The Global Solar Energy Market Anticipated to Generate a Revenue of $888,311.4 Million, Growing at a CAGR of 14.6% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global solar energy market is estimated to be valued at $888,311.4 million by 2028, surging from $272,592.0 million in 2020 at a noteworthy CAGR of 14.6%.
Impact Analysis of COVID-19 on the Solar Energy Market
The global market for solar energy is estimated to experience a negative impact amid the COVID-19 pandemic. The growth is declining amid the pandemic due to import-export restrictions, leading to a delay in availability of raw materials, shortage of labors due to social distancing norms, and unprecedented lockdown. In addition, many solar energy projects were postponed or cancelled amidst the fear of virus spread. Many manufacturing units and production facilities were closed. Also, majority of the raw materials are imported from China, but due to the COVID-19 pandemic the transportation of goods from China to other countries was stopped due to travel restrictions. Hence, delay in the availability of equipment, raw materials, shortage of labors, discerning expenditure by users, and travel restrictions have negatively impacted the growth of solar energy market during the forecast period.
Various initiatives and stimulus package released by the government for solar energy projects that were badly hit by the pandemic is estimated to provide support to the manufacturers. For instance, as stated in European Commission, the executive branch of European Union (EU), the EU’s Horizon 2020 programme, aims at creating and deploying clean energy technologies and solutions for buildings and around €5.9 billion has been invested in this project. In addition, the European Investment Bank (EIB) also provides support in financing energy projects and providing loans to the companies. In addition, the European Union Cohesion Fund focuses on reducing the social and economic disparity to promote sustainable development. Such initiatives are estimated to create lucrative growth opportunities in the market during the forecast period.
Global Solar Energy Market Analysis
The enormous growth of the global solar energy market is mainly attributed to increasing in adoption of clean energy sources such as solar energy. Solar energy does not emit any harmful gases into the environment. In addition, solar energy can be used to power various devices such as refrigerators, ACs, TVs, computers, and others that can drastically cut down your electricity bills. Also, solar energy production does not create noise which is a major benefit when solar power plants at installed in the urban areas. The latest technological advancements to reduce the price of components required to manufacture the solar panels will create more affordable and efficient solar cells. In addition, the solar photovoltaic systems have low maintenance cost as it just requires regular cleaning and health checkup by a licensed electrical contractor. As a result, the solar panels can last around 25 years. All these aspects are predicted to create a positive impact on the solar energy market growth during the forecast period.
The major growth restraints in the solar energy are the initial cost of purchasing solar system which is fairly high. For instance, as stated un Ecavo.com that provides technology ideas in energy sustainability, states that the initial setup cost for average sized solar PV panels is between $15,000 and $29,000 that produce 4kW and 8 kW of power. This factor is estimated to hamper the market growth during the forecast period.
The latest advancements in solar energy are estimated to generate huge opportunities in the global market. For instance, floating solar farms also known as floatvoltaics can be placed on reservoirs and other water bodies including dams that can generate huge amount of electricity. In addition, the installation cost of these floating photovoltaic panels is less compared to photovoltaic panels placed on land. Also, the energy produced by these floating solar panels is 10% more due to cooling effect of water. Furthermore, another advancement is the Building-integrated Photovoltaics (BIPV) that blends into the building architecture such as roofs, skylight systems, facades, and others. The BIPV can cut down the cost of electricity, as well as the cost of mounting solar panels and they are aesthetically appealing. All such innovations are estimated to generate huge growth opportunities in the market during the forecast period.
Global Solar Energy Market, Segmentation
The global solar energy market is segmented based on technology, solar module, generation, and application.
The technology segment is further classified into photovoltaic cells and concentrated solar power cells. Among these, the photovoltaic cells sub-segment is anticipated to have a dominant market share and surpass $786,725.9 million by 2028, with an increase from $250,101.0 million in 2020. The energy produced by solar photovoltaic cells is clean and silent and there are no harmful greenhouse gas emissions. In addition, the operation and maintenance cost of cells is very low. They are easy to setup and can be made easily accessible in remote areas. The photovoltaic cells can be used in home installations, streetlight installations, and others which is anticipated to create a positive impact on the photovoltaic cells sub-segment during the forecast period.
The solar module segment is further divided into monocrystalline solar cells, polycrystalline solar cells, cadmium telluride, amorphous silicon cells, and others. The polycrystalline solar cells sub-segment is estimated to register a revenue of $467,525.8 million during the analysis timeframe. The polycrystalline solar cells are less expensive and has high efficiency. The polycrystalline solar cells have high durability and longevity and can last upto 25 years. These advantages are anticipated to generate lucrative revenue for polycrystalline solar cells sub-segment of the global solar energy market.
The generation segment is further classified into first, second, and third. Among these, the first sub-segment is anticipated to have the dominant market share and surpass $760,423.8 million by 2028, with an increase from $236,168.1 million in 2020. The first-generation solar cells has high efficiency and long-lasting. Also, they are enhanced with latest technology and fabrication process. They have wide bandgap and excellent optical properties. In addition, first generation solar cells can sustain harsh environmental conditions such as moisture and UV radiations. These factors are anticipated to create positive impact on the generation sub-segment of the solar energy market during the forecast period.
The application sub-segment is further classified into agriculture and horticulture, Architecture, Transportation, and Others. Among these, the architecture sub-segment is anticipated to have the dominant market share and surpass $352,814.4 million by 2028, with an increase from $109,934.8 million in 2020. The use of solar energy in architectures such as residential and commercial buildings can cut down your electricity bills and puts less pressure on natural energy sources. The solar-powered buildings improve the heating and cooling efficiency and has zero-environmental impact. Also, the solar-powered buildings have high property values and sell faster compared to traditional buildings. Also, various government gives tax credits and subsidies for installing solar panels. All these benefits are estimated to drive the growth of architecture sub-segment during the forecast period.
The solar energy market for the Europe region is projected to witness rapid growth. This region generated a revenue of $117,810.0 million in 2020 and is projected to reach up to $399,827.6 million by 2028. This growth in majorly owing to increase in adoption of clean sources of energy such as solar power, hydropower, wind power, and others to reduce the environmental impact that leads to climate change. As stated on November 1, 2019, in the NS Energy, the international magazine, the top 5 solar energy producing countries in Europe are Germany, Italy, UK, France, and Spain. The Núñez de Balboa plant in Spain is claimed to be the largest solar power plant in Europe that consist of 1.4 million solar panels across 1,000 hectares in 3 municipalities of Extremadura that has total capacity of 500MW. The project is funded by the European Investment Bank and Spain’s state financial agency ICO. This project is estimated to generate 1,200 jobs and will reduce the carbon emissions by 215,000 tons every year. These factors are estimated to boost the growth for Europe solar energy market during the upcoming years.
Key Players in the Global Solar Energy Market
Some of the leading global 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.
- First Solar, Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Solar Energy Market
- Bargaining Power of Suppliers: The suppliers in solar energy market are less and product dependency, availability of raw material, prices, switching cost gives high bargaining power to the suppliers.
Thus, the bargaining power of the suppliers is high.
- Bargaining Power of Buyers: The initial setup cost of solar energy plants requires high capital investments. The buyers are eligible for tax credits, subsidies for opting to the clean source of energy.
Hence, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market requires high capital investment cost, raw material cost, labor cost, as well as they need to adhere to the government regulations.
As a result, the threat of the new entrants is low.
- Threat of Substitutes: There are alternative renewable energy sources such as wind power, hydro power, and others but the energy produced by these sources is low and it is under the development stage. The fossil fuel dependency is reducing due to harmful emission of greenhouse gases and government regulations on carbon emission.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global solar energy market are focusing on strategies such as business expansion, technological innovations, and product advancements to stay ahead in the competition.
Therefore, competitive rivalry in the market is moderate.