Solar Panels Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Solar Panels Market Research Report, Technology, Module Type, Application and Region – Forecast till 2027” the market grow at a rate of 27.18 % during the forecast period 2020-2027.
Initiatives to Encourage Renewable & Energy-Saving Resources is a Major Trend
The solar panels market is witnessing significant traction on the global platform. Factors such as the increasing installations worldwide and technological advances improving functionalities of solar modules contribute to the market growth. Moreover, increasing demand for solar-driven vehicles and electrical appliances foster the solar panel market value.
With the growing PV installations and adoption of storage grids, and substantial demand for solar panels in residential rooftop applications, the market is projected to witness a significant rise in its revenues. In this regard, Market Research Future (MRFR) asserts that the global solar panels market is projected to garner huge traction by 2027, registering an impressive CAGR during the forecast period (2020-2027).
Manufacturers strive to increase production capacities with improved cost efficiency and a leaner organization supported by new possibilities offered by digitalization. They are exploring the possibility of new development after mastering their existing product lines.
Increasing strategic partnership deals and approaches, such as collaboration, mergers & acquisitions, expansion, and product launches, are expected to be seen during the next few years. Industry players make strategic investments in driving research and development activities and fostering their expansion plans.
For instance, recently, on July 2, 2021, Romande Energie and Swiss research institute, Agroscope revealed that they are testing Insolight’s transparent PV panels in an agrivoltaic project. The modules are replacing the plastic covers used to grow strawberries and raspberries.
These solar modules act like a smart shade adjusting the amount of light to get through, making it possible to optimize the photosynthesis of plants and reduce the negative impact of high summer heat on the yields and quality of agricultural products while recovering the rest of the light in the form of electricity.
Rise in Solar Panel Installations in Commercial and Residential Sectors Boost Market Growth
The solar panels market outlook appears promising mainly due to the continually growing energy demand worldwide. Additionally, growing government initiatives and awareness for solar panels installation benefits influence the market growth. Also, the vast uptake of rooftop and ground-mounted solar panels in industrial sectors and utility-scale systems fosters the market’s growth.
Substantial investments to drive technological upgrades are other major trends influencing the market growth. Solar panels manufacturers are majorly investing in improving communication between the PV modules and smart grids. Besides, declining prices of main raw materials and components, such as silver & polysilicon, and other industrial commodities used to make solar panels push market growth.
Prohibitive Costs Associated with Installation of Solar Power Restrict Market Growth
High costs related to the production, installation, and maintenance of solar panels are major factors impeding the market growth. Nevertheless, factors such as rising electricity prices and the availability of cost-competitive solar panels would support the market growth throughout the assessment period.
COVID-19 Impacts on the Market
The COVID-19 disruptions could hardly affect the solar panel industry. On one side, industry players faced several challenges, such as disrupted supply chains, attracting workers from quarantines, and logistic issues in delivering end products. On the other hand, the pandemic reassured a robust rise in the renewable energy market, propelling the energy demand continually.
With the growing energy demand from the industrial sectors, the renewable energy market kept growing steadily throughout 2020. The solar panels market value is projected to pick up further, following lockdown mandates relaxed in many countries.
The market is segmented into technologies, module types, applications, and regions. The technology segment is sub-segmented into solar PV and CSP. Similarly, the module type segment is sub-segmented into crystalline, thin-film, parabolic troughs, linear fresnel reflectors, power towers, parabolic dishes, and others. The application segment is bifurcated into residential, commercial, power plants, off-grid, and others.
The Asia Pacific region dominates the global solar panels market. The region accounts for one of the largest producers and consumers of power globally. However, still witnesses a tremendous gap in the demand-supply of reliable power distribution. Besides, the availability of ample renewable/ natural resources and raw materials required for the production increases the region’s solar panels markets share.
Considerable investments in solar energy due to the rising focus on the development of renewable energy sources, especially India, China, and a few South Asian countries, boost the solar panels market size in this region. China and India are major markets for solar panels, witnessing extensive government support for renewable energy development. Furthermore, increasing investments in solar energy to reduce the dependency on fossil fuels substantiate the solar power market growth.
Segmentation of Market covered in the research:
Information by Technology (Solar PV, CSP), By Module Type (Crystalline, Thin Film, Parabolic Troughs, Linear Fresnel Reflectors, Power Towers, Parabolic Dishes) By Application (Residential, Commercial, Power Plants, Off-Grid) and Region (North America, Europe, Asia-Pacific, and Rest of the World)