Solar Energy Market Revenue to Attain USD 347.10 Bn by 2033

06 Nov 2024

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Table of Content

1. Solar Energy Market Revenue and Trends 2. Market Overview 3. Highlights of the Solar Energy Market Report 4. Solar Energy Market Trends  5. Regional Insights 6. Solar Energy Market Coverage

Solar Energy Market Revenue and Trends

The global solar energy market revenue surpassed USD 121.99 billion in 2024 and is predicted to attain around USD 347.10 billion by 2033, growing at a CAGR of 12.32%. The demand for solar energy is rising due to increasing concerns about the environmental impact of fossil fuels. In addition, the growing concerns about climate change and the rising focus on reducing carbon emissions further boost the demand for renewable energy sources, including solar energy.

Market Overview

Solar energy is the energy collected from the sun and then converted into electrical or thermal energy. It is also the most abundant renewable energy source. Several technologies, such as photovoltaic cells, are used to convert sunlight into electricity. Concentrated solar power systems are also used to generate electricity. These systems use mirrors or lenses to concentrate a large area of sunlight into a receiver. Solar energy offers several benefits, such as minimizing greenhouse gas emissions and reducing dependency on fossil fuels.

The rapid shift toward a cleaner and sustainable energy source is a major factor fueling the market's growth. With the rising population, the demand for more electricity is increasing. Moreover, rising government initiatives to promote sustainable energy sources and reduce dependency on fossil fuels further boost the solar energy market.

Governments are implementing policies like subsidies, grants, tax credits, and filled-in tariffs that drive the attention of businesses toward solar energy sources. For instance, the government of India has set a target for establishing 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

Highlights of the Solar Energy Market Report

• Based on technology, the photovoltaic systems segment dominated the market in 2023 due to their cost-effectiveness. These systems are highly efficient and easy to install, making them suitable for solar farming. With the rising shift toward renewable energy sources, the installation of PV systems is rising, thus boosting the segment.
• On the basis of solar module, the polycrystalline segment led the market with the largest share in 2023. This is mainly due to the low production cost of polycrystalline solar modules. These modules are durable and can withstand harsh weather conditions.
• Based on application, the industrial segment dominated the solar energy market in 2023, owing to the high demand for renewable energy among businesses due to the growing focus on reducing carbon footprints.
• On the basis of end-user, the electricity generation segment led the global market in 2023. This is mainly due to the increasing installation of PV systems in industrial as well as commercial settings for electricity generation. Moreover, the rising need for electricity bolstered the segment.
• By source insights, the new installation segment holds the largest share of solar energy as the rising technology and the need for sustainable energy systems increase the demand for the production of new installation systems. Moreover, many businesses are focusing on reducing carbon emissions with the adoption of solar energy sources thereby driving the segment and expanding the market. For instance, the PM Kusum scheme aims to enhance the energy and water security for farmers by enabling the installations of solar power plants, standalone solar agriculture pumps, and solarized grid-connected agriculture pumps with financial assistance from the government 

Solar Energy Market Trends 

High demand for clean energy: With the increasing prices of fossil fuel-based electricity and the lack of availability of fossil fuels, the demand for clean energy is rising worldwide, thus boosting the market growth. People are becoming more aware of the benefits of solar energy. In addition, the rising industrialization leads to increased solar PV installations, contributing to market growth.

Government initiatives: Rising government initiatives to promote sustainable energy drive the growth of the market. Various governments are offering tax credits and subsidies to homeowners and farmers for PV installations. Moreover, rising concerns about greenhouse gas emissions due to fossil fuel use propels the demand for solar energy. 

Electrification of remote areas: Rising focus on electrification of remote areas creates lucrative opportunities in the market. Solar power can be decentralized, which makes it an ideal solution for electrifying remote areas.

• in October 2024 Solplanet introduced its ASW350K-HT Three phase solar inverter with a power of 350 kW and maximum efficiency of 99.1% for utility-scale PV projects with a high conversion efficiency of over 99% that ensures most of the energy produced by solar panels is effectively converted into usable power by minimizing the loss.  

Regional Insights

In 2023, Asia Pacific led the solar energy market with the largest share. This is mainly due to the rising industrialization and electricity consumption in countries like India and China. With the growing population in these countries, the consumption and demand for electricity have increased in the past few years. For instance, electricity consumption in India has grown over the past decades, amounting to 1,407 terawatt-hours in 2023. Moreover, rising government initiatives to promote renewable energy, rising environmental concerns, and the growing focus on rural electrification contributed to regional dominance. 

• For instance, in November 2024, the Union Ministry of New and Renewable Energy approved 50 solar parks in India with nearly 37.5 GW capacity to achieve renewable energy goals by 2030.

On the other hand, North America is expected to be the fastest-growing region in the solar energy market in the coming years. This is primarily due to the increasing consumption of sustainable and clean energy sources. In addition to this, rising awareness about environmental concerns boosts the demand for solar energy in the region.

Solar Energy Market Coverage

Recent Developments in the Market

• In November 2024, power giant NTPC and ONGC, a major crude oil producer, partnered and announced a Joint venture in renewable energy sources, including solar and wind energy.
• In November 2024, Bridgeway Power installed the first virtual net metering solar plant under the BRP L off 21.60-kilowatt capacity that uses bifacial panels and microinverter technology that allocates the generated power as 50% to the primary meter, 40% to a secondary meter, and the remaining 10% to a third.  

Market Segmentation

By Technology

• Photovoltaic Systems
• Concentrated Solar Power Systems
  • Type
    • Parabolic Through
    • Solar Power Tower
    • Fresnel Reflectors
    • Dish Stirling

By Solar Module

• Cadmium Telluride
• Amorphous Silicon Cells
• Others
• Monocrystalline
• Polycrystalline

By Application

• Residential
• Commercial
• Industrial

By End-user

• Electricity Generation
• Lighting
• Heating
• Charging

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