Building-integrated Photovoltaics Market Trends
Growth Drivers
- High demand for solar energy - To meet consumer demand, more solar energy solutions are being integrated into commercial infrastructures to enhance design and save energy. According to the IEA, the global renewable energy capacity added to energy systems surpassed 50% in 2023. Furthermore, growing concerns about the depletion of nonrenewable power resources such as coal and oil are boosting demand for solar power generation, including the rise of the solar PV sector.
- Surge for zero-emission buildings - Demand for green or zero-emission buildings has increased as a result of the building industry's rapid modernization and increasing focus on clean energy. Based on a report by the IEA in 2023, buildings contribute about 30% to global energy consumption, and they emit more than 25% of global energy. Moreover, BIPV systems not only contribute to reducing greenhouse gas emissions but also enhance the overall energy performance of buildings by offsetting electricity consumption from the grid.
- Technological advancements - BIPV have seen significant technological advancements over the years, enhancing their efficiency, aesthetics, and overall integration into building designs. Many solar industries are trying to innovate more aesthetically appealing BIPV products into the market. For instance, LONGi, one of the world's top solar PV producers, has unveiled a new generation of BIPV products based on HPBC cell technology. It claims the device can provide an output of 580 W, with an efficiency of up to 22.6%.
Challenges
- High initial cost - BIPV systems typically involve higher upfront costs compared to traditional solar PV systems. These costs include not only the price of solar panels, but also expenses related to specialized integration into building components, additional structural support, and customized design requirements.
- Complex installation and integration - Integrating BIPV systems into building designs requires collaborative efforts by architects, builders, and solar installers. Complexities in design, customization, and compatibility with existing building structures can increase installation time and costs limiting market growth.
Building-integrated Photovoltaics Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
19.5% |
|
Base Year Market Size (2024) |
USD 28.46 billion |
|
Forecast Year Market Size (2037) |
USD 296.29 billion |
|
Regional Scope |
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