Market Size of Mexico Solar Energy Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Solar Energy Market Analysis
The Mexican solar energy market is expected to register a CAGR of more than 8% during the forecast period of 2020-2025. Mexico has some of the most attractive solar irradiation profiles across the world. The country's total territory lies between the latitudes 14°N and 33°N and the longitudes 86°W and 119°W, signifying that it is one of the few countries that lie within the most favorable sunbelt on the planet. Moreover, Mexico has emerged as one of the top markets for solar PV in recent years, owing to its aggressive deployment of solar PV plants that were awarded in the first three long-term auctions (LTAs) during 2015-2018. The country touched the GW mark in 2018 for the first time, with 2.7 GW newly installed capacity in the same year. In addition, the declining costs of solar technologies are becoming competitive with fossil fuel sources, and additional subsidies on solar systems are further driving the solar power market. On the other hand, in the absence of any new initiatives, limited land, and factors, such as cancellation of the fourth auction round by the new government, an underdeveloped power grid of Mexico is expected to hinder the growth of the solar PV market in the coming years.
- Utility-scale solar energy projects have been growing in Mexico, which may dominate the market during the forecast period, owing to higher investment and government policies. Many ambitious solar energy projects are lined up during the forecast period, which may drive the solar market at the estimated growth rate.
- In Mexico, the solar financing wave is being fueled in large part by the country's renewable energy goals, which are 35% by 2024 and 50% by 2050. The higher investment and government policies are expected to provide good opportunity to the Mexican solar energy market during the forecast period.
- Increasing solar energy installations, owing to the projects announced in the LTAs during 2015-2018, increasing demand for decentralized solar energy systems, and the ambitious renewable energy targets are expected to drive the solar energy market in Mexico during the forecast period.
