Solar PV Module Market

Industry Overview

The Global Solar PV Module Market is expected to grow from USD 96.5 billion in 2023 at CAGR of 10% during the forecast period to reach USD 155.5 billion.

Solar PV module refers to the combination of photovoltaic cells. This is why it is also called solar cells. These modules are an essential component for the PV systems that convert sunlight into direct current electricity. It is typically done by creating a photovoltaic effect with the flow of electrons within module. This effect can be maximized by increasing the hours of exposure of the cells to sunlight. Solar PV modules and systems on the whole provides clean, safe, and affordable electricity.

The global solar PV market is growing at a steady rate due to the rise in price of volatile fuel as well as the growing concerns over environmental impacts caused by the traditional systems.

During the forecast period, the solar PV modules is expected to dominate the renewable energy market. This is mainly due to its ability to reach grid parity as orthodox energy resources. In addition, there is a continual progress toward a decarbonized economy which is strengthened further by the legislative energy policies and government incentives.

These are not only shaping the solar PV module market but is also ensuring its growth on a global scale. Apart from that, the favorable government initiatives including incentives introduced have also been a great help in promoting the adoption of different renewable technologies, one of which is the solar PV module.

Market Segmentation

Insight by Grid Type

The global solar PV module market is divided into two types according to the types of the grids. These are off-grid and grid connected. The grid connected segment is further divided into decentralized and centralized segments.

However, considering the two main segments, the grid connected segment is expected to contribute larger revenue to the market during the forecast period. This is because it will be used extensively by the small business enterprises as well as in homes it allows receiving power using renewable energy during seasonal periods.

Insight by Technology

On the basis of technology, the global solar PV module market is divided into crystalline silicon, thin film, and other segments. Furthermore, the crystalline silicon segment is further divided into monocrystalline and Mult crystalline.

Among all these segments, the crystalline silicon segment is expected to grow at a faster rate during the forecast period. This is primary due to its growing popularity among the users in both developed as well as developing countries.

The devices are flexible, lightweight, and transparent. This helps manufacturers to produce them on a large scale and also helps them attain higher operational efficiency. This, in turn, increases the demand for the solar PV modules across the globe.

Insight by Application

The global solar PV module market is divided into residential, commercial, and utility scale segments. Out of all these segments, the utility scale segment is expected to grow at a faster rate during the forecast period.

This is primary because of the growing demand for these systems that guarantee uninterrupted supply of electricity. Moreover, a well-organized solar PV system along with effective storage facility helps in supplying power on a continuous basis.

Insight by Product

The global solar PV module market is divided by product into monocrystalline, polycrystalline, cadmium telluride, amorphous silicon, and copper indium gallium diselenide segments. Out of all these segments, it is the monocrystalline segment that accounts for a major share in the solar PV module market and is expected to continue doing so during the forecast period.

This is mainly because the monocrystalline, formed with the wafers manufactured by a single crystal growth method, offers higher commercial efficiencies. Apart from that, this particular technology is the basic, efficient, and reliable mode for generating electricity with a low operational cost and a high longevity. Moreover, the embedded energy per panel is also a crucial factor that drives the demand for monocrystalline solar PV modules and will result in the market growth in the forecast period.

Insight by Mounting

According to the installation or mounting process, the global solar PV module market is divided into roof top and ground mounted variants. Out of these two variants, the ground mounted segment accounts for a major solar PV module market share and will continue to dominate it due to the growing demand for electricity across the globe. This has forced the authorities to install large scale solar utility plants, which are typically ground mounted and has a capability to provide huge amount of electricity at a competitive price.

Moreover, there is a rise in the investments across industries to find a more workable energy mix which has also driven the market of the ground mounted solar PV module market growth. In addition, the favorable regulatory policies and government initiatives such as long-term power purchase agreements, feed in tariff program, and others will boost the revenue and growth of the global solar PV module market.

Global Solar PV Module Market Report Coverage

Industry Dynamics

Industry Trends

The major players of the industry are coming up with better and more products to make the best use of the advantageous situation created by volatile fuel prices.

In addition, there is a growing adoption noticed among the manufacturers all over the globe to make environment friendly offers.

These key players are also witnessed to be collaborating with automobile manufacturing companies to produce solar powered vehicles.

There is an extensive use of these systems seen in residential as well as commercial buildings to reduce the electricity cost utility.

The cost efficiency and effectiveness of these systems has also resulted in the extensive use of these systems to generate electricity rather than using the ever-depleting natural resources.

The government efforts and initiatives are also driving the growth of the solar PV module market. For instance, the US government introduced solar tax credit. This reduced the cost of installation of solar PV modules significantly thereby increasing its demand among users.

In addition, use of Chinese technology to reduce cost of production, enhancements in conversion competences, and increasing efforts to heighten LCOE will further enhance the industry demand and its growth.

Growth Drivers

The most significant growth factor of the global solar PV module market is the increasing awareness among people and the users regarding the environmental concerns. Another significant concern for preserving natural resources is helping in driving more customers towards the adoption and use of solar PV modules, thereby pushing its market.

Moreover, being cost-efficient and effective there is an increase in the demand for solar PV modules which it growing at a faster rate is also pushing the market forward.

The fact that these systems use sunlight as the source to generate electricity eliminates the chances of interruption of power supply due to power cuts. These features along with the affordability makes these systems a more effective and preferred alternative option to adopt.

All these factors are playing a significant role in increasing the demand for these modules thereby facilitating the growth of the global solar PV module market.

Challenges

Loss of electricity to the tune of 40% during transmission and distribution is a significant factor that hinders widespread adoption of the solar PV modules and its market growth across the globe.

To prevent this, manufacturers are investing more on research and development to find a better solution. This, in turn, increases the overall expenses creating another hindrance to the growth of the solar PV modules market in the process.

Furthermore, scarcity of land, especially in the Asia Pacific region hinders the growth of this market because it limits installation of exclusive solar panels and have to contest with other requirements that need land.

Interconnection delays, growing issues in grid connection, and insufficient grid capacity are also hindering new plat setup and the growth of the global solar PV module market during the forecast period.

Opportunities

New opportunities are created for the solar PV modules market by the global industry players. They have improved their offerings to help the customers install solar panels quickly and easily. Furthermore, these players are also providing recommendations for installing these modules in such a way that it takes less space.

Moreover, the rise in price of fossil fuels offers more opportunities for the solar PV module market to grow during the forecast period.

Geographic Overview

The Asia-Pacific regions is the largest contributor to the solar PV market and is expected to grow even further at a faster rate during the forecast period. Countries like Japan and China will contribute the larger part of the market revenue while China will dominate both manufacturing and using of solar PV modules during the projected period. China is also supposed to lead the market because it has introduced a technology that will reduce the cost of manufacturing these solar PV modules by as much as 80%!

India has also shown positive response to these systems and it is expected that the demand for these systems in India will also grow significantly during the forecast period. This is mainly due to the subsidiaries provided by the Indian government to promote high-capacity roof top grids.

On the other hand, North America and Europe are quite promising market and are growing at a steady rate. Over the forecast period, it is expected that these markets will witness a significant rise. Additionally, the use of Chinese technology, especially in the US, has reduced the cost of production of these modules significantly. This has resulted in the growth in demand for them, which is driving the growth of the solar PV modules market in North America in particular.

Competitive Insight

Key players in the Solar PV Module Industry are taking advantage of the situation of volatile fuel prices and the increasing adoption of environment friendly offerings across the globe. These players in the market are collaborating with automobile companies to start the production of solar powered vehicles. For instance, Suzuki motor corp. and Toyota Motor Corporation have stated to collaborate with such firms to invest their resources in solar driven vehicles. Trina Solar Ltd, Yingli Solar, Acciona Energy, Canadian Solar Inc., SunPower Corporation, First Solar Inc., Suntech Power Co., Sharp Corporation, Hanwha Q Cells Co Ltd and JA Solar Holdings Co. Ltd are the key players operating in solar PV module market across the globe.

Recent Developments by Key Players

Trina Solar Ltd - Trina Solar and PetroGreen collaborated to accelerate philippine solar adoption with 117MW supply agreement. This partnership shall facilitate the Philippines' solar energy expansion.

Yingli Solar and Densys PV5 Forge Partner for 500MW PV module supply which focuses at supplying 500MW of PV modules. With this agreement they shall solidify their commitment to meeting the growing market demand for PV modules in Germany.