The global solar energy market was valued at $52.5 billion in 2018 and is projected to reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019 to 2026.
This is according to the latest Solar Market report from Trends Market Research.
Market drivers include:
- The increase in environmental pollution and provision of government incentives & tax rebates to install solar panels;
- A surge in rooftop installations, followed by an increase in applications in the architectural sector;
- The demand for parabolic troughs and solar power towers in electricity generation is expected to boost the demand for concentrated solar power systems.
Both monocrystalline and polycrystalline silicon cells have witnessed growth in demand, especially in residential applications. Cadmium telluride and amorphous silicon cells are expected to create growth opportunities owing to low material cost. An increase in photovoltaic applications has fueled the demand for first-generation cells, which include both monocrystalline and polycrystalline silicon cells.
The report predicts that the third-generation cells segment is expected to show a high growth rate owing to ongoing R&D and increased efficiency of solar panels. An increase in installations of solar energy systems in architecture and residential applications has also provided lucrative opportunities for the market.
Emerging economies such as China and Japan have significantly increased the production of solar technologies owing to governmental tariffs and merger & acquisition of local manufacturers.
North America and Europe have largely focused on research to maximise solar potential.
The Middle East and Africa have gained traction owing to an increase in solar applications power generation and agriculture.
Underdeveloped electricity infrastructure has increased the demand for solar energy in remote areas of Africa and Latin America. In addition, government incentives for solar panel installations have fueled market growth.
Other report findings include:
- Competition has significantly increased among manufacturers with the development of photovoltaic-based power distribution systems;
- Reduced profitability and market acquisition stress have lead to a decline in the prices of solar panels;
- The fluctuating price of silver, a raw material in solar modules, has impacted market growth.