The Solar Energy Market was valued at approximately US$ 207,270 million in 2022 and is anticipated to grow to around US$ 552,450.28 million by 2030, reflecting a compound annual growth rate (CAGR) of 13.0% from 2022 to 2030.
Rising energy costs and the unpredictability of energy supply in remote areas have significantly increased the adoption of solar photovoltaics. Building-integrated photovoltaics (BIPV) are systems that generate solar power while also serving as integral components of buildings, such as roofs, windows, and facades. These systems not only convert solar energy into electricity but also provide essential building functions, including waterproofing, protection from weather elements, and noise reduction. Moreover, the use of solar energy for industrial heating applications is rapidly expanding, covering areas such as enhanced oil recovery, water desalination, food processing, mineral processing, and chemical manufacturing. Consequently, the increasing deployment of solar photovoltaics across residential, commercial, and industrial sectors?including rooftop installations, rural housing in developing countries, offshore oil platforms, lighthouses, desalination facilities, and remote healthcare clinics?is propelling the solar energy market. Key players in this sector include Canadian Solar Inc., JinkoSolar Holding Co., First Solar, Inc., and JA Solar Holdings Co., Ltd., which manufacture solar panels and components for various applications.
The renewable energy sector in North America is primarily driven by favorable legislation, such as the Inflation Reduction Act in the United States, which enables companies like CSIQ to maximize the value derived from solar and storage assets. The United States, Canada, and Mexico are placing significant emphasis on renewable energy sources to enhance their power generation capabilities and installed capacity. A notable trend in the region is the competitive race for power generation, which is further enhancing the overall power generation capacity across North America.
Additionally, North American countries have established specific targets to contribute to the global objective of reducing carbon emissions from power generation, which is facilitating the growth of solar energy installations. The average cost of a residential solar system has decreased dramatically, from around US$ 40,000 before incentives in 2010 to about US$ 25,000 in 2022. Furthermore, the costs associated with utility-scale solar projects are now competitive, ranging from US$ 16/MWh to US$ 35/MWh. This cost parity allows solar energy to compete directly with traditional power generation methods. All these factors are driving the expansion of the solar energy market.
The solar energy market can be segmented by application into electricity generation, heating, and other uses. The increasing demand for clean and renewable energy sources to satisfy electricity requirements, along with technological advancements, supportive policies, and declining costs, has fueled the growth of the solar energy market share. As societies and governments aim to mitigate carbon emissions and combat climate change, there is a growing shift towards cleaner energy alternatives. Solar energy, being abundant and free of emissions, plays a vital role in this transition. Numerous governments worldwide provide incentives, tax credits, and subsidies to encourage the adoption of solar energy. Mechanisms such as feed-in tariffs, net metering programs, and renewable energy targets foster a conducive environment for solar power generation. The interplay between the need for electricity generation, environmental concerns, technological progress, policy support, and market dynamics has established solar energy as a leading source of energy in the global energy framework. As advancements in solar technology continue, its contribution to electricity generation is expected to increase, further propelling the growth of the solar energy market.
Key players in the solar energy market include JinkoSolar Holding Co Ltd, Canadian Solar Inc., Trina Solar Co. Ltd, First Solar Inc., ADT Solar, ACCIONA Energ?a, BrightSource, Abengoa SA, Heliogen Inc., and Nextera Energy Resources. In addition to these major companies, several other significant players in the solar energy market were examined during this market research study to provide a comprehensive overview.