Globally increasing energy consumption coupled with rising environmental concerns such as greenhouse gas emission is expected to drive the solar power market over the next seven years. Rising awareness among consumers regarding renewable energy benefits is anticipated to remain a key driving factor for market growth over the forecast period.
Increasing government investment coupled with private sponsorship to encourage renewable energy generation is expected to fuel demand. Solar power is generated through various means such as concentrated PV, solar PV, concentrated solar thermal power (CSP), and solar thermal. It is gaining wide acceptance globally owing to reasons such as low operation & maintenance cost and clean energy source.
Rapid urbanization coupled with strong economic growth specifically in emerging economies of Asia Pacific and Latin America is anticipated to fuel demand over the next seven years. CSP is expected to emerge as the leading technology due to huge investments along with several pipeline projects. It is being extensively used in relatively new markets such as China, India, France, Canada, and Brazil.
Favorable government regulations owing to greenhouse gas emissions are expected to remain a key driving factor for market growth over the forecast period. A shift in consumer preference towards environmentally friendly energy sources is anticipated to complement solar power industry growth significantly.
Depleting fossil fuel resources are expected to compel governments and energy agencies to shift towards alternative sources of energy. Solar energy has emerged as one of the efficient and economical means of renewable energy. Volatile fossil fuel prices coupled with the initiative to reduce fossil fuel import dependence are expected to further propel solar power market growth over the next seven years.
The growing industrial sector in countries such as China, India, Brazil, Russia, and UAE is expected to complement market growth. Increasing urbanization in the aforementioned regions is expected to witness strong demand from residential sector over the forecast period.
Stringent government regulation to reduce coal-generated energy in order to control environment pollution is anticipated to fuel demand. Power companies and governments provide subsidies on solar power energy generation in numerous regions such as China, Japan, India, Germany, and Canada.
Low capacity factor coupled with higher electricity cost in comparison to other sources is anticipated to hamper market growth and challenge solar power industry participants over the forecast period. The rapid development of remote areas along with renewable energy substituting nuclear reactors is expected to provide immense opportunities for companies over the next seven years.
Europe is expected to emerge as the leading regional solar power market and is expected to account for more than 30% of the total market by 2022. Germany is one of the major countries utilizing solar energy to optimum levels. A favorable regulatory framework along with increasing capacity is expected to drive demand in the region over the forecast period.
North America is expected to witness the highest growth rate over the forecast period owing to escalating investments coupled with increasing energy consumption. Low-cost availability coupled with depleting coal reserves is expected to fuel demand significantly over the next seven years.
Asia Pacific is expected to exhibit a significant growth rate over the next seven years due to increasing installation in China, India, and Japan. Policies such as feed-in-tariff and Jawaharlal Nehru National Solar Mission in India are expected to create a positive impact in the industry and fuel further installation in the region.
Key industry participants operating in the global solar power market include XL Energy, Centrosolar Inc., ENN Solar, and Mitsubishi Solar Inc. Other prominent companies include OCI Company, Tata Power Solar, Solar Power Industries, REC Silicon, Helios Technology, Tebian Electricity, Neo Solar Power, SunEdison, Hanergy Solar, Shunfeng Photovoltaic, Solsonica, and Emmvee Solar Systems.
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