According to a new report published by Allied Market Research, titled, "Solar Energy Market by Technology, Solar Module, Application and End-Use: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global solar energy market size 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.
Solar energy system is used to harness the energy emitted from the sun. It is an efficient renewable energy, and mitigates environmental risks that arise from greenhouse gas emissions.
The global rise in demand for alternative energy source has propelled the demand for solar energy. Moreover, market assisting programs and government incentives for rooftop installations of solar panels drive the growth of the market, with increasing applications in residential, nonresidential, and commercial sectors. However, geographical footprint has affected the solar energy market growth, owing to decrease in conversion efficiency of solar panels. Increase in governmental tariff plans and renewable energy certificates such as solar energy renewable certificates (SREC) are expected to drive the market growth. In addition, investments in R&D to develop high-efficiency third-generation solar modules such as perovskites is projected to provide growth opportunities for the market.
Increase in installations of rooftop solar panels positively impacts the growth of the solar energy market. Photovoltaic systems have gained major traction owing to increase in applications in residential and nonresidential sector for electricity generation. Furthermore, increase in installation of concentrated solar power systems (CSPs) in forms of parabolic troughs and solar power towers is anticipated to fuel the growth of the market, owing to increase in application for electricity generation. Photovoltaic systems segment has dominated the market in 2018. The concentrated solar power systems segment is expected to grow at a CAGR of 10.3% during the forecast period.
Emerging economies such as China, Japan, and South Africa have experienced significant rise in the demand for solar energy with increasing applications in residential and nonresidential sectors. China has increased their photovoltaic (PV) installations and rise in governmental tax incentives have favored the growth of solar energy market, especially in India. Furthermore, lack of electricity network has accelerated the market growth potential in remote areas of Africa and Latin America.
Key Findings of the Solar Energy Market :
- The photovoltaic system is expected to grow at a CAGR of 25.1% from 2019 to 2026.
- The parabolic troughs under concentrated solar power systems is expected to grow at a CAGR of 10.3% during the forecast period.
- The solar power tower segment is expected to grow at a CAGR of 12.5%.
- North America is expected to register a CAGR of 19.0% during the forecast period.
- In Asia-Pacific, China expected to grow at a high CAGR of 25.0%.
Top players in operating in the market include Abengoa Solar S.A., Acciona Energia S.A., Wuxi Suntech Power Co. Ltd., Bright Source Energy Inc., Esolar Inc., Gintech Energy Corp., Kaneka Corp., Sunpower Corporation, Canadian Solar Inc., and Tata Power Solar.