Solar Power Market Overview Analysis By Fortune Business Insights Analysis
Market Size & Future Outlook
According to Fortune Business Insights: The global solar power market size was valued at USD 253.69 billion in 2023 and is estimated at USD 273 billion in 2024. It is projected to reach USD 436.36 billion by 2032, exhibiting a CAGR of 6% during 2024–2032. Asia Pacific dominated the market with a 41.30% share in 2023, valued at about USD 104.79 billion. The U.S. market is projected to reach roughly USD 103.96 billion by 2032.
Market Overview
Solar power converts sunlight into electricity through photovoltaic (PV) panels or concentrated solar power (CSP) systems. It is one of the central technologies in the shift from coal and oil to renewable energy, with renewables supplying about 29% of global electricity generation. Utilities, businesses, and households are adopting solar as governments set clean energy targets and carbon-reduction pressure grows.
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Market Drivers
- Government green energy targets: Brazil aims for 42.5% renewable primary energy supply, the U.K. for about half of its electricity from renewables by 2025, Germany for 65% renewable energy by 2030, and China for 16% by 2030.
- U.S. clean energy plans: Nearly a trillion dollars of planned investment over a decade, including about USD 5 billion in announced solar manufacturing investment, along with tax credits and feed-in tariffs.
- Replacement of coal and oil: Rising renewable adoption is displacing fossil fuel generation.
- Carbon reduction: Energy-related CO₂ makes up about two-thirds of greenhouse gases, adding pressure to decarbonize.
- Grid and storage build-outs: Utilities are investing to integrate renewable power.
Market Restraints
- High upfront cost: The report's example prices 15 ground-mounted 300-watt panels at USD 14,625, plus about USD 500 per panel for mounting structure.
- Limited grid connectivity: Transmission infrastructure is weak in many rural areas.
- Low awareness: Parts of Asia Pacific and Europe still show low awareness of solar benefits and a continued preference for grid power.
Market Opportunities
The report has no dedicated opportunities section. Its discussion points to new PV and CSP methods being developed by major players, and to thermal energy storage, which makes CSP better suited to storage than PV and is expected to support CSP growth.
Market Trends
Artificial intelligence is being applied to forecasting, asset management, and automation, alongside integration with big data, IoT, sensors, and distributed ledger technology. Efficiency gains continue, such as a reported 29.2% perovskite-silicon tandem cell, and module-level power electronics and trackers are advancing.
Segmentation Analysis
By Technology: Solar PV holds the largest share and is divided into mono-Si, thin film, multi-Si, and others. CSP is divided into parabolic trough, power tower, and linear Fresnel.
By Application: Utility holds the largest share, driven by installation targets and the efficiency of large PV plants. Residential is growing with energy demand and construction, and non-residential is also covered.
Regional Analysis
Asia Pacific leads with a 41.30% share in 2023 (about USD 104.79 billion). China is the main demand driver and India is a key potential market.
North America is expected to hold a substantial share, supported by rising electricity demand and favorable regulation.
Middle East & Africa is projected to be the fastest-growing region between 2022 and 2030 as countries reduce reliance on natural gas and oil.
Japan is expected to see steady growth. Europe and Latin America are covered in the report, but this page gives no figures for them.
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Competitive Landscape & Key Developments
The top 10 players hold most of the market. Profiled companies include Trina Solar, First Solar, Yingli Solar, Tata Power Solar, Abengoa, Canadian Solar, Waaree Group, General Electric, BrightSource Energy, SunPower, Convert Italia, Urja Global, and eSolar. Trina Solar had reportedly shipped 100 GW of modules as of April 2022.
Notable developments include:
- Solaria planning a 430-watt panel for module-level power electronics (March 2022).
- Canadian Solar signing two 10-year PPAs with Axpo Italia (March 2022) and acquiring the Firefly solar project from Appalachian Power (January 2022).
- Solliance reporting 29.2% efficiency for a perovskite-silicon tandem cell (October 2021).
- FTC Solar launching the Voyager+ tracker (January 2021).
Outlook Summary
The solar power market is positioned for steady growth through 2032, driven by government targets, falling reliance on fossil fuels, and carbon-reduction goals. High upfront costs, rural grid limits, and low awareness remain restraints, but AI-enabled management, storage-friendly CSP, and rapid expansion in Asia Pacific and the Middle East & Africa are expected to sustain growth.
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