Solar Photovoltaic (PV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Solar Photovoltaic Market Analysis

The global solar photovoltaic (PV) installed capacity is expected to register a CAGR of more than 22.91%, reaching almost 3228.73 GW by 2027, up from 766 GW in 2020. The COVID-19 outbreak had a very slight impact on the market growth and negatively affected the supply chain in Q1 and Q2 2020. In 2020, the global solar PV capacity additions were estimated to be around 107 GW, representing stable growth from 2019. The major factor driving the global solar PV market is the declining cost of solar PV and associated systems. In 2020, solar PV module prices reduced by more than 80%, as compared to that in 2010. The decline can be mainly attributed to the improvement in material efficiency, production optimization, and economies of scale. However, factors like the growth of other renewable technologies such as wind and bioenergy are expected to hinder the market growth during the forecast period.

• The solar photovoltaic market is majorly dominated by the ground-mounted segment than the rooftop segment due to higher capacity installations in the ground-mounted segment across the world. The higher demand for utility-scale is expected to continue during the forecast period, with strong demand from China and many emerging markets around the world installing notable amounts that are mostly ground-mounted.
• The efforts by several governments across the emerging nations in the regions like Africa and Southeast Asia to provide 100% electricity access in remote areas coupled with off-grid applications and technological advancements in the solar PV modules are expected to create an ample amount of opportunities in the near future.
• With leading countries like China, Japan, and India, Asia-Pacific is expected to dominate the market during the forecast period.

Solar Photovoltaic Industry Segments

The solar photovoltaic (PV) market report includes:

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Solar Photovoltaic Market Trends

This section covers the major market trends shaping the Solar Photovoltaic Market according to our research experts:

Ground-mounted Solar PV to Dominate the Market

• In 2020, the ground-mounted solar PV accounted for more than 60% of the global solar PV capacity, with countries like China, the United States, Germany, and India leading the market growth.
• The ground-mounted solar PV segment's dominance can be attributed to the factors such as the increasing number of utility-scale projects, solar energy targets, and declining costs of solar PV installations.
• Countries across the world are planning to develop large-scale solar PV projects in order to reduce their reliance on fossil fuel-based power generation and to diversify their energy mix.
• In January 2021, Sembcorp Energy India Ltd announced that it had won a new 400 MW solar power project in the Indian state of Rajasthan. Similarly, in February 2021, construction began on the Samson Solar Energy Center, the largest planned solar energy farm in the United States. The solar farm is expected to have 1,013 MW of generating capacity and is expected to be completed by 2023.
• Moreover, in the United States, the utility-scale solar PV sector has led the overall solar market, in terms of installed capacity, accounting for nearly 60% of installed capacity in 2020. Four new states, Washington, Wyoming, Vermont, and Connecticut, added their first utility-scale solar project in 2018. Three-quarters of all states in the country are now equipped with one or more utility-scale solar projects.
• Therefore, owing to the above points, the increasing installations of large-scale utility solar PV projects are expected to make ground-mounted solar PV a dominating segment during the forecast period.

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