Global Solar PV Systems Market to Reach US$645.7 Billion by 2030

The global market for Solar PV Systems estimated at US$180.5 Billion in the year 2023, is expected to reach US$645.7 Billion by 2030, growing at a CAGR of 20.0% over the analysis period 2023-2030. Utility, one of the segments analyzed in the report, is expected to record a 12.6% CAGR and reach US$174.7 Billion by the end of the analysis period. Growth in the Residential segment is estimated at 27.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$47.9 Billion While China is Forecast to Grow at 27.0% CAGR

The Solar PV Systems market in the U.S. is estimated at US$47.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$175.9 Billion by the year 2030 trailing a CAGR of 27.0% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.6% and 16.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.5% CAGR.

Global Solar PV Systems Market - Key Trends and Drivers Summarized

Why Are Solar PV Systems Leading the Charge in Renewable Energy Adoption?
Solar Photovoltaic (PV) systems have emerged as the cornerstone of the global renewable energy transition, driven by their ability to convert sunlight directly into electricity using solar cells. These systems are highly favored due to their scalability, environmental benefits, and potential for cost savings. With governments worldwide pushing for decarbonization and the adoption of clean energy, the demand for solar PV systems has surged across residential, commercial, and utility-scale sectors. The flexibility to install these systems in diverse settings—from rooftop installations to large solar farms—has propelled their growth. Furthermore, advancements in PV technologies, such as the development of bifacial and high-efficiency solar panels, are enhancing the energy yield of solar systems, making them an increasingly viable alternative to conventional fossil fuel-based energy generation.

How Are Technological Innovations Shaping the Solar PV Systems Market?
Technological advancements are at the forefront of the solar PV systems market, driving the development of more efficient, reliable, and cost-effective solutions. Innovations in PV modules, such as the use of monocrystalline and polycrystalline silicon, thin-film technology, and PERC (Passivated Emitter Rear Cell) technology, are significantly boosting the efficiency rates of solar panels. The integration of smart inverters, which convert DC to AC power more effectively, is further optimizing solar energy harvest and grid compatibility. Additionally, the emergence of energy storage solutions like lithium-ion batteries integrated with PV systems is facilitating energy management and reliability, especially for off-grid and hybrid applications. The ongoing research into perovskite and tandem solar cells also presents promising opportunities for even higher efficiency rates and lower production costs in the future.

Which Market Segments Are Leading the Growth of the Solar PV Systems Industry?
Types of solar PV systems include monocrystalline, polycrystalline, thin-film, and bifacial PV modules, with monocrystalline holding the largest market share due to their higher efficiency and space-saving benefits. Grid connectivity is categorized into on-grid and off-grid systems, with on-grid systems dominating the market because of their integration with utility networks and government incentives. Applications of solar PV systems span residential, commercial, and utility-scale sectors, with utility-scale installations leading the market due to large projects aimed at meeting renewable energy targets. Geographically, Asia-Pacific is the largest market for solar PV systems, driven by the rapid expansion of solar capacity in countries like China and India, while North America and Europe are also significant markets due to strong policy support and technological innovation.

What Are the Key Drivers of Growth in the Solar PV Systems Market?
The growth in the solar PV systems market is driven by several factors, including rising government incentives and subsidies, technological advancements in PV modules and energy storage solutions, and the increasing focus on energy independence and sustainability. The demand for efficient, reliable, and cost-effective solar PV systems is growing across residential, commercial, and utility-scale applications, driven by the need to reduce carbon emissions and achieve energy security. Technological innovations in high-efficiency solar panels, smart inverters, and integrated energy storage are enhancing the performance and reliability of solar PV systems, supporting market growth. The expansion of large-scale solar projects, the growing popularity of distributed generation, and the increasing integration of solar PV systems with smart grids and digital monitoring platforms are creating new opportunities for market players. Additionally, the focus on achieving grid stability, reducing LCOE, and meeting global renewable energy targets is further propelling the growth of the solar PV systems market.