Solar energy is converted into electricity using photovoltaic cells. It works by absorbing the photons from the sun and then releasing electrons to generate a flow of electricity. As it is a renewable and clean form of energy its demand in the market is increasing tremendously. According to the International Energy Agency, the global solar PV generation in 2021 was estimated to be around 1002.9 TWh. IEA data also shows that the share of solar PV in the cumulative power capacity rose from 0.8% in 2010 to 9.4% in 2020 and is estimated to reach 22.2% in 2027. Solar energy is one of the cleanest forms of renewable energy and has a wide variety of applications such as use in rooftop solar panels for residential and commercial buildings, telecommunication systems, generation, and supply of electricity as a form of energy, consumer goods such as solar-powered batteries and calculators and much more.
Increased consumption of electricity drives the growth of the solar photovoltaic cell market
According to the International Energy Agency, there was a 1.7% increase in global electricity consumption between 2018 and 2019. The final consumption reached 22,848 TWh in 2019. The International Energy Agency also states that solar photovoltaic generation increased by up to 22% in 2021 and exceeded the 1000 TWh mark. In terms of absolute generation growth in all renewable energy, solar photovoltaic demonstrated the second largest growth after wind energy generation. Solar PV accounted for 3.6% of global electricity generation in 2022 and is the third largest renewable electricity technology in the world.
The need for renewable and clean forms of energy is a key driving factor in this market
The rising risks of global warming led to the need for finding clean and renewable sources of energy. Governments across the globe are working on reducing the carbon footprints of their countries to help in tackling global warming. For instance, in 2021, IEA released the Net Zero by 2050 roadmap. In this scenario, around 630 GW of solar photovoltaics will be added by 2030. India’s Ministry of New and Renewable Energy states that renewable energy accounts for 26.53% of the total energy generated in the country. Also, India’s renewable energy capacity is forecasted to grow up to 35-40 GW of new capacity added annually till 2030 by the Institute of Energy Economics and Financial Analysis (IEEFA) and CEF. Renewable energy capacity is predicted to reach 405 GW by 2030. In 2017, China claimed to increase its renewable energy capacity by 38% by 2020. China also announced an investment of US$ 361 billion in renewable energies. Therefore, the overall increase in renewable energy resources will create massive growth in the solar photovoltaic cells market.
Asia Pacific region shows the highest growth potential for the solar photovoltaic cells market
According to the International Energy Agency, China, India, and Japan were among the top ten electricity-consuming countries in the world in 2019. According to IEA, in 2020, China’s final electricity consumption was 7424.99 TJ which is an increase of almost 1180.94% since 1990. Similarly, the final electricity consumption for Japan and India in 2020 was 971.51 TJ and 1280.7 TJ respectively. In 2022, China announced its plan to create a solar power plant in space by 2028 which will convert the solar energy from the sun to electricity and then transmit that electric energy to various parts of Earth in the form of microwaves or lasers. In India, the National Institute of Solar Energy has evaluated the country’s solar potential to be 748 GW. The solar power installed capacity has reached 61.97 GW in 2022 and India currently ranks 4th in global solar PV deployment as of the end of 2021. In 2020, IEA estimated Japan’s total energy supply to be 16,108,885 TJ out of which 437,142 TJ was supplied by wind and solar sources. Thus, factors like these make sure that the solar photovoltaic cells market will see a huge rise in the Asia Pacific region.
Market Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023–2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Type, Material, End-USer, And Geography |
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies Covered | Leonics, Central Electronics Limited, Targray, DuPont, TDK Corporation, JA Solar Technology, Trina Solar, Merck KGaA, Tata Power Solar System, Microtek |
| Customization Scope | Free report customization with purchase |
Segmentation