Solar PV Panels Market Size, Share & Trends Analysis Report By Technology (Thin Film, Crystalline Silicon), By Grid Type (On Grid, Off Grid), By Application (Residential, Commercial, Industrial), By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global solar PV panels market size was exhibited at USD 170.26 billion in 2023 and is projected to hit around USD 360.83 billion by 2033, growing at a CAGR of 7.8% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific held the largest market share of over 55.0% in 2023
• The thin-film segment occupied a dominant market share of over 43.0% in 2023.
• The on-grid segment accounted for a significant revenue share and was valued at USD 167.48 billion in 2023.
• The industrial segment accounted for a dominant share of over 40.0% in solar PV panels sector in 2023.

Solar PV Panels Market: Overview

The global solar PV panels market has witnessed significant growth in recent years, driven by increasing environmental consciousness, government incentives, technological advancements, and declining costs. This overview delves into the key trends shaping the market landscape, the factors propelling its growth, and the promising prospects that lie ahead.

Solar PV Panels Market Growth

The growth of the solar PV panels market is propelled by several key factors. Firstly, supportive government incentives and policies, such as tax credits and renewable energy targets, encourage the adoption of solar energy systems across residential, commercial, and industrial sectors. Secondly, advancements in technology have led to increased efficiency and decreased costs of solar PV panels, making them a more attractive option for consumers and businesses alike. Additionally, the rising global demand for clean energy solutions, coupled with concerns about climate change and energy security, drives the adoption of solar PV panels as a sustainable alternative to traditional fossil fuels. Moreover, the integration of energy storage solutions with solar PV systems enhances their reliability and flexibility, further contributing to market growth.

Solar PV Panels Market Report Scope

Solar PV Panels Market Dynamics

• Technological Advancements Driving Market Evolution:

The solar PV panels market is characterized by rapid technological advancements, which continually reshape the industry landscape. Innovations such as PERC (Passivated Emitter Rear Cell) technology, bifacial modules, and integrated smart features are enhancing the efficiency, durability, and functionality of solar panels. These advancements not only improve the performance of solar PV systems but also contribute to cost reduction, making solar energy more accessible to a broader consumer base. Moreover, ongoing research and development efforts are focused on enhancing energy conversion efficiency, exploring new materials, and improving manufacturing processes, promising further advancements in the years to come.

• Policy and Regulatory Environment Impacting Market Growth:

The growth of the solar PV panels market is significantly influenced by the policy and regulatory environment at both the national and international levels. Government incentives, such as tax credits, feed-in tariffs, and renewable energy targets, play a crucial role in driving solar PV adoption by reducing upfront costs and providing financial incentives for solar installations. Additionally, regulations related to energy efficiency standards, grid interconnection, and permitting processes can either facilitate or hinder the deployment of solar PV systems. International agreements and initiatives aimed at addressing climate change, such as the Paris Agreement, further drive the adoption of solar energy by encouraging countries to transition towards low-carbon energy sources.

Solar PV Panels Market Restraint

• Intermittency and Grid Integration Challenges:

One significant restraint facing the solar PV panels market is the intermittency of solar power generation and the associated challenges of grid integration. Solar power generation is inherently dependent on weather conditions, such as sunlight availability, which can vary throughout the day and across seasons. This intermittency poses challenges for grid operators in balancing supply and demand, leading to potential grid instability and the need for backup power sources. Additionally, integrating large-scale solar PV systems into existing grid infrastructure requires significant investments in grid modernization, energy storage solutions, and advanced grid management technologies. 

• Supply Chain Constraints and Raw Material Availability:

Another restraint impacting the solar PV panels market is the vulnerability of the supply chain to disruptions and constraints in raw material availability. The production of solar PV panels relies on a complex global supply chain involving various components, including silicon wafers, solar cells, and module assembly. Disruptions in the supply chain, such as trade disputes, geopolitical tensions, or natural disasters, can lead to supply shortages, price fluctuations, and production delays, impacting the growth of the solar PV industry. Furthermore, the availability and sustainability of raw materials, such as silicon, silver, and rare earth elements, pose long-term challenges for the industry, particularly as demand for solar PV panels continues to grow.

Solar PV Panels Market Opportunity 

• Emerging Markets and Untapped Potential:

One significant opportunity within the solar PV panels market lies in emerging markets and regions with untapped potential for solar energy deployment. Countries in Asia-Pacific, Africa, Latin America, and the Middle East exhibit favorable solar irradiance levels and growing energy demand, presenting immense opportunities for solar PV adoption. Rapid urbanization, industrialization, and population growth in these regions drive the need for reliable and sustainable energy solutions. Additionally, supportive government policies, such as feed-in tariffs, tax incentives, and renewable energy targets, encourage investment in solar PV projects and create a conducive environment for market growth.

• Technological Innovation and Product Diversification:

Another significant opportunity within the solar PV panels market lies in technological innovation and product diversification. Ongoing advancements in solar PV technology, such as high-efficiency solar cells, bifacial modules, and integrated smart features, offer opportunities to improve the performance, reliability, and functionality of solar PV systems. Moreover, innovations in energy storage technologies, such as batteries and grid-scale storage solutions, enable better integration of solar power into the grid and enhance system flexibility and resilience. Additionally, the growing trend towards building-integrated photovoltaics (BIPV) and solar-powered consumer electronics opens up new market segments and revenue streams for solar PV panel manufacturers.

Solar PV Panels Market Challenges

• Grid Integration and Stability Concerns:

One of the primary challenges facing the solar PV panels market is grid integration and stability concerns. Solar energy production is inherently variable due to factors such as weather conditions and time of day, leading to fluctuations in power output. Integrating large-scale solar PV systems into the existing electricity grid poses challenges for grid operators in maintaining grid stability and reliability. Without proper management and coordination, the intermittent nature of solar power can lead to issues such as voltage fluctuations, frequency instability, and grid congestion. Additionally, the growing penetration of solar PV systems can pose challenges for grid infrastructure designed primarily for centralized power generation, requiring investments in grid modernization, smart grid technologies, and energy storage solutions to ensure the smooth integration of solar power and maintain grid stability.

• Policy and Regulatory Uncertainty:

Another significant challenge impacting the solar PV panels market is policy and regulatory uncertainty. Government policies and regulations play a crucial role in shaping the market environment for solar energy, influencing factors such as investment incentives, market access, and project development timelines. However, the regulatory landscape can be subject to changes and uncertainties, including shifts in political priorities, legislative delays, and regulatory reforms. Policy instability can create barriers to investment and project development, leading to market uncertainty and hindering the growth of the solar PV industry. Additionally, trade disputes, tariffs, and import restrictions on solar PV components can disrupt supply chains and increase project costs, further complicating market dynamics.

Segments Insights:

• Technology Insights

The thin-film segment occupied a dominant market share of over 43.0% in 2023, owing to increased durability and compact design of thin-film solar PV panels. Moreover, these panels are flexible and lightweight. Thin-film solar PV panels are mainly used in utility-scale and commercial applications owing to their low installation costs. These panels are known as cost-effective substitutes for silicon-based solar PV panels as they can be manufactured in bulk.

The crystalline silicon segment is projected to grow at a substantial CAGR over the forecast period, owing to the lightweight and extended lifecycle of these panels, along with low manufacturing costs of silicon semiconductors used in them. Key global suppliers of crystalline silicon solar PV panels are Hanwha Group, JinkoSolar, SHARP CORPORATION, and Canadian Solar Inc.

Grid Type Insights

The on-grid segment accounted for a significant revenue share and was valued at USD 167.48 billion in 2023. The dominant position of the on-grid type is majorly attributed to low operating & maintenance costs and non-complexity of grid-connected PV systems. On-grid PV systems have lower costs as the excess electricity generated is exported to grid and no battery storage needs to be installed near system source. Net metering and feed-in tariff policies have further provided a boost to segment growth.

The off-grid segment is projected to ascend at a CAGR of 16.0% over the forecast period. The expansion of solar PV panel manufacturers and growing capacities of off-grid solar PV panels are expected to drive the off-grid type segment. Challenges faced by traditional solar PV panel systems in the form of limited land availability and high grid installation costs are negated by the adoption of off-grid solar PV panels. Tax benefits and subsidies offered by governments of different countries for installation of off-grid solar PV panels, along with rent benefits offered to reservoir owners, are expected to further augment the growth of the off-grid type segment in the global solar PV panels industry over the forecast period.

Application Insights

The industrial segment accounted for a dominant share of over 40.0% in solar PV panels sector in 2023 and is projected to grow at a significant CAGR of 7.6% over the forecast period. The growth of solar PV panels in the residential segment is attributed to numerous benefits such as lower carbon footprints, lower electricity bills, and higher home values. With the help of solar systems, consumers are eligible for tax credits introduced by governments. The launch of new solar PV panel products in residential applications is expected to increase product demand over the forecast period. In December 2023, Soloes launched next-generation solar panels, ANTARES BI 144, with high radiation capacity and proof against negative effects from sunlight.

Increasing adoption of solar energy as a power source in corporate offices, hospitals, and hotels is expected to drive demand for solar PV panels in commercial sector with increased power demand in data centers and communication base stations. Improved solar PV panel efficiency, improved energy yields, and module-level monitoring are some of the key factors contributing to the adoption of solar PV panels in this segment. Growing demand for clean energy is anticipated to propel the development of utility projects and fuel solar PV panels sector growth across industrial sector. According to the Solar Energy Industries Association, as of 2023, there were 6,000 solar projects in the U.S. with a capacity of 182 GW.

Regional Insights

Asia Pacific held the largest market share of over 55.0% in 2023, with China being the largest contributor to revenue generation. The presence of large market players and supportive government policy of providing subsidies and financial incentives for photovoltaic projects are key factors for the growth of the industry in China. The North American market is expected to grow at a CAGR of about 7.9% over the forecast period. Proliferating capacity of residential consumers coupled with the announcement of new utility projects is expected to enhance product penetration across the country over the forecast period.

Apart from being the largest hub of panel manufacturing, China has several solar farms including the world’s largest floating farm that can generate 40 MW of electricity. In addition, the country accounts for a prominent position in solar PV panel exports to the world. However, some countries like the U.S. and India have applied restrictions on amount of PV panels imported from China, thereby disrupting solar industry profits in the country.

Some of the prominent players in the Solar PV panels market include:

• JinkoSolar
• JA Solar
• Trina Solar
• LONGi Solar
• Canadian Solar
• Hanwha Q-CELLS
• Risen Energy
• GCL-SI
• First Solar
• SunPower Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global solar PV panels market.

Technology

• Thin Film
• Crystalline Silicon
• Others

Grid Type

• On Grid
• Off Grid

Application

• Residential
• Commercial
• Industrial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)