Solar Energy Sector Volume Insights

The solar energy sector is expected to grow at 14.7% CAGR, with volume rising from 601,316.7 MWH in 2024 to 235,6207.5 MWH by 2034. The demand for solar energy is driven by its integration into electricity generation, lighting, heating, charging, and other applications.

Volume Insights Strategic Overview

Allied Market Research announces the release of its comprehensive analysis of the global solar energy sector. The demand for solar energy is driven by the rising adoption of clean, renewable, and sustainable power sources across residential, commercial, and industrial sectors. Rapid industrialization and urbanization, particularly in emerging economies, are fueling the need for reliable and cost-effective energy solutions to meet growing electricity demand. Moreover, supportive government policies, technological advancements in photovoltaic systems, and increasing investments in solar infrastructure are accelerating the deployment of solar energy in applications such as power generation, distributed energy systems, and building-integrated photovoltaics (BIPV).

Improvements in photovoltaic (PV) cell efficiency allow solar panels to convert more sunlight into electricity, increasing energy output without requiring additional space. At the same time, advancements in battery storage solutions enable the capture and use of solar energy even when the sun is shining, addressing the intermittency challenge. In addition, the integration of smart grids and intelligent energy management systems allows for more efficient distribution and monitoring of solar-generated power, optimizing both residential and commercial energy use. These technological developments collectively make solar energy a more reliable, efficient, and practical option for diverse applications. In April 2022, the BCD imposed 40% on solar modules and 25% on solar cells to promote domestic manufacturing. In the 2025 Union Budget, these duties were reduced to 20% each, with exemptions for selected raw materials. Major manufacturers such as Enphase Energy, Inc SunPower Corporation, JinkoSolar Holding Co., Ltd, First Solar, Inc, Trina solar, Canadian Solar, Hanwha Q CELLS Co., Ltd have significantly increased their production capacities. For instance, in the first half of 2024, the largest manufacturers shipped approximately 40% more solar panels compared to the same period in 2024. The development of high-capacity lithium-ion and emerging solid-state batteries enables excess solar energy to be stored for later use, addressing the intermittency problem that has historically limited solar adoption. This allows households and businesses to maintain a continuous power supply, even at night or during cloudy weather. Integration with energy management systems ensures that stored energy is optimally utilized, reducing dependence on conventional grid electricity. All these factors are expected to drive the growth of the solar energy market.

Building integrated photovoltaics represents an innovative approach to solar energy, where photovoltaic panels are seamlessly incorporated into building elements such as windows, roofs, and façades. As compared to traditional rooftop solar panels, BIPV serves a dual purpose; it acts as both a functional building material and a power generating system. This integration allows architects and developers to maintain the aesthetic appeal of a building while harnessing solar energy. By replacing conventional building materials with solar-generating alternatives, BIPV reduces the overall material cost of construction while providing clean energy. It helps in optimizing energy efficiency, as buildings can generate a portion of their electricity needs on-site, reducing dependence on the grid and lowering electricity bills. BIPV systems are particularly attractive for commercial and high-rise buildings where rooftop space may be limited, but façade or window areas are abundant. In February 2025, Microquanta launched the world's largest building integrated photovoltaic (BIPV) project, harnessing perovskite panels, at the university student entrepreneurship center in Shanxi. The installation, perched atop the translucent roof of the center in Shenchi County, Shanxi Province, boasts a capacity of 17.92 kwp. The double-glass perovskite modules, each measuring 1,200 mm x 1,000 mm, are engineered for a light transmittance of approximately 40%. All these factors are anticipated to offer new growth opportunities for the solar energy sector during the forecast period.

The growing support from governments through incentives, subsidies, and sustainability funding is further catalyzing innovation in the solar energy sector. As industries and corporations increasingly prioritize environmental, social, and governance (ESG) goals, the demand for clean, renewable, and low-carbon energy solutions is expected to rise. This trend is opening new growth avenues for solar energy developers and manufacturers who successfully adapt to the global green transition and integrate advanced, cost-efficient, and sustainable technologies into their operations. The global volume of solar energy is expected to grow from 601316.7 MWH in 2024 to 2356207.5 MWH by 2034, registering a CAGR of 14.7% during the forecast period.

Regional solar energy sector Volume Growth

Asia-Pacific dominated the solar energy sector with 45% share in 2024 and is expected to grow with a CAGR of 15.1%, while North America, Europe, and LAMEA are expected to show robust growth at 14.2%,14.4%, and 14.7% CAGR, respectively.

The regional analysis highlights significant variations in adoption trends and industry potential across the globe. Asia-Pacific leads the solar energy sector, contributing over 45% of the total volume in 2024 and is expected to grow at a CAGR of 15.1%, driven by increase in construction activities, infrastructure development, and surge in demand for lightweight, durable materials in countries such as China, India, and the rest of Asia-Pacific. North America, led by the U.S. and Canada, is projected to maintain steady growth at 14.2% CAGR, fueled by rise in its applications in residential, commercial and industrial. Europe, with key players such as Enphase Energy, Inc SunPower Corporation, JinkoSolar Holding Co., Ltd, First Solar, Inc, Trina solar, Canadian Solar, Hanwha Q CELLS Co., Ltd is expected to grow at 14.4% CAGR, supported by advancements in automotive and stringent regulations favoring sustainable construction. All these factors are expected to offer growth opportunities for the LAMEA region with a CAGR of 14.7%. Countries such as Brazil, South Africa, and the UAE have witnessed surge in demand for cost-effective, moisture-resistant, and high-strength materials, further propelling industry expansion.

Solar Energy Sector Sales

China is projected to lead the solar energy sector and is expected to reach 419,132.4 MWH by 2034 at a CAGR of 14.5%. Japan is the fastest-growing country, followed by Australia in terms of CAGR, where Japan has emerged as a high-growth region in the solar energy sector, fueled by robust demand from the monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, and others. Japan is the fastest-growing country, followed by Australia, in terms of CAGR in the solar energy market. Japan has emerged as a high-growth region, driven by strong demand for clean and sustainable energy solutions across residential, commercial, and industrial sectors. The government’s focus on achieving energy self-sufficiency, coupled with substantial investments in renewable infrastructure and technology innovation, is accelerating solar adoption across the nation. Rapid urbanization, growing electricity consumption, and increasing emphasis on reducing carbon emissions are further propelling the market. Countries such as China, India, Indonesia, and Vietnam are also emerging as key growth hubs for the solar energy sector, supported by favorable government policies, declining solar panel costs, and a surge in both domestic and foreign investments. The growth is further fueled by rising demand for renewable and eco-friendly power generation sources, advancements in photovoltaic (PV) technologies, large-scale solar farm developments, and growing awareness of sustainable energy practices aimed at achieving carbon neutrality and environmental conservation.

The report identifies China and the U.S. as the largest contributors to the solar energy sector in terms of volume. In China, the use of solar energy has become popular due to increase in number of infrastructure and construction projects, where the solar energy sector is projected to reach 419,132.4 MWH by 2034, exhibiting a CAGR of 14.5%. However, the U.S. remains an important player in North America, growing at a CAGR of 14.5% by 2034, driven by rise in demand for solar energy in the electricity generation, lighting, heating, charging, along with advancements in sustainable building materials.

Countries such as Japan and China are expected to drive significant growth due to the adoption of solar energy in electricity generation, lighting, heating, charging, where Japan is expected to grow with a CAGR of 14.7%, the highest among major countries. China is projected to grow at a CAGR of 5.0%, witnessing significant growth due to increase in demand for electricity generation, lighting, heating, charging.

Key Highlights by Stakeholders

Rising demand for solar energy across residential, commercial, and industrial sectors is significantly driving the growth of the solar energy market. As economies increasingly transition toward clean, renewable, and energy-efficient sources, solar power has become a critical enabler of sustainable development. Its advantages such as scalability, low operational costs, and zero greenhouse gas emissions, support a wide range of applications from rooftop solar systems and utility-scale power plants to off-grid and hybrid renewable projects. Solar energy technologies such as photovoltaic modules and concentrated solar power (CSP) systems play a vital role in enabling energy independence, reducing carbon footprints, and ensuring long-term cost efficiency across diverse end-use industries.

The Asia-Pacific region is witnessing a significant surge in solar energy industry activity, particularly in countries such as China, India, Japan, Australia, and South Korea. The growing presence of both established energy corporations and innovative clean-tech startups is driving advancements in solar module manufacturing, storage integration, and smart grid solutions. These emerging companies are introducing high-efficiency photovoltaic technologies, sustainable production methods, and digital energy management platforms to address the rising demand for reliable and affordable solar power. This regional momentum is further bolstered by favorable government policies, abundant solar irradiation, rapid urbanization, and increased investments in renewable infrastructure, contributing to the development of a robust and dynamic solar energy ecosystem across the Asia-Pacific.

Continuous Solar Energy Sector Volume Trends

The report emphasizes that the growing demand for solar energy and advancements in solar power technologies are enabling the development of efficient, renewable, and high-performance energy systems with superior conversion efficiency, durability, and sustainability. These technologies are extensively utilized across critical applications in residential, commercial, and industrial sectors. Their adaptability and scalability make solar energy indispensable for powering modern infrastructure, industries, and communities that prioritize efficiency, reliability, and environmental responsibility. By supporting diverse applications from rooftop and utility-scale installations to off-grid and hybrid systems, solar energy continues to play a vital role in achieving global clean energy goals and driving the transition toward a sustainable, low-carbon future.

Furthermore, the study highlights the importance of adherence to industry-specific standards that govern the solar energy sector. The rapid expansion of high-efficiency and application-specific solar technologies is driven by the growing demand for clean electricity, sustainable infrastructure, and advanced energy storage solutions. From rooftop solar panels in residential buildings and utility-scale photovoltaic (PV) farms to solar-powered charging stations and hybrid renewable systems, solar energy is evolving to deliver superior efficiency, reliability, and environmental benefits. These advancements are transforming the sector, enabling the creation of sustainable, customizable, and long-lasting energy solutions that cater to the evolving needs of modern manufacturing, smart cities, and green mobility. By integrating innovations such as bifacial modules, perovskite cells, and intelligent energy management systems, the solar industry is paving the way for a resilient, low-carbon future built on renewable power and technological excellence.

About Allied Market Research

Allied Market Research is a full-service market research and business consulting firm, providing actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com.

About Allied Market Research

Allied Market Research is a full-service market research and business consulting firm, which provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com