Solar Photovoltaic (PV) Market Size, Share, Growth, Report 2025 to 2034

Solar Photovoltaic (PV) Market Size and Growth 2025 to 2034

The global solar photovoltaic (PV) market size was valued at USD 398.21 billion in 2024 and is expected to be worth around USD 2,793.83 billion by 2034, growing at a compound annual growth rate (CAGR) of 21.50% from 2025 to 2034.

Solar photovoltaics (PV) convert sunlight, in medium scale, into electricity using semiconductor materials, mostly silicon-based, exhibiting a photovoltaic effect. When sunlight strikes the semiconductor, electrons are generated that produce an electric current. This technology can be used in scales from small residential rooftop systems to huge solar power stations supplying substantial power to the grid. The efficiency of various kinds of solar subsystem technologies has increased because of the advances in materials and manufacturing processes, thereby becoming key moving pieces in the processing of renewable energy into useable clean energy. With a fifty-year-old tradition in Europe and now picking up steam in Asia, growing global demand for clean energy means PV will continue to be integrated into energy policies worldwide, as countries look to reduce carbon footprints and enhance energy security.

Report Highlights

• The Asia-Pacific region has accounted highest revenue share of 38% in 2024.
• The North America has generated revenue share of around 31% in 2024.
• By grid type, the on-grid segment has accounted revenue share of 64% in 2024.
• By installation, the ground mounted segment has garnered revenue share of 71% in 2024.
• By end user, the utility segment has captured revenue share of 39.40% in 2024.

Solar Photovoltaic (PV) Market Growth Factors

• Cost Decreasing: Different manufacturing technologies and economies of scale have helped to decrease the cost of solar PV technologies, thus becoming more accessible to consumers and industries. This affordability is essential to help broaden the acceptance of achieving economies of scale, since lowering the upfront costs of solar installations makes them a much more attractive proposition-for everything from residential installations to large commercial projects.
• Energy Security: As countries work to lessen their dependence on fossil fuels, solar PV presents a viable alternative in the quest for energy security. Also, this is of great importance to nations vulnerable to geopolitical friction or volatile oil prices, thereby rendering solar energy investment not only a sustainability strategy but also energy supply strategy in favor of stable energies in the long run.
• Increasing Demand for Electricity: Rising global population and rapid urbanization are increasing electricity demand, particularly in emerging economies. Now with conventional energy sources failing to meet this growing demand, the solar PV systems are the chosen renewable alternative. They also pack forth decentralized energy options which can be quickly deployed, and are thus an attractive way out for damages to the power requirements of the urban and rural electrical sector.
• Integration with Smart Grids: The inclusion of solar energy in smart grid systems makes it possible to manage energy resources in a better way. Smart grids interconnects data monitoring and distribution systems in real-time making it easy to off set supply versus demand. This combination leads to higher performance but efficiency also supports the additional expansion of green energy sources leading to a better and more stable energy system.
• Rural Electrification: Solar PV systems are particularly advantageous in outlying and rural regions where extending conventional power lines is not feasible. Such solar installations, provide decentralized energy facilities to these communities and enhance their way of life by making available electricity for essential services, including healthcare, education, and clean water resulting into local and economic development.

Solar Photovoltaic (PV) Market Trends

• Differentiated Energy Generation: This trend towards decentralization reflects the transformation from centralized-based energy generation into localized counterparts determined by the respective consumers: an increase in private and micro businesses investing in solar installations. This transition not only ensures autonomy from centralized radiation losses, but also enables customers to generate their own power and puts forth a livelier energy landscape.
• Composite Systems: Hybrid systems benefit not only from solar PV but also from other forms of renewable energy-generating sources, notably wind or biopsis, to improve reliability and efficiency. These systems capitalize on the strengths of various energy sources to offer a more stable and consistent energy supply, and they continue to perform better in terms of resource use and cost-effectiveness.
• Green Financing: A greater range of green finance through newfangled green bonds and sustainable investment progeny gives ventures of entering a market for production and utilization of green energy into solar-powered building projects a better chance to access working capital. Current trends allow developers to raise funds for innovative solar technological development and promote projects, thereby promoting the overall development of the market for photovoltaic solar technology and encouraging green investment strategies.
• Corporate Power Purchase Agreement: Corporations now find themselves entering into long-term contracts to supply solar energy at a price fixed in advance. This will allow them to manage energy prices while also nurturing corporate appeal to carbon-reduction measures through renewable procurement contracts with their suppliers.
• Global Expansion: The growing interest in solar energy is not confined to the markets that are growing bold. In the Asia-Pacific and the African regions, developing economies are accelerating the uptake of solar because of accompanying policies, raw science, and the much-needed energy access; this global expansion is critically necessary in achieving global renewable energy targets.

Report Scope

Solar Photovoltaic (PV) Market Dynamics

Drivers

• Rising Fossil Fuel Prices: The fluctuations of energy commodities, particularly their volatility, were developed into clear reasons to consider solar energy alternatives. As oil and gas prices changed so much in recent months, consumers and businesses looked for stable and predictable energy costs. Solar PV adds a hedge against such market uncertainties and has enhanced investment into renewable energy technologies.
• Technical Innovation: Such advancements in solar technology increase asset efficiency and at the same time, reduce the cost of solar panels. Various innovations that range from bifacial panels to advanced inverter technology continue to improve the competitiveness of solar PV systems: hence, their penetration into diverse segments of the market rapidly rises.
• Increased Investment: There is an ongoing diversification of pledges into the solar PV sector from both private and public channels. This trend is buoyed by the increasing realization of solar energy's capacity for further sustainable development of energy needs. Increasing funding levels are allocated to research and development into better products for market acceptance.
• Supportive Ecosystem: A robust ecosystem of suppliers, installers, and service providers supports the solar PV market. This infrastructure facilitates smooth project execution, from manufacturing to installation and maintenance, ensuring that consumers can easily access solar solutions and thereby boosting market growth.

Restraints

• Upfront Investment is High: At the outset, although solar is becoming less costly, the initial investment for solar installations can remain a sizeable obstacle for a good number of wannabe users. High upfront costs would suck the life out of the financing options and would be de facto deterrent to consumer acceptance of solar energy.
• Intermittency: The nature of solar energy, combined with the lack of sunshine, induces intermittent generation of energy. Hence this variability may cause problems with respect to the constancy of the supply, demanding some development on energy storage systems or complementary sources in order to make the electricity supply reliable.
• Regulatory Difficulties: Conducting the mazes of regulations governing solar installations can be a daunting task for developers. Any alteration in government policies, the permitting process, or grid access regulation creates any undesirable uncertainty that contributes to delays in project development and investment decisions.

Challenges

• Technological Improvements: Solar technology's fast improvements have posed as a hindrance to the manufacturers and the developers to keep pace with. Though one of the most effective strategies for building competitive advantage is investing towards further research and development, it might entail continuous, expensive investment on the manufacturers' part, posing even a bigger hindrance for an operational need in terms of financial resource provision.
• Public Acceptance: Winning over skepticism and misinformed consumers regarding the effectiveness and reliability of solar energy is essential for the successful growth of solar markets. Educating consumers about the merits of solar energy on a timely basis, addressing their most commonly asked questions, and taking care of the salient issues surrounding solar energy will enable the public's acceptance of solar energy and promote rapid adoption rates.
• Competition from Other Renewables: The solar photovoltaic market is facing competition from other renewable energy sources such as wind or hydroelectric power. Thus, while each technology has its advantages and drawbacks, an increasing presence of many other metered fresh types of renewable energy options may help dilute the solar market share, giving rise to the need for market positioning and innovation.

Solar Photovoltaic (PV) Market Segmental Analysis

the solar photovoltaic market is segmented into type, installation, grid type, end user and region. Based on type, the market is classified into thin film, multi-Si, mono-Si and others. Based on installation, the market is classified into ground mounted, roof oounted and others. Based on grid type, the market is classified into on-grid and off-grid. Based on end user, the market is classified into residential, commercial and utility.

Type Analysis

Thin Film: The thin-film solar cell is a flexible, lightweight material, with layers of the photovoltaic materials having a thickness of a few micrometers only. Therefore, the thin-film part needs lower efficiency to compete with conventional silicon cells, but with lower production costs and flexible installation. Thin-film technology finds use when weight and flexibility are the important issues such as in building-integrated photovoltaics (BIPVs) and portable solar panels. Recent increased interest in such thin films is based chiefly on the enhancement of their fabrication efficiencies and decreased cost of manufacturing, making them a compelling option for applications.

Multi-Si (Multicrystalline Silicon): Multi-Si solar cells are made from multiple silicon crystals and offer a good balance of efficiency and cost. Those usually rated at an efficiency between 15% and 20% are widely used in both residential and commercial installations. Their production is less expensive than monocrystalline silicon, making them favoured among consumers. The multi-Si segment is likely to flourish with manufacturers improving production techniques and economies of scale, thus lowering the cost and promoting their use in both developed and emerging markets.

Mono-Si (Monocrystalline Silicon): Mono-Si cells typically deliver high efficiency and a long life, and allow higher than 20% efficiency. Made from one crystalline structure, these cells can do better than their multi-Si and thin film cousins, but also tend to be the costliest of the three. Because of their space-efficient design, these cells can be used in residential installations and commercial applications where space is limited. The rising demand for sustainable energy solutions and call for higher efficiency solar panels are providing impetus for the growth of the mono-Si segment in the global market.

End User Analysis

Residential: The residential sector deals with solar photovoltaic systems being installed on individual homes, usually either for self-consumption or for net metering. This is endorsed by an increase in adoption of residential solar due to the demands of consumer energy-cost reduction and energy independence. Government incentives and the dropping installation price are making solar energy very attractive. Some other trends aiding this market are the prevalent homebuilding of energy-efficient and intelligent technologies, combining sustainability with affordable utility bills in the minds of the owners.

Commercial: The commercial segment consists of the placing of solar PV into businesses, schools, and other institutions. Management thus talk about the details of the feasibility study for solar energy applications in industries that use solar energy for different reasons. Businesses are investing in solar energy to cut down on operational costs, meet sustainability targets, and meet government regulations. For this segment, economies of scale offer benefits since they allow big installations to adopt advanced technologies for higher efficiencies. The increasing cost of electric power surged up with a stringent focus on corporate responsibility, and commercial solar installations achieved legitimacy during that period. In addition, PPAs are making financing options possible, which is further helping this segment in its adoption.

Solar Photovoltaic (PV) Market Revenue Share, By End User, 2024 (%)

Utility: The utility segment refers to large solar PV installations by energy providers where most users supply the grid. Utility-scale projects certainly do benefit from serious economies of scale and often 20- or 30-year PPAs that make them attractive measures. This segment is essential to the attainment of several renewable energy targets for governments across the globe and sees some serious investment as countries move towards cleaner energy. The improving competitiveness of solar against conventional energy sources is driving growth in utility-scale projects and making a significant contribution to the overall growth of solar PV markets.

Solar Photovoltaic (PV) Market Regional Analysis

The solar PV market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). The Asia-Pacific region has dominated the market in 2024.

Why does the Asia-Pacific region dominate the solar PV market?

The Asia-Pacific solar PV market size was accounted for USD 151.32 billion in 2024 and is predicted to surpass around USD 1,061.66 billion by 2034. Asia-Pacific is the fastest-growing region, mainly driven by countries like China, Japan, and India. China is the principal solar manufacturer and is the largest player in this market, significantly impacting the growth of the market owing to ambitious renewable energy targets. India is also investing heavily in its solar infrastructure, aiming for a marked increase in capacity for solar energy to meet increased demand. Following Fukushima, Japan has been focused on renewable energy and is also aiding the region in rapidly expanding solar technology. The growth in this region is spurred by government policies coupled with energy demand.

What are the key factors fueling the growth of the North American solar PV market?

The North America solar PV market size was valued at USD 123.45 billion in 2024 and is expected to be worth around USD 866.09 billion by 2034. In North America, which mainly includes the United States and Canada, incentive support by government, technology evolution, and awareness of renewable energy among consumers mark this region as one of the foremost in the Solar PV market. With its share in the topmost of the U.S. market, California, Texas, and Florida are the leading states for solar installations. Recent years have been characterized by an upsurge in utility-scale performance and residential installations in the region, aided mainly by low costs and favorable policies. Canada is also working to increase its solar capacity, especially in Ontario and Alberta.

What are the driving factors of Europe solar PV market?

The Europe solar PV market size was estimated at USD 95.57 billion in 2024 and is projected to hit around USD 670.52 billion by 2034. Solar energy has been pioneered in Europe with countries like Germany, France, and Spain taking the lead. For long, Germany has been at the forefront of solar energy, given wide feed-in tariffs and remarkable government support. The EU climate and sustainability objectives have served to direct some investment into solar technologies in its member states. Italy and the Netherlands are also increasing their solar installations. Growth in solar PV is largely being driven by the region's emphasis on network modernization as it relates to renewable energy transition.

Why is LAMEA growing interest in the solar PV market?

The LAMEA solar PV market was valued at USD 27.87 billion in 2024 and is anticipated to reach around USD 195.57 billion by 2034. The LAMEA region is witnessing growing interest in solar PV, driven by abundant sunlight and rising energy needs. In Latin America, countries like Brazil and Chile are leading the way, with Chile's solar capacity rapidly expanding due to favorable regulatory frameworks. The Middle East, particularly the UAE and Saudi Arabia, is investing heavily in solar projects to diversify energy sources. Africa has significant solar potential, with countries like South Africa leading solar deployment efforts, although infrastructure and investment challenges remain. The region's future growth in solar energy is expected to accelerate as technologies become more accessible and cost-effective.

Solar Photovoltaic (PV) Market Top Companies

• First Solar Inc.
• Sharp Corporation
• Suntech Power Holding Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• JA Solar Holdings Co. Ltd.
• Trina Solar Ltd.
• Hanwha Q Cells Co. Ltd.
• Acciona SA
• Canadian Solar Inc.
• SunPower Corporation
• LONGi Green Energy Technology Co. Ltd.

The solar photovoltaic (PV) industry is significantly influenced by key players like First Solar Inc., Sharp Corporation, Suntech Power Holding Co. Ltd., and JinkoSolar Holding Co. Ltd. These companies leverage their extensive expertise in solar technology to develop innovative, high-efficiency solar panels and systems. By investing in research and development, they aim to enhance product performance and reduce manufacturing costs. Additionally, strategic partnerships and global expansions enable these firms to capture emerging markets and meet the growing demand for renewable energy solutions. Their commitment to sustainability and technological advancement positions them as leaders in the competitive solar PV landscape.

CEO Statements

Mark Widmar, CEO of First Solar

• "As we continue to invest in our manufacturing capabilities, we are committed to providing sustainable and affordable solar solutions to meet the increasing demand for renewable energy."

Jifan Gao, CEO of Suntech Power

• "Our focus on innovation and high-efficiency solar modules positions us to lead the market as we address the growing energy needs worldwide."

Frank Yu, CEO of JA Solar

• "We are dedicated to advancing solar technology and expanding our global reach, ensuring that we play a pivotal role in the transition to clean energy."

Recent Developments

• In May 2023, state-owned SJVN Ltd. secured a 100 MW solar power project valued at USD 73.24 million from Rajasthan Urja Vikas Nigam Ltd. This initiative was executed through SJVN Green Energy Ltd (SGEL), a wholly-owned subsidiary, which successfully participated in an open competitive tariff bidding process, culminating in an e-Reverse Auction (e-RA) conducted by Rajasthan Urja Vikas Nigam Ltd (RUVNL).
• In November 2022, European Energy, a Danish developer specializing in solar parks, announced plans to construct a 128.5 MW solar park near Helsingborg in southern Sweden. The facility is anticipated to generate approximately 175 GWh of electricity annually, with production slated to commence in 2024, following the project's completion expected in 2023.

Recent product launches in the Solar Photovoltaic market reflect a growing emphasis on innovation and strategic collaborations among leading companies. Industry giants such as First Solar Inc., Sharp Corporation, Suntech Power Holding Co. Ltd., and JinkoSolar Holding Co. Ltd. are actively enhancing their product portfolios with advanced technologies, including high-efficiency solar cells and innovative energy storage solutions. These developments aim to improve energy conversion efficiency and reduce costs, aligning with global sustainability goals. Such strategic initiatives are not only driving market growth but also enhancing the competitive landscape of the solar energy sector.

Market Segmentation

By Type

• Thin film   
• Multi-Si   
• Mono-Si 
• Others

By Installation

• Ground Mounted
• Roof Mounted
• Others

By Grid Type

• On-grid
• Off-Grid

By End user

• Residential   
• Commercial   
• Utility 

By Region

• North America
• APAC
• Europe
• LAMEA