According to Future Market Insights’ most recent market study, the Solar Panel market will be valued at US$ 165.47 Billion by 2023. The Solar Panel market value is expected to reach US$ 355.24 Billion by 2033, with a steady growth rate of 8.86%.
According to FMI data, the worldwide solar power market grew by 16.1% between 2019 and 2021. In recent years, the population growth in developing nations has had a direct impact on the production of electricity. With more people trying to reduce carbon emissions, electricity from renewable sources is seen as the best alternative to oil and coal. It is also growing at a rate that is sustainable, at 8.84%.
Solar energy uses either thermal energy (heat) or photovoltaic cells in solar panels and photovoltaic glass to generate electricity. Currently, the total amount of solar energy incidents on Earth is enormous and sufficient to meet all energy needs. If adequately tapped, this highly dispersed source has the potential to supply all future energy demands. For every kilowatt-hour produced, solar energy has a 20-times lesser environmental impact.
The environmental norms to reduce the usage of fossil fuels and carbon emissions from their combustion have increased the demand for renewable energy and its source materials. This characteristic is projected to propel market growth throughout the decade.
Historical (2018 to 2022) v/s Forecast (2023 to 2033) Market Outlook for Solar Panel Market
The worldwide solar photovoltaic (PV) market is segmented by region as follows: North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America. The majority of the international market was located in Asia and the Pacific. In 2021, the area will see an increase of more than 81 GW in solar capacity. High solar irradiation and low component production costs are the major factors propelling the market. Market expansion will be driven by increased power consumption and some countries’ ambitious goals to reduce carbon emissions. China and India are two such countries. By 2021, China will have put in place solar energy plants with a combined capacity of more than 51 GW. In 2025, the country will have the most solar power capacity of any in the world. Europe has the second-largest solar capacity in the world, measured by the number of solar PV installations. In 2021, the European Union will have more than 21 GW of solar photovoltaic installations. The construction of large-scale solar farms is flourishing in this area.
These factors are mostly responsible for the growth of the European market. The European Union's (EU) Renewable Energy Directive laid out the organization's plan for increasing the use of renewable energy and generating its own supply. This mandate established targets for including 20.5% renewable energy in the overall energy mix. The growth of the market in this area will be sped up by the presence of such factors. Europe, Asia, and North America are experiencing rapid growth in the solar industry. Solar photovoltaic capacity is growing in North America. By 2021, off-grid solar installations in the area and Central America will have a combined capacity of more than 100 MW.
Market Dynamics
Demand dynamics of Solar panels to flourish technological efficiency of energy generation.
With the help of efficient technology like thin film and polycrystalline panel innovation, the efficiency of solar panels has increased both during the sunshine day and during the rainy season, allowing energy to be generated year-round for the first time. This has increased the demand for solar acceptance in residential areas. You can easily maintain your solar systems functioning effectively with low expense by completing periodic maintenance and keeping checks on them.
Thriving Demand for the industrial segment to expand the market for Solar Panel
Solar panels can be installed on rooftops to collect solar energy or utilised to generate captive electricity for use in the industrial manufacturing supply chain. The cost of electricity seems to increase perpetually. Electrical costs average 14% of a warehouse's entire budget. Rooftop solar panels have lower tariff rates than commercial and industrial ones by 18% and 26%, respectively. If any company requires a great deal of electricity to run things like machinery and indoor and outdoor lighting, they need to look into renewable energy options like solar to keep expenses down.
High Initial setup expenditures along with Income Gaps and delays in government subsidy support are Constraints on the Growth
Building operational costs will be cheaper in the short and long term as a result of having solar panels put on the roof. There are two types of partnerships that may be used to put solar panels on a roof: a capital expenditure arrangement and a power purchase agreement. The consumer invests in the solar system, and the energy it generates may be utilised to power the business on a regular basis. After then, people can sell their extra power to the government. In this calculation, there is a need for an initial investment that is huge to see as an electric charge in a short time span. For a setup of a 4KW power supply, there is a need to invest 4300$ on average in East Asia and South Pacific region.
What Is the Growth Outlook of the Solar Panel Market in the USA?
In 2022, the solar photovoltaic (PV) market in the United States was estimated to be worth 11.25$ billion. Carbon emissions from traditional fuels used in transportation and electricity generation have increased, prompting environmentalists to demand that the country switches to cleaner, more efficient alternatives. The region's economy is predicted to expand because of the rising demand for sustainable energy and favourable government regulations, subsidies, and tax breaks for installing solar PV systems. Residential and commercial sectors have been strengthened in the current time period.
Competitive Landscape
New studies from the United Nations Environment Programme (UNEP) indicate that this is the largest ever. Most of the decrease in worldwide renewable energy funding may be attributed to slower investment in such sources in Japan and China, but other smaller markets also played a role. Investment from developing nations fell by 28% overall, while investment from industrialised nations fell by 15%. As a result, renewable energy becomes increasingly cost-competitive with grid electricity without the need for subsidies. In 2017, renewable energy won major energy auctions throughout the world at pricing unimaginable a decade earlier. Unsubsidized bids in Dubai reached 2.98 cents per kilowatt hour, which was lower than those for fossil fuels. Solarpack, a company in Chile, submitted a record-low bid of 2.8 cents per kilowatt-hour in 2016, which was about half the price of the most competitive bid for coal.
For Instance,
In 2022, the Top five sellers of Solar Panel Worldwide Sunrun, Inc., Pekat Group Bhd., Insolation Energy Ltd., Stilo Energy SA, Erato Energy SA and Enerside Energy SA.
