Solar PV Panels Market 2020 and Forecast 2021-2027

                                          
Report Overview: Solar PV Panels Market


The global solar PV panels market size was valued at USD 104.1 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 3.2% from 2021 to 2027. Growing demand for renewable-based clean electricity coupled with government policy tax rebates and incentives to install solar panels is expected to drive the market in the coming years. Firms in commercial and industrial sectors are among the chief consumers of solar photovoltaic (PV) panels owing to their large scale requirement for green power. Economies of scale installation in these sectors compensate for any loss in panel efficiency, thereby making the solar PV systems profitable for large scale power generation. The residential sector is gaining momentum in solar PV panel installations owing to net metering schemes for on-grid systems and availability of energy storage systems for off-grid systems.

The market in the U.S. is expected to witness prominent growth rate on account of robust federal schemes such as solar investment tax credit, rising demand across public and private sector for green electricity, and declining panels cost. According to the Solar Energy Industries Association, the U.S. solar industry generated an investment of USD 18.0 billion in 2019 and achieved an installed capacity of 78 GW across the nation.

The U.S. Department of Energy has laid down codes, standards, and regulations governing the licensing and certification, installation, construction design, and warranties for solar PV systems. Although the guidelines are set in order to maintain public welfare, safety, and health, complicated and lengthy permitting processes are expected to hamper the deployment rate of solar PV systems.

The value chain of clean energy systems includes raw material suppliers, equipment suppliers, module manufacturers, distributors, and buyers that function in industrial, commercial, and residential markets. The majority of manufacturers in the market are heavily backward integrated. First Solar, Solar World, and Yingli are among the key companies practicing vertical integration.

However, the Covid-19 outbreak is estimated to hinder the solar PV panel supply chain. The pandemic is expected to result in increasing panel prices with manufacturers facing labor shortages, material supply shortages, and stagnant international trading impacting the exports market. Delayed projects due to supply chain disruption will further impede the industry.



Technology Insights: Solar PV Panels Market

The thin-film segment occupied a dominant market share of around 40.0% in 2019 owing to its narrow design, strong durability, and manufacturing from flexible and lightweight materials. Thin-film solar PV panels find major application in commercial and utility-scale projects as these lightweight panels have reduced installation costs. Lower efficiency of thin-film solar PV panels is compensated with the economies-of-scale installation.
The crystalline silicon segment is projected to witness substantial growth over the forecast period owing to the extended lifecycle of panels, low weight volume ratio, and low-cost manufacturing of silicon semiconductors. Monocrystalline solar PV panels are made from highest grade silicon and possess higher space efficiency as compared to thin-film solar PV panels. However, companies manufacturing monocrystalline panels target only the premium segment of the market owing to high initial investment for these panels.

Application Insights: Solar PV Panels Market

The commercial segment held the largest market share of 30.4% and was valued at USD 35.0 billion in 2019. Rapid penetration of solar PV panels across corporate offices, hotels, and hospitals coupled with growing power demand from communication base stations and data centers is expected to propel the product demand across the commercial sector. In addition, enhanced panel efficiency, improved energy yield, and module-level monitoring are among the key factors driving the PV panel adoption in this segment.

The residential sector is projected to witness a significant CAGR of 4.2% over the forecast period 2021-2027. Off-grid solar PV panels with energy storage system act as reliable secondary source of power in households, thereby increasing product adoption across the segment. Extensive battery energy storage systems require extra-large panels system to store desired power in batteries. This, in turn, will considerably boost the demand for clean energy system in the residential sector.

Industrial segment accounted for more than 40.0% of the market share in 2019. Growing number of utility-scale projects owing to rising demand for clean electricity are expected to drive the solar PV panels market across the industrial sector. According to Solar Energy Industries Association, utility-scale projects of more than 37 GW capacity are operating in the U.S. with another 112 GW in development stage.

Grid Type Insights: Solar PV Panels Market

On-grid type accounted for a significant market share of 87.6% and was valued at USD 100.9 billion in 2019. The dominant position of on-grid type is majorly attributed to the low operating and maintenance costs and non-complexity of grid-connected PV systems. The on-grid PV systems have lower costs as the excess electricity generated is exported to the grid and no battery storage needs to be installed near the system source. Net metering and feed-in tariff policies have further provided a boost to segment growth.

Off-grid type is projected to ascend at a CAGR of 6.8% over the forecast period. Off-grid systems are self-sustaining systems as they store and save energy from solar PV into batteries for use when the grid power goes down. Rising energy demand from isolated locations along with strong regulatory policies for decentralized power generation are expected to positively influence segment growth over the coming years.

Regional Insights: Solar PV Panels Market

Asia Pacific held the largest market share of 33.0% and was valued at USD 38.0 billion in 2019. China was the largest contributor to the market revenue generation in 2019. Presence of large market players along with favorable government policies providing subsidies and financial incentives to PV projects are among the key factors contributing to the industry growth in China.

Apart from being the largest manufacturing hub of panels manufacturing, China has several solar farms including the world’s largest floating farm that can generate 40 MW of electricity. In addition, the country accounts for a prominent position in solar PV panels exports to the world. However, some countries like the U.S. and India have applied restrictions on the amount of PV panel imported from China, thereby disrupting solar industry profits in the country.

In North America, the market was valued at USD 14.2 billion in 2019. The U.S. accounted for the largest market share of 44.2% in 2019. The proliferating capacity of residential consumers coupled with announcement of new utility projects is expected to enhance product penetration across the country in the coming years.

Key Companies & Market Share Insights: Solar PV Panels Market

High degree of forward integration, security of raw material feedstock, technology sourcing, skilled manpower, and strong R&D are among the prominent factors governing the competitiveness of the solar PV panel industry. The industry participants supply PV panel through various distribution channels such as third-party supply contracts, via different online portals, and direct supply to the end-users. Moreover, the majority of PV manufacturers are headquartered in China and these companies are expected to be benefitted through panel exports to the U.S. and Europe. Some of the prominent players in the solar PV panels market include:

Key Companies Profiled: Solar PV Panels Market Report

 	
JinkoSolar
 	
 JA Solar
 	
Trina Solar
 	
LONGi Solar
 	
Canadian Solar
 	
Hanwha Q-CELLS
 	
Risen Energy
 	
GCL-SI
 	
First Solar
 	
Talesun
 	
SunPower Corporation
 	
ReneSola
 	
Shenzhen Yingli New Energy Resources Co., Ltd.

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global solar PV panels market report on the basis of technology, grid type, application, and region:

Technology Outlook (Revenue, USD Billion, 2016 - 2027)

 	
Thin Film
 	
Crystalline Silicon
 	
Others

Grid Type Outlook (Revenue, USD Billion, 2016 - 2027)

 	
On Grid
 	
Off Grid

Application Outlook (Revenue, USD Billion, 2016 - 2027)

 	
Residential
 	
Commercial
 	
Industrial