Solar Photovoltaic Market Size, Share, Growth, Opportunities 2034

Solar Photovoltaic Industry Perspective:

The global solar photovoltaic market size was worth around USD 100.26 billion in 2024 and is predicted to grow to around USD 226.68 billion by 2034, with a compound annual growth rate (CAGR) of roughly 8.50% between 2025 and 2034.

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Solar Photovoltaic Market: Overview

Solar photovoltaic (PV) refers to modern solutions or technology used for converting solar energy into usable electricity. It leverages advanced semiconductors to capture light and convert it into electricity. Solar PV systems are based on the photovoltaic effect, which is a part of electrochemistry, photochemistry, and physics. The most common application of solar PV is generating electricity for usage across commercial, residential, and industrial complexes. Photovoltaic systems have registered higher adoption across the globe in the last few years. The main components of solar PV include inverters, solar panels or modules, a battery, and mounting systems. In the case of off-grid systems, solar PVs will also require a charge controller.

During the projection period, the industry for solar photovoltaic is expected to be influenced by a wide range of factors. For instance, the growing demand for uninterrupted and reliable power supply across residential units will facilitate market expansion. On the other hand, increasing government support to encourage large-scale installations of solar PV across commercial centers and industrial complexes will further promote market revenue. A major drawback for solar PV market players may emerge in the high initial cost of investment required for setting up solar panels.

Key Insights:

• As per the analysis shared by our research analyst, the global solar photovoltaic market is estimated to grow annually at a CAGR of around 8.50% over the forecast period (2025-2034)
• In terms of revenue, the global solar photovoltaic market size was valued at around USD 100.26 billion in 2024 and is projected to reach USD 226.68 billion by 2034.
• The solar photovoltaic market is projected to grow at a significant rate due to the increasing demand for an uninterrupted power supply across residential spaces.
• Based on the installation, the ground-mounted segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the application, the utilities segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Solar Photovoltaic Market: Growth Drivers

How will increasing demand for uninterrupted power supply across residential spaces drive the solar photovoltaic market revenue?

The global solar photovoltaic market is expected to be led by the increasing demand for a reliable power supply across residential units. In April 2025, major European countries, including Spain and Portugal, along with parts of neighboring countries, experienced nationwide power outages due to a technical failure at the main electricity grid. Similar incidents are reported worldwide, leaving a large number of people without access to reliable power sources. Developing countries, for instance, report extended periods of frequent power cuts due to a limited supply of electricity from the primary power grid.

As per the United Nations Sustainable Development Goals, around 600 million people in the African population lack access to reliable electricity. Other countries, including India and China, have also recorded increasing shortages of electricity, especially across residential centers. Solar PVs are considered an effective solution for harnessing solar energy and powering homes and other residential spaces. Furthermore, solar PV users can also reduce electricity costs over time by leveraging the offerings of solar panels. According to official findings, electricity bills can be reduced by more than 70% through the effective application of well-planned solar PV installations.

Increasing government expenditure on constructing large-scale solar PV stations to generate higher industry growth

In recent times, government expenditure on renewable and clean energy has increased at an exponential rate. In April 2025, European Energy, a leading renewable energy company from Denmark, announced that it secured EUR 82 million in funding from the European Investment Bank (EIB). The company is expected to use the fund for a  148 MW solar farm in Latvia. Once completed, the project is expected to contribute to the region’s 2030 vision of moving to 45% renewable energy.

In January 2025, the government of the United Kingdom approved two new solar projects. The total capacity of the new initiatives reaches up to 1 GW. The global solar photovoltaic market also witnessed the approval of the Cider Solar Farm project in February 2025. The facility will be located in upstate New York and will have a solar energy production capacity of 500 MW.

Solar Photovoltaic Market: Restraints

Does the high initial cost of investment hamper the growth of the solar photovoltaic market?

The global solar photovoltaic industry is expected to be restricted due to the high cost of investments required to set up solar PV infrastructure. The average cost of installing a 100 MW solar farm can range between USD 80 million and USD 125 million, depending on the offerings of the facility. Similarly, residential-scale deployment of solar PV can be expensive, especially for middle and low-income groups.

In addition to this, limited access to repair and maintenance centers for solar PV in some parts of the world may further inhibit the overall revenue generated by the market.

Solar Photovoltaic Market: Opportunities

Will intensifying demand for industrial and commercial decarbonization generate growth opportunities for the solar photovoltaic industry?

The global solar photovoltaic market is expected to generate growth opportunities due to the increasing use of the technology across industrial and commercial centers. According to official data, the largest consumers of global energy supply are commercial facilities such as shopping centers and entertainment units, along with industrial facilities. An automotive manufacturing facility producing more than 18000 vehicles per day consumes between 450 and 850 GWh/year. As the energy requirements of industrial and commercial facilities continue to soar, demand for solar PV may record a higher growth rate.

Additionally, governments worldwide are encouraging industrial plant owners to seek alternative and clean energy solutions. Industrial and commercial decarbonization is considered an important aspect of reducing environmental damage caused by business operations. For instance, Energima Solel, a part of the Energima group in Norway, has installed more than solar modules across more than 130 buildings consisting of warehouses, schools, and office facilities.

Moreover, increasing government support in the form of subsidies and tax rebates to industrial units leveraging solar energy for generating electricity will further encourage higher demand for solar photovoltaic in the coming years.

Solar Photovoltaic Market: Challenges

Changing geopolitical partnerships and dynamics to challenge the market growth rate

The global solar photovoltaic industry is expected to be challenged by the growing political and trade-related tension between major economies, particularly the US and China. In a recent event, the US government has imposed serious restrictions on solar Photovoltaic imports from Southeast Asia in the form of bans and tariffs. As global trade partnerships continue to evolve, industry players may face challenging situations that lead to both monetary and nonmonetary losses.

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Solar Photovoltaic Market: Report Scope

Solar Photovoltaic Market: Segmentation

The global solar photovoltaic market is segmented based on installation, grid, application, and region.

Based on the installation, the global market divisions are roof-mounted, ground-mounted, and others. In 2024, the highest growth was listed in the ground-mounted segment. According to industry analysis, ground-mounted solar PV installations are easier to deploy than roof-mounted solutions. Moreover, the majority of large-scale solar PV installations are generally ground-mounted, further contributing to segmental revenue. China’s Gonghe Talatan Solar Park, which is the world’s largest ground-mounted solar photovoltaic (PV) farm globally, has an installed capacity of 15,600 megawatts.

Based on the grid, the global solar photovoltaic industry is divided into off-grid and on-grid.

Based on the application, the global market divisions are non-residential, residential, and utilities. In 2024, the utilities segment reported the highest revenue, accounting for nearly 39% of the total revenue. The increasing number of utility-scale solar energy projects worldwide is propelling the segmental demand. Moreover, rising advancements in solar PV technology will further facilitate the extensive deployment of photovoltaics worldwide in the coming years.

Solar Photovoltaic Market: Regional Analysis

What factors help Asia-Pacific lead the solar photovoltaic market during the forecast period?

The global solar photovoltaic market is expected to be led by Asia-Pacific in the coming years. China and India will emerge as the leading revenue generators in the region. China is currently one of the world’s largest economies in terms of solar PV production and installations. However, the country is facing serious setbacks due to trade bans and restrictions imposed by the US against solar modules produced in China. In May 2024, Denmark issued warnings against the presence of kill switches in solar panels originating from China. India, on the other hand, may emerge as an essential contributor to the regional economy in the coming years as solar PV investments in the country have skyrocketed.

In May 2025, India’s leading organization, Reliance Industries, announced its plans to manufacture solar photovoltaic modules by the end of 2025 as demand for clean energy in the country continues to grow. In January 2025, Cleantech Solar, a Singapore-based renewable energy company, announced the commencement of operations at its 150 MWp solar park in India’s Maharashtra state. The growing rate of industrialization and urbanization in emerging Asian countries, which is propelling energy demands, will open growth scope for solar PV providers across the region.

Solar Photovoltaic Market: Competitive Analysis

The global solar photovoltaic market is led by players like:

• Tata Power Solar
• Adani Solar
• Talesun Solar
• Waaree Energies
• REC Solar
• First Solar
• LONGi Solar
• Trina Solar
• Canadian Solar
• Q CELLS (Hanwha Q CELLS)
• Vikram Solar
• JA Solar
• Risen Energy
• ZNShine Solar
• JinkoSolar

The global solar photovoltaic market is segmented as follows:

By Installation

• Roof Mounted
• Ground Mounted
• Others

By Grid Type

• Off-Grid
• On-Grid

By Application

• Non-Residential
• Residential
• Utilities

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