GVR Report cover Solar Tracker Market Size, Share & Trends Report

Solar Tracker Market Size, Share & Trends Analysis Report By Technology (Solar PV, Concentrated PV, Concentrated Solar Power), By Product (Single Axis, Dual Axis), By Application, By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Nov, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-267-9
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 170

Report Overview

The global solar tracker market demand was pegged at 25.0 GW in 2018, expanding at a CAGR of 32.0% from 2019 to 2025. Rising concerns over energy conservation and transition from nonrenewable energy to renewable energy are expected to surge demand for solar energy and trackers over the forecast period on a global level. Solar tracker utilizes various electrical components including actuators, motors, and sensors to orient the cells to concentrate the sunlight to maximize the energy captured.

The captured solar radiations are further converted into electricity, which is used in various residential and commercial applications. Rising use of solar power as a potential source of commercial energy generation has gained popularity due to decreasing PV panel cost, which is excepted to further augment the market growth. Since trackers aid to enhance the power generation output of the panels to a significant level.

U.S. solar tracker market

Solar PV technology has been one of the fastest-growing renewable sources of energy over the past few years in the U.S. Increasing government focus on renewable energy has resulted in the development of PV cells as a sustainable and continuous source of energy generation.

Rising capacity expansions across the U.S. have led to a decline in the Levelized cost of electricity (LCOE). This has made solar PV competitive with other conventional forms of energy in the country. Supporting policies by the U.S. government has been one of the significant drivers for the high implementation of solar energy in the country.

Technological innovations aimed at the development of new methods in tracking systems by companies such as NEXTracker, Array Technologies, AllEarth Renewables, and Solaria are expected to drive market growth during the forecast period. The solar tracker market is price competitive, so the tracker manufacturers have to be operationally efficient and extremely strategic to be successful.

Product Insights

The Single-axis tracker accounted for the largest market share and is projected to exhibit the highest CAGR during the forecast. Single-axis systems track the sun’s rays along a single axis allowing them to increase system performance by 20% or more over fixed PV cells in the areas of high isolation. Single-axis solar trackers take up more land as compared to fixed panels as their movement can create shadows that can affect the efficiency of neighboring panels. The use of single-axis trackers maximizes potential output but also come with higher Capex (capital expenditure) and opex (operating expenditure).

Dual-axis trackers allow maximum absorption of the sun’s rays on account of their ability to follow the sun both horizontally and vertically. Dual-axis trackers help in generating 8% to 10% more energy than single-axis trackers. Higher land requirements and more complex technology coupled with high-maintenance for motors and control systems result in high O&M expenditure for dual-axis trackers. This factor acts as a major restraint for the wider adoption of dual-axis trackers.

Technology Insights

Solar Photovoltaic (PV) technology was the largest segment in 2018. The compatibility of PV cells with standard photovoltaic module technologies is the major reason for the largest market share of solar PV technology. The rising cost of electricity owing to the supply-demand gap will further augment the use of solar PV in utility and non-utility applications.

The use of trackers on PV modules require fewer design regulations when compared to mirrors, lenses, and Fresnel collectors on the concentrated solar power (CSP) and concentrated photovoltaic (CPV) technology trackers. These features will drive demand for trackers in solar PV technology over the forecast period.

CPV is the emerging technology in this industry. CPV system produces low-cost power owing to low manufacturing costs and fewer raw material requirements. This technology uses optics such as lenses to concentrate a large amount of sunlight on a small surface of PV materials to generate electricity.

CSP is used to harness the sun’s energy potential and can provide consumers globally with reliable renewable energy even in the absence of the sun’s rays. Over the past few years, CSP has been increasingly competing with the less expensive PV power and CPV, which is also a fast-growing technology.

Application Insights

The utility was the largest application sector while accounting for 85.5% of the global market volume in 2018. Increasing electricity costs coupled with rising demand for renewable sources for energy generation is expected to augment the use of trackers in utility applications. This trend is projected to continue during the forecast period.

The most widely used solar trackers in the utility sector are the single-axis tracking system as utility installations are ground-mounted and the trackers can be used to follow the sun throughout daylight hours. Besides, these trackers are being used on a large-scale in utility applications in light of increasing government subsidies coupled with feed-in tariff schemes, particularly in North American and European regions.

Global solar tracker market

The non-utility sector includes both commercial and residential installations. Non-utility applications comprise a lower market share as compared to the utility on account of the infeasibility of applying trackers due to land constraints. Another major factor affecting the application of trackers in non-utility projects is the high cost associated with them. Implementing solar trackers can be extremely costly in non-utility applications.

Regional Insights

North America accounts for the major market share and this trend is expected to continue till 2025. The growth is primarily attributed to the rising emphasis on renewable energy and the Paris Agreement on Climate Change that has recommended the usage of renewable energy in the nation’s energy supply.

The government in the U.S. is also targeting to increase the usage of solar power in the economy through various initiatives. In the year 2011, the U.S. Department of Energy (DOE) launched the SunShot Initiative to make the solar industry cost-competitive with conventional energy sources by reducing charges to less than 1 USD/watt by 2020. The initiative has sponsored more than 350 projects which include companies, private, universities, and national laboratories.

The Middle East and Africa region are expected to witness significant growth over the next ten years on account of high potential and increase in investments in the projects in the region, particularly in UAE and Saudi Arabia. Among these, Saudi Arabia held the highest share in 2018, owing to large investments being made by both domestic and foreign parties. The country also witnessed significant growth in light of investments being made by U.S. companies, due to the country’s favorable climatic conditions.

Key Companies & Market Share Insights

Key market players in the global industry include AllEarth Renewables, Inc.; NEXTracker, Inc.; Soltec; PV Hardware; Artech Solar; NClave; and Powerway Renewable Energy Co. Ltd. These companies offer a diverse portfolio in the market in terms of products and are highly integrated across the value chain.

Companies are focusing on the development of advanced technology-based products owing to the growing industrial demand for advanced technology for tracking purposes. The manufacturing companies are adopting various organic and inorganic growth strategies for expanding their geographical reach and product portfolio.

The strategy framework of major tracker manufacturers is centered around bagging large purchase orders, as it allows the manufacturer to achieve economies of scale. The research and development of trackers is a major differentiating factor for manufacturers in the market.

Report Scope

Report Attribute

Details

The base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation                                    

Volume in megawatt, revenue in USD million, and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, MEA and Central & South America

Country scope

U.S., Canada, Mexico, Spain, Italy, Germany France, China, India, Japan,  UAE, Suadi Arabia, Brazil, Chile

Report coverage        

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


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 2014 to 2025. For this study, Grand View Research has segmented the global solar tracker market report based on technology, product, application, and region:

  • Technology Outlook (Volume, Megawatt; Revenue, USD Million, 2014 - 2025)

    • Solar Photovoltaic (PV)

    • Concentrated Solar Power (CSP)

    • Concentrated Photovoltaic (CPV)

  • Product Outlook (Volume, Megawatt; Revenue, USD Million, 2014 - 2025)

    • Single Axis

    • Dual Axis

  • Application Outlook (Volume, Megawatt; Revenue, USD Million, 2014 - 2025)

    • Utility

    • Non-utility  

  • Regional Outlook (Volume, Megawatt; Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Spain

      • Italy

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

      • Chile

    • Middle East & Africa

      • UAE

      • Saudi Arabia

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