Solar Energy Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

Solar Energy Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Technology (Photovoltaic Systems (Monocrystalline, Polycrystalline, Others), Concentrated Solar Power Systems (Linear Concentrator, Dish/Engine, Power Tower Systems)); Application (Electricity Generation, Heating, Others), and End User (Residential, Commercial & Industrial, Utility Scale) and Geography

  • Report Code : TIPRE00009079
  • Category : Energy and Power
  • No. of Pages : 150
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The solar energy market size is projected to reach US$ 58,3518.25 million by 2031 from US$ 28,0731.90 million in 2023. The market is expected to register a CAGR of 9.6% in 2023–2031. 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 growing 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.

Solar Energy Market Analysis

The rise in energy consumption also boosted the need for alternative energy generation sources, as conventional energy resources such as fossil fuels are leading to environmental pollution. Renewable alternative options such as solar emerged to curb immense carbon emissions and their negative impact on the environment, along with the agenda of balancing the energy supply and demand. The growing energy prices and uncertainty of energy supply in some remote locations have boosted the application of solar photovoltaics, which is anticipated to drive the development of the solar energy market globally.

Solar Energy Market Overview

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. The deployment of CSP systems is increasing globally due to the growing need for energy in different sectors and government concerns about environmental pollution. Further, the rise in the development of the renewable energy sector and favorable government initiatives toward using a sustainable approach to reduce carbon emissions are fueling the investment in CSP plants, which is anticipated to propel the growth of the solar energy market globally.

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Solar Energy Market: Strategic Insights

Solar Energy Market

  • CAGR (2023 - 2031)
  • Market Size 2023
    US$ 28,0731.90 million
  • Market Size 2031
    US$ 58,3518.25 million

Market Dynamics

  • Rising Government Initiatives for Solar Power
  • Growing Focus on Deploying Concentrated Solar Power Technology
  • Application of Solar Power in Aerospace, Space, and Defense Industries

Key Players

  • 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

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

  • Photovoltaic Systems
  • Concentrated Solar Power Systems
  • Electricity Generation
  • Heating
  • Others
End User
  • Residential
  • Commercial & Industrial
  • Utility Scale
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Solar Energy Market Drivers and Opportunities

Rising Government Initiatives for Solar Power is Expected to be the Prime Driver for 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 resources such as coal, natural gas, and oil. Hence, governments of various countries across the globe imposed tax incentives and favorable policies to support the remarkable growth of solar energy. In 2022, the Government of India announced its plan to implement the Rooftop Solar Programme Phase II. As per the scheme, the Ministry of New and Renewable Energy (MNRE) will offer Central Financial Assistance to residential consumers for installing rooftop solar systems. Factors such as volatile fossil fuel prices have fuelled 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.

Application of Solar Power in Aerospace, Space, and Defense Industries

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. Solar-powered UAVs facilitate secure communication in distant areas among defense forces, enhancing broadband connection. Thus, the growing application of solar power in the space, aerospace, and defense industries is expected to establish lucrative opportunities for the solar energy market players to boost the adoption of solar energy-based systems in the coming years.

Solar Energy Market Report Segmentation Analysis

Key segments that contributed to the derivation of the solar energy market analysis are technology, application, and end-user.

  • Based on the technology, the solar energy market has been divided into photovoltaic systems and concentrated solar power systems. The photovoltaic systems segment held a larger market share in 2023.
  • In terms of application, the market has been segmented into electricity generation, heating, and others. The electricity generation segment dominated the market in 2023.
  • In terms of end-user, the market has been segmented into residential, commercial & industrial, utility scale. The utility scale segment dominated the market in 2023.

Solar Energy Market Share Analysis by Geography

The geographic scope of the Solar Energy Market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Growing focus on lowering 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. Growing focus on concentrated solar power plants and increasing demand for energy security are important drivers for the solar energy market in Asia Pacific.

Solar Energy Market Report Scope

Report Attribute Details
Market size in 2023 US$ 28,0731.90 million
Market Size by 2031 US$ 58,3518.25 million
Global CAGR (2023 - 2031) 9.6%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Technology
  • Photovoltaic Systems
  • Concentrated Solar Power Systems
By Application
  • Electricity Generation
  • Heating
  • Others
By End User
  • Residential
  • Commercial & Industrial
  • Utility Scale
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • 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
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Solar Energy Market News and Recent Developments

    The Solar Energy Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Solar Energy Markets market and strategies:

    • On July 2023, Trina Solar and Aquila Clean Energy signed a framework agreement for the supply of 800MW of photovoltaic modules. (Source: Trina Solar, Press Release/Company Website/Newsletter)
    • On August 2022, First Solar announced to invest up to US$1 billion in a new, 3.5 GWDC manufacturing facility in the US Southeast. Existing Northwest Ohio footprint to be expanded by 0.9 GWDC with US$185 million upgrade. (Source: First Solar, Press Release/Company Website/Newsletter)

    Solar Energy Market Report Coverage and Deliverables

    The “Solar Energy Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Market dynamics such as drivers, restraints, and key opportunities
    • Key future trends
    • Detailed PEST analysis
    • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
    • Detailed company profiles with SWOT analysis
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Technology, Application, and End User

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. 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.

    1. 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:

    Research Methodology

    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.

    1. 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.

    1. 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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