed more than 97% of market share in 2023.
Solar energy technology is being adopted, and a number of countries are promoting the development of solar energy systemss to generate power. Many countries are funding utility-scale solar systems in an effort to reduce national carbon emissions, which is expected to increase demand for the products. Consequently, fueling the segment’s growth during the projection period.
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Solar Energy Systems Market Dynamics
Driver: Ease of access to raw energy sources for power generation
Sunlight is a universal energy source that may be used in every location on Earth, including isolated locations. Solar energy can also be used at a hyperlocal level, including by individuals for personal consumption.
Solar panels mounted on roofs are a simple way to turn sunlight into electricity, making it portable. Large solar farms, positioned in places with the most sunlight, may create large amounts of electricity, making them a viable option for other renewables. This makes solar energy more accessible and sustainable, particularly in isolated places, boosting the growth of the solar energy systems market.
Restraint: Need of large space for installation
Solar plants require large areas to house enough panels. Therefore, solar roofing or solar glass represents an opportunity for local green energy production. As technology advances, rooftop solar possibilities will expand. Solar is a plentiful, inexpensive, and environmentally friendly source of renewable energy.
As solar technology progresses, it resolves many of the difficulties raised in the essay. Improving energy efficiency can eliminate the need for fossil fuels. The FUERGY Solution, which optimizes green energy use, production, and storage, has the potential to pave the way for a more sustainable energy future.
Opportunity: Next-generation technology
Evolving novel technologies are opening new ways for the solar energy systems market. Next-generation solar panels are being developed to outperform prior types, providing greater flexibility and agility. These panels can revolutionize the integration of solar technology into daily living and drastically transform the solar market.
Regular solar panels are improving, with efficiency of more than 25%. New panel materials, such as perovskites, improve efficiency while lowering production costs. Double-sided panels, intended for optimum solar generation in reflecting locations, are also being investigated.
Solar Energy Systems Market Top Companies
- Abengoa Solar S.A.
- Canadian Solar Inc.
- Sunpower Corporation
- Kaneka Corp.
- Bright Source Energy Inc.
- Gintech Energy Corp.
- Esolar Inc.
- Acciona Energia S.A.
- Wuxi Suntech Power Co. Ltd.
- Tata Power Solar
Recent Developments of the Solar Energy Systems Market
- In July 2024, Gensol Engineering Ltd., a well-known corporation in solar power engineering, procurement, and construction, was awarded a Rs 463 crore solar project at Khavda RE Power Park in Kutch, Gujarat. The cutting-edge project will include a fixed-tilt module mounting structure and the remaining system components.
- In May 2024, Bhilai Steel Plant (BSP) plans to install solar power systems on rooftops of buildings in its Bhilai premises and township. BSP has signed a memorandum of understanding with the Chhattisgarh State Renewable Energy Development Agency for the project.
- In February 2024, SECI commissioned India’s largest Battery Energy Storage System (BESS), which is in Rajnandgaon, Chhattisgarh. The 40 MW/120 MWh BESS, which includes a solar photovoltaic plant, has an installed capacity of 152.325 MWh and a dispatchable capacity of 100 MW AC. Chhattisgarh will purchase energy.
