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The global solar power market size is projected to reach USD 293.18 billion by 2028, exhibiting a CAGR of 6.9% during the forecast period. The market’s value stood at USD 170.55 billion in 2020, according to a report by Fortune Business Insights™, titled “Solar Power Market, 2021-2028”.
Incorporation of AI in Solar Energy Management to Brighten Market Outlook
Artificial intelligence (AI) has proliferated across a wide range of industries and is transforming the solar industry as well. Governments and private companies are increasingly utilizing the power of AI to optimize the operations of solar power plants and augment solar projects. For example, the US Department of Energy (DOE) has deployed IBM’s AI software for its SunShot Initiative. The software combines cloud information, sensor networks, and local weather stations derived from sky cameras and satellite imageries. In Australia, New Energy Solar announced in March 2019 that it will be using cutting-edge predictive technologies at its Manildra Solar Plant, in partnership with the Canberra-based solar forecasting vendor, Solcast. The introduction of AI in solar management is, therefore, creating massive opportunities for stakeholders in the solar industry.
Based on technology, this market has been divided into solar photovoltaic (PV) and concentrated solar power (CSP). On the basis of application, the market has been trifurcated into residential, non-residential, and utility. Among these, the utility segment led the market with a share of 34.8% in 2020. By geography, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
The economic fallout of the COVID-19 pandemic is being experienced by multiple industries and with major economies undergoing unprecedented contraction businesses are going to take a long time to return to pre-pandemic growth levels. The solar power market growth is experiencing considerable setbacks as well due to supply chain disruptions and delayed projects, driven by social distancing measures and staggered lockdowns. As a result, the market displayed a low growth rate in 2020 and reached a value of USD 184.03 billion in 2021.
Highlights of the Report
The report offers a critical examination of each individual market segment, along with a piecemeal analysis of the factors driving and restraining the market growth. Further, the report also incorporates accurate projections of upcoming trends and opportunities in the market and delivers detailed research into the regional developments and competitive environment of the market.
Increasing Research into Solar Power Storage to Boost the Market
Solar energy is at the forefront of renewable energy sources, owing to its abundant availability and high reliability. With their hearts full of hope, scientists are intensely engaged in researching the potential of solar power in providing sustainable energy for the world and curbing the worsening effects of climate change and global warming. For example, in March 2021, researchers at Duke University, USA discovered how the molecular structure of halide perovskites can help deliver the more favorable properties for wider solar energy applications. Another study conducted by scientists at the Linköping University in March 2021 found that the efficiency of solar cells can be improved from the current 33% to 40% by tapping a phenomenon known as singlet fission. The team also solved the problem of energy being lost during this process, a finding that can significantly augment the potential of solar cell technology. These researches are playing an instrumental role in deepening the presence of solar in energy generation and storage.
Skyrocketing Demand for Electricity to Power the Market in Asia Pacific
Asia Pacific, with market size of USD 80.06 billion in 2020, is expected to dominate the solar power market share during the forecast period on the back of escalating demand for electricity in the region. The principal reason for this is the rapid economic development, mainly in India and China, which is creating a huge demand for energy in these countries. Moreover, ambitious clean energy targets by countries in this region are also set to produce enormously profitable opportunities for the market in the upcoming years.
In Europe, the main market drivers include the speedily rising number of solar farms in the continent, bolstered by favorable clean energy policies of the European Union (EU). In the Middle East & Africa, the initiation of large-scale projects for this type of power generation will propel the regional market.
Expansion in Fledgling Markets to be the Top Growth Strategy for Key Players
Key players in the solar power space are embracing opportunities to expand their businesses in burgeoning markets, especially in tropical countries, where sunlight is received for long periods of time. This growth strategy is enabling companies to broaden their sales horizons, diversify distribution networks, and ultimately strengthen their global market presence.
- October 2020: Total Solar announced that it has successfully installed a 3 MW rooftop solar system for Danone-AQUA, the Indonesian drinking water company. The solar unit is the largest of its kind in the Central Java province and is forecasted to save 3,340 tons of carbon dioxide emissions annually.