Agrivoltaics Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

The global market value of the agrivoltaics market was estimated to be USD 5.4 billion in 2023 and is projected to grow at a CAGR of 10.3% during the forecast period. Agrivoltaics is a combination of agriculture and photovoltaics. The simultaneous use of farmland and solar PVs is done to generate power. The agrivoltaics system is designed in a way such that the land should be used for farming, grazing, and settling solar panels.

Increasing demand for better crop yield and soil moisture, and increased water retention capacity of soil, is driving demand in the market significantly. Advancements in farming techniques are driving growth in the market significantly. Strong environmental policies and incentives are driving the demand in the market rapidly.

Growth Drivers

The growing need for efficient land utilization due to a rapidly growing population, government support for sustainable agriculture, advancements in solar panels, and rising concern about food scarcity is driving growth in the market significantly. The global push towards clean energy sources is driving growth in the market.

With increasing pressure on agricultural land, agrivoltaics present a solution by combining solar power generation and crop cultivation. Increasing demand for fruits, vegetables, and grains are driving growth significantly in the agrivoltaics market. Rising demand for better crop yield is the factor behind the significant growth in the market.

Rising energy demand and renewable energy push, along with supportive government policies and incentives, are driving demand in the market. Policies in Europe, the U.S., Japan, and India are driving adoption. Land utilization and sustainability goals are driving the market significantly towards success. Advancements in solar technology are fueling the growth in the market.

Innovations in semi-transparent solar panels optimize light for crops. Growth in private investments: Governments worldwide are setting ambitious renewable energy targets to reduce carbon emissions. Scarcity of arable land is driving the need for dual-use solutions. Solar panels provide shade, reduce water evaporation, and protect crops from extreme weather. Advances in bifacial and transparent solar panels improve energy capture without blocking sunlight. Farmer benefits and additional revenue streams are fueling the growth in the market.

Segmentation

Agrivoltaics Market by Technology

·         Fixed Solar Panels

·         Tracking Solar Panels

·         Concentrated Solar Power

Agrivoltaics Market Crop Type

·         Vegetables

·         Fruits

·         Grains

·         Flowers

Agrivoltaics Market Installation Type

·         Ground Mounted

·         Rooftop

·         Facades

Agrivoltaics Market System Type

·         Grid Tied

·         Off Grid

·         Hybrid Systems

By Region

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Agrivoltaics Market Crop Type Segmentation

On the basis of the type, the agrivoltaics market is segmented into vegetables, fruits, grains, and flowers. Vegetables are the largest segment due to their compatibility with partial shading and controlled microclimates created by solar panels. Crops such as spinach, lettuce, and tomatoes thrive under reduced sunlight, benefitting from lower temperatures and improved soil moisture retention.

Fruits are the fastest-growing segment in the agrivoltaics market, driven by increasing adoption for high-value crops like berries and grapes. These fruits are sensitive to excess heat and direct sunlight, and they benefit from the moderate conditions under solar panels. Increasing demand for soil moisture, and better crop yield is driving demand in the market. Rapidly growing population in all over the world is significantly driving the demand for vegetables, fruits, and grains.

Grains, being the staple crop, dominate the market by ensuring food security and stability, while flowers contribute to the aesthetics and commercial value of agrivoltaics.

Regional Outlook

On the basis of the regions, the agrivoltaic market is segmented into 5 regions: Asia Pacific, North America, Latin America, Middle East and Africa, and Europe. The Asia-Pacific region is the leading segment in the market. Strong government policies and incentives are the reasons behind the growth in the market of emerging economies like China and India. Japan, with minimum arable land, has promoted the installation of agrivoltaics through government subsidies and regulatory frameworks.

In India, the government is promoting agrivoltaics under the PM-KUSUM scheme, which supports farmers in setting up solar power plants alongside agriculture. Higher installed capacity and rapid growth are driving demand in the market. High population density and limited arable land make agrivoltaics an attractive option in the Asia-Pacific region. North America is one of the leading market in agrivoltaics driven by technological innovations, and supportive policies by the government. The Inflation Reduction Act provides tax incentives for solar energy, boosting agrivoltaic adoption. The presence of key players in the region is the key factor behind the growth in the market.

Europe is one of the fastest-growing agrivoltaics markets, driven by strong government policies, technological innovations, and sustainability goals. The EU’s renewable energy targets and government incentives are driving the demand in the market. France is one of the largest markets in the region, where the government actively supports photovoltaics, particularly for vineyards and orchards. Incentives under the EEG act encourage agrivoltaic investments. Large-scale agrivoltaic projects are growing in sun-rich regions.

Agrivoltaics help protect crops from heatwaves and reduce water evaporation in Southern Europe. Latin America is an emerging market for agrivoltaics, with a strong focus on solar energy expansion and climate resilience. Countries like Brazil, Mexico, Chile, and Argentina have abundant sunlight, making agrivoltaics viable. Water conservation and drought mitigation in countries like Chile, Peru, Brazil, and Argentina are driving demand for agrivoltaics.

Middle East and Africa is in the early stages of agrivoltaic adoption, but growing solar investments, and water scarcity are driving interest in the market. Agrivoltaics help in reducing the water evaporation in desert areas like the UAE, Saudi Arabia, and North Africa. Countries are investing in desert farming with agrivoltaic solutions. Agrivoltaics supports sustainable farming in arid regions. UAE, Morocco, and South Africa are witnessing significant growth during the forecast period due to the solar powered irrigation, and agrivoltaic farms. Water scarcity solutions, food security, solar energy expansion are the key reasons behind the growth in the market significantly.

Key Players

·         Canadian Solar

·         Daqo New Energy

·         TotalEnergies

·         Azure Power

·         BayWa r.e.

·         JinkoSolar

·         Trina Solar

·         Enel

·         First Solar

·         LONGi Green Energy

·         Siemens Gamesa

·         Infinera

·         Fronius

·         Sungrow Power Supply

·         Other Players