The solar energy market was valued at US$ 207,270.00 million in 2022 and is expected to reach US$ 552,450.28 million by 2030; it is anticipated to account for a CAGR of 13.0% from 2022 to 2030.
Analyst Perspective:
According to the Solar Energy Industries Association (SEIA), the solar industry has demonstrated remarkable growth over the past ten years, from 2013 to 2023, with an impressive average annual expansion rate of 24%. This significant solar energy market growth can be attributed to robust federal policies such as the Solar Investment Tax Credit, rapidly decreasing costs, and surging demand across the private and public sectors for clean and sustainable electricity. As a result, this has led to the installation of 149 gigawatts (GW) of solar capacity in the US, which is sufficient to power approximately 26 million homes.
According to the SEIA, as of 2022, the solar sector has employed over 263,000 individuals across over 10,000 companies in every state in the US. In 2022, the solar industry in the US witnessed a private investment of ~US$ 35 billion. Over the past decade, the cost of solar installation has dramatically reduced by over 50%, enabling the industry to venture into untapped solar energy markets and deploy an extensive array of solar systems across the country.
Market Overview:
According to the International Energy Agency (IEA), in 2022, solar photovoltaic (PV) generation achieved an exceptional milestone, surging by 270 TWh (i.e., 26% increase), ultimately reaching 1,300 TWh. This substantial solar energy market growth marked the most extensive absolute generation expansion within all renewable technologies and made history by surpassing wind energy's contribution for the first time. The pace of solar PV generation is the same as the trajectory envisioned from 2023 to 2030 in the Net Zero Emissions by 2050 Scenario. The continuous enhancement of solar PV's economic appeal, significant advancements within the supply chain, and escalating policy backing, notably from countries such as China, the US, and India, as well as European Union members, are poised to amplify capacity expansion in the coming years. However, maintaining a solar PV generation growth rate consistent with the Net Zero Scenario necessitates achieving annual capacity additions nearly threefold than those witnessed in 2022. Despite challenges, such as high investment costs due to increased commodity prices, utility-scale solar PV remains the most economically viable choice for new electricity generation across various countries. The establishment of distributed solar PV, including rooftop installations on buildings, is also expected to expand rapidly due to escalating retail electricity prices and growing policy support to empower consumers to save on energy expenses, which is boosting the solar energy market size.
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Solar Energy Market: Strategic Insights
Market Size Value in US$ 207,270.00 million in 2022 Market Size Value by US$ 552,450.28 million by 2030 Growth rate CAGR of 13.0% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Solar Energy Market: Strategic Insights
| Market Size Value in | US$ 207,270.00 million in 2022 |
| Market Size Value by | US$ 552,450.28 million by 2030 |
| Growth rate | CAGR of 13.0% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Drive
Rising Government Initiatives for Solar Power Boosting the Solar Energy Market
The application of solar energy has rapidly increased in recent years due to its capability to reduce the adverse environmental effects of conventional energy sources such as oil, natural gas, and coal. Hence, governments of various countries across the globe imposed tax incentives and favorable policies to support the remarkable solar energy market growth. For example, the Jawaharlal Nehru National Solar Mission Scheme was launched in January 2010. The rooftop scheme accomplished by SECI (Solar Energy Corporation of India) is one of the initiatives taken by the Government of India to support solar energy development. The Mission has set the goal of installing 20,000 MW of grid-connected solar power by 2022, which was reviewed to 1,00,000 MW by 2022. In 2021, the ITC (Investment Tax Credit) offered a 26% tax credit for solar systems deployed between 2020 and 2022 in the US. The ITC offers 30% for systems installed in tax years, i.e., during 2022–2032. Such government initiatives are increasing the solar energy market size.
Solar customers primarily take advantage of incentives to decrease the total installation expenditures of their system, from renewable electric certificates and electric utility rebates to state government discounts and state tax credits. For instance, in 2023, under the “Solar Homes” program, Nova Scotian residents received a rebate of US$ 0.30/watt for solar panels installed, up to a maximum of CAD 3,000 (US$ 2,210.52). Factors such as unpredictable fossil fuel prices have fueled renewable energy investments and boosted policy support through new initiatives in Europe, Japan, and China; the US Inflation Reduction Act; and a strong positioning of climate and energy security objectives, particularly in import-reliant economies. Thus, the rising number of government initiatives toward boosting solar power is driving the solar energy market.
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Segmental Analysis:
The solar energy market share is segmented on the basis of technology, application, end user, and geography. By technology, the market is divided into photovoltaic systems and concentrated solar power systems. In terms of application, the solar energy market is segmented into electricity generation, heating, charging, lighting, and others. The end user segment of the solar energy market is segmented into residential, commercial & industrial, and utility scale. Based on geography, the market is categorized into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
Concentrated solar power (CSP) systems offer a unique approach to capturing and utilizing solar energy. CSP technologies focus sunlight onto a smaller area to generate high temperatures, which are used for various applications, including electricity generation, industrial processes, and thermal storage. A few CSP technologies, such as power tower systems, can store thermal energy, allowing for continuous power generation even when the sun is not shining, enhancing grid stability. Concentrated solar systems, especially parabolic troughs and power tower configurations, can be scaled up to generate significant amounts of electricity, contributing to utility-scale power generation. While concentrated solar power systems currently have a smaller market share than solar PV, their unique capabilities and benefits make them a valuable component of the broader solar energy market.
According to the International Renewable Energy Association (IRENA), till 2022, ~6,501 MW of CSP systems were installed globally, whereas, in 2022, there were approximately 126 MW worth of CSP systems installed across the globe, showing a growth of around 1.9% compared to the previous year. Moreover, a majority of the countries across different regions did not install any CSP systems in 2022.
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Regional Analysis:
Governments of various countries in Europe have been actively focusing on developing the solar energy market. The European Commission has announced its REPowerEU plan that focuses on the rapid deployment of renewable energy across Europe and putting an end to dependency on Russian fossil fuels. The REPowerEU plan aims to bring the European solar capacity to 320 GW of solar PV capacity by 2025 and further reach ~600 GW by 2030. Such initiatives are expected to fuel the solar energy market across Europe and reduce the overall dependency on fossil fuels and energy imports across European countries.
Key Player Analysis:
JinkoSolar Holding Co Ltd, Canadian Solar Inc., Trina Solar Co. Ltd, First Solar Inc., ADT Solar, ACCIONA Energía, BrightSource, Abengoa SA, Heliogen Inc., and Nextera Energy Resources are among the key solar energy market players operating in the solar energy market.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global solar energy market. A few recent developments by key the solar energy market players are listed below:
Year | News | Region |
2023 | Heliogen Inc. and Lancaster had entered into a contract for the production of green hydrogen. The former company also disclosed a deal with Culver City-based NantGPower to build a test solar calcination unit at the Lancaster site of Heliogen. | Europe |
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology, Application, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The evolution of the energy system following the Paris Agreement, launched in 2015 and entered into force in 2016, has fueled the application of renewable energy sources to reduce carbon emissions. A key contributor of GHG (greenhouse gas) emissions that lead to climate change is power generation using fossil fuels. The utilization of solar energy is increasing due to rising concern towards more sustainable and green energy alternatives, growing climate change concerns, and government initiatives towards boosting the usage of renewable energy across the globe.
The growing technological development and government initiatives are boosting the application of solar energy in various end-use sectors such as aerospace and defense. One of the key applications of solar power in the aerospace and defense industries is solar-powered UAVs. Thus, the rising application of solar power in the aerospace, space, and defense industries is likely to create lucrative opportunities for the solar energy market players to boost the adoption of solar energy-based systems in the coming years.
Growing focus on curbing environmental pollution by reducing greenhouse gas emissions and rising government initiatives toward increasing the stake of renewable energy resources in the overall power mix are major reasons for solar energy market growth in Asia Pacific. China, Australia, India, and Japan are a few key countries contributing to Asia Pacific's solar energy market growth.
Governments and organizations of major countries such as the US, China, and South Africa focus on investing in advanced technologies to enhance the operational efficiency of solar plants. Concentrated solar power (CSP) technologies leverage mirrors to reflect and concentrate daylight onto receivers that accumulate light energy and transform it into thermal energy or heat. Thus, the growing focus on deploying concentrated solar power technology in various equipment is expected to fuel the solar energy market growth in the coming years.
JinkoSolar Holding Co Ltd, Canadian Solar Inc., Trina Solar Co. Ltd, First Solar Inc., and Nextera Energy Resources are the key market players operating in the global solar energy market.
The List of Companies - Solar Energy Market
- JinkoSolar Holding Co Ltd
- Canadian Solar Inc
- Trina Solar Co. Ltd
- First Solar Inc
- ADT Solar
- ACCIONA Energía
- BrightSource
- Abengoa SA
- Heliogen Inc
- Nextera Energy
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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