United Arab Emirates Solar Energy Market Size (2024 - 2029)

The United Arab Emirates solar energy market is anticipated to experience significant growth in its installed base over the forecast period, driven by supportive government policies and a push to meet power demands through renewable energy sources. This growth is part of a broader strategy to reduce reliance on fossil fuels and lower carbon emissions. While the increasing adoption of other clean energy sources may pose challenges, the UAE's commitment to its Energy Strategy 2050, which aims to substantially boost the clean energy share, is expected to create numerous opportunities for the solar energy sector.

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Market Size of United Arab Emirates Solar Energy Industry

United Arab Emirates Solar Energy Market Overview
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 35.48 %
Market Concentration Medium

Major Players

United Arab Emirates Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Solar Energy Market Analysis

The United Arab Emirates Solar Energy Market size in terms of installed base is expected to grow from 7.90 gigawatt in 2024 to 36.06 gigawatt by 2029, at a CAGR of 35.48% during the forecast period (2024-2029).

  • Over the medium term, factors such as encouraging government policies and pressure to meet the power demand using renewable energy to decrease dependency on fossils and decrease carbon footprints are significant contributors to the market's growth.
  • On the other hand, the rising adoption of alternative clean energy sources is expected to restrain market growth.
  • Nevertheless, with the adaption of the visionary UAE Energy Strategy 2050, the country is set to increase its clean energy share to 44% by 2050 by investing in nuclear and solar energy. It, in turn, is expected to create several opportunities for the United Arab Emirates solar energy market in the future.

UAE Solar Energy Industry Segmentation

Solar energy is heat and radiant light from the Sun that can be harnessed with technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating).

The United Arab Emirates solar energy market is segmented by technology and deployment. By technology, the market is segmented into solar photovoltaic (PV) and concentrated solar power (CSP). By deployment, the market is segmented into utility, commercial and industrial, and residential. For each segment market sizing and forecasts are based on installed capacity.

Technology
Photovoltaic
Concentrated Solar Power (CSP)
Deployment
Utility
Commercial and Industrial
Residential
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United Arab Emirates Solar Energy Market Size Summary

The United Arab Emirates (UAE) solar energy market is poised for significant expansion, driven by robust government initiatives and strategic investments aimed at increasing the share of renewable energy in the national energy mix. The UAE's commitment to reducing carbon emissions and decreasing reliance on fossil fuels is evident in its ambitious Energy Strategy 2050, which targets a substantial increase in clean energy usage. This strategy, along with regional initiatives like Dubai's Clean Energy Strategy, underscores the UAE's focus on solar energy, particularly photovoltaic (PV) technology, as a cornerstone of its future energy landscape. The government's collaboration with major corporations and the establishment of public-private partnerships, such as the Al Dhafra solar project, highlight the proactive measures being taken to achieve these goals.

The solar energy market in the UAE is characterized by a semi-fragmented landscape with key players like Masdar, ACWA Power, and others driving innovation and development. The market's growth is further supported by favorable policies, such as solar leasing and net metering, which facilitate the adoption of solar power without significant upfront costs. As the country continues to invest in large-scale solar projects and infrastructure, such as the Mohammad bin Rashid Al Maktoum Solar Park, the photovoltaic segment is expected to dominate the market. The concentration of solar power activities in Abu Dhabi and Dubai, coupled with ambitious targets for renewable energy adoption, positions the UAE as a leader in the region's transition to a sustainable energy future.

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United Arab Emirates Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Capacity and Forecast, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Rising Government Policies to Support Solar PV Installation

        2. 1.5.1.2 Rising Installation of Renewable Energy to Reduce Dependency on Fossil Fuels

      2. 1.5.2 Restraints

        1. 1.5.2.1 Rising Adoption of Alternative Clean Energy Sources such as Wind, Geothermal, Bioenergy, and Others

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Photovoltaic

      2. 2.1.2 Concentrated Solar Power (CSP)

    2. 2.2 Deployment

      1. 2.2.1 Utility

      2. 2.2.2 Commercial and Industrial

      3. 2.2.3 Residential

United Arab Emirates Solar Energy Market Size FAQs

The United Arab Emirates Solar Energy Market size is expected to reach 7.90 gigawatt in 2024 and grow at a CAGR of 35.48% to reach 36.06 gigawatt by 2029.

In 2024, the United Arab Emirates Solar Energy Market size is expected to reach 7.90 gigawatt.

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