Global Solar Electricity Market is expected to grow at a substantial CAGR during forecast 2022 to 2031
Solar electricity is clean, renewable energy. It is the production of electrical energy from light and heat from the sun. Solar cells, or photovoltaic (PV) cells, have been used for years to generate small amounts of electricity to power satellites and other remote systems. Nowadays, solar PV technology is widely used for renewable energy applications like solar home systems, grid-connected solar PV farms and hybrid solar-biomass power plants. Hence, solar panels are being utilized in more ways than ever before.
The solar electricity market growth in the historic period resulted from strong economic growth in emerging markets, high cost of diesel power, initiatives by companies to promote solar electricity, and a rise in research and development (R&D) investments.
Factors that negatively affected growth in the historic period were slow adoption rate, lack of clarity in rooftop solar policies, cost of power, and lack of implementation of incentives and net metering subsidy implementation.
The global solar electricity market reached a value of nearly $57,253.3 million in 2021, having grown at a compound annual growth rate (CAGR) of 11.1% since 2016, and is expected to grow at a CAGR of 21.8% to nearly $125,572.3 million by 2026. Also, the market is expected to grow to $ 357,159.4 million in 2031 at a CAGR of 23.3%.
The solar electricity market is segmented by technology into photovoltaic systems, and concentrated solar power systems. The photovoltaic systems market is expected to be the fastest growing segment going forward at a CAGR of 23.2% during 2021-2026.
The monocrystalline is expected to be the fourth fastest-growing segment going forward at a CAGR of 20.1% during 2021-2026. Going forward, the fastest growing regions in the solar electricity market will be South America, and Middle East, where growth will be at CAGRs of 27.3% and 26.6% respectively from 2021-2026.
The solar electricity market is fairly fragmented, with a large number of small players. The top ten competitors in the market made up to 15.02% of the total market in 2020. This can be due to the existence of number of local players in the market serving customers in particular geographies. SPIC Solar was the largest competitor, followed by Enel SpA, Canadian Solar Inc., Engie, Adani Green Energy Limited, Datang International Power Generation Company Limited, Acciona Energia S.A, Electricite De France SA, Huaneng Power International Inc., and Trina Solar Limited.
The top opportunities in the solar electricity market segmented by technology will arise in the photovoltaic systems segment, which will gain $56,939.7 million of global annual sales by 2026. The top opportunities in the solar electricity market segmented by solar module will arise in the monocrystalline segment, which will gain $24,819.7 million of global annual sales by 2026.
Market-trend-based strategies for the solar electricity market include embracing the adoption of digital technologies and artificial intelligence to revolutionize the solar electricity industry. The adoption of blockchain technology to save time and money and have a real impact in terms of both their profitability and their capacity to influence how our culture consumes renewable energy. Solar electricity companies taking aid from the governments in the form of subsidies and schemes are bound to benefit and promote growth in the solar electricity market.
To take advantage of the opportunities, Altus Market Research recommends the solar electricity companies to adopt digital technologies and artificial intelligence, use block chain technology, implement solar photovoltaics projects, expand in emerging markets, focus on mergers and acquisitions, provide competitively priced offerings, adopt market-based pricing, leverage social media, participate in trade shows and events and focus on younger populations.