Global Solar Photovoltaic (PV) Market - Growth, Trends, and Forecast (Outlook to 2028)

The global solar photovoltaic (PV) market is one of the fastest-growing energy markets in the world. This growth is being driven by factors such as the declining cost of solar PV modules, supportive government policies and initiatives owing to its emission reduction goals and energy security issues, rising investments in solar energy, and carbon emission reduction targets by several countries, which are driving the demand for the solar PV market. Furthermore, the adaptability and scalability of solar technologies have enabled their deployment in diverse applications and across multiple sectors.

However, the expansion of the global solar photovoltaic market faces persistent hurdles. Issues such as low workforce availability, grid integration limitations, and continued support for the fossil fuel sector in the form of subsidies impede the deployment of large-scale solar PV capacity.

Global Scenario of the Solar PV Market

In 2022, the global photovoltaic (PV) installed capacity witnessed remarkable growth, surging to a cumulative 1,185 GW (approximately 1.2 TW). The addition of 240 GW of new PV systems, along with the presence of nearly a dozen countries achieving penetration rates exceeding 10%, underscores the significant and enduring role of PV technology as a substantial contributor to cost-competitive electricity generation and emissions reduction within the energy sector.

In terms of energy production, solar PV generation witnessed an unprecedented surge of 270 TWh (a remarkable 26% increase) in 2022, achieving a total output of nearly 1,300 TWh, according to the International Energy Agency (IEA). This remarkable performance marked the most substantial absolute growth in generation across all renewable technologies for the year, surpassing wind power for the first time in history.

Drivers

Strong Policy Support

Policy support continues to play a pivotal role in driving solar PV deployment across most of the world. The growth in capacity is due to a variety of policy mechanisms, including auctions, feed-in tariffs, net-metering, and contracts for difference.

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

In August 2022, the United States federal government introduced the Investment in Renewable Energy Act (IRA), a substantial initiative designed to greatly enhance support for renewable energy over the coming decade. This is to be achieved through the implementation of 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 put forth a proposal to raise the European Union's renewable energy target for 2030 to 45% as part of the REPowerEU Plan. This ambitious goal would necessitate a total installed renewable capacity of 1,236 GW, including a substantial 600 GW allocated for solar PV. In response to this target and the energy crisis resulting from Russia's invasion of Ukraine, many European countries have already bolstered their support mechanisms for solar PV to expedite capacity expansion.

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.

Segment Analysis

In 2022, utility-scale solar PV plants accounted for approximately 50% of the global solar PV capacity additions. This was followed by distributed capacity, with the commercial and industrial segments contributing 25% and residential rooftop solar installations making up 23% of the total capacity additions.

During the period of elevated fuel and electricity costs in 2021-2022, distributed solar PV systems gained traction as an appealing alternative for many consumers, driving increased investment in this sector. While utility-scale systems remain the most cost-effective source of electricity generation in numerous regions globally, the task of constructing large-scale installations is becoming increasingly complex in many countries. This complexity arises from the scarcity of suitable sites and intricate permitting procedures, thereby favoring the adoption of small-scale rooftop PV systems.

Regional Analysis

The Asia-Pacific solar PV market continues to dominate the global solar PV market with record capacity additions, primarily due to the surging PV installations in China, India, and Japan. China, in particular, retains its dominant role in solar PV capacity expansion, with a remarkable addition of 100 GW in 2022, marking a nearly 60% increase compared to the previous year. The unveiling of the 14th Five-Year Plan for Renewable Energy in 2022, featuring ambitious deployment targets, paves the way for sustained capacity growth in the foreseeable future.

India made significant strides in solar PV installation, adding 18 GW in 2022, marking an impressive 40% increase compared to 2021. This surge is expected to gain even more momentum due to a new target to annually auction 40 GW of PV capacity and the dynamic development of the domestic supply chain, fostering further growth in the solar PV sector in the near future.

In response to the energy crisis, the European Union is expediting the deployment of solar PV, adding a substantial 38 GW in 2022. This represents a remarkable 50% increase compared to 2021. Anticipated to play crucial roles in driving investment into the Europe solar PV market in the near future are the new policies and targets outlined in the REPowerEU Plan and the Green Deal Industrial Plan.

In the North American region, the United States is the largest solar PV market, accounting for the majority of the region’s total solar PV capacity. In 2022, the U.S. solar market installed 20.2 GW of solar capacity, marking a 16% decrease from the previous year. The industry faced challenges and constraints as a result of the uncertainty surrounding the anticircumvention investigation and the numerous solar equipment detentions by Customs and Border Protection (CBP).

However, in the second quarter of 2023, the U.S. solar industry successfully installed 5.6 gigawatts-direct current (GWdc) of capacity, reflecting a significant 20% increase compared to Q2 2022. However, this also represents an 8% decrease from Q1 2023. The industry is anticipated to see year-over-year growth in 2023, marking a turnaround from the contraction it experienced in 2022.

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 in order to expand their PV capacity further, aligning with climate objectives.
• Prosumers, entities that both produce and consume energy, are emerging as influential market forces on a global scale. This shift is driven by rising electricity consumption costs and the increasing prevalence of photovoltaic (PV) systems, which are enhancing awareness of prosumer policies and expanding access to them.
• Major governments are taking initiatives to support and develop local solar value chains.
• Community solar in the United States is declining owing to interconnection delays.

Recent Developments

• In November 2023, the U.S. Department of Energy revealed its commitment to allocate USD 440 million for the installation of solar panels on the residences of economically disadvantaged residents in Puerto Rico. This initiative comes in response to the persistent power outages and deteriorating state of the electric grid in the U.S. territory.
• The International Solar Alliance (ISA) recently revealed that the Global Solar Facility (GSF), a payment guarantee fund established by ISA to encourage investments in solar power projects, is poised to receive a capital injection of USD 35 million.
• Canadian Solar Inc. has announced its plans to set up a solar PV cell production facility with a capacity of 5 GW at the River Ridge Commerce Center in Jeffersonville, Indiana. This state-of-the-art manufacturing plant for solar photovoltaic cells is expected to produce an annual output of 5 GW, which translates to approximately 20,000 high-power modules each day.
• In September 2023, the Swiss-German firm Luxra Group and India's Rayzon Solar reached an agreement to establish a joint venture dedicated to photovoltaic (PV) module production in India. This collaboration will harness Luxra's cutting-edge technology and leverage Rayzon Solar's extensive expertise in solar panel manufacturing operations.
• In September 2023, SolarPower Europe issued a letter to the European Commission, raising concerns about the alarmingly low prices of imported solar products. They emphasized that these low prices could jeopardize the European Union's goals of achieving strategic autonomy in an open market.
• The recently established U.S.-India joint venture, VSK Energy, has unveiled its plans to invest up to USD 1.5 billion in the creation of a vertically integrated solar manufacturing facility in the United States. This ambitious initiative is set to commence in Colorado.
• Magnora, a renewable energy investor, has successfully finalized the sale of a 90 MW solar PV project in South Africa to the independent power producer Globeleq.
• South Korea has revised its 2030 renewable energy target, lowering it from 30.2% to 21.6%. This adjustment reflects the country's shift towards reducing support for solar and other clean energy sources while making preparations for an increased focus on nuclear power and liquefied natural gas.

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 PV 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 photovoltaic PV 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 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 PV Market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.

Solar PV Industry Analysis

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

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

Solar PV Market Segmentation & Forecast

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

Further, Solar PV 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 PV industry, such as LONGi Green Energy Technology Co. Ltd., JinkoSolar Holding Co., Ltd., Trina Solar Co., Ltd., Canadian Solar Inc., JA Solar Holdings, Sunpower Corporation, 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 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