Solar Equipment Market Trends

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.