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The global solar photovoltaic (PV) market is one of the fastest-growing energy markets in the world. In 2024, the world added 453 GW of solar photovoltaic (PV) capacity, registering a 28% growth compared to 2023. Driven by this momentum, the global solar PV market is expected to reach 5,152 GW by 2031, up from 1,858.6 GW in 2024.

This growth is being driven by factors such as the declining cost of solar PV modules, supportive government policies and initiatives owing to emission reduction goals and energy security concerns, rising investments in solar energy, and carbon emission reduction targets set by several countries. Furthermore, the adaptability and scalability of solar technologies have enabled their deployment in diverse applications and across multiple sectors.

However, despite the growth of the global solar photovoltaic market, issues such as low workforce availability, grid integration limitations, and permitting issues are some of the major constraints for global solar PV market growth.

Global Scenario of the Solar PV Market

The cumulative global solar photovoltaic (PV) installations reached 1858.6 GW by the end of 2024. In 2024, the global photovoltaic (PV) installed capacity witnessed remarkable growth of 28%, with the installation of 452 GW compared to 353 GW in 2023. 

A significant increase in global PV manufacturing capacities and improved supply chain, along with the effects of the 2022 global energy crisis, propelled the growth of solar energy globally. This growth was led by China, which held the majority market share in 2024; it was alone responsible for more than 50% of the world’s total solar PV additions. 

Drivers

Supportive Government Policies

The sustained emphasis on the government's efficient policies aids in the growth of solar PV deployment across most parts of the globe. The expansion of capacity is attributable to a combination of policy mechanisms, including auctions, feed-in tariffs (FiT), net metering, and contracts for difference (CfD).

Some of the major policies driving solar PV growth implemented in different parts of the world in recent times are:

• The Inflation Reduction Act (IRA), introduced by the United States federal government in August 2022, is a substantial initiative designed to enhance support for renewable energy over the coming decade greatly. This is to be achieved by implementing tax credits and various other measures.

• In June 2022, China unveiled its 14th Five-Year Plan for Renewable Energy, outlining a notably ambitious goal of sourcing 33% of its electricity generation from renewables by 2025. This target represents a substantial increase from the approximately 29% achieved in 2021 and encompasses an 18% target specifically for wind and solar technologies.

• In May 2022, the European Commission proposed raising the European Union's renewable energy target for 2031 to 45% (at least 42.5%) as part of the REPowerEU Plan. Furthermore, in February 2023, the Commission introduced the Green Deal Industrial Plan with the aim of facilitating the growth of clean energy technology manufacturing, encompassing solar PV, among other sectors.

Increasing Renewable Energy Demand from Data Centers

With the increasing need for energy-intensive technologies like AI and cloud computing, data centers seem to withhold the market demand as the data centers are now turning to reliable, clean energy for their operations. 

In the United States, power demand from data centers is anticipated to rise from 3-4% of total energy consumption to approximately 12% by 2031. 

With data centers increasing in size and some reaching capacities of 250 MW or more, the search for core, dependable green energy will be paramount.

Solar and energy storage solutions will play an essential role as they would provide additional avenues to counter the growing sectoral carbon footprint of data centers.

Segment Analysis

The utility-scale segment installed 182.7 GW of new solar PV capacity, due to the decreasing prices of modules and policies supporting the growth. Asia contributed more than half of the growth in utility-scale projects in 2024, with China and India leading the installations. The US ranks second, which doubled its new installations in 2023 and nearly doubled them again in 2024.

Other significant developing markets like Saudi Arabia and UAE. Utility-scale projects often leverage economies of scale and are vital for large-scale energy needs, including green hydrogen production.

On the other hand, in 2024, the residential solar has witnessed a decline relative to 2023 owing to regulatory shifts resulting in discontinuation of incentives in various markets, increasing interest rates, etc.

Regional Analysis

The Asia-Pacific Solar Market continues to dominate the global solar market with record capacity additions, primarily due to the surging PV installations in China, and India. 

China, in particular, retains its dominant role in solar PV capacity expansion, with a remarkable addition of 277.17 GW 2024, taking the country’s total deployed capacity to over 886.66 GW, up 45.48% year on year. The 14th Five-Year Plan for Renewable Energy, introduced in 2022, featuring ambitious deployment targets, paved the way for sustained capacity growth in the foreseeable future.

With 51% of the country’s energy now coming from renewable sources, China has achieved its 2025 target two years in advance, driven largely by the substantial growth in its solar power installations.

The global solar PV market is currently dominated by Chinese companies such as JA Solar, Trina Solar, Jinko Solar, Canadian Solar, Longi Green Energy, Risen Energy, etc., which hold the majority of the global market share. 

In the North American region, the United States solar PV market is the largest, accounting for most of the region’s total solar PV capacity with the addition of 50 GW in 2024. In the first half of 2024, the U.S. solar market installed 21.4 GW of solar capacity, marking a 55% increase from the record achieved in the first half of 2023. 

Texas led all states for new solar capacity additions in 2024, replicating a record-setting 2023 with 11.6 GW of new installations. In total, 21 states set new annual installation records, and 13 states added over 1 GW of new solar capacity in 2024.  

The market also faced some challenges as the residential PV market shrank significantly in the first half of 2024, impacted by California’s Net Energy Metering (NEM) transition and high interest rates across the country. However, the increase came from a doubling of utility-scale installations, which more than made up for the residential market shrinking by one-third.  

Emerging Trends

• Certain countries are gradually reducing their support mechanisms for end users, such as tenders, feed-in tariffs, direct subsidies, and fiscal incentives, due to the increasing competitiveness of photovoltaic (PV) technology. On the other hand, some nations are intensifying their efforts to bolster support to expand their PV capacity further, aligning with climate objectives.

• Increasing competitiveness in Europe’s renewable energy auctions.

• Major governments are taking initiatives to support and develop local solar value chains.

• Community solar in the United States is declining owing to developments in NEM and NBT (Net Billing Tariffs).

Recent Developments

• The US Commerce Department has announced plans to impose tariffs of up to 3,521% on imports of solar panels from four South East Asian countries in April 2025.

• In January 2025, Indian state-owned power producer NTPC concluded an auction for 1.2 GW of wind-solar hybrid capacity at an average price of INR 3.43 (USD 0.040)/kWh. Adani Renewable Energy, Adyant Enersol (Datta Infra), Ampin Energy, Green Prairie Energy (EverGreen Power), and JSP Green (Jindal Renewables) have won the auction.

• Scientists from Huaqiao University in January 2025 have designed a perovskite solar cell that utilizes a hole-selective interlayer inhibiting ion diffusion to increase the device's stability, achieving an efficiency of 26.39%.

• According to Poland’s Energy Regulatory Authority in December 2024, Solar dominates Poland’s latest renewables auctions, accounting for 198 of the 200 successful bids awarded under the country’s latest renewables auctions.

• The European Bank for Reconstruction and Development (EBRD) announced in December 2024 that it is investing up to EUR 105 million (USD 109.5 million) in a large-scale solar-thermal plant in Novi Sad, Serbia. The project is expected to reduce the district heating agency’s natural gas consumption by around 29%. 

Opportunities

• Expanding markets: The solar PV market is expanding geographically, with new markets emerging in developing regions such as Southeast Asia and Africa. PV manufacturers that can target these emerging markets will have access to a large and growing customer base.

• New technologies: New solar PV technologies are emerging, such as perovskite solar cells and tandem solar cells. These new technologies have the potential to further reduce the cost and improve the efficiency of solar PV panels. PV manufacturers that can develop and commercialize these new technologies will be well-positioned to maintain their competitive advantage.

• Storage and integration: Solar PV systems are experiencing a growing synergy with energy storage solutions and smart grid technologies. PV manufacturers capable of providing comprehensive, integrated solutions encompassing energy storage and smart grid technologies are poised to effectively cater to their customers' requirements.

Blackridge Research's Global Solar Power Market report provides insights into the current global and regional market demand scenario and its outlook.

The new report from Blackridge Research on the global solar power market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market. 

(You can access a comprehensive list of both existing and upcoming Solar Power Projects, along with their current status, through our extensive Global Solar Projects Database.)

What Do We Cover in the Report?

Solar Photovoltaic (PV) Market Drivers & Restraints

The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain global market growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Solar PV Market Analysis

This report discusses the market overview, the latest updates, important commercial developments and structural trends, and government policies and regulations.

Solar PV Market Size and Demand Forecast

The report provides the global solar power market size and demand forecast until 2031, including year-on-year (YoY) growth rates and CAGR.

Solar PV Industry Analysis

The report examines the critical elements of the solar energy systems industry supply chain, its structure, and the participants.

Using Porter's five forces framework, the report covers an assessment of the solar industry's state of competition and profitability.

Solar PV Market Segmentation & Forecast

The report dissects the Global Solar Power Market into various segments based on end-use sector (utilities, residential, and non-residential). A detailed summary of the current scenario, recent developments, and global market outlook will be provided for each market segment.

Further, Solar Power Market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major regions across the world. Each region's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

In addition, market size, demand forecasts, and growth rates will be provided for all regions. The region is segmented geographically into North America, Europe, Asia-Pacific, and the rest of the world (South America, Middle East and Africa).

Key Company Profiles

This report presents detailed profiles of key companies in the solar power industry, such as LONGi Green Energy Technology Co. Ltd., JinkoSolar Holding Co., Ltd., Trina Solar Co., Ltd., Canadian Solar Inc., JA Solar Holdings, etc. in solar PV manufacturers and solar energy operating companies, including Lightsource bp etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The market research report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

Also, check out our other reports:

• Global Solar PV Inverters Market

• Global Solar Array Disconnect Switches Market

• Global Solar Cable Systems Market

• Global Solar Cells Market