Solar Energy Systems Market is Booming globally with Marginal Growth

Posted by Mrudula Anil Karmarkar on January 8th, 2025

San Francisco, 08 January 2030: The Report Solar Energy Systems Market Size, Share & Trends Analysis Report By Product (Solar Panels, Batteries, Inverters), By Source (New Installation, MRO), By End-use (Residential, Commercial), By Region, And Segment Forecasts, 2022 - 2030

The global solar energy systems market size is expected to reach USD 607.8 billion by 2030, according to a new report by Grand View Research, Inc. The industry is expected to grow at a CAGR of 15.7% from 2022 to 2030. Increasing demand for clean and renewable energy production coupled with stringent regulations regarding carbon emissions is expected to boost the industry growth over the forecast period. Governments across the world have started to adopt solar energy for power production due to it being clean and renewable. Many countries have set targets to reduce their carbon emissions and reduce reliance on conventional energy sources by promoting the use of solar energy for power production. The economies of scale achieved due to this increased demand have, in turn, decreased the cost of the components, and product installation viable on a smaller scale.

Increasing energy need from emerging economies, such as India, China, and Brazil, is expected to have a positive impact on the industry. The decline in the price of solar energy system components has increased the viability of product installations in residential and commercial sectors. The MRO sector in the industry is expected to grow significantly during the forecast period owing to the increasing adoption of solar energy systems leading to increasing demand for repair and overhaul of existing solar energy systems. Regions, such as Middle East & Africa and Asia Pacific, are expected to have significant growth over the forecast period owing to the high number of investments for solar energy in these regions coupled with rising energy demands. The prices of the components have been declining consistently for the last 10 years and this trend is expected to continue over the forecast period, which, in turn, will fuel the demand in the residential, commercial, and industrial sectors across the globe.

The growing demand for sustainable energy production sources to replace the conventional sources of energy is expected to boost the industry growth over the forecast period. The declining costs of solar energy systems have made solar energy more competitive in the energy generation industry. The prices of components are expected to further reduce in the coming years owing to high investments in solar energy technologies, which, in turn, is expected to make solar energy systems cheaper than currently operating coal or gas power plants. The demand for alternative sources of power generation and reducing dependence on fossil fuels is expected to boost product demand.

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Governments all across the world have set targets to reduce carbon emissions from countries and are promoting the adoption of solar energy systems for utility and non-utility end-uses. The U.S. is one of the early adopters of solar energy in the world for the purpose of power generation. The market in the U.S. has been growing steadily with the presence of key players engaged in research and development to increase efficiency and decrease the cost of the components. In 2021, solar energy accounted for about 2.8% of the total energy production in the country. The country has been investing in research for more efficient solar technology to make it more accessible for residential and commercial uses. For instance, in November 2020, the U.S. department of energy announced research funding worth USD 130 million for advanced solar technologies.

Solar Energy Systems Market Report Highlights

• Various governments have set targets to reduce the carbon emission of countries and have implemented policies to promote the adoption of solar energy systems in the residential sector, which is expected to boost industry growth
• The solar panel product segment accounted for the maximum revenue share in 2021. Solar panels are the most complex components in the solar energy systems and received the highest investments for R&D
• The utility end-use segment accounted for the maximum revenue share in 2021. Countries all across the world are investing in new utility-scale projects to replace conventional power production
• Asia Pacific is projected to grow at the fastestCAGRduring the forecast period
• East Asia sub-region is expected to account for the maximum share in the Asia Pacific regional market
• North America led the industry in 2021 and will continue the trend throughout the forecast years. Solar power accounted for 2.8% of the total electricity generation mix in the U.S. in 2021

The majority of the research funding will be invested in PV hardware research and will be focused on increasing the operational lifespan of silicon solar cells. The government of Germany introduced the ‘Package for the future-expansion of renewable energies in 2020, which was aimed at promoting renewable energy and reducing the reliance on conventional energy sources. The policy removed the limit on solar PV build-out and made it possible for any buildings to install solar energy systems. Companies, such as Tesla and BYD Company Ltd., have been investing in better battery technologies for solar energy storage. This is expected to boost the product demand as more efficient battery technology increases the viability of solar energy system installation for power generation.

Solar Energy Systems Market Report Scope

The industry is highly competitive with players involved in R&D and continuous launches of more efficient products. The industry is highly fragmented with various companies involved in a particular component. For instance, companies, such as Jinko Solar and LONGi Solar, are almost exclusively involved in the production of solar panels. These companies do not manufacture other components in the system and focus on developing more efficient solar panels. Companies, such as Huawei Technologies Co., Ltd., and Fimer Group, manufacture solar PV inverters.