Solar Power Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Solar Power Market Size - Analysis

Solar Power Market Trends

With concerns over climate change growing, many governments around the world have implemented policies to encourage renewable energy adoption. On the national and local levels, various tax credits and rebates have been introduced to help drive down the upfront costs of residential solar power solutions.

By offering tax credits and rebates, governments are aiming to make solar power more accessible and cost-competitive with traditional power sources. They have encouraged homes and businesses to adopt solar at faster rates than may have occurred otherwise. Governments globally are likely to continue promoting the widespread adoption of solar and other renewables through policy tools like tax credits.

Market Driver - Growing Environmental Concerns and Demand for Renewable Energy

Residential solar systems allow homeowners to source a portion of their electricity from a directly from the sun rather than carbon intensive coal or natural gas plants. For businesses, investing in on-site solar or wind power demonstrates leadership on ESG goals and appeals to customers with strong sustainability values. Corporations want to showcase their climate commitments by achieving RE100 targets of operating with 100% renewable power.

Market Challenge - High Initial Installation Costs

Installation costs related to labor and other peripheral equipment still remain high relative to the price of electricity from traditional utility grids. Widespread availability of tax credits and subsidies have helped increase solar power demand to some extent. However, these incentives are temporary in nature and do not fully address the issue of high initial purchase and installation costs. This continues to restrict broader penetration of solar energy solutions in the solar power market.

Market Opportunity - Advancements in Photovoltaic and Battery Storage Technologies

With batteries acting as a backup during nights and periods without sunlight, solar energy can provide round-the-clock electricity needs. Hardware and installation costs are declining due to economies of scale and technological progress.

Key winning strategies adopted by key players of Solar Power Market

One of the most successful strategies adopted by solar power companies has been vertical integration. Players in the solar power market like Tesla, SunPower and JinkoSolar have integrated manufacturing capabilities across the entire value chain - from polysilicon to solar cells, modules and system installation.

Another strategy that has paid rich dividends is geographical expansion into high-growth markets. For example, in 2015-17 First Solar expanded aggressively into India and Mexico when both countries were ramping up their solar power capacities through ambitious targets.

On the technology front, companies like Panasonic, Hanwha Q Cells, and JA Solar embraced heterojunction (HJT) cell technology around 2015 which offers higher efficiencies over traditional PERC cells. While costly initially, it has helped them command price premiums and gain an edge over competitors as HJT costs reduce over time.

Segmental Analysis of Solar Power Market

Insights, By Application: Rise of Demand for Reliable and Affordable Energy Solutions

Solar power offers a reliable and cost-effective way to meet this demand. Moreover, many governments provide attractive incentives and tax rebates and this has prompted commercial players to invest in rooftop and large-scale solar installations. Solar power allows businesses to reduce electricity costs and gain more control over fluctuating power tariffs. It also improves the companies' brand image and helps attract environmentally conscious customers and investors.

Insights, By Technology: Emerging Markets Driving Adoption of Advanced Technologies

Also, governments offer production-linked incentives to local manufacturers of high-efficiency modules. This has spurred foreign companies to set up mono-Si and thin film manufacturing units in emerging nations to capitalize on their price-sensitive markets.

Insights, by Solar Module: Performance and Aesthetics Fuel Demand for Monocrystalline Panels

While initially expensive than other technologies, Mono-Si prices have reduced significantly over years driven by mass production. Their superior performance translates to attractive paybacks and returns on investment. Additionally, public and private developers prefer high-efficiency mono-Si for large commercial and utility-scale projects to maximize solar power yields. This is further substantiating demand in the solar power market.

Additional Insights of Solar Power Market

• The solar power market has seen a shift towards renewable solutions driven by governmental policies, economic growth in Asia-Pacific, and technological advancements in photovoltaic systems.
• Asia Pacific leads the global solar power market with a 36% share in 2023.
• Industrial applications dominate the global solar power market with 35% of the market share in 2023.

Competitive overview of Solar Power Market

The major players operating in the solar power market include JinkoSolar Holding Co., Ltd., LONGi Green Energy Technology Co., Ltd., Trina Solar Limited, Canadian Solar Inc., JA Solar Holdings Co., Ltd., Hanwha Q CELLS Co., Ltd., First Solar, Inc., SunPower Corporation, Risen Energy Co., Ltd., LG Electronics Inc., Sharp Corporation, Tata Power Solar Systems Ltd., Adani Solar, Abengoa Se, and Acciona S.A.

Recent Developments in Solar Power Market

Solar Power Market Segmentation

• By Application
  • Commercial
  • Industrial
  • Residential
• By Technology
  • Photovoltaic Systems:
    • Moni-Si
    • Thin Film
    • Multi-Si
    • Others
  • Concentrated Solar Power Systems:
    • Parabolic Trough
    • Solar Power Tower
    • Fresnel Reflectors
    • Dish Stirling
• By Solar Module
  • Monocrystalline (Mono-Si)
  • Polycrystalline (Poly-Si)
  • Cadmium Telluride (CdTe)
  • Amorphous Silicon (A-Si) and Others
• By End Use
  • Electricity Generation
  • Lighting
  • Heating
  • Charging