Growing Investments in Clean Energy Strengthen the Solar Photovoltaic Industry

Market Overview:

The solar photovoltaic (pv) market is experiencing rapid growth, driven by Favorable Government Policies and Incentives, Falling System Costs and Enhanced Competitiveness and Surging Demand for Utility-Scale and Distributed Energy. According to IMARC Group's latest research publication, "Solar Photovoltaic (PV) Market Size, Share, Trends and Forecast by Type, Grid Type, Deployment, End User, and Region, 2025-2033", The global solar photovoltaic (PV) market size was valued at 1,386.09 TWh in 2024. Looking forward, IMARC Group estimates the market to reach 4,919.22 TWh by 2033, exhibiting a CAGR of 14.36% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends And Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Solar Photovoltaic (PV) Industry:

• Favorable Government Policies and Incentives

Across the world, governments are leading a shift to clean energy through aggressive policies involving tax credits, subsidies, and renewable portfolio standards (RPS) which require utilities to obtain increasing shares of their power from clean energy sources. For example, globally, in one year, renewable capacity added grew by approximately 50 percent. About 75 percent of that growth was attributed to solar PV, stimulated by encouraging policies. Policy mechanisms such as net-metering and feed-in tariffs in many major markets are providing high returns to utility scale project developers as well as small residential customers. This regulatory certainty dramatically decreases the investment risk for investors, and massive amounts of capital have been attracted to the developing utility-scale solar farms that are making solar economically competitive with other energy sources for commercial and residential end-users.

• Falling System Costs and Enhanced Competitiveness

The sustained decline in photovoltaic (PV) module prices and balance of system (BOS) prices is the single most important factor in the falling cost of solar power relative to conventional energy sources. The price decrease has resulted mainly from economies of scale achieved by increasing manufacturing capacity, particularly in Asia which accounted for the majority of the world's new installed capacity in 2015. In the last 10 years, the average module price worldwide has fallen by about 90%, and in many parts of the world solar has become the lowest-cost form of electricity generation. Technological advances such as the introduction of high-efficiency cell formats have also reduced the cost of generating electricity. The cost advantage has led to utility adoption, with the utility sector accounting for more than half of annual PV installations, and solar energy assuming a dominant and low-cost position within the global energy market.

• Surging Demand for Utility-Scale and Distributed Energy

Rising global electricity demand, greater energy security and decarbonization of energy systems are driving all market segments for solar PV technology. Utility-scale solar parks are vital for meeting national-wide renewable energy targets, and hold the largest share of total installed capacity. At the same time, there is growth in distributed solar both on commercial and residential rooftops as consumers seek to help address high electricity costs and seek energy independence. In one large year of deployment, the world has deployed more new installed solar PV capacity than at any previous year, with China alone deploying as much capacity in one year as the entire world added the year prior.

Key Trends in the Solar Photovoltaic (PV) Market:

• Deeper Integration with Energy Storage Systems (Solar-Plus-Storage)

A key trend is an increase in hybridisation of solar PV and Battery Energy Storage Systems (BESS) to produce reliable "dispatchable" solar energy, overcome the intermittency of solar energy, and enable energy to be harvested during the day and stored for peak evening demand by consumers. Utility power auctions in the three leading solar markets in the world have shown that solar-plus-storage can provide 24/7 electricity at prices competitive with gas- and coal-fired conventional power stations. With lithium-ion battery prices falling rapidly (over 90% in the last decade), solar-plus-storage becomes a more economically attractive option. An increasing share of newly installed utility-scale PV projects are co-located or designed to be coupled with energy storage, so that the resulting system constitutes a complete integrated power plant.

• Adoption of Advanced Module Technologies: Bifacial PV

The market is moving to state of the art solar modules that maximize the amount of energy received for each land area. Bifacial solar panels maximize the light captured by the front and rear faces of the solar panel (the back side is illuminated by reflection of sunlight from the ground). These are used in substantial commercial penetration, where use of double-sided modules may yield a measurable percentage increase in energy generation over conventional single-sided modules. This improves the economics of the project, and there is a growing trend towards bifacial modules holding a majority of the global solar module shipments, especially for large-scale ground mounted arrays where light colored ground covers can be deployed under the modules to increase rear-side energy generation.

• Innovation in Land Use: Agrivoltaics and Floating PV

An answer to land use conflicts, and one that expands applications is agrivoltaics (Agri-PV, or less commonly agrophotovoltaics), solar energy on the same land as agriculture, which has been deployed and researched worldwide. Some crops seem to thrive in partially shaded PV areas, and governments are looking at the topic in more depth, as a way to manage land resources sustainably. Another active area is floating PV (FPV) in water bodies such as reservoirs and lakes to save land requirements, and by taking advantage of water cooling, have increased efficiency and reduced water evaporation. Their global market size continues to grow rapidly, as the FPV industry continues to promote this novel solution for densely populated areas or places without sufficient land resources.

Leading Companies Operating in the Global Solar Photovoltaic (PV) Industry:

• Acciona
• Canadian Solar
• First Solar
• JA Solar Technology Co. Ltd.
• Jinko Solar Co., Ltd.
• KYOCERA Corporation
• LONGi Green Energy Technology Co. Ltd.
• Renesola
• Sharp Corporation
• Tata Power Solar Systems Ltd.
• TCL Electronics
• Trinasolar
• Wuxi Suntech Power Co., Ltd.

Solar Photovoltaic (PV) Market Report Segmentation:

By Type:

• Thin Film
• Multi-Si
• Mono-Si

On the basis of type, the market has been divided into thin film, multi-Si, and mono-Si.

By Grid Type:

• On-Grid
• Off-Grid

On-grid represents the largest segment due to its ability to provide a consistent energy supply by connecting to the utility grid, facilitating the sale of excess electricity generated.

By Deployment:

• Ground-mounted
• Rooftop Solar

Ground-mounted represents the largest segment due to its scalability and efficiency advantages, allowing for optimal solar panel orientation and exposure to sunlight.

By End User:

• Residential
• Commercial
• Utility

Utility represents the largest segment as large-scale solar installations are increasingly adopted by utilities to meet renewable energy targets and supply electricity on a mass scale.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific’s dominance in the solar photovoltaic (PV) market is attributed to the rising implementation of stringent regulations encouraging individuals and businesses to invest in renewable energy sources.

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About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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