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Solar Power Equipment Market size was valued at USD 129.68 billion in 2023 and is expected to exceed USD 527.69 billion by the end of 2036, registering over 11.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of solar power equipment is evaluated at USD 141.51 billion.
Factors such as the growing concern for the environmental pollution due to the electricity generated from conventional fuel sources, need amongst the nations to fight climate change and adhere to the 13th sustainable development goal (SDG) of the United Nations, coupled with the increasing government initiatives to promote awareness and adoption of solar power equipment are anticipated to drive the growth of the market during the forecast period.
The global solar power equipment market is thriving on account of the numerous benefits associated with the use of solar panel systems, such as low operational costs, lowering carbon emission, lowering energy bills, and others, along with the increasing production of solar energy.
Growth Drivers
Growing Concern for the Environment to Drive the Growth of the Market
According to the statistics by the United States Energy Information Administration (EIA), 80% of domestic energy production was from fossil fuels in the year 2019. On the other hand, the World Bank, in one of its statistics stated that electricity production from oil sources grew by 1.09 times between 2010 and 2012, further registering 3.28% of total electricity production from oil sources, in the year 2015.
Electricity produced from conventional sources, mostly fossil fuels, is registered to be one of the major causes of environmental pollution. Backed by the increasing demand for electricity, there is a growing need amongst nations worldwide to shift to renewable energy sources, such as solar, wind, and hydropower among others, which is anticipated to drive the growth of the global solar power equipment market during the forecast period. In other statistics by the WMO, greenhouse gas concentrations from CO2, CH4, and N2O registered to 410.5±0.2 ppm, 1877±2 ppb, and 332.0±0.1 ppb respectively in the year 2019. Further, increasing consumer awareness for solar power equipment products, the growing need to reduce carbon emissions, numerous advantages of clean energy products over conventional energy products, along with the favorable government policies and programs, are some of the additional factors anticipated to drive the market growth in the coming years.
Challenges
Availability of Low-Cost Alternatives
The pre-dominance of alternative sources of energy, which is also available at low costs, along with the high dependency on fossil fuels for energy, coupled with the operating limitations of solar systems, as in most nations full operating capacity is expected to limit to only 4-5 hours, are some of the factors anticipated to hamper the market growth.
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
11.4% |
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Base Year Market Size (2023) |
USD 129.68 billion |
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Forecast Year Market Size (2036) |
USD 527.69 billion |
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Regional Scope |
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The market is segmented by type of equipment into solar panels, energy storage systems, power meters, and accessories. Among these segments, the solar panels segment is anticipated to hold the largest market share by the end of 2021. The growth of the segment can be attributed to the growing deployment of solar panels in both commercial and residential sectors. Solar panels are one of the most important equipment for the generation of solar energy. Without solar panels, solar energy can’t be harnessed. Further, the global solar panel market is also expected to grow with a significant CAGR of around 26% during 2024-2036.
Our in-depth analysis of the global market includes the following segments
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By Solar System Type |
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By Type of Equipment |
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By End-User
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North America Market Statistics
On the basis of regional analysis, the global solar power equipment market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa regions. North America industry is estimated to hold largest revenue share by 2036, attributed to growing deployment of solar farms in several nations in the region, followed by lucrative federal tax credit incentives initiated by the government of the U.S. for the greater adoption of solar equipment.
APAC Market Analysis
Alternatively, the market in the Asia Pacific is projected to grow with the highest CAGR during the forecast period, backed by the growing awareness amongst the customers, and the rising concern for the environment.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
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