The global solar PV market size was estimated at 239.93 GW in 2016, growing at a CAGR of 20.9% over the forecast period. Rising need for sustainable energy resources, coupled with favorable government regulations to reduce dependency on fossil fuels is expected to be a major driver for the market growth.
Solar PV power generation systems being environmentally-friendly and renewable, has proved to be lucrative across the European Union, Americas and Asia Pacific. The various advantages obtained by employing solar PV includes a contribution to sustainability, reduction of the carbon footprint, and low cost energy generation are expected to propel technology demand over the forecast period.
In 2016, North America accounted for 7.36% of the overall technology demand. According to IEA, the U.S. government has levied multi-year extension on tax credits for renewable energy plants, such as concentrating solar power (CSP). Such initiatives are expected to benefit the market growth over the forecast period.
The U.S. Department of Energy (DoE) has laid down safety guidelines for photovoltaic systems. It has put forth codes, standards, and regulations (CSR), which govern the operation, commissioning, installation, construction, and design of these systems to protect the public welfare, safety, and health.
The energy sector has evolved significantly owing to technological innovations, with companies around the world striving to introduce sustainable, secure, and affordable energy systems. The clean energy options available today are cost-competitive; however, technological innovation needs to be accelerated over the next few years to meet the requirements of the growing population.
In 2016, utility segment witnessed the highest amount of installations, accounting for 47.2% of the overall demand. A continuous supply of energy and comparative lower expenses than conventional energy sources have made solar PV technology attractive for application in utilities. This factor is expected to propel the market growth over the forecast period.
Residential application segment is expected to progress at an estimated CAGR of 21.0% over the forecast period. The increasing popularity of photovoltaic systems owing to its employment in electricity generation, to provide heating for residential buildings, at a low cost, is expected to propel the market growth over the forecast period.
The Mexican government has installed various solar, photovoltaic, and CSP projects across the country. Some of these include photovoltaic project of 46.8 MW capacity in Puerto Libertad, Sonora. The world bank funded USD 50 million for a combined cycle gas turbine plant of 14 MW capacity equipped with troughs to collect energy, located in Agua Prieta, Sonora. As a result, the demand for photovoltaic systems in the country is expected to grow over the forecast period.
According to IEA, the annual PV grid capacity in 2016 in China doubled as compared to the same in 2015. The region in 2016 had a PV grid operational capacity of 34.5 GW. The rising installations of solar thermal PV plants & power stations in the region is expected to positively drive the growth over the forecast period.
The industry is characterized by high competitive rivalry, with buyers and manufacturers entering into strategic partnerships. Companies such as First Solar, SunRun, Green Brilliance, and Suniva, have integrated their operations across the value chain by venturing into raw material supplying, manufacturing, and distribution sectors.
Companies in the industry are extensively involved in R&D of solar PV, which have a less impact on the environment. They are also trying to come up with innovative systems offering long-term energy storage solutions to fulfill year-round need for power generation. Such initiatives by market participants are expected to propel the growth over the forecast period.
This report forecasts installed capacity growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the global solar PV market on the basis of application, and region.
Application Outlook (Installed Capacity, MW; 2012 - 2020)
Regional Outlook (Installed Capacity, MW; 2012 - 2020)
Rest of the World
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