Solar Energy Market by Technology (Photovoltaic Cells and Concentrated Solar Power), Solar Module (Monocrystalline Solar, Polycrystalline Solar Cells, Cadmium Telluride, Amorphous Silicon Cells, and Others), Generation (First, Second, and Third), Application (Agriculture & Horticulture, Architecture, Transportation, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Solar Energy Market Analysis

The global solar energy market is anticipated to garner $888,311.4 million in the 2021–2028 timeframe, growing from $272,592.0 million in 2020 at a healthy CAGR of 14.6%.

Market Synopsis

Product advancements, acquisitions, and business expansion to increase the adoption of solar energy for various applications is estimated to drive the growth of the solar energy market. 

However, the low capacity compared to other energy sources and high cost of electricity is estimated to restrain the market growth.  

According to the regional analysis of the market, the Europe solar energy market is anticipated to grow at a CAGR of 14.6% by generating a revenue of $399,827.6 million during the review period.

Solar Energy Overview

Solar energy is a clean and renewable type of energy. Solar panels generate electricity by transforming the energy from sun into electricity. Solar energy does not release any harmful gases into the environment which makes it a clean source of energy. It is a limitless source of energy as sun provides sufficient energy to meet the energy requirements of the entire world. It drastically reduces your electricity bills thereby cutting down on your monthly expenses.  

Impact Analysis of COVID-19 on the Global Solar Energy Market

The novel coronavirus pandemic had a devastating effect on several industries and the solar energy market also experienced a negative impact owing to economic disruptions, impact on supply chain, and shortage of labors that resulted in a delay in the solar energy projects. COVID-19 created several challenges such as shortage of manpower due to social distancing measures, import-export restrictions leading to lack of equipment or parts and rise in expenditure. The solar industry imports majority of the parts or raw materials from China but China being the epicenter of the pandemic, the manufacturing facilities were shutdown and major ship container companies had stopped functioning out of the Chinese ports. Such disruptions resulted in suspension of economic activity, growing employee health concerns, and supply chain disruptions, which had a negative impact on the market growth during the pandemic. 

Various government and company initiatives such as stimulus packages to bring back the global economy on track, are helping the society to recover from the chaotic situation. Certain relaxations have been given to re-start a few economic activities such as functioning of ports, logistic services, and excise that will ensure delivery of parts and equipment that are currently stuck at ports due to import-export restrictions. For instance, as stated on October 30, 2020 in The Wire, a popular Indian news website, Germany released its stimulus package named “package for the future” in June 2020, amounting to $45 billion to support the green measures such as development of green infrastructure and conduct research & development activities across energy and transport sectors. Such initiatives are anticipated to boost the solar energy market growth during the forecast period.

Rising Environment Concerns Such as Pollution to Drive the Market Growth 

The growing environmental concerns due to emission of harmful greenhouse gases that lead to air pollution is estimated to drive the demand for solar energy as it is a renewable and clean source of energy. For instance, energy generation using solar panels instead of fossil fuels can drastically reduce the carbon dioxide emissions that lead to a rise in global temperatures and result in climate change. Such rising temperatures lead to extreme weather conditions including rise in sea levels, melting of glaciers, and changes in the ecosystem. The use of solar energy reduces the demand for fossil fuels and limits the emission of greenhouse gases, thereby reducing the carbon footprint. In addition, the use of solar energy for generation of electricity can save water which is one of the most precious natural resources. The traditional electricity generation process uses thousands of liters of water each day, whereas generating electricity through solar energy does not require water. All these advantages are estimated to drive the growth of the solar energy market during the analysis timeframe.     

To know more about global solar energy market drivers, get in touch with our analysts here.

High Initial Set-up Cost to Restrain Market Growth 

The installation of solar panels is expensive as it includes the cost of inverter, solar batteries, wiring, installation, solar panels. This is a major factor to restrain the solar energy market growth during the forecast period.

The use of Solar Energy in Water Purifiers, Air Conditioner, and Others to Create Enormous Investment Opportunities

The technological advancements in solar energy have given rise to various solar-powered inventions such as solar powered water purifiers, solar air conditioners, solar powered trees, solar outlets, and others, which is estimated to generate huge growth opportunities in the upcoming years. For instance, the solar powered water purifier developed by Suryagen Renewables is equipped with the latest technology that can purify river, pond, sea, and even rainwater. The solar-powered air conditioner is one of the latest cutting-edge innovations that can cut down the power consumption and electricity cost. In addition, the air conditioners produce harmful chlorofluorocarbons (CFCs) that harm the environment. Moreover, the use of solar powered air conditioners can cut down the electricity bills by 20%–30%. In addition, the solar-powered laptop is one of the striking inventions and these laptops require charging time of only two hours and can function for up to 8-10 hours. All such inventions are estimated to generate huge growth opportunities in the solar energy market during the forecast period.   

To know more about global solar energy market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The photovoltaic cells sub-type is anticipated to have a dominant market share and generate a revenue of $786,725.9 million by 2028, growing from $250,101.0 million in 2020. The photovoltaic cells used in the construction of solar panels for home installation or for solar streetlight installation are a sustainable solution that supports in harnessing renewable energy. Solar photovoltaic cells offers both economic viability and environmental sustainability. The photovoltaic cells do not produce any noise, which makes them ideal for residential applications. Also, the solar photovoltaic cells have no moving parts except sun-tracking mechanical bases due to which they have less breakages and require less maintenance. These factors are estimated to drive the demand for photovoltaic cells sub-segment during the forecast period.

The concentrated solar power system sub-type is anticipated to have the fastest growth and generate a revenue of $101,585.5 million by 2028, growing from $22,491.1 million in 2020. This is majorly owing to use of concentrated solar power for large-scale solar power generation. The concentrated solar power is non-polluting in its operation and it is completely carbon-free. It has low operating cost and high efficiency that can store energy out of the daylight hours. In 2020, the U.S. the concentrated solar power generated more than 800 Megawatts (MW) of energy that is enough to power 500,000 homes.

Source: Research Dive Analysis

The polycrystalline solar cells sub-segment of the global solar energy market is anticipated to have a dominant market share and surpass $467,525.8 million by 2028, with an increase from $144,734.9 million in 2020. Polycrystalline solar cells contain several crystals of silicon in a single photovoltaic cell and they are more eco-friendly than the monocrystalline solar cells as most of the silicon is utilized during production and no waste is produced. These cells have high power density and have their own structural frame that makes mounting simpler and cheaper. They are used in various applications such as large solar farms, self-powered devices or standalone devices such as traffic lights, off-grid household and they are suitable for roof mounted arrays. These factors are anticipated to drive the growth of polycrystalline solar cells market during the forecast period.

The amorphous silicon cells sub-segment of the global solar energy market is anticipated to have the fastest growth and surpass $28,641.0 million by 2028, with an increase from $7,933.6 million in 2020. This is majorly owing to the advantages offered by amorphous silicon cells such as low manufacturing cost and being more uniform over large areas compared to crystalline silicon. Also, amorphous silicon can be produced in different shapes and sizes such as square, round, hexagonal, and others. Hence, it can be used across various applications such as garden lights, pocket calculators, wristwatches, and others. These factors are estimated to drive the growth of amorphous silicon sun-segment during the forecast period. 

Source: Research Dive Analysis

The first generation sub-segment of the global solar energy market is anticipated to have a dominant market share and surpass $760,423.8 million by 2028, with an increase from $236,168.1 million in 2020. The solar energy generated from first generation solar cells is most efficient and can be used for residential purpose, which accounts for more than 80% of the energy generated. The first generation solar cells are the oldest and largely used due to high efficiencies. These cells find applications in building integrations, cars, windows, and others. They are useful when you have limited area for mounting the solar panels and when you want to keep your installation small for aesthetic benefits. All these factors are estimated to boost the growth of first generation sub-segment during the forecast period.   

Source: Research Dive Analysis

The architecture sub-segment of the global solar energy market is anticipated to have a dominant market share and surpass $352,814.4 million by 2028, with an increase from $109,934.8 million in 2020. Solar energy is cheaper and more efficient as well as it can be easily embedded in modern architecture such as buildings. The architecture sector is one of the largest energy consumers in the world and it has become a necessity to power buildings using renewable resources such as solar energy to reduce the environmental impact. Hence, drastic climate change, increase in energy consumption, global warming, and attraction towards cleanest form of energy is estimated to drive the growth of architecture sub-segment during the forecast period.

The transportation sub-segment of the global solar energy market is anticipated to have the fastest growth and surpass $60,088.1 million by 2028, with an increase from $17,123.6 million in 2020. This is majorly owing to use in transportation sector that reduces the carbon emission. For instance, the solar-powered cars are eco-friendly and safe and do not produce any harmful gases that could affect the environment. These factors are estimated to drive the growth of transportation sub-segment during the forecast period.

Source: Research Dive Analysis

The Market for Solar Energy in Europe to be the Most Dominant

The Europe solar energy market accounted $117,810.0 million in 2020 and is projected to register a revenue of $399,827.6 million by 2028. This is majorly owing to faster adoption of renewable sources such as solar energy for generating the power. For instance, as stated on July 23, 2020 in Forbes, the popular American business magazine, in first half of 2020, Europe generated most of its electricity via renewable resources rather than depending on the fossil fuel. From January 2020 to June 2020, the electricity generated from renewable resources such as wind, solar, bioenergy, and hydro accounted for 40% across all the European Union (EU) member states. Furthermore, the European Green Deal, aims to prepare EU for carbon neutrality by 2050. To achieve this the EU policy focuses on the use of renewable energy mainly the solar energy across transportation, architecture, and agriculture sector. All these factors are estimated to drive the growth of the solar energy market in Europe during the analysis timeframe.     

Competitive Scenario in the Global Solar Energy Market

Product advancements, innovations, and business expansion are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading solar energy market players are Abengoa Solar, S.A., Acciona Energia, S.A., Borrego Solar Systems, Inc., Areva S.A., BrightSource Energy, Inc., Evergreen Solar, Inc., Canadian Solar Inc., Kyocera Solar, Inc., eSolar, and First Solar, Inc.   

Porter’s Five Forces Analysis for the Global Solar Energy Market:

• Bargaining Power of Suppliers: There are few suppliers in the solar energy market and the availability of raw materials, product dependency, and high switching cost. Also, there is high demand for solar energy from various countries in order to become carbon neutral and reduce the environmental impact 
  Thus, the bargaining power suppliers is high.
• Bargaining Power of Buyers: Buyers have low bargaining power as setting up solar energy plant requires high capital investment cost. However, the customers are eligible for tax benefits and subsidies from the government. 
  Thus, the bargaining power of the buyers is low.
• Threat of New Entrants: The companies entering solar energy market are require high investment cost and they need to adhere to the new government regulations as well as setting solar energy plant requires expert human resources.
  Thus, the threat of the new entrants is low.
• Threat of Substitutes: There are substitute renewable energy sources available in the market such as energy generated via hydropower, wind, and others but they are less efficient and at initial stages of development compared to solar energy. Also, the various countries are focusing on reducing the dependence on fossil to reduce the emission of harmful gases that leads to air pollution  
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is moderate. The number of players operating in solar energy are focusing on enhancing the efficiency, business expansion, and product innovations.  
  Therefore, competitive rivalry in the market is moderate.