Market Size and Overview:

The Photovoltaics (PV) Market was valued at USD 96.01 billion in 2024. Over the forecast period of 2025-2030 it is projected to reach USD 147.59 billion by 2030, growing at a CAGR of 8.98%.

Photovoltaic energy refers to the electricity generated from solar radiation. This form of energy is converted into electrical power through the use of photovoltaic (PV) cells. The resulting electricity can be utilized to operate electronic devices, supplied to the power grid, or stored in batteries for later use.

On a commercial level, photovoltaic systems are employed in various applications including solar-powered streetlights, parking meters, emergency call boxes, waste compactors, temporary traffic management systems, charging stations, and remote monitoring or signaling stations. Additionally, solar panels integrated into electric buses and vehicles supply the electricity necessary to operate their motors.

In the agricultural industry, photovoltaic-generated power plays a significant role in crop drying systems, expediting the drying process efficiently. It is also used to operate irrigation and water pumping systems, presenting a cost-effective solution for powering equipment in off-grid or remote areas where installing conventional electric lines would be expensive.

Within the industrial sector, especially in aerospace and defense, photovoltaic energy is utilized to ensure a continuous power supply to satellites and other space-based technologies, supporting their seamless operation. These diverse applications are expected to contribute to the growing demand for photovoltaic energy across multiple sectors.

Key Market Insights:

The rising demand for renewable energy is projected to significantly contribute to the expansion of the photovoltaic market in the forthcoming years. Renewable energy encompasses power generated from natural resources that regenerate more rapidly than they are consumed. Photovoltaic systems are composed of solar panels—commonly manufactured using silicon-based materials—and inverters that convert the direct current (DC) electricity generated by the panels into alternating current (AC) electricity, suitable for residential and commercial use. As interest in sustainable energy solutions continues to grow, the need for photovoltaic systems is expected to increase correspondingly.

Photovoltaics (PV) Market Drivers:

The increasing prevalence of off-grid regions across the globe is expected to stimulate market growth.

The rising number of off-grid regions globally stands out as a significant factor contributing to the expansion of the global photovoltaic market. Off-grid areas are defined as locations that are not connected to the conventional power grid and often lack access to consistent electricity. These regions, typically found in remote or rural settings, are witnessing a growing need for dependable and sustainable energy solutions. Photovoltaic systems present a clean, renewable, and cost-efficient method for delivering electricity in such areas. Increasing awareness surrounding the importance of environmentally friendly energy alternatives, combined with the declining cost of photovoltaic systems, has positioned this technology as a viable solution for meeting off-grid energy demands.

Beyond the expansion of off-grid regions, several additional elements are fueling the growth of the global photovoltaic market. The global transition toward sustainable energy sources has led to a heightened demand for photovoltaic systems, recognized for their environmentally friendly and renewable characteristics. Governmental initiatives, including financial incentives and subsidies, are actively supporting the widespread adoption of photovoltaic technologies. Moreover, ongoing advancements in photovoltaic efficiency and cost reduction continue to enhance their appeal. Collectively, these factors have played a critical role in accelerating the compound annual growth rate (CAGR) of the global photovoltaic market in recent years.

Photovoltaics (PV) Market Restraints and Challenges:

Land use limitations are expected to pose challenges to the growth of the global photovoltaic market.

Utility-scale solar power projects demand extensive land areas for energy generation. However, the selection of suitable land is often constrained by a range of environmental and technical factors. Utilizing such land for solar system installations can have adverse effects on natural habitats and local biodiversity.

For example, establishing solar photovoltaic plants in wetlands, agricultural zones, water bodies, and forested regions poses significant challenges due to land instability and limited accessibility. Additionally, the development of large-scale solar energy facilities must take into account multiple considerations, including land availability, proximity to transportation infrastructure, potential impacts on nearby residential communities, and distance to the electrical grid. These limitations collectively hinder the growth of the global solar photovoltaic (PV) market.

Photovoltaics (PV) Market Opportunities:

Increasing investments in solar energy resources are expected to create significant opportunities within the photovoltaic market.

Numerous environmental regulations across the globe are compelling energy-producing companies to transition toward cleaner and more sustainable energy sources. Leading nations are actively working to enhance their renewable energy generation capabilities in order to reduce reliance on fossil fuel-based power production. Among the various renewable options, solar energy stands out as a key solution capable of addressing several global environmental and energy-related challenges. Consequently, the growing investments in solar energy infrastructure are creating promising opportunities for the expansion of the global solar photovoltaic (PV) market throughout the forecast period.

Photovoltaics (PV) Market Segmentation:

By Technology:

●    Mono-Si
●    Multi-Si
●    Thin Film
●    Others

The multicrystalline segment has held a dominant position in the market, owing to its broad range of applications across the commercial, residential, and industrial sectors. Its widespread use is attributed to its cost-effectiveness and suitability for various photovoltaic installations.

The monocrystalline silicon segment, however, is projected to experience the fastest growth during the forecast period. Monocrystalline solar panels are increasingly utilized in rooftop solar systems and are commonly favored for large-scale photovoltaic installations. These panels are deployed across diverse sectors, including industrial, commercial, and residential applications. 

Additionally, many manufacturers are transitioning from multicrystalline to monocrystalline solar cells due to their superior efficiency, compact form factor, and enhanced durability.

By Installation: 

●    Roof Mounted
●    Ground Mounted
●    Others

The ground-mounted segment accounted for a significant share of the market, primarily due to its widespread use in commercial and utility-scale applications. This type of photovoltaic installation is considered cost-effective and offers advantages in terms of installation flexibility, as well as operational and maintenance efficiencies.

The rooftop segment is expected to witness substantial growth during the forecast period. Rooftop solar systems are predominantly utilized in small-scale residential projects, and the rising number of such installations is contributing to the expansion of this segment. 

By Grid Type:

●    On-grid
●    Off-grid

The on-grid segment continues to hold a leading position in the market, propelled by the growing prevalence of utility-scale solar projects globally. These on-grid solar photovoltaic systems are connected directly to the utility grid and generate electricity using solar PV technology. These systems vary in scale from small residential installations to large utility-scale solar power plants. Meanwhile, the adoption of off-grid systems is expanding rapidly, particularly in rural and remote regions.

The off-grid segment is anticipated to experience notable growth during the forecast period. Off-grid systems operate independently from utility grids and are gaining traction primarily in rural areas or locations where grid access is limited or unavailable globally. 

By Application:

●    Residential
●    Non-residential
●    Utilities

The utility segment has captured a dominant share of the market, supported by numerous utility-scale solar energy projects currently underway worldwide. Government initiatives aimed at promoting solar energy conservation and the establishment of new electricity generation plants utilizing solar power have significantly contributed to the growth of this segment. For example, the Gujarat Solar Park, situated in Charanka village in the Patan district of Gujarat, spans 5,384 hectares of previously unused land. This integrated solar park features advanced infrastructure, including systems for rainwater harvesting and electric steam generation from solar thermal processes.

Meanwhile, the residential segment is also expected to experience substantial growth during the forecast period, driven by an increasing number of residential construction projects and heightened consumer awareness regarding the benefits of clean energy.

Photovoltaics (PV) Market Segmentation- by region

●    North America
●    Europe
●    Asia Pacific
●    South America
●    Middle East & Africa

The Asia Pacific region holds the largest share of the global photovoltaic market, with over 77 GW of solar capacity expected to be added. The region’s market growth is primarily driven by high solar irradiation levels and the low cost of component manufacturing. Ambitious carbon emission reduction targets set by several countries—particularly China and India—along with rising electricity demand, further propel market expansion. As the largest market for photovoltaic (PV) technology globally, Asia Pacific benefits from a substantial presence of vendors and key industry players, which has bolstered both growth and market share. Additionally, the region’s rapidly increasing population and accelerating industrialization are intensifying energy demand. Numerous governments have introduced favorable policies and incentives to promote renewable energy adoption, including photovoltaic systems. The presence of leading PV technology companies and ongoing technological advancements have enhanced the efficiency and affordability of photovoltaic solutions within the region.

North America is projected to secure the second-largest market share in the global photovoltaic market. The region has witnessed a surge in demand for renewable energy, especially across residential and non-residential sectors. Similar to Asia Pacific, North America hosts several prominent photovoltaic technology firms and has benefited from continuous technological innovations that improve system efficiency and cost-effectiveness. The North American photovoltaic market is anticipated to maintain steady growth in the coming years, supported by increasing renewable energy demand, government incentives, and advancements in technology.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic has significantly impacted various industries, including oil and gas, manufacturing, aviation, tourism, and others. Governments worldwide implemented nationwide lockdowns and restrictions to contain the virus, which in turn severely disrupted global economies, interrupted supply chains, delayed numerous projects, and caused labor shortages. 

The renewable energy sector in many countries relies heavily on imports, predominantly from China. According to the Government of India, approximately 80% of the country’s demand for solar modules and solar cells is met through imports from China, along with essential equipment such as prefabricated structures, raw materials, and inverters.

Latest Trends/ Developments:

In March 2024, the European Environment Agency, a government agency headquartered in Denmark, reported that renewable energy sources accounted for 23% of the European Union’s total energy consumption in 2022, up from 21.9% in 2021. Consequently, the growing demand for renewable energy is acting as a key catalyst for the expansion of the photovoltaic market.
In September 2023, First Solar Inc. announced that Longroad Energy, a renewable energy company, had increased its solar panel orders by 2 gigawatts (GW), raising its total purchases to approximately 8 GW. 

Key Players:

These are top 10 players in the Photovoltaics (PV) Market :-

BrightSource Energy, Inc.
Canadian Solar Inc. 
SunPower Corporation
First Solar 
Yingli Solar 
Nextera Energy Sources LLC
Jinko Solar
Wuxi Suntech Power Co. Ltd. 
AccionaEnergia S.A.
Waaree Group 
Vivaan Solar