The Global Solar Power Equipment Market size is expected to reach $202.4 billion by 2027, rising at a market growth of 11.3% CAGR during the forecast period.
Solar power equipment is used to capture the sun's energy and convert it to electricity for utilization in the industrial, commercial, utility, or residential sectors. Solar power systems are made up of a variety of components that transform solar energy into electricity, store it, and then supply it as needed.
A solar energy system is a significant part of solar power equipment. Solar power equipment assists in harnessing the sun's energy, reducing carbon emissions, and lowering or eliminating electricity bills. In the coming years, all of these elements are anticipated to augment the growth of the solar power equipment market. In addition, in response to growing global energy crises, a number of international organizations are developing significant solutions for implementing renewable energy-based technology.
As a result, they are now concentrating on taking rigorous actions to manage present carbon dioxide emission amounts while also monitoring future emission intensity. The construction of renewable energy-generating sources such as wind power, solar power, and others, would significantly help in developing green energy sources, hence, the demand for these sources would rapidly increase throughout the forecasting years.
The penetration of renewable power equipment is likely to be driven by a number of factors, including rising global warming, increased awareness of renewables, and fuel cost reduction. Additionally, it is predicted that the use of solar power equipment in non-residential, residential, and utility applications would increase in the near future. In addition, in this market, there is currently no direct substitute available. As a result, the concern about the availability of substitute products is minimal.
According to the International Energy Agency (IEA), renewable energy generation would increase by 7% in 2020, with solar PV and wind technologies accounting for over 60% of this increase. Renewable energy's proportion in worldwide electricity generation increased by two percentage points each year, reaching over 29 percent in 2020.
The COVID-19 outbreak was one of the most hazardous pandemics of the century. The advent of the novel coronavirus caused a major disruption to economies all over the world. It demolished numerous small as well as large businesses. In addition, the COVID-19 pandemic forced governments across the world to enforce lockdowns in their countries. The stringent regulations under the lockdown completely evolved consumer behavior. Moreover, due to travel restrictions, imports and exports of various goods were hauled, due to which, the supply chain of these goods, as well as their comprehensive goods, were significantly disrupted. Due to imposed lockdowns and travel limitations, the COVID-19 pandemic brought a favorable impact to the outdoor solar power equipment sector.
There has been a rise in the demand for solar panels in residential rooftop applications. Prices for essential components such as polysilicon and silver, which are used to make solar cells, have reduced dramatically. Solar panels make no noise and emit no pollutants. The decline in prices for industrial commodities utilized in the production of solar panels, as well as increasing price predictions for natural gas and electricity, are the primary reasons for increasing the demand for rooftop solar panels. The market for solar panels has been driven by an increase in the prices of power combined with the availability of cheaper panels. Solar power can be used in a variety of functions. For instance, photovoltaics can be utilized in order to generate electricity or solar thermal.
Solar power systems harness the sun's clean and pure energy. Deploying solar panels in the home can help in reducing greenhouse gas emissions, as well as, it can also eliminate the reliance the society on fossil fuels. Electricity is traditionally generated using fossil fuels like coal and natural gases. When these fossil fuels are used to generate power, toxic gases are released, which are the leading source of air pollution as well as global climate change. Fossil fuels are not only harmful to the environment but are also a limited resource. As a result, the price is continually changing and can rise dramatically in the upcoming years. Moreover, renewable energy is good for people's health. The operation of coal and natural gases power plants pollute the air and water, endangering human health.
The scarcity of financing options, combined with the expensive initial capital cost, is limiting the widespread use of solar power equipment across the residential sector. Additionally, the solar power equipment market is anticipated to be significantly countered by the heavy reliance on fossil fuels and the predominance of alternative energy sources. Another key impediment to market growth is the fact that solar power's operating capacity is limited and is reliant on bright weather. A solar system is expensive to buy at first. Solar panels, inverters, batteries, wiring, and installation are all included. Solar energy can either be used immediately or stored in big batteries. These solar batteries, which are utilized in off-grid solar systems, can be recharged throughout the day and can be used at night.
Based on Equipment, the market is segmented into Solar Panels, Mounting, Racking, & Tracking System, and Storage System, and Others. In 2020, the storage segment recorded a substantial revenue share of the solar power equipment market. The increasing growth of this segment is attributed to the rapidly evolving climate conditions. Storage allows solar panels to continue the electricity supply to a facility or residency for a certain time period even when there is no source of power. It also helps to smooth out fluctuations in the flow of solar energy on the grid. Changes in the amount of sunshine falling on photovoltaic panels or concentrating solar-thermal power systems cause these variances. Moreover, season, clouds, time, dust, haze, and other factors such as shadows, snow, rain, snow, and soil can all alter solar energy production.
Based on Application, the market is segmented into Utility, Residential, and Non-Residential. In 2020, the utility segment witnessed the largest revenue share of the solar power equipment market. Constantly rising global temperatures are causing a significant rise in global warming over the world, resulting in rising ocean water levels and causing a threat to various coastal areas. Climate change has also grown the frequency of droughts and floods, which has had a severe impact on the global economy. As a result of these factors, there has been an upsurge harvesting of renewable energy, which has boosted the market for solar power equipment. Moreover, the solar power business is also being spurred by an increase in the utilization of solar water heaters by both residential and commercial customers. Therefore, the growth of this segment is being accelerated.
Report Attribute | Details |
---|---|
Market size value in 2020 | USD 99.9 Billion |
Market size forecast in 2027 | USD 202.4 Billion |
Base Year | 2020 |
Historical Period | 2017 to 2019 |
Forecast Period | 2021 to 2027 |
Revenue Growth Rate | CAGR of 11.3% from 2021 to 2027 |
Number of Pages | 174 |
Number of Tables | 275 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
Segments covered | Equipment, Application, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers |
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Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, Asia-Pacific procured the largest revenue share of the solar power equipment market. The growth of this segment is increasing due to the rising demand for energy-efficient solutions. Due to increased demand from planned and existing solar power projects throughout the Asia Pacific, the worldwide solar power equipment market is expected to grow significantly. In addition, the solar power equipment industry is estimated to be benefitted by numerous government efforts as well as funding for clean and renewable energy. All of these reasons are estimated to increase the regional market for solar power equipment.
Free Valuable Insights: Global Solar Power Equipment Market size to reach USD 202.4 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; ABB Group is the major forerunner in the Solar Power Equipment Market. Companies such as Hanwha Q CELLS Co., Ltd., SunPower Corporation and Trina Solar Co., Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Canadian Solar Inc., First Solar, Inc., Hanwha Q CELLS Co., Ltd., LONGi Green Energy Technology Co., Ltd., SunPower Corporation, Shunfeng International Clean Energy Co., Ltd., Jinko Solar Holding Co., Ltd., Trina Solar Co., Ltd., JA Solar Holdings Co., Ltd., and ABB Group.
By Equipment
By Application
By Geography
The solar power equipment market size is projected to reach USD 202.4 billion by 2027.
Increasing demand for rooftop solar panels are driving the market in coming years, however, increased upfront cost limited the growth of the market.
Canadian Solar Inc., First Solar, Inc., Hanwha Q CELLS Co., Ltd., LONGi Green Energy Technology Co., Ltd., SunPower Corporation, Shunfeng International Clean Energy Co., Ltd., Jinko Solar Holding Co., Ltd., Trina Solar Co., Ltd., JA Solar Holdings Co., Ltd., and ABB Group.
Yes, Due to COVID-19 pandemic brought a favorable impact to the outdoor solar power equipment sector.
The Solar Panels segment acquired the maximum revenue share in the Global Solar Power Equipment Market by Equipment in 2020, thereby, achieving a market value of $65.2 billion by 2027.
The North America is the fastest growing region in the Global Solar Power Equipment Market by Region in 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $45.9 billion by 2027.
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