Solar PV Market size was over USD 317 Billion in 2023 and is anticipated to exceed USD 641 Billion by the end of 2036, growing at over 26% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of solar PV is evaluated at USD 400 Billion.
The reason behind the growth is the rising installation of solar PVs across the world. According to the Solar Energy Industries Association (SEIA) with the support of robust federal policies such as the solar Investment Tax Credit, rapidly falling costs, and growing demand for clean electricity in both the public and private sectors, the global solar capacity installed to date has exceeded 179 gigawatts (GW), or nearly 33 million homes.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
26% |
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Base Year Market Size (2023) |
USD 317 Billion |
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Forecast Year Market Size (2036) |
USD 641 Billion |
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Regional Scope |
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Product (thin Film, Multi-Si, Mono-Si)
The multi-si segment is poised to account for more than 56% solar PV market share by the end of 2036. With the most market share in 2023, the multi-si is leading this segment because of the high market demand for multi-crystalline silicones in different sectors.
According to the International Energy Association (IEA), at a market share of over 97%, crystalline polysilicon continues to be the leading technology for photovoltaic modules in the year 2024. For crystalline polysilicon solar energy, a variety of wafers and cells are utilized, some of which are more efficient than others. In 2022, the transition to more energy-efficient monocrystalline wafers quickened, and the technology came to dominate the manufacture of crystalline photovoltaics.
End User (Residential, Commercial, Utility)
By 2036, residential segment is anticipated to dominate over 60% solar PV market share. This segment is assumed to reach around USD 26 billion by 2036. The limited cost of solar energy generation is primarily driving the household owner to incline towards installing solar PVs.
Moreover, as stated by the International Energy Association (IEA) in 2023, over the next five years, the amount of capacity added to renewable power sources will rise, with solar PV and wind power accounting for a record 96% of this increase. This is because, in most countries, their generation costs are lower than those of both fossil and non-fossil alternatives, and policies continue to promote them.
Deployment (Ground-Mounted, Rooftop Solar)
In solar PV market, ground-mounted segment is predicted to account for around 70% revenue share by 2036. This segment is projected to register over 4% by the end of 2036. Because of the several benefits of these machines such as increased effectiveness, simple installation, management, high execution, etc. will help this segment to grow by the end of 2036.
By precisely orienting ground-mounted solar panels to face the appropriate direction and at the right tilt angle, users may optimize solar energy output.
Our in-depth analysis of the solar PV market includes the following segments:
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Product |
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End-User |
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Deployment |
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Grid |
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APAC Market Statistics
APAC region in solar PV market is expected to capture revenue share of over 40% by 2036. The region’s solar PV sector is thriving, because of the rising consumption of energy in this region. According to, the International Solar Alliance (ISA) report, with 4.4 billion people residing in 58 markets in 2023, from small island economies that are among the most vulnerable to the effects of climate change to the world's largest energy consumer—the Asia and Pacific area is one of the world's most varied and dynamic regions.
The market for solar PV has expanded in China as a result of the rising production of renewable energy in this country. As stated by IEA, with 100 GW of new solar PV capacity added in 2022—nearly 60% more than in 2021—China remains the leader in this regard. The aggressive deployment objectives in the 14th Five-Year Plan for Renewable Energy, which was issued in 2022, should spur more capacity increase in the upcoming years.
The Korean solar PV development mainly lies in rising government initiatives for renewable energy. For instance, the goal of the third master plan is to bring Korea's overall energy consumption below the estimated business-as-usual (BAU) level by 14.4% by 2030, 17.2% by 2035, and 18.6% by 2040. At the UN Climate Change Conference in Glasgow (COP26) in October 2021, Korea unveiled its updated Nationally Defined Contribution (NDC), which includes goals to cut its carbon emissions by 40% from 2018 levels by 2030.
The Japanese solar PV industry will notice a huge expansion mainly due to the rising installation of solar panels. With 78,833 MW of solar PV capacity, Japan leads the market in the Asia-Pacific region deployed in 2022, having increased at a 10% CAGR from 49,500 MW in 2017.
European Market Analysis
Through 2036, European region in solar PV market is expected to register over 4% growth, owing to the rising deployment of solar PVs. According to the International Energy Association (IEA), in response to the energy crisis, the European Union is speeding up the deployment of solar PV, adding 38 GW in 2022—a 50% increase from 2021. The Green Deal Industrial Plan and the REPowerEU Plan's new goals and objectives are anticipated to be significant catalysts for solar PV investment in the upcoming years.
Solar PVs are especially in actual demand in Germany, driven by the rising energy consumption of renewable energies. By 2030, the nation aims to boost the share of renewable energy in total energy consumption to at least 32%.
In Italy, solar PVs will encounter massive growth because of the country’s rising installation of solar PVs. By 2030, Italy aims to achieve a minimum of 32% of its total energy consumption from renewable sources.
The solar PV sector will also be huge in France due to the reduction of in electricity mix. By 2035, France wants to cut its electricity mix from 70% to 50% nuclear power and shut down its coal-fired power facilities by 2022.
Some of the key marketing methods employed by the top market players to hold onto their positions include supply contracts, agreements, contracts, partnerships, new product development, business expansions, collaborations, and mergers and acquisitions. The leading solar PV market companies are:
Author Credits: Dhruv Bhatia
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