Report

Global solar module market is projected to witness a CAGR of 7.05% during the forecast period 2024-2031, growing from USD 181.46 billion in 2023 to USD 313.04 billion in 2031. The demand for solar modules is on the rise due to various factors, such as a continuous rise in demand for green electricity, along with a global shift from traditional electricity generation to renewable sources. Advanced solar modules further support the growing demand for green electricity. The innovative designed solar module assists in lowering carbon emissions and ensures energy security. Moreover, many countries are expanding their energy portfolios to reduce reliance on fossil fuels, and solar modules are becoming a key emerging technology to support sustainable energy plans in the coming years.
For instance, in June 2024, LONGi Green Energy Technology Co., Ltd. introduced a number of innovative solar modules at Intersolar Europe 2024 by utilizing back contact technology. One of the key products is the Hi-MO X6 Artist Ultra Black solar module, which boasts an impressive 22.3% energy conversion efficiency and is designed to align with the choice of European customers. Moreover, LONGi unveiled its new square-shaped M11 wafer, which enhances the performance and efficiency of the solar modules. The wafer is widely used in the Hi-MO X6 Max series to enhance its working efficiency and its mechanical strength.
Utilization of Solar Parks is Propelling Market Growth
Solar parks support the growth of renewable energy by providing clean electricity generation with minimal carbon emissions. The installations of solar parks maximize land use and infrastructure in a cost-effective way, thereby resulting in access and affordability of solar energy, which boosts the demand for solar modules in the market. Additionally, solar packs boost local economies and enhance energy security. Both developed and developing countries are investing in solar parks as parks reduce electricity costs for consumers and businesses, stimulating the solar module market growth in coming years. Large-scale solar parks with advanced solar modules are designed to demonstrate the viability of solar energy. Solar parks play a crucial role in transitioning to a low-carbon future, significantly helping developing countries to attain sustainability goals.
For instance, in September 2024, Epic Energy Ltd. signed a deal with Niva Ecotech Pvt. Ltd. for the development of a 25 MW solar park in Solapur, Maharashtra. Solapur is a perfect location for the deployment of solar modules. This development will help the company to increase revenue in the coming years.
Increase in Water Heating Systems Usage is Fostering Market Growth
Water heating systems are among the most common applications for solar panels, efficiently utilizing solar energy to heat water for household and commercial needs. Compared to traditional heating methods, solar water heating systems are considered highly cost-effective and environmentally friendly. As awareness of these benefits continues to rise, there is an increasing demand for affordable and sustainable water heating solutions. This growing interest facilitates the widespread adoption of solar energy systems, prompting solar module manufacturing companies worldwide to expand their offerings and innovate in this space.
For instance, in September 2024, Finland's Helen Oy announced its plans to introduce a massive district heating plant complex in Helsinki. MAN Energy Solutions of Germany stated that it will support the project by providing the world's largest ever 33 MW solar module-powered air-to-water heat pump. Construction work for the set-up of this plant will start at the end of 2024. Moreover, MAN Energy Solutions declared that once the plant becomes operational, it will reduce carbon emissions by 56,000 tons annually.
Advent of Transparent Solar Panels is Fueling Market Expansion
Transparent photovoltaic solar panels are a highly efficient product and could be used to transform conventional building materials into energy sources. The transparent solar panels could be used as BIPV systems to help generate clean energy while maintaining the aesthetic look of the building. The transparent solar panels allow visible light to pass through while capturing the energies from UV and infrared wavelengths by using technologies like perovskite cells. The integration of transparent solar panels with building structures enhances energy efficiency and sustainability. The advanced solar module provides visual appeal, which makes products solar energy more adaptable in space-constrained urban environments. As a result, the rise in the adoption of transparent solar panels in architecture and urban design applications creates new opportunities for the solar module market.
For instance, in January 2024, the American Ceramic Society announced that InQs Co. Ltd., a Tokyo-based solar technology startup, has presented a unique, transparent solar technology at the Consumer Electronics Show (CES) 2024. The technology represents a sophisticated energy-harvesting solar module known as square photovoltaic solar (SQPV) module. It creates power from sunlight and absorbs energy from surroundings and low light circumstances, which makes it highly effective in dim light situations.
Government Initiatives Acting as a Catalyst
Government initiatives play a crucial role in promoting the use of solar panels, as they offer substantial incentives to businesses interested in developing solar energy. These initiatives enable solar energy projects to align with national energy security goals, such as expanding the solar sector, reducing reliance on fossil fuels, and fostering sustainable development. As a result, countries such as the United States and India are positioned to emerge as global leaders in solar energy, driving innovation and investment in this vital sector.
For instance, in June 2024, the Biden administration reinstated Section 201 taxes on imported bifacial solar panels, which were formerly exempted for two years. The initiative was taken to protect domestic manufacturers against an increase in imports that would undermine the effectiveness of the tariffs. As per the reframed policy, a 15% tariff is expected to reduce the cost of commercial and utility-scale solar installations by 1-2%. Furthermore, the administration intends to extend the tariff rate quota on silicon solar cells for the benefit of the United States solar module production and is closely monitoring import levels to avoid oversaturation.
Asia-Pacific to Lead the Market Share
Asia-Pacific has emerged as the market leader in solar modules and is expected to maintain its dominance in the forecast years. The region includes several developing countries such as China, India, and Japan, which are looking for energy transition and lower carbon emissions, which drive the demand for solar modules in the region. The authorities of developing countries are commencing effective initiatives, supporting extensive solar energy portfolios, and creating favorable manufacturing environments that attract foreign investors and create substantial market growth opportunities. Additionally, the region is focusing on technological advancements, including the development of efficient solar cells and energy storage solutions, further propelling solar module market growth. Countries in this region continue to prioritize renewable energy and sustainability, which will continue to expand the solar module market size in the coming years.
For instance, in July 2024, the National Energy Administration of China reported that it installed 102.48 GW of additional solar power capacity. By June, nearly 710 GW of total solar energy capacity had been installed in China, representing a 51.6% rise in installation growth rate since last year. The total amount of electricity generated in China has risen to around 3.07 TW, which clearly reflects China's commitment to renewable energy sources and its aim to reduce carbon footprints.
Future Market Scenario (2024 - 2031F)
- Advanced solar cells are gaining popularity in developing countries, which significantly enhances their application for different end-users. Moreover, a rise in the adoption rate is expected to create numerous opportunities for market growth and prosperity in the future.
- The government is coming up with initiatives and plans such as tax breaks and subsidies for installing solar modules, propelling the market's expansion and promoting the use of solar power.
- Global investments in solar power are rising to surpass traditional fossil fuels and lower carbon emissions in the atmosphere. This shift is expected to boost market growth significantly in the forecast period.
Key Players Landscape and Outlook
The demand for solar modules is growing steadily as key players are continuously competing against each other to gain a competitive edge in the market. Moreover, a continuous rise in interest in renewable energies, along with the rise in the need for sustainable solutions, is making the competition fierce.
Furthermore, the organizations are actively indulging in various collaborations to enhance their manufacturing capacities and upgrade the efficacy of their solar modules. These partnerships allow the sharing of knowledge, innovation, and development of new advanced technologies to meet the increasing energy demands, leading to cost-efficient solar solutions.
In October 2023, Adani Group announced its plan to build a 10 GW solar module manufacturing plant by 2027, which will upgrade its current manufacturing capacity of 4 GW. The plant will be located at the Mundra Special Economic Zone in Gujarat. The main aim of the upgrade plan is to meet the continuously expanding global demand for solar modules. Moreover, Adani has raised a total funding of USD 394 million to support the expansion plan.