Photovoltaics Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2035

Photovoltaics (PV) is a technology that uses solar cells to directly convert sunlight into electricity. PV systems supply electricity to a wide range of devices, including houses, businesses, and small electronics. In addition to providing electricity into the grid, they are capable of offering electricity in places without power lines. PV arrays are easy to install and have a minimal impact on buildings' environment.

MARKET OVERVIEW

The photovoltaics market is valued at approximately USD 613.57 billion in 2024 and is projected to reach USD 1681.82 billion by 2035 exhibiting a compound annual growth rate (CAGR) of 9.6% during the forecast period of 2025-2035. They are necessary to supply a clean, affordable, and renewable energy source, which makes a substantial contribution to economic growth, energy independence, and environmental sustainability.

GROWTH DRIVERS

The market for photovoltaics is primarily driven by government-supported incentives and policy frameworks, heavily influencing the increasing level of solar installations globally. The cost and return on investment (ROI) for PV systems in residential, commercial, and utility-scale applications is substantially boosted by subsidies, tax credits, feed-in tariffs, and net metering schemes. For instance, the European Union has provided significant subsidies to promote renewable energy and decrease CO2 emissions, with funds accessible for installing solar panels in the majority of households. The Green Retrofit Grant, along with state grants and low-interest loans, aid low-income households in transitioning to solar energy in the United States. China has pledged $236 million to provide subsidies for solar projects in 2022.

The levelized cost of electricity (LCOE) from solar sources is decreasing significantly over the past ten years due to advancements in solar panel manufacturing technologies, increased module efficiencies, and economies of scale. According to ‘Our World in data’, the cost of solar photovoltaic has decreased by 90% in the past decade. IRENA anticipates a further reduction of 59% in costs for electricity generated by solar PV by 2025. Advancements in materials, such as passivated emitter rear cells (PERC), bifacial modules, and thin-film technologies, is improving performance while lowering production costs.

MARKET SEGMENTATION:

By Components -

·         Modules

·         Inverters

·         Balance of System

By Type –

·         Rigid

·         Flexible

By Material Type –

·         Silicon

·         Copper Indium Gallium Selenide (CIGS)

·         Cadmium Telluride (CdTe)

·         Perovskite

·         Organic Photovoltaic (OPV)

·         Quantum Dot

By Cell Type –

·         Full-Cell PV Modules

·         Half-Cell PV Modules

By Installation Type –

·         Ground Mounted

·         Building-Integrated Photovoltaics (BIPV)

·         Floating PV

By Concentration System –

·         High Concentration PV

·         Medium & Low Concentration PV

By Cell Type –

·         Grid-Connected

·         Off-Grid / Standalone

·         Hybrid Systems

By Power Capacity –

·         Up to 100 WP

·         101 WP to 300 WP

·         Above 300 WP

By Application –

·         Residential

·         Commercial And Industrial

·         Utilities

By Region -

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa

Photovoltaics Market By Components Segment Review:

PV modules are designed to convert sunlight into electricity by utilizing photovoltaic cells that are made of semiconductor materials, like silicon. These modules are crucial for generating solar energy for both residential and commercial applications. The growing need for renewable energy, reducing production costs, government regulations and incentives, innovations in technology, and the incorporation of energy storage technologies are propelling this segment's market expansion.

Photovoltaics Market By Type Segment Review:

Flexible solar panels are made using thin-film technology, which involves depositing photovoltaic components onto a flexible substrate like plastic or metal foil. This factor makes flexible panels lighter, more portable, and capable of conforming to curved or irregular surfaces.

Photovoltaics Market By Material Type Segment Review:

In 2025, silicon' segment is anticipated to hold the largest share of the market due to its relatively high efficiency, and decreasing costs.

Photovoltaics Market By Cell Type Segment Review:

Compared to conventional cells, half-cut solar cells have less electrical resistance, which are capable of minimizing power loss from resistance in the internal wiring and connections of the panel. This segment is experiencing robust growth, driven by the unique advantages of half-cell technology and the rising demand for renewable energy.

Photovoltaics Market By Installation Type Segment Review:

Ground-mounted systems offer several advantages, such as simple maintenance access, effective heat dispersion, and the ability to incorporate tracking devices that continuously monitor the movement of the sun to boost energy output. The market for this segment is expanding significantly worldwide due to rising demand for renewable energy sources, government incentives, and declining solar panel costs.

Photovoltaics Market By Application Segment Review:

The demand for solar PV systems in residential applications is on the rise due to the growing concern about environmental impact and the need for sustainable energy solutions. Residential PV systems are becoming increasingly popular due to the rising awareness among consumers about the benefits of solar energy, including lower electricity costs, long-term cost savings, and energy independence.

Photovoltaics Market By Region Segment Review:

The photovoltaics market exhibits significant regional variations, with Asia Pacific leading the market in 2024 due to the abundant sunlight, lower component production costs, and advancements in silicon wafers and bifacial modules, which improve performance and adoption rates.

Regional Synopsis:

The market in North America is growing due to favorable government incentives and supportive policies, declining costs of solar panels, growing environmental awareness and sustainability goals, technological advancement, and rising energy demand.

Europe is another crucial market, driven by the European Union’s stringent policies and indications for key industrial manufacturers across region to reduce carbon emissions.

The Asia Pacific is anticipated to dominate the global market due to increasing investments in solar infrastructure, supportive government policies, and the region’s commitment to renewable energy adoption.

In Latin America, the market is poised for steady growth, driven by the region's abundant solar resources and increasing demand for clean energy.

The market in the Middle East and Africa region is witnessing growth in the photovoltaics market due to their growing emphasis on sustainability and energy security along with favorable government policies and investment in large utility-scale solar schemes.

Key Challenges:

The high upfront cost of solar installations is one of the primary challenges in the photovoltaics market. Despite the significant reduction in cost of solar energy, the initial cost of solar installation remains a barrier for some consumers. Furthermore, the return on investment often takes a long time, making it less appealing to some potential homeowners and businesses.

Competitive Landscape:

The global photovoltaics market is characterized by a several established players and emerging companies, each striving to enhance their market presence through various strategies such as technological innovation and product development, strategic partnerships and acquisitions, market expansion and geographic diversification, policy and regulatory influence, and marketing and branding.

Companies are making significant investments in research and development to introduce innovative products. This involves improving the efficiency of solar cells, lowering manufacturing costs, and inventing new PV technologies.

Key Players:

·         Jinko Solar

·         First Solar

·         Wuxi Suntech Power Co., Ltd.

·         JA SOLAR Technology Co., Ltd.

·         Hanwha Qcells

·         Huawei Technologies Co., Ltd.

·         Trinasolar

·         SUNGROW

·         LONGI

·         SHARP CORPORATION

·         SMA Solar Technology AG

·         Tongwei Co.Ltd

·         SolarEdge

·         Canadian Solar

·         Other Key & Niche Players