Solar Panels Market (By Technology: Thin Film, Crystalline Silicon & Others. By Application: Commercial, Residential, Industrial & Others. By Region) - Global Industry Analysis, Growth, Trends & Forecast, 2022 to 2032

The global solar panels market was valued at $160.3 billion in 2021 and it is expected to reach $398.2 billion at a CAGR of 8.4% between 2022 and 2032. The market is anticipated to be driven by the growing use of solar panels in the European region, particularly in nations like Spain and Italy whose advantageous geographic location exposes them to the most sunlight throughout the year. During the projection period, there is predicted to be an increase in the total installed capacity of solar energy due to factors including significant PV projects that are now under construction or in the planning stages and government support initiatives.

By region, Asia-Pacific accounted for the largest market share and is expected to dominate the market in the future.

Sunlight from solar panels is captured as clean, renewable energy and transformed into electricity, which is then used to power electrical loads. Multiple individual sun cells make up solar panels, and each solar cell is made of layers of silicon, phosphorous, and boron. Additionally, the energy produced when photons collide with the solar panel's surface enables electrons to be dislodged from their atomic orbits and discharged into the solar cells' electric field, where they are attracted to a directed current.

Source: SAI Research

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With floating solar, there is no longer a need to own pricey land parcels to harvest solar energy, particularly farms that are close to any substation. As a result, the cost of producing solar energy is greatly reduced, and the land is made available for other uses. Additionally, the need for land for solar installation has increased the cost of even desert wastelands by a factor of 10 to 20 in California, the United States. The high cost of land is reflected in the overall cost of producing solar energy.

Moreover, reservoirs can be rented out for power generation without incurring any reclaim costs by owners of floating solar installations. As opposed to land-based solar installations, installing floating solar panels does not necessitate any type of construction work or plantation removal. The aquatic environment's cooling effect keeps the panels cool and makes it possible for them to produce more power than their equivalents on land.

Furthermore, large solar projects need a lot of areas, such as utility-scale or large industrial-scale plants. Additionally, any considerations like the availability of solar radiation limit the choice of land. Due to poor accessibility and unstable soil, installing solar systems in agricultural or forested areas presents challenges. The fact that energy can only be created while the sun is shining, meaning that evening hour and overcast days can interfere with energy generation, is the most worrying problem that solar energy innovation brings. As sunny times can create an excess of electricity that could lead to a short circuit, this interference would not be a problem if there were inexpensive ways to store energy.

Based on technology type, the thin film segment accounted for the highest market share and is also anticipated to drive market growth over the forecast period. Cells from the second generation of solar technology known as thin-film solar module cells are created by depositing thin layers or a thin film of photovoltaic material on substrates like glass, metal, or plastic. Additionally, thin-film solar PV panels are widely used in industrial and utility-scale projects due to their lightweight design and low installation costs. These advantages should speed up market expansion. However, the crystalline segment is also projected to gain more market share due to its increasing demand in commercial sectors. Mon crystalline solar PV panels have better space efficiency than thin-film solar PV panels because they are composed of the highest-grade silicon. Due to the high initial cost of these panels, manufacturers of mono-crystalline panels only focus on the top end of the market.

In terms of application type, the commercial segment has the highest market share and this segment is anticipated to propel the market growth over the forecast period from 2022 to 2032. Commercial solar PV panels can be used to power industrial buildings in off-grid or remote regions, pre-heat ventilation air, and heat water in offices, industries, and other sites. They have a lifespan of 15 to 20 years. Additionally, office buildings are better suited for installing solar panels and producing renewable electricity because the majority of their daytime work is substantially greater. On the other side, the residential market is also expected to boost market growth in the future. Solar energy systems aid households in lowering their utility costs. Solar water heating, passive solar design for space heating & cooling, and solar photovoltaic for electricity generation is the most popular solar technologies for residential dwellings. Reliable secondary power is provided in residential homes by rooftop solar PV systems that are integrated with energy storage batteries.

Geographically, the Asia-Pacific region is estimated to gain significant growth during the forecast period and is also expected to hold its dominant position throughout the upcoming years from 2022 to 2032. High power demand, rising living standards and adequate solar irradiation are a few of the major drivers of the area market's expansion. The increased installation of solar power projects in China and India is to blame for the rising demand for solar PV panels in the Asia Pacific. Additionally, by supplying the region's electricity demands, solar energy is regarded as the best alternative to traditional energy sources for reducing carbon emissions. On the other side, Europe is also expected to dominate the market with a significant market share. The major drivers of the market's expansion include favorable rules, targets for renewable energy, and an increase in the number of solar farms.         

According to the study, key players such as Abengoa (Spain), Azure Power (India), Acciona (Spain), Canadian Solar (Canada), eSolar (U.S), General Electric (U.S), Hanhwa (South Korea), First Solar (U.S), Jinko Solar (China), JA Solar Technology (China), Risen Energy (China), SFCE (China), SunPower (U.S), Tata (India), Talesun (Germany), Trina Solar (China), Urja (India), Vivaan Solar (India), Xian LONGI Silicon Materials (China), Yingli (China), among others are leading the global solar panels market.

Scope of the Report:

The Global Solar Panels Market Has Been Segmented Into:

The Global Solar Panels Market – by Technology Type:

• Thin Film
• Crystalline Silicon
• Others

The Global Solar Panels Market – by Application Type:

• Commercial
• Residential
• Industrial
• Others

The Global Solar Panels Market – by Regions:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The U.K.
  • France
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • Japan
  • Australia
  • Rest of Asia Pacific
• LAMEA
• Middle East
  • Saudi Arabia
  • UAE
  • Others
• Latin America
  • Brazil
  • Chile
  • Others
• Africa
  • South Africa
  • Egypt
  • Other