The global solar PV market size was valued at USD 303.19 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 10.6% from 2024 to 2030. Rising global concerns regarding climate change, increased emphasis on sustainable and clean energy solutions, favorable government policies and subsidies, and PV technology innovations have contributed major to market growth. Governments worldwide are increasingly shifting towards clean and renewable energy sources to minimize their contribution to global warming and carbon emissions caused by non-renewable sources.
Solar energy offers a sustainable and scalable alternative to traditional energy sources, leading to its increased demand worldwide. The Renewables 2023 report by the International Energy Agency (IEA) revealed that solar PV contributed to around 75% of new clean energy additions globally in 2023. As developing economies gradually adopt renewable energy solutions, an accelerated demand growth for solar PV modules is anticipated over the forecast period.
At the 28th United Nations Climate Change Conference (COP 28) event held in Dubai (UAE), more than 130 countries pledged to triple their renewable energy production by 2030 to keep global warming within an acceptable level. To achieve these targets, governments worldwide are implementing different policies and incentives to promote the use of solar energy, including tax credits, feed-in tariffs, and net metering laws. Additionally, technological advancements, such as bifacial panels and tracker systems, are improving the efficiency and performance of solar PV systems. This has led to the production cost of solar power reaching par with fossil fuels and has fueled demand for solar modules among a larger consumer base seeking to shift to alternative energy sources at affordable costs.
The growing need for energy independence and security, particularly in remote, hilly, and off-grid locations, where energy transmission is difficult and losses are high, is driving the demand for solar PV solutions. Moreover, the increasing adoption of electric vehicles (EVs) and energy storage systems globally creates additional opportunities for higher demand for solar PV systems. A substantial decline in raw material prices and increasing production volumes have significantly reduced manufacturing costs for companies, leading to them offering solar energy solutions at competitive prices to end-users. These factors are collectively driving the global solar PV industry growth.
On-grid connectivity dominated the market with a revenue share of 73.5% in 2023. This is owing to its widespread adoption and integration into existing electrical grids. On-grid solar PV systems, which generate electricity and feed it into the grid, have become the preferred choice for utilities, businesses, and governments seeking to transition to renewable energy sources. The ability to transfer excess energy back to the grid, generating revenue through feed-in tariffs and net metering programs, has made this type of connectivity popular among consumers. Additionally, on-grid systems benefit from economies of scale, as larger installations can be developed and connected to the grid, reducing costs and increasing efficiency. The growth is further fueled by government policies and regulations supporting grid-connected solar energy, such as tax credits and renewable portfolio standards.
The off-grid segment is expected to register the fastest CAGR over the forecast period. This is attributed to its increasing adoption in remote and underserved regions. This segment includes standalone solar PV systems that are not connected to the electrical grid, and the energy generated is stored and used over time. Governments and organizations are launching initiatives to promote energy access, and off-grid solar PV systems are becoming a vital solution for powering homes, schools, healthcare facilities, and small businesses. Advances in technology, such as energy storage systems and microgrids, have improved the efficiency and reliability of off-grid solar PV systems, making them a viable alternative to traditional energy sources. Furthermore, declining costs and innovative financing models are making off-grid solar PV systems more affordable and accessible, propelling their demand among a large consumer base.
Ground mounted solar PVs held the largest market share in 2023. This is owing to their widespread adoption in utility-scale solar power generation. These systems, installed on the ground rather than on rooftops, are a preferred choice for large-scale solar power plants due to their ability to accommodate massive solar arrays and tracking systems. The segment's dominance is driven by the economies of scale achieved through large-scale installations, which reduce the cost per unit of electricity generated. Additionally, ground-mounted systems can be optimized for maximum energy production through tracking systems and advanced monitoring technologies. Moreover, government policies and regulations supporting large-scale solar energy development, such as renewable portfolio standards and tax credits, support segment demand. Declining costs of solar panels have made ground-mounted solar PV systems more competitive with fossil fuels, leading to their increased adoption.
Meanwhile, the rooftop segment is anticipated to witness the fastest growth from 2024 to 2030.Rooftop-mounted solar PV systems, installed on residential and commercial buildings, are becoming an attractive option for individuals and businesses aiming to reduce their energy bills and carbon footprint. Decreasing costs of solar panels have made rooftop installations more economical and accessible. Additionally, government initiatives, such as tax credits and net metering laws, are providing a financial incentive for property owners to adopt rooftop solar PV systems. Furthermore, growing awareness regarding climate change and environmental sustainability is driving demand for clean energy solutions, leading to increased adoption of rooftop-mounted systems. Advancements in technology, such as building-integrated photovoltaics (BIPV) and solar shingles, are enhancing the aesthetics and efficiency of rooftop installations, leading to their increased market demand.
The commercial and industrial segment accounted for the largest market share in 2023. This is attributed to the significant adoption of solar energy solutions in such spaces to reduce energy costs and carbon footprint. Businesses, factories, and institutions have been heavily investing in solar PV systems to enable their operations, driven by a need to reduce energy expenses and enhance sustainability. The sector's high energy consumption and availability of large rooftop spaces make it ideal for solar PV installations, allowing for significant reductions in energy bills and greenhouse gas (GHG) emissions. Additionally, this sector is obligated to use renewable energy solutions to meet corporate sustainability goals, comply with environmental regulations, and benefit from government incentives and tax credits. Furthermore, innovative product offerings by manufacturers have created a steady demand for solar PV modules in this segment. For instance, in May 2024, REC Solar launched the Alpha Pro M Series of solar panels based on the heterojunction cell technology (HJT) in the U.S., specifically designed to meet the requirements of the commercial and industrial sectors.
On the other hand, the utility segment is expected to register the fastest CAGR during the forecast period. This isattributed to their ability to leverage large-scale projects and drive economies of scale. Utilities, with their extensive infrastructure and access to capital, can invest in massive solar power plants. These projects benefit from lower costs per kilowatt-hour due to economies of scale, making them financially attractive. Additionally, governments across untapped economies, in partnership with prominent manufacturers, are investing in the construction of new manufacturing facilities to meet their emission reduction targets and focus on clean energy solutions, which has led to the high growth rate of the utility sector in this market.
Asia Pacific dominated the global market with a revenue share of 63.1% in 2023. This is attributedto its rapid adoption of solar energy, driven by government policies, declining technology costs, and increasing energy demand. Regional countries such as China, Japan, and India have set ambitious renewable energy targets, offering attractive incentives and subsidies to encourage solar PV adoption. The region's large population, growing economy, and increasing energy requirements have created a vast market for solar energy solutions. Additionally, favorable solar irradiance and extensive land availability make it an ideal location for utility-scale solar PV projects. For instance, in January 2024, First Solar announced the inauguration of India’s first completely vertically integrated 3.3 GW solar PV module manufacturing facility in Tamil Nadu.
China accounted for the largest share of the regional market in 2023. This is attributed to the presence of a robust manufacturing ecosystem for solar PV modules and equipment in the economy. For instance, the Renewables 2023 report by the IEA revealed that China added over 100 GW of solar PV capacity in 2022, which was substantially higher than the preceding year. Additionally, prominent global manufacturers are investing heavily in local production facilities. For instance, in March 2024, Renesola announced plans to expand its manufacturing capabilities in China by constructing a new solar PV module factory in Yancheng (Jiangsu Province). The plant will have a production capacity of up to 10 gigawatts and will leverage advanced technologies to ensure efficient and environment-friendly production.
North America is expected to register the fastest CAGR from 2024 to 2030. This is owing to its rapidly expanding solar energy landscape driven by favorable government policies, declining technology costs, and increasing demand for clean energy. Additionally, reduced costs of solar panels and balance of system components have made solar energy a more viable alternative to fossil fuels, leading to increased adoption. Partnerships and collaborations, along with new product launches, are also contributing to the high growth rate. For instance, in June 2024, Canadian Solar entered into a partnership with Lifestyle Solar to supply solar energy solutions to the residential sector in California.
The U.S. accounted for a substantial share of the regional market in 2023. Solar energy is becoming a vital component of the country's energy mix. Implementation of state-level renewable portfolio standards, tax credits, and net metering laws have created a supportive regulatory environment. For instance, the Solar Energy Industries Association (SEIA) has estimated a steady upward growth trajectory for solar energy adoption in the U.S. Additionally, significant investments in R&D activities to produce more efficient solar PV modules have led to an increased awareness and subsequent demand for such solutions in the economy. For instance, in July 2024, First Solar announced the commissioning of a solar R&D facility in Lake Township, Ohio, named the ‘Jim Nolan Center for Solar Innovation.’ This facility is considered the largest of its type in the Western Hemisphere, producing thin film and tandem PV module prototypes.
Europe held a notable share of the global market in 2023. This is owing to the region’s strong commitment to reducing GHG emissions and meeting renewable energy targets. The European Union's (EU) ambitious climate and energy framework, which aims to reduce GHG emissions by 80 to 95% by 2050, has created a supportive environment for solar PV adoption. Eastern European countries have emerged as a new market for solar energy solutions. For instance, in July 2024, JA Solar announced its strategic partnership with Solarpro, a prominent European solar EPC contractor, to provide DeepBlue 4.0 Pro TOPCon solar modules for a 240MW solar power project in Bulgaria. Solarpro will oversee the entire project, from design to construction and operation. Europe's high electricity prices, favorable feed-in tariffs, and tax incentives have made solar energy an appealing option for households, businesses, and utilities.
Germany accounted for a significant share of the European market in 2023. This is owing to the country’s efforts towards achieving carbon neutrality for environmental sustainability. For instance, Germany's Energiewende (Energy Transition) program is aimed at achieving climate neutrality by 2045. Moreover, the half-yearly report of 2024 on renewable capacity by Bundesnetzagentur (the Federal Network Agency) revealed that renewable energy generation in the economy is showing an upward trajectory. As manufacturers continue to form strategic alliances to cater to the requirements of local consumers, significant market growth is anticipated in the economy from 2024 to 2030.
Some key companies involved in the solar PV market include Jinko Solar, Hanwha Group, and RENESOLA, among others.
Jinko Solar is a Chinese solar PV module manufacturing company headquartered in Shanghai. The company is among the leading global solar energy solution providers, specializing in designing, developing, and manufacturing high-efficiency solar photovoltaic (PV) products and energy storage systems (ESS). The company's product offering includes a wide range of solar modules, including monocrystalline, polycrystalline, and bifacial modules, with varying power outputs and efficiency rates. Jinko Solar's product portfolio also includes solar cells, solar inverters, and mounting systems, catering to the diverse needs of residential, commercial, and utility-scale solar energy projects. The Tiger Neo series is the company's latest solar PV module offering, offering enhanced efficiency and 30 years of liner power warranty.
Hanwha Group is a South Korean business conglomerate headquartered in Seoul. The company offers products and services in various industries, such as aerospace, mechatronics, clean energy, materials, retail, finance, and lifestyle services. Through its subsidiary Hanwha Energy Corporation, the company has developed major solar energy projects worldwide, such as Oberon 1A (the U.S.), Laguna (Mexico), Kitsuki (Japan), and Cam Lam (Vietnam). In addition, the Qcells division of the company has established itself as a prominent player in the development of solar PV cells, modules, and energy storage solutions (ESS).
The following are the leading companies in the solar PV market. These companies collectively hold the largest market share and dictate industry trends.
In July 2024, Jinko Solar announced that its subsidiary JinkoSolar Middle East DMCC had entered into a joint venture agreement with Renewable Energy Localization Company (RELC) and Vision Industries Company (VI) in Saudi Arabia. The JV has been signed to build & operate a solar module and solar cell manufacturing plant in the economy.This facility is projected to reach an annual output of 10 gigawatts for both solar modules and solar cells once it begins operations.
In April 2024, RENESOLA announced its partnership with BayWa r.e. to develop and build its sales and marketing activities in Mexico.The two companies will work together to increase the presence of RENESOLA’s solutions in the Mexican solar distribution market, capitalizing on their combined strengths in solar energy and aiming to reach the target of distributing 100 MW of solar modules in 2024.
Report Attribute |
Details |
Market size value in 2024 |
USD 331.33 billion |
Revenue Forecast in 2030 |
USD 604.83 billion |
Growth Rate |
CAGR of 10.6% from 2024 to 2030 |
Base year for estimation |
2023 |
Historical data |
2018 - 2022 |
Forecast period |
2024 - 2030 |
Quantitative units |
Revenue in USD million, volume in MW, and CAGR from 2024 to 2030 |
Report Coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments Covered |
Connectivity, mounting, end use, region |
Regional scope |
North America, Europe, Asia Pacific, Latin America, MEA |
Country scope |
U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Russia, China, Japan, Australia, India, Brazil, Argentina, South Africa, Saudi Arabia, UAE |
Key companies profiled |
RENESOLA; KYOCERA Corporation; Hanwha Group; REC Solar, Inc.; Jinko Solar; JA SOLAR Technology Co.,Ltd.; First Solar; Wuxi Suntech Power Co., Ltd.; Canadian Solar; Trinasolar; SHARP CORPORATION; SunPower Corporation; Yingli Solar |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at the global, regional, and 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 solar PV market report based on connectivity, mounting, end use, and region.
Connectivity Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
On Grid
Off Grid
Mounting Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
Ground Mounted
Roof Top
End Use Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
Residential
Commercial & Industrial
Utility
Regional Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
UK
Germany
France
Italy
Spain
Russia
Asia Pacific
Japan
India
China
Australia
Latin America
Brazil
Argentina
Middle East & Africa
South Africa
Saudi Arabia
UAE
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