Solar Energy Market Size (2024 - 2029)

The solar energy market is anticipated to experience significant growth in its installed base over the forecast period, driven by supportive government policies and decreasing costs of solar PV systems and panels. Despite potential challenges from the adoption of alternative clean power sources like gas-fired plants and wind projects, the market is poised for expansion, particularly with the integration of solar energy and energy storage systems. The Asia-Pacific region is expected to lead in growth due to increased solar installations in countries such as China and India.

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Market Size of Solar Energy Industry

Solar Energy Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 31.85 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Solar Energy Market Analysis

The Solar Energy Market size in terms of installed base is expected to grow from 2.13 Thousand gigawatt in 2024 to 8.49 Thousand gigawatt by 2029, at a CAGR of 31.85% during the forecast period (2024-2029).

  • Over the medium term, favorable government policies and declining prices and installation costs of solar PV systems, along with the declining price of solar panels and installation costs, are likely to support the global solar energy market's growth during the forecast period.
  • On the other hand, factors such as the rising adoption of alternate clean power sources, such as gas-fired power plants and onshore and offshore wind projects, are likely to hinder the market growth during the study period.
  • Nevertheless, the integration of solar energy with energy storage systems is expected to create several opportunities for the market in the future.
  • During the forecast period, Asia-Pacific is expected to be the largest and fastest-growing region in the solar energy market due to the increasing solar installations in China, India, and other countries.

Solar Energy Industry Segmentation

Solar energy refers to the energy obtained from the Sun's radiation. It is a renewable and abundant source of energy that can be harnessed and converted into usable forms such as electricity and heat. The Sun emits electromagnetic radiation, including visible light, infrared, and ultraviolet (UV). Solar energy technologies capture and convert this radiation into usable energy for various applications.

The solar energy market is segmented by technology and geography. By technology, the market is segmented into solar photovoltaic (PV) and concentrated solar power (CSP). The report also covers the market size and forecasts for the solar energy market across major regions.

For each segment, the market sizing and forecasts are provided based on installed capacity.

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Solar Energy Market Size Summary

The solar energy market is poised for significant expansion over the forecast period, driven by favorable government policies and decreasing costs associated with solar photovoltaic (PV) systems. The market is expected to experience robust growth, with solar PV systems anticipated to lead in capacity additions compared to other renewable sources like hydro and wind. This growth is supported by the increasing global electricity demand due to factors such as population growth, urbanization, and sector electrification. Solar PV systems offer a scalable and decentralized solution, particularly in regions with limited grid infrastructure. The market's expansion is further bolstered by supportive policies and financial incentives worldwide, which aim to reduce upfront costs and enhance investment returns, thereby facilitating greater adoption of solar PV systems.

The Asia-Pacific region is expected to be the largest and fastest-growing market for solar energy, driven by substantial installations in countries like China and India. These countries have implemented ambitious renewable energy targets and supportive policies, creating a conducive environment for market growth. The region's rapid population growth and expanding economies contribute to increasing electricity demand, with solar energy providing a sustainable solution. Additionally, Asia-Pacific countries are emerging as major manufacturing hubs for solar PV components, benefiting from cost advantages that enhance their competitive position in the global market. This dominance is further supported by large-scale solar projects and significant investments in renewable energy expansion, positioning Asia-Pacific as a key player in the solar energy market.

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Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Solar Energy Installed Capacity and Forecast in GW, till 2029

    3. 1.3 Global Renewable Energy Mix, 2023

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 Government Incentives and Policies

        2. 1.6.1.2 Declining Price and Installation Cost of Solar PV Systems

      2. 1.6.2 Restraints

        1. 1.6.2.1 Rising Adoption of Alternate Clean Power Sources

    7. 1.7 Supply Chain Analysis

    8. 1.8 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Suppliers

      2. 1.8.2 Bargaining Power of Consumers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitute Products and Services

      5. 1.8.5 Intensity of Competitive Rivalry

Solar Energy Market Size FAQs

The Solar Energy Market size is expected to reach 2.13 thousand gigawatt in 2024 and grow at a CAGR of 31.85% to reach 8.49 thousand gigawatt by 2029.

In 2024, the Solar Energy Market size is expected to reach 2.13 thousand gigawatt.

Solar Energy Market Report Snapshots

Solar Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)