The solar tracker market is estimated to be valued at USD 7.01 Bn in 2024 and is expected to reach USD 35.74 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 26.2% from 2024 to 2031. The solar tracker market is witnessing high growth driven by the rising adoption of solar energy across the globe.

Market Driver - Growing Emphasis on Clean and Green Energy Solutions

With rising concerns about climate change and increasing environmental pollution levels globally, there is a growing emphasis on adopting clean and green sources of energy. Solar energy has emerged as one of the most viable and sustainable alternatives to conventional power sources like coal and natural gas.

Solar trackers help address this issue by automatically tracking the sun's movement across the sky and adjusting the panel orientation. This allows the panels to generate maximum energy from the available sunlight throughout the day. As a result, solar trackers provide about 25-30% higher energy yields compared to fixed-tilt ground systems.

Leading tracker suppliers have also ramped up manufacturing and are offering a wider range of attractive product solutions. Countries are stepping up ambitions to transition to greener sources of energy in line with their decarbonization goals. Consequently, the solar trackers market is likely to grow substantially in the coming years.

Market Driver - Increased Solar Panel Installations Globally, Driven by Favorable Government Regulations

Favorable public policy frameworks have played a key role in accelerating the global adoption of solar energy in recent times. Many national and local governments have introduced various incentives and regulatory mandates to encourage the deployment of solar power. These include tax exemptions and credits, rebate programs, generation-based incentives, mandatory quotas for procuring renewable energy, net metering provisions and subsidized financing.

Some ambitious markets have also set long-term renewable capacity or carbon reduction targets to provide regulatory certainty to investors. As a result, the overall solar energy market has witnessed high double-digit annual growth rates over the last decade.

This expanding solar tracker market has directly benefited solar tracker suppliers. Single-axis and dual-axis trackers especially have seen rising prominence as they offer 20-30% more energy yields compared to fixed systems. Tracker manufacturers have been quick to cater to this demand. Their trackers are now available in various scalable formats for projects of any size. Many suppliers have established a localized manufacturing and supply chain presence in key growth markets.

Market Challenge - High Maintenance and Operational Costs for Dual-Axis Trackers

One of the major challenges currently being faced in the solar tracker market is the high maintenance and operational costs associated with dual-axis trackers. Dual-axis trackers offer significantly higher energy yields compared to fixed-tilt or single-axis trackers. However, their complex design with multiple moving parts also means higher costs of installation, operation and maintenance over the lifespan of the system.

Additionally, issues like stalling or jamming of parts is more common in dual-axis trackers compared to simpler trackers. All these factors contribute to increased overall costs. Repairs and unexpected downtime further increase maintenance expenditures. High costs have limited the widespread adoption of dual-axis trackers, especially in price-sensitive markets.

Unless costs are brought down substantially, high maintenance and operation expenditures will continue restricting the growth potential of dual-axis solar trackers globally.

Market Opportunity - Technological Advancements in Solar Tracker Designs, Boosting Efficiency

One major opportunity in the solar tracker market is presented by ongoing technological advancements that aim to enhance the efficiency and functionality of tracker systems, while reducing costs. Tracker manufacturers are developing new designs that utilize lighter materials, require fewer moving parts, and simplify control mechanisms. This helps lower installation and servicing requirements.

Advanced control algorithms further optimize energy yields. New drive technologies like direct drives are also gaining traction due to their reduced part counts and maintenance needs. Such innovations will enhance the cost-competitiveness of complex dual-axis trackers.

Additionally, hybrid tracker designs that combine features of single-axis and dual-axis models promise efficiency close to dual-axis while cutting costs. Widespread adoption of such advanced tracker solutions boost overall solar power plant profits and internal rates of return, driving greater uptake of solar trackers technology globally.

Dual-axis tracking systems: Dual-axis solar trackers have become the dominant technology adopted by solar farms across the world. Players like Array Technologies, Nextracker, and Arctech Solar have seen huge success with their dual-axis trackers that rotate panels in both azimuth and elevation to follow the sun throughout the day. Studies have shown dual-axis trackers can increase energy production by 25-30% compared to fixed-tilt systems.

Advanced technology and cost reduction: Companies like Abengoa, Soltec and STI Norland have focused on developing more advanced and cost-effective trackers. For example, in 2018 Soltec unveiled its new single-axis STC-100S tracker with lower installation and maintenance costs.

Geographic expansion: Key players expanded operations and footprint across high-growth regions. For example, in 2017 Nextracker set up a manufacturing plant in India to address rising local demand. This allowed it to lower costs and win large-scale projects.

Partnerships and acquisitions: Strategic deals helped augment capabilities. Array Technologies acquired partners like Valmont and Cedar Creek in 2018-19, strengthening its product portfolio and distribution.

Insights, By Product: Simple and Cost-Effective Design Drives Adoption of Single Axis Trackers

In terms of product, single axis contributes 90.3% share of the solar tracker market in 2024. This is due to its simple and cost-effective design compared to dual and multi-axis trackers. Single axis trackers optimize solar exposure by pivoting around one axis, usually east-west, to follow the sun's daily path.

This simplicity makes single axis trackers cheaper to manufacture and install per unit capacity compared to dual axis systems. Their lower upfront capital costs appeal to solar developers and owners looking to maximize returns on investment. Single axis solar trackers also require less maintenance than complex multi-axis designs due to having fewer moving parts that are prone to wear and tear over the system's lifetime.

The ease of installation of single axis solar trackers allows for scalability and fast deployment on large utility-scale projects to meet capacity targets. Their standardized designs facilitate mass production and straightforward integration within large solar farms.

Insights, By Technology: Adoption of Solar PV Technology Driven by Maturity and Grid Compatibility

In terms of technology, solar photovoltaic contributes 63.5% share of the solar tracker market in 2024. This is owing to its proven technology and compatibility with existing power infrastructure. Solar PV technology has been continually refined over decades of commercial use and is now a mature and bankable solution for solar power projects.

The direct current produced by solar PV panels is compatible with residential, commercial and grid-scale inverters used to convert it to utility-frequency alternating current suitable for power transmission through distribution networks. Technological improvements have made today's solar PV modules versatile for varied climates and terrains. Continuous cost reductions have made solar PV increasingly competitive against conventional power sources. These factors have supported widespread deployment of solar PV technology globally.

Insights, By Application: Regulation Support Drives Dominance of Utility Segment in Solar Tracking Market

In terms of application, the utility segment contributes the highest share of the solar tracker market as supportive policies and regulations have promoted large-scale deployment of solar power in this sector. Stringent renewable portfolio standards adopted by many countries require a mandated percentage of electricity sold by utilities to be sourced from clean energy sources like solar. Compliance with these regulations has spurred widespread development of utility-scale solar farms using solar trackers for maximum output.

Government incentives in the form of tax rebates, feed-in tariffs and renewable energy credits ease project economics and encourage large independent power producers to setup distributed solar generation capacity. Land available with utilities and lower cost of capital helps setup projects at utility-scale for economics of scale.

Tracker-mounted large scale solar farms deliver these benefits and support the transformation towards greener energy systems mandated under policy frameworks. This enables the utility sector to maintain its leadership position in driving solar tracker market adoption.

• The utility segment accounted for the highest share of the solar tracker market in 2023 due to increased use of single-axis trackers in large-scale solar farms.
• Europe is expected to be the fastest-growing region in the solar tracker market, driven by government incentives and technological advancements.
• Single-axis solar trackers held the largest share (90%) in 2023 due to their cost-effectiveness and reliability.
• Concentrated Photovoltaic (CPV) technology is expected to grow fastest in the solar tracker market due to its high efficiency and scalability.

The major players operating in the solar tracker market include NEXTracker Inc., Array Technologies, Soltec Power Holdings SA, Convert Italia, Arctech Solar, SunPower Corporation, Sun Action Trackers, STi Norland, Scorpius Trackers, and Exosun Sas.

• In June 2021, Antaisolar introduced the SPACE solar tracker at the SNEC exhibition in Shanghai. This 1P independent single-axis tracking system can extend up to 240 meters, accommodating more than four strings of photovoltaic modules. This design enables up to an 18% reduction in solar mounting system costs.

• By Product
  • Single Axis
    • Horizontal
    • Vertical
    • Polar Aligned
    • Tilted
  • Dual Axis
    • Tip-Tilt
    • Azimuth-Altitude
• By Technology
  • Solar Photovoltaic
  • Concentrated Solar Power (CSP)
  • Concentrated Photovoltaic (CPV)
• By Application
  • Utility
  • Residential
  • Commercial & Industrial