Solar Power Market Size to Expand at a CAGR of 15.7 by 2030

Solar energy systems were valued at USD 160.3 billion in 2021 and will grow 15.7 percent between 2022 and 2030.

FREMONT, CA: The global market for solar energy systems was valued at USD 160.3 billion in 2021 and will grow at a CAGR of 15.7 percent by 2030. The rising demand for renewable energy generation sources to replace traditional energy sources will drive market expansion over the forecast period. Solar energy is more competitive in the energy generation business due to the lowering costs of solar energy systems. Due to substantial expenditures in solar energy technology, component prices will decrease in the future years, making solar energy systems less expensive than currently functioning coal or gas power plants. The demand for alternative energy sources and the reduction of reliance on fossil fuels will increase product demand.

Governments across the globe have established reduction goals for carbon emissions and are supporting the deployment of solar energy systems for both utility and non-utility applications. The US is one of the world's earliest adopters of solar energy for power generation. The market in the United States has been increasing gradually due to the presence of significant companies involved in research & development to boost component efficiency and reduce costs. In 2021, solar energy will account for around 2.8 percent of the nation's total energy generation. Research has been invested in more efficient solar technology to make it more accessible. In November 2020, for instance, the US Department of Energy announced 130 million dollars in research funding for breakthrough solar technologies.

Most research funds will be invested in PV hardware development, with a particular emphasis on extending the operational lifetime of silicon solar cells. The German government enacted a package of measures to promote renewable energy and reduce reliance on traditional energy sources. The program eliminated the cap on solar photovoltaic (PV) installations and made it possible for all buildings to install solar energy systems. Companies like Tesla and BYD Company Ltd. have invested in improved solar energy storage battery technologies. With more efficient battery technology, solar energy system installation for power generation will be more practical.

Product Insights

The global industry has been subdivided into solar panels, charge controllers, batteries, and inverters, among other goods. Solar panels are the most important component of a solar energy system because they transform solar energy into electrical energy. In 2021, the solar panel segment dominated the global industry and accounted for more than 41.45 percent of the total revenue. There are different solar panels, including thin film and crystalline silicon. There have been substantial expenditures in cutting-edge solar panel technology to boost efficiency and durability.

Solar panels will retain their dominance. In 2021, the charge controllers segment also retained a large revenue share. Charge controllers are utilized to prevent high-voltage damage to the battery and inverter. Charge controllers have been technologically consistent. From 2022 to 2030, the battery market will expand significantly. As batteries make it feasible to store and transmit solar energy even when there is no sunlight, such as at night, several companies in the industry have centered their efforts on batteries for solar energy storage.

The price of solar inverters has decreased dramatically over the past decade due to substantial advancements in inverter technology. Solar inverters transform the DC energy solar panels provide into AC charge that household appliances can use. The installation of the product necessitates racking, mounting, and wiring, which are included in the Others part. This market will develop at a sluggish CAGR over the next few years due to fewer investments and the segment's already low costs, which will impede industry expansion.