Photovoltaic Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

Photovoltaic Market Highlights

• Global photovoltaic market revenue is expected to increase by USD 708.6 billion by 2032, with a 22.4% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 39% of photovoltaic market share in 2022
• Latin America photovoltaic market growth will record a CAGR of more than 24.3% from 2023 to 2032
• By technology, the thin film segment captured more than 42% of revenue share in 2022.
• By application, the industrial segment is projected to expand at the fastest CAGR over the projected period
• Growing emphasis on sustainable electricity from various utilities, drives the photovoltaic market value

Photovoltaic (PV) technology uses semiconductor-based solar cells to convert sunlight directly into energy. When exposed to sunlight, these solar cells utilize the photovoltaic effect to generate power, which is both clean and renewable. The PV industry has experienced significant growth in recent years due to various factors, including falling costs, technological advancements, supportive government regulations, and increasing environmental concerns driving the adoption of renewable energy.

The global PV industry has expanded dramatically, driven by both residential and utility-scale installations. In many regions, solar energy has emerged as one of the most cost-effective methods of power generation, leading to widespread adoption across the residential, commercial, and industrial sectors. Moreover, advancements in PV technology, such as higher efficiency solar panels and improved manufacturing techniques, have contributed to cost reductions and increased competitiveness compared to traditional fossil fuel-based sources. Government incentives, climate change mitigation efforts, and a desire for energy independence are all expected to further drive market growth.

Global Photovoltaic Market Dynamics

Market Drivers

• Declining costs of solar technology
• Supportive government policies and incentives
• Increasing environmental awareness
• Advancements in PV technology, improving efficiency and durability
• Growing demand for clean energy sources and the need to reduce carbon emissions

Market Restraints

• Regulatory uncertainties and policy changes
• Initial high upfront costs of installation

Market Opportunities

• Rising investments in renewable energy infrastructure
• Advancements in energy storage technologies

Photovoltaic Market Report Coverage

Photovoltaic (PV) technology involves converting light into energy using semiconductor materials such as silicon. When sunlight strikes these materials, it excites electrons, generating an electric current that can be used to power electrical loads or stored for future use. PV systems typically consist of solar panels made up of multiple PV cells, along with inverters that convert the generated DC power into AC electricity suitable for use in homes, businesses, or the grid. Photovoltaic technology has a wide range of applications and is continually expanding. Residential solar power systems are a popular application, where homeowners install rooftop solar panels to generate electricity, reducing their reliance on the grid and lowering energy costs. Photovoltaics are also frequently used in commercial and industrial contexts, with large-scale solar arrays installed on roofs or open ground to power factories, warehouses, and office buildings. Furthermore, utility-scale solar farms, composed of extensive arrays of solar panels, are increasingly used to generate significant amounts of power for the grid, aiding the transition to renewable energy and reducing carbon emissions.

Several key factors have contributed to the rapid growth of the global photovoltaic (PV) industry. A crucial element is the ongoing reduction in the cost of solar technologies. Manufacturing advancements, economies of scale, and increased competition have significantly lowered solar panel prices, making PV systems more accessible for both households and businesses. Additionally, government regulations and incentives, such as feed-in tariffs, tax credits, and renewable energy mandates, have spurred investment in solar power generation, driving the sector forward. Moreover, heightened environmental awareness and the urgent need to address climate change have led to the widespread adoption of solar systems. Solar energy is a clean, renewable resource that generates power without emitting greenhouse gases or other harmful pollutants, making it an attractive option for reducing carbon emissions and moving toward a more sustainable energy future.

Photovoltaic Market Segmentation

The global photovoltaic market segmentation is based on technology, system, application, and geography.

• Thin Film
  • Cadmium telluride
  • Amorphous thin-film silicon
  • Copper indium gallium diselenide
• Multi-Si
• Mono-Si

According to the photovoltaic industry analysis, the thin film category held the greatest market share in 2022. Thin film solar cells use thin layers of semiconductor materials coated on various substrates, offering benefits such as flexibility, lightweight design, and the potential for lower production costs compared to standard crystalline silicon solar cells. These properties have generated significant interest and investment in thin film technology, especially for applications requiring flexibility and aesthetics, such as building-integrated photovoltaics (BIPV) and mobile electronics. One of the primary drivers of growth in the thin film category is the potential for cost reduction and scalability. Continuous roll-to-roll processes can be used to manufacture thin film solar cells, potentially reducing production costs significantly compared to batch processing methods for crystalline silicon cells. Furthermore, the flexibility of thin film modules allows for novel installation methods and applications, such as curved or flexible surfaces, which broadens the potential market for solar energy generation.

• Low Concentrated PV (LCPV)
• High Concentrated PV (HCPV)

In terms of systems, the low concentrated PV (LCPV) segment is expected to witness significant growth during the photovoltaic market forecast period. LCPV (Low Concentration Photovoltaic) systems use lenses or mirrors to focus sunlight onto small solar cells, increasing the electricity produced per unit area of the solar panels. Although they don't concentrate sunlight as much as traditional CPV systems, LCPV systems are still more efficient than regular solar panels, making them an excellent choice for various applications.

One major reason for the growth of LCPV is that they generate more energy with less material, lowering overall costs. By focusing sunlight on smaller solar cells, LCPV systems require less expensive materials like silicon to produce the same amount of electricity. This cost reduction, along with advancements in optical design and tracking systems, has made LCPV a strong competitor to traditional solar technologies. They are especially cost-effective in sunny regions, offering a lower cost of electricity.

• Industrial
• Commercial
• Residential

The photovoltaic market forecast predicts substantial growth in the industrial sector over the next few years. Manufacturing plants, warehouses, and distribution centers are ideal for solar installations due to their large roof spaces and available land. Installing solar photovoltaic systems in these facilities not only provides a renewable and sustainable energy source but also offers significant cost savings and energy independence. A major factor driving this growth is the increasing commitment of businesses to reduce their carbon footprint and adopt sustainable practices. Solar installations allow industrial facilities to cut down on fossil fuel use for electricity, thereby decreasing greenhouse gas emissions and supporting environmental stewardship. Furthermore, as solar technology becomes more affordable and financial incentives become more accessible, industrial companies are increasingly investing in solar energy to achieve long-term savings and enhance their financial performance.

Photovoltaic Market Regional Outlook