Photovoltaic Market Outlook - 2026
The global photovoltaic market was valued at $53,916.0 million in 2018, and is projected to reach $333,725.1 million by 2026, growing at a CAGR of 25.1% from 2019 to 2026.
Photovoltaic energy is the energy produced by the radiation of the sun. This energy is transformed into electricity with the help of photovoltaic cells. This electricity can then be used in powering electrical equipment, fed into the electricity network for use or stored in a battery. On a commercial scale, photovoltaic technology is used in solar lamps, parking meters, emergency telephones, trash compactors, temporary traffic signs, charging stations, and remote guard posts and signals. Moreover, it is also used in solar panel of solar buses and cars to provide electricity to run the vehicle motor. Furthermore, in the agricultural sector, photovoltaic electricity is widely used in solar drying to dry crops faster. It is also used to generate electricity to run water pumps and is a cheaper option than new electric lines for providing power to remote locations. Moreover, in industrial sector, photovoltaic energy is used in the aerospace & defense sector to generate electricity for smooth working of satellites in space. These factors are anticipated to increase the demand for photovoltaic energy.
Owing to the increasing energy demand due to the rising population, there is an increasing need for sustainable energy resources, coupled with favorable government regulations. These regulations focus on the reduced dependency of fossil fuels and help control environmental pollution. This in turn favors the demand for renewable energy sources such as solar energy and is the key factor that fuels the demand for photovoltaic energy. In addition, reduction of the carbon footprint and low cost energy generation are expected to propel photovoltaic demand and are expected to drive the growth of the photovoltaic industry.
However, factors such as high cost of installation, storage, and power conversion devices and low efficiency of PV module are expected to hinder the growth of this market. On the contrary, increase in demand for renewable energy and rise in prices of fossil fuels are anticipated to provide lucrative opportunities for market expansion.
The global photovoltaic market is segmented based on technology, system, application, and region. Depending on technology, the global photovoltaic market size is classified into thin film (cadmium telluride, copper indium gallium diselenide and amorphous thin-film silicon), Mono Si and Multi Si. The system covered in the study are high concentrated PV (HCPV) and low concentrated PV (LCPV). On the basis of application, the photovoltaic market size is classified into industrial, residential and commercial. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Thailand, Australia and rest of Asia-Pacific), and LAMEA (Chile, South Africa, Turkey and rest of LAMEA).
The major key players operating in the photovoltaic industry include Abengoa, Acciona, Canadian Solar, First Solar, JA Solar Co., Ltd., Renesola, Sharp Corporation, Tata Power Solar Systems Ltd., Trina Solar and Wuxi Suntech Power Co., Ltd. Other players operating in this market include Kaneka Corporation, Kyocera Corporation, Mitsubishi Electric Corporation, Panasonic Corporation, and Jinko Solar. These major key players are adopting different strategies such as collaboration, partnership, product launch, joint venture, agreement and acquisition to stay competitive in the global market.
Global Photovoltaic Market, By Region
Asia-Pacific accounted for the major share in 2018 in the global photovoltaic market, owing to increase in usage of photovoltaic energy over conventional fuels owing to its low electricity generation cost and zero carbon emission. Due to rapid industrialization and urbanization across the countries of Asia-Pacific region like India, China, and Thailand has led to increase in demand for electricity. In addition, stringent government regulations over carbon emission and reduction in conventional energy sources such as crude oil and coal lead to increase in demand for photovoltaic technology for the production of electricity. These factors are anticipated to increase the demand for photovoltaic technology across the Asia-Pacific region and is likely to drive the growth of photovoltaic market.
Global Photovoltaic Market, By Technology
Based on technology, the thin film segment held the major share in 2018. Thin-film photovoltaic modules are manufactured using silicon, cadmium, and copper as raw material and are incorporated in solar panels to produce electricity. The increase in demand for solar panels for production of electricity to be used for residential application like rooftop photovoltaic power station in countries such as U.S., UK, Germany, Italy, China, and France is expected to increase the demand for thin film technology and is expected to drive the growth of photovoltaic market.
Global Photovoltaic Market, By System
Depending on system, the low concentration PV segment accounted for the major market share in 2018, due to increase in use of LCPV system in solar panels to produce electricity to be used for residential, commercial, and industrial purpose. It is widely used in automobiles such as solar buses and cars that run on solar energy, as it helps curb the carbon emission from the vehicles. In addition, it is also used in agriculture sector to produce electricity at low cost to run water pumps. The rise in demand for solar vehicle across the U.S., Germany, and China is expected to increase the requirement of LCPV system and is expected to drive Photovoltaic market growth.
Global Photovoltaic Market, By Application
Depending on application, the industrial segment garnered the major photovoltaic market share in 2018. This is attributed to the fact that photovoltaic technology is considerably used for power generation in the telecommunication and aerospace & defense industries. This technology is majorly used in the aerospace & defense sector to power military satellite using solar panel. The increase in investment in R&D of satellites for civil & military purpose in countries across China, India, UK, U.S., France is anticipated to drive the growth of the photovoltaic market. In addition, continuous development in telecommunication technologies such as 4G and 5G technologies has led to set up of new towers to increase the bandwidth of mobile services. This factor is expected to drive the global photovoltaic market growth.
Key Benefits for Photovoltaic Market :
- The photovoltaic market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides an in depth analysis of the photovoltaic market forecast for the period 2019-2026.
- The report outlines the current market trends and future scenario of the global photovoltaic market from 2018 to 2026 to understand the prevailing opportunities and potential investment pockets.
- The key drivers, restraints, and photovoltaic market opportunities and their detailed impact analysis is elucidated in the study.
Photovoltaic Market Report Highlights
Key Market Players
CANADIAN SOLAR, INC., WUXI SUNTECH POWER CO., LTD., TATA POWER SOLAR SYSTEMS LIMITED., ABENGOA SE, RENESOLA LTD., FIRST SOLAR, INC., JA SOLAR HOLDINGS CO. LTD., SHARP CORPORATION, TRINA SOLAR CO., LTD., ACCIONA S.A.
The photovoltaic market is expected to witness high growth during the forecast period, as photovoltaic is preferred over other sources of electricity generation, as it requires minimum maintenance and is pollution free. The photovoltaic market is expected to grow at a rapid pace during the forecast period, owing to increase in demand for electricity and rise in initiatives by government to reduce CO2 emissions. In addition, the photovoltaics technology has gained popularity in the recent years, owing to increase in awareness of renewable sources of energy.
The Asia-Pacific photovoltaic market offers lucrative opportunities for key manufacturers, owing to rapid installation of photovoltaic technology to increase renewable energy generation. In addition, China actively enhances its photovoltaic power to cope up with its pollution demands and to boost its domestic manufacturing industry.