Agrivoltaics Market Size, Share, and Trends 2024 to 2034

The global agrivoltaics market size was valued at USD 3.7 billion in 2022 and is foreseen to reach around USD 11.14 billion by 2032 with a compound annual growth rate (CAGR) of 11.7% from 2023 to 2032.

Agrivoltaics is a system that involves the simultaneous use of land for agricultural production as well as for photovoltaic production. A growing global population, limited arable land, and growing energy demand are booming the size of the agri-electricity market. In addition, a significant increase in food production is expected due to the increasing food demand of the people during the forecast period. Increased food production advancement and reduced water usage for farming combined with justifiable energy generation and additional income from photovoltaic panels are the key factors supporting the growth of the market.  

Furthermore, the increased need to focus on recent climate change as well as humanity crises with agrivoltaics solutions is anticipated to endure the rising food production demand, reduced water consumption in agriculture and augmented efficiency of electricity production. Thus, the above-mentioned factors are expected to fuel the demand for agrivoltaics market during the forecasted period owing to the increased advantages of agrivoltaics. Approximately 100,000 households require over 48 hectares of the farmland area in terms of power requirement. The cost of the solar panel is expected to decrease in the upcoming period all across the globe, that also includes the overall expenses of installation cost of agrivoltaics systems. Thus, the above-mentioned factors are anticipated to boost the overall growth of the agrivoltaics market during the forecast period owing to the increased need of addressing the strategic planning for tackling the climate change.

Additionally, farmlands have shown the fastest growth owing to the huge adoption of sustainable farming techniques which require reduced water usage and decreased wastage of natural resources. The favorable reimbursements by government and increased dependence on farmlands for efficient crop production are anticipated to witness a significant growth in forecast period. Furthermore, Solar power is currently being used for agricultural technologies majorly by the energy sector. The rapid increase in solar power generation is expected to observe the increased global investment. Solar energy observed the increase of 50% increase in its market share of the overall global electricity generation capacity. This is expected to surpass the growth due to the gas, wind, and other renewable technologies. Since 2008, the cost of solar photovoltaic panels makes up the mainstream league of the capital expense in solar systems that utilize technology, which has decreased by 80% over the span of years. Manufacturing competition and innovation have been accelerated, especially the Chinese manufacturers have witnessed a dramatic increase in their market share.

Agrivoltaics Market Scope

Growth Factors

Agrivoltaics is the combination of crops and solar or photovoltaic panels on the farmland. Agrivoltaics includes plantation of crops with the photovoltaic panels which are installed on specific height to allow passage of agriculture machinery such as tractor trailer, harvester, leveler and others. The dynamic agrivoltaic segment is a production system which is controlled according to the physiological requirements of crops. The system includes designing the dedicated structure as well as specific software development to manage the complete system of photovoltaic panels placed above the crop plantation. The increased environmental benefits, growing financial convenience to farmers in terms of passive income has also emerged as major growth factors for agrivoltaics market.

• Rising awareness for application and adoption of agrivoltaic system
• Growing features and advantages of agrivoltaic integration withing farmlands
• Reduced prices of agrivoltaic system components 
• Increased customer satisfaction due to the increased profit levels
• Enhanced strategic analysis and implementation of government initiatives for generations of profits
• Rising investments in several research and development programs 
• Improved quantitative and qualitative measures of such agrivoltaic systems.

Agrivoltaics Market Dynamics

Key Market Drivers

• Rising innovative farming techniques - The growing population, increased dependence on agriculture for food demand and rising expenditures on modern farming equipment are the major drivers of innovative farming techniques which are expected to boost the agrivoltaics market to a great extent.
• Growing demand for the efficient cultivation equipment - The need to adopt efficient cultivation machinery due to increased climate change, reduced availability of resources such as water and land as well a shift in the preference of consumers for sustainable farming are key drivers that accelerate the demand for efficient farming equipment.
• Improved balance between energy production and agriculture - The necessity to efficiently utilize scarce natural resources, decrease the greenhouse gas emissions, reduction of energy costs fosters the balance between agriculture and energy production through adoption of agrivoltaic systems.

Key Market Challenges 

• Lack of agrivoltaics system awareness - The advanced farming equipment introduced by key market players into the market are expensive as compared to the ordinary machineries available in market. This makes it problematic for the farmers to integrate such advanced technologies which restrains the growth of the market during the projected period. Additionally, the lower disposable income of farmers also hinders the growth of the market to a great degree.
• Lack of skilled workforce - Expensiveness of cutting-edge farming equipment and the shortage of skilled workforce in the healthcare system has hampered the growth of the market to a great extent. Additionally, the loss of confidence among farmers as well as lack of awareness among agriculture which hinders the growth of the market tremendously.
• High installation cost of the agrivoltaics system - The difficult access to the funds and initiatives required for the installation of expensive agrivoltaics system is the major factor which hampers the growth of agrivoltaics especially in low-disposable countries. 

Key Market Opportunities

• Emerging underdeveloped countries - The increased demand of latest healthcare facilities among the population in the developing nations such as Brazil, India and China are anticipated to boost the market for agrivoltaics. Rising acceptance of advanced equipment and technologies among the people has driven significantly the growth of market to record a profitable revenue over the period of time.
• The rising government initiatives - The active participation of government of multiple countries to improve the medical facilities that are provided to their residents. The government initiatives may include the use of high-quality equipment and agricultural compensations that facilitate easy adoption of agrivoltaics. Additionally, the health insurance companies provide enhanced reimbursement facilities to consumers to encourage the use of advanced agricultural equipment.
• Increasing investment by major market players - Extensive research and development programs which are conducted by the leading market players that aids in the introduction of new and advanced agricultural materials into the market to increase the need among the potential consumers has created lucrative opportunities for the growth of the agrivoltaics market during the forecast period. The increased investments by leading firms encourage the development and usage of advanced agricultural techniques and equipment that aids in the growth of the agrivoltaics market to a great extent.

System Design Insights

Based on system design, the agro-electricity market is segregated into fixed-crop solar panel and energetic agro-electricity markets. The segment of fixed-crop solar panels is expected to witness expressive demand in the farm electricity market. Factors such as the installation of firm solar panels as usual systems on agricultural greenhouse field present under or above field crops are contributing to the growth of the segment. Furthermore, fixed panels also help to optimize the installation process by adjusting the density of the solar panels or the degree of tilt of the solar panels.

Crop Type Insights

On the basis of crop type, the agrivoltaic market is segmented into root crops, leafy greens, and fruits. The leafy green segment is expected to contribute the increased market share during projected period. The agrivoltaic system is suitable for those crops which require limited sunlight such as kale, lettuces, peppers, tomatoes, chard, broccoli and Brussels sprouts grow efficiently with the assistance of agrivoltaic technology.

Regional Insights

On the basis of geography, the region of North America has acquired the largest market share resulting from the huge number of technological interventions in agricultural techniques. Additionally, the presence of advanced agricultural machinery and equipment in this region has helped the agrivoltaics market to a great extent.

Furthermore, Europe has accounted for the largest market share to the agrivoltaics market due to the major shortage of the farmlands expansion as well as growing adoption of agrivoltaics system in the European region are anticipated to fuel the crop efficiency as well as production of food. Moreover, North America has arisen as one of the largest markets for agrivoltaics in terms of revenue values after Europe. However, Asia-Pacific is also expected to be one of the fastest growing sectors during the forecast period in terms of fastest CAGR growth.

Segments Covered in the Report

By System Design

• Fixed Solar Panels Over Crops
• Dynamic Agrivoltaic

By Crop Type

• Leafy Greens
  • Lettuce
  • Spinach
  • Others
• Root Crops
  • Potatoes
  • Radishes
  • Beets
  • Carrots
  • Others
• Fruits & Other Crops

By Placement

• Standalone
• Shading Nets
• Greenhouse
• Others (Solar Fence, Solar Windows, etc.)

By Material Type

• Panels
• Paints

By Cell Type

• Monocrystalline
• Polycrystalline

By Crop Collaboration

• Vegetables
• Fruits
• Crops
• Others (Herbs, etc.)

By Type of Agrivoltaic Plant

• Overhead Tilted
• Interspace
• Hybrid

By Type of Solar Panel

• Opaque
• Semi-Transparent
• Transparent

By Power Output

• Up to 10 MWp
• 10.1 to 50 MWp
• More than 50 MWp

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)