Solar PV Panels Market Size, Share, Trends, Growth and Forecast 2034

Solar PV Panels Industry Prospective:

The global Solar PV Panels market size was worth around USD 176 billion in 2024 and is predicted to grow to around USD 397 billion by 2034, with a compound annual growth rate (CAGR) of roughly 8.5% between 2025 and 2034.

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Solar PV Panels Market: Overview

Made from multiple solar cells, generally composed of semiconducting materials (like silicon), solar PV panels are flat-plate devices. Solar cells directly generate DC power by absorbing photons and releasing electrons when exposed to sunshine. This direct current (DC) power is usually converted to alternating current (AC) for use in homes and businesses by an inverter. As the energy industry moves from conventional to renewable sources, the demand for solar PV panels worldwide is growing.

Moreover, rising knowledge of environmental damage resulting from pollutants from traditional power generation is predicted to accelerate the expansion of the solar photovoltaic panel market in the coming years.

Nevertheless, the expansion of the solar PV panel market over the projected period will be hampered by a lack of solar panel recycling infrastructure and the inability to recover solar panel waste materials all around the globe.

Key Insights

• As per the analysis shared by our research analyst, the global Solar PV Panels market is estimated to grow annually at a CAGR of around 8.5% over the forecast period (2025-2034).
• In terms of revenue, the global Solar PV Panels market size was valued at around USD 176 billion in 2024 and is projected to reach USD 397 billion by 2034. 
• The increasing urbanization and rising government initiatives are expected to drive the Solar PV Panels market over the forecast period.
• Based on the technology, the thin film segment is expected to hold the largest market share over the forecast period.
• Based on the grid type, the on grid segment is expected to dominate the market expansion over the projected period.
• Based on the application, the residential segment is expected to dominate the market expansion over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Solar PV Panels Market: Growth Drivers

Technological advancements drive market growth

Many inventions have led to significant growth, such as improved solar panel efficiency, which allows more electricity to be generated from the same amount of sunlight.

For instance, scientists and researchers at the University of Surrey in the UK have produced a wafer-thin solar panel made of organic materials that can be generated whenever needed. These solar panels can absorb 25% more energy than similar ones, including silicon-based solar PV cells.

Also, a group of researchers from the ARC Center and UNSW Sydney found a way to make solar PV cells work at night using infrared technology. This lets them store extra energy for when the sun isn't shining. Thus, such developments are positively boosting the growth of the solar PV panels market 

Solar PV Panels Market: Restraints

Environmental and recycling concerns hinder market growth

Solar photovoltaic (PV) panels are more environmentally friendly than fossil fuels, but there are issues with their production, use, and disposal when they become obsolete, which could hinder market growth and render them less sustainable in the long run.

Some solar panels, especially thin-film ones, contain lead, cadmium, and other dangerous materials. Not treating things properly during manufacturing or disposal can be detrimental to one's health and the environment. Most solar panels also last between 25 and 30 years.

As older solar panels start to break down, the amount of solar e-waste is growing significantly. The International Renewable Energy Agency (IRENA) says that by 2050, the globe may have 78 million tonnes of waste from solar photovoltaics. Thus, environmental and recycling concerns might hinder the growth of the solar PV panels industry to some extent.

Solar PV Panels Market: Opportunities

Innovative product launch offers a lucrative opportunity for market growth

Innovative product launch is expected to offer a lucrative growth opportunity for the solar PV panels market over the analysis period. For instance, in May 2024, just four months after setting a world record in silicon solar cell efficiency, LONGi Green Energy Technology Co. reported that it had broken another record in this area.

According to the Institute for Solar Energy Research Hamelin (ISFH) in Germany, LONGi's innovative silicon heterojunction back-contact (HBC) solar cells have achieved an efficiency of 27.30% in lab settings. At a festive celebration, they announced the new record and debuted the Hi-MO 9, a new product.

Solar PV Panels Market: Challenges

Land use constraints pose a major challenge to market expansion

Large-scale terrestrial power generation is necessary for utility-scale solar installations. Numerous technological or environmental factors may influence the choice of such land. The biodiversity and natural regions may be impacted if such land is used for the installation of solar systems.

For instance, due to ground instability and inaccessibility, deploying solar photovoltaic plants is extremely challenging in swamps, agricultural land, water bodies, and forests.

Large-scale solar power facilities must take into account a number of variables, including land availability, transportation systems, the impact on nearby residential areas, and the distance from the electrical grid. The aforementioned factors hamper the expansion of the worldwide solar photovoltaic (PV) industry.

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Solar PV Panels Market: Report Scope

Solar PV Panels Market: Segmentation

The global Solar PV Panels industry is segmented based on technology, grid type, application, and region.

Based on the technology, the global market is bifurcated into thin film, crystalline silicon, and others. The thin film segment is expected to hold the largest market share over the forecast period due to its improved durability and small size. These panels are very lightweight and flexible.

Also, thin-film solar PV panels are inexpensive to install, and they are mostly utilized in commercial and utility-scale applications. Furthermore, they can be produced in large quantities; these panels are regarded as affordable alternatives to silicon-based solar PV panels. Thereby, driving the segment expansion.

Based on the grid type, the global Solar PV Panels industry is bifurcated into on grid and off grid. The on grid segment is expected to dominate the market over the projected period. Low operating and maintenance costs and the simplicity of grid-connected PV systems are the main reasons for the on-grid type's dominance.

Since the extra electricity produced is exported to the grid and no battery storage needs to be deployed close to the system source, on-grid PV systems are less expensive. Feed-in tariff policies and net metering have also aided segment growth.

Based on the application, the global Solar PV Panels market is bifurcated into residential, commercial, and industrial. The residential segment is expected to capture the largest market share over the forecast period.

Numerous advantages, including reduced carbon footprints, cheaper electricity costs, and increased home prices, are responsible for the rise in solar PV panels in the residential market. Government-introduced tax incentives are available to consumers who install solar systems.

Throughout the projection period, it is anticipated that the introduction of new solar PV panel products for residential use will raise product demand. Soloes introduced the ANTARES BI 144, a next-generation solar panel with a high radiation capacity and resistance to the harmful effects of sunshine, in December 2022.

Solar PV Panels Market: Regional Analysis

The Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the global solar PV panels market. The reasons for this are plenty of sunlight, good government subsidies, and more and more people choosing renewable energy to meet the growing power needs of its large and growing population.

China is also the world's top maker of solar photovoltaic (PV) panels. India's aggressive aspirations for solar energy make the area even more powerful.

For instance, the government of New Delhi approved a draft of its Solar Policy 2022 in December 2022 and then boosted installed capacity from 2,000 MW to 6,000 MW in just two years.

The goal was for the Delhi Solar Cell to set up a centralized, one-stop state portal that would give people information on the benefits of solar photovoltaic systems.

Also, in March 2022, Cainiao Network, Alibaba Group's logistics arm, began using distributed solar power from rooftop solar panels put in its bonded warehouses in China to run its business.

Solar PV Panels Market: Competitive Analysis

The global Solar PV Panels market is dominated by players like:

• Canadian Solar
• JinkoSolar
• LONGi Solar
• JA Solar
• Trina Solar
• Adani Solar
• Hanwha Q-CELLS
• Navitas Solar
• Risen Energy
• GCL-SI
• First Solar
• Jinko Solar
• SunPower Corporation
• Pahal Solar
• Rayzon Solar
• TATA Power Solar

The global Solar PV Panels market is segmented as follows:

By Technology

• Thin Film
• Crystalline Silicon
• Others

By Grid Type

• On Grid
• Off Grid

By Application

• Residential
• Commercial
• Industrial

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa