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, And Segment Forecasts, 2023 - 2030

Report Overview

The global solar PV panels market size was valued at USD 157.75 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. Growing demand for renewables-based clean electricity coupled with government policy tax rebates and incentives to install solar panels is expected to drive the growth of the solar PV panels industry in the coming years.

Companies in the commercial and industrial sectors are among the major consumers of solar photovoltaic panels owing to the large-scale demand for green energy. The installation economies of scale in these sectors compensate for any loss in panel efficiency, making solar PV systems profitable for large-scale generation. The residential sector is gaining momentum in solar PV panel installations due to net metering schemes for grid-connected systems and the availability of energy storage systems for off-grid systems.

The market in the U.S. is expected to witness a prominent growth rate on account of robust federal schemes such as solar investment tax credit, rising demand across public and private sectors for green electricity, and declining panels cost. According to the Solar Energy Industries Association, the U.S. solar industry generated an investment of USD 33 billion in 2021 and achieved an installed capacity of 23.6 GW across the nation.

The government of the U.S. has implemented various new incentive schemes to promote the adoption of solar and other renewable technologies. For instance, in August 2022, the U.S. government launched the Inflation Reduction Act (IRA) which allotted USD 369 billion for the promotion of the renewable energy sector.

Many companies have started to construct new solar PV plants and are increasing the capacity of their existing plants. For instance, in February 2023, Silicon Ranch announced that it will increase its solar power plant’s energy generation capacity. Also, First Solar will supply 1.5 GW of advanced American thin-film solar modules. This is in addition to its prior agreements which include the installation of a total of 4 GW of solar PV panels by 2027.

The value chain of solar PV panels includes raw material suppliers, equipment suppliers, module manufacturers, distributors, and buyers that function in industrial, commercial, and residential markets. The majority of manufacturers in the solar PV panels market are heavily backward integrated. First Solar, Solar World, and Yingli are among the key companies practicing vertical integration.

However, the COVID-19 outbreak disrupted the global solar PV panel supply chain, resulting in increasing panel prices with manufacturers facing labor shortages, material supply shortages, and stagnant international trading impacting the export market. Delayed projects due to supply chain disruption will further impede the solar industry.

Technology Insights

The thin-film segment occupied a dominant market share of 42.54% in 2022, owing to the 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 the low manufacturing costs of silicon semiconductors used in them. The key global suppliers of crystalline silicon solar PV panels are Hanwha Group, JinkoSolar, SHARP CORPORATION, and Canadian Solar Inc.

Application Insights

The industrial segment accounted for a dominant share of 40.57% in the solar PV panels market in 2022 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. For instance, in December 2022, 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 the demand for solar PV panels in the commercial sector with increased power demand in data centers and communication base stations. In addition, 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 the solar PV panels market growth across the industrial sector. According to the Solar Energy Industries Association, as of 2022, there were 6,000 solar projects in the U.S. with a capacity of 182 GW.

Grid Type Insights

On-grid type accounted for a significant revenue share and was valued at USD 155.43 billion in 2022. The dominant position of the on-grid type is majorly attributed to the low operating & maintenance costs and non-complexity of grid-connected PV systems. The on-grid PV systems have lower costs as the excess electricity generated is exported to the grid and no battery storage needs to be installed near the system source. Net metering and feed-in tariff policies have further provided a boost to the segment growth.

Off-grid type is projected to ascend at a CAGR of 16.0% over the forecast period. The expansion of solar PV panel manufacturers and the 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 the 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 market over the forecast period.

Regional Insights

The Asia Pacific region held the largest share of 54.31% in the global solar photovoltaic panel market in 2022, with China being the largest contributor to revenue generation. The presence of large market players and the supportive government policy of providing subsidies and financial incentives for photovoltaic projects are the key factors for the growth of the industry in China.

The market in North America 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 manufacturing hub of panels 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 U.S. and India have applied restrictions on the amount of PV panels imported from China, thereby disrupting solar industry profits in the country.

Key Companies & Market Share Insights

The global solar PV panels industry is competitive with key participants involved in R&D and constant innovation done by the manufacturers has become one of the most important factors for companies to perform in this industry. The high degree of forward integration, security of raw material feedstock, technology sourcing, skilled manpower, and strong R&D are among the prominent factors governing the competitiveness of the solar PV panel industry. Globally, rising renewable energy demand in addition to growing energy security concerns is driving the market growth. Some prominent players in the global 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

Solar PV Panels Market Report Scope

Global Solar PV Panels Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global Solar PV panels market report based on technology, grid type, application, and region:

• Technology Outlook (Revenue, USD Billion, 2018 - 2030)

  • Thin Film

  • Crystalline Silicon

  • Others

• Grid Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • On Grid

  • Off Grid

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • UK

    • Spain

    • Italy

    • France

    • Turkey

    • Croatia

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

  • Central & South America

    • Brazil

    • Colombia

    • Paraguay

  • Middle East and Africa

    • Saudi Arabia

    • UAE

    • South Africa

    • Egypt