The solar tracker installation market is estimated to be valued at USD 9.03 Bn in 2024 and is expected to reach USD 23.01 Bn by 2031, growing at a compound annual growth rate (CAGR) of 14.3% from 2024 to 2031. The solar tracker installation market is experiencing positive growth trends with growing focus on renewable energy and decreasing cost of solar power generation.

Market Driver - Increased Investments in Renewable Energy and Technological Advancements

With climate change concerns rising and fossil fuel reserves diminishing, global emphasis on renewable energy sources is increasing rapidly. Governments and large corporations across the world are making huge investments to generate power through solar energy.

Advanced dual-axis tracking systems now available in the solar tracker installation market are capable of following the sun with great precision throughout the day. Dual-axis trackers are also compatible with a variety of terrains including sloping land which is increasing their application in large utility-scale projects.

Manufacturers are also making solar trackers with more durable materials, precise sensors and controls, and self-learning software. Some new solar trackers coming up have advanced features like weather sensors, predictive algorithms, and autonomous functions like stow command that help improve reliability and optimization.

Considerable research is ongoing to develop inexpensive trackers using innovative designs, lightweight structures, and alternative driving mechanisms. Such technological advances are expected to push growth of the solar tracker installation market.

Market Driver - Supportive Government Policies Worldwide

Governments around the world are coming up with supportive policies and initiatives to encourage renewable energy generation from solar. They are recognizing that transition to cleaner energy is necessary to reduce carbon emissions as well as strengthen energy security.

Generous financial incentives are being offered to both commercial and residential consumers opting for rooftop solar installations. Many countries provide accelerated depreciation on capital costs to make solar projects more attractive for investors.

Favorable regulatory environment helps create a strong demand in the solar tracker installation market for all associated solar technology. Some regions have enacted laws mandating new commercial buildings to install a minimum solar capacity along with making provisions for trackers.

Direct financial support is extending to critical parts of the solar value chain which gives local tracker manufacturing industries access to low-cost capital. Together, these policy interventions at global level are encouraging wider adoption of solar tracking systems, boosting growth of the solar tracker installation market.

Market Challenge - High Costs Associated with Installation and Maintenance

One of the key challenges facing the solar tracker installation market is the high costs associated with installing and maintaining solar trackers. Solar trackers can boost energy production by up to 25% compared to fixed-tilt systems. However, the additional hardware and electronics required for active solar tracking also make these systems more expensive to purchase and deploy.

Solar trackers need robust motors, gears, controllers and software to precisely position panels throughout the day. Their moving parts also require more frequent maintenance checks and potential repairs to replace worn components. The upfront capital expenditures for solar trackers are typically 10-20% higher than traditional fixed-tilt arrays.

Furthermore, the maintenance costs over the lifetime of the system tend to be greater as well. The additional production gains must outweigh these raised expenses for solar trackers. Overcoming the financial hurdles associated with installation and upkeep is a key challenge the industry must address to further expand the solar tracker installation market.

Market Opportunity - Rising Awareness and Initiatives on Reducing Carbon Emissions

One of the major opportunities for the solar tracker installation market is the rising awareness and initiatives around reducing carbon emissions globally. Governments and corporations alike are committing to ambitious renewable energy and decarbonization targets to mitigate the worst impacts of climate change.

As the world moves to limit fossil fuel use and curb greenhouse gas pollution, solar power is poised to play a much larger role in energy systems. Solar trackers boost energy generation potential compared to fixed solar panels. They will be needed to help meet sharply rising electricity demand from electrification efforts while avoiding dirtier fuel sources.

In the coming years, opportunities for players in solar tracker installation market to support a greener transition of global power infrastructure.

Apollo has been one of the leading players in the global solar tracker installation market for over a decade. One of the key strategies that has contributed to their success is heavy investment in R&D to develop innovative tracker technologies. In 2010, Apollo launched their Dual Row tracker system which allowed for bifacial module installation and maximum energy generation from both sides of the solar panel.

Another example is NEXTracker, who has grown rapidly since being acquired by Flex in 2017. One strategy they adopted was strategic partnerships with top EPCs and developers. In 2018, they partnered with Canadian Solar to offer fully integrated fixed tilt and single axis tracker solutions.

More recently, Arctech Solar successfully expanded into new markets like Europe and Australia through targeted acquisitions between 2015-2018. They acquired Italian company Soltec and Australian company TrackerMax, which gave them a ready installed customer base and local team in these regions.

Insights, By Type: Technological Superiority Enables Single Axis Dominance

In terms of type, single axis solar tracker contribute 88.3% share of the solar tracker installation market in 2024, owning to its technological superiority over other axis types. Single axis configuration is well-suited for applications where solar panels only need to follow the east-west path of the sun. This covers a majority of use cases, from residential rooftop installations to large utility-scale solar farms.

From a technical perspective, single axis trackers are easier to engineer and program compared to more advanced dual axis systems. Their control systems rely on basic algorithms to pivot panels from east to west. This inherent simplicity makes single axis the preferred choice for players in the solar tracker installation market.

The established supply chains and manufacturing expertise around single axis has also driven down costs. Mass production at scale has optimized production processes and reduced per unit expenses. All these factors cement its position as the dominant type in the solar tracker installation market.

Insights, By Application: Residential Demand Powers Ahead in Application Segment

In terms of application, residential segment contributes 42.8% share of the solar tracker installation market in 2024.. Growth in the residential solar sector is being driven by rising environmental awareness among homeowners. Many seek to reduce their carbon footprint and electricity bills by adopting renewable energy solutions.

Government policies supporting distributed solar generation also stimulate residential demand. Rooftop solar panels paired with trackers are an attractive option for households. They maximize the usable roof space and boost energy yields compared to fixed panels. With solar tracker installation, a typical residential system can meet 100% of annual electricity needs.

In densely populated regions, land constraints make rooftop the preferred deployment mode over large ground-mounted solar farms. This plays to the strengths of residential and small commercial installations using solar trackers. With urbanization on the rise worldwide, distributed generation will continue leading solar tracker installation market growth.

Insights, By Technology: Advantages Drive PV Technology Dominance

In terms of technology, photovoltaic technology contributes the highest share of the solar tracker installation market due to inherent advantages over CSP and CPV alternatives. Photovoltaic technology cells directly convert sunlight into electricity via the photovoltaic effect. They have no moving parts, giving PV systems a simple design that requires little maintenance.

CSP and CPV systems concentrate sunlight before converting it to electricity. This adds thermal and optical components that increase costs and complexity. Any concentrated light source also faces higher risks of performance loss from soiling or reflector misalignment over time.

Advancements in thin-film photovoltaic technology further strengthen its value proposition. Emerging materials like perovskites and organic photovoltaics promise even lower costs and energy payback times. Widespread photovoltaic technology adoption will thus continue propelling the broader solar tracking installation market over the foreseeable future.

• North America Solar Tracker Installation Market: With abundant solar resources, North America has seen large-scale solar projects adopt trackers, driven by incentives and regional policies.
• U.S. Market Growth: Estimated at USD 3.22 billion in 2023, anticipated to reach USD 12.49 billion by 2033, driven by extensive solar projects and favorable policies.
• Asia Pacific Demand: Asia’s growing power demand, especially from China and Southeast Asia, is pushing the need for solar trackers as renewable power sources.
• Single-axis Trackers: Dominated the solar tracker installation market market in 2023 with an 88% share due to their efficiency and cost-effectiveness.
• Dual-axis Trackers: Projected for the fastest growth in the solar tracker installation market, enhancing precision in solar energy capture.

The major players operating in the solar tracker installation market include NEXTracker Inc., Array Technologies Inc., Soltec Trackers, Arctech Solar, First Solar Inc., PV Hardware, STI Norland, Solar Steel, SunPower Corporation, GameChange Solar, Abengoa Solar S.A., DEGERenergie GmbH & Co. KG, Nclave, Powerway Renewable Energy Co. Ltd., Titan Tracker, and Trina Solar Limited.

• In March 2024, Adani Green Energy operationalized a 180-MW solar plant in Rajasthan, India, under a long-term agreement with SECI, supporting India’s renewable energy goals.
• In February 2024, Nextracker collaborated with ACWA Power and L&T to supply NX Horizon-XTR™ trackers for a 1.17 GW project in Saudi Arabia, highlighting increased renewable energy commitments in the region.
• In September 2023, Soltec launched the SFOne tracker at the RE+ conference, one of the largest renewable energy events in the United States. The SFOne tracker is a new addition to Soltec's product line, showcasing advancements in solar tracking technology aimed at increasing efficiency and reducing costs.

• By Type
  • Single Axis
    • Horizontal
    • Vertical
  • Dual Axis
• By Application
  • Residential
  • Commercial
  • Industrial
• By Technology
  • Photovoltaic (PV)
  • Concentrated Solar Power (CSP)
  • Concentrator Photovoltaic (CPV)