Solar Equipment Market to Grow with a CAGR of 15.19% through 2029
Increasing demand for renewable energy and government
policies and incentives to support the adoption of solar energy are likely to
drive the market in the forecast period.
According to TechSci Research report, “Solar
Equipment Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2029F”, Global Solar Equipment Market was valued at USD 122.08 Billion in 2023 and is expected to reach USD 287.76 Billion by 2029 with a CAGR of 15.19% during the forecast period.
Government incentives and policies play a pivotal role in driving the global solar equipment market. As nations increasingly prioritize renewable energy sources to mitigate climate change and reduce dependence on fossil fuels, governments have introduced a range of incentives and regulations to encourage solar adoption. These policies include tax credits, rebates, feed-in tariffs, and renewable portfolio standards. Tax credits are among the most influential incentives. For instance, the Investment Tax Credit (ITC) in the United States offers a substantial tax reduction for both residential and commercial solar installations, stimulating significant demand for solar equipment. Similarly, feed-in tariffs guarantee fixed payments for solar energy producers, creating a steady income stream and attracting investments in solar infrastructure. Renewable portfolio standards mandate a certain percentage of a nation's energy to come from renewable sources, prompting utilities to invest in solar power generation. These government-driven initiatives create a favorable economic environment for solar equipment manufacturers and installers, fostering market growth.
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Based on application, The Utility segment held the
largest market share in 2023. Utility-scale solar projects are characterized by their
sheer size and capacity to generate electricity on a massive scale. These
projects often consist of thousands to millions of solar panels spread across
extensive areas of land. This large-scale generation capacity makes
utility-scale solar a significant contributor to global solar energy
production. Utility-scale solar projects
benefit from economies of scale. Bulk purchasing of solar panels and other
equipment, streamlined installation processes, and efficient maintenance
practices lead to lower costs per installed watt. This cost-effectiveness is a major
driver of utility-scale solar dominance, as it makes utility-scale solar energy
competitive with or even cheaper than fossil fuels in many regions.
Utility-scale solar installations are designed to feed electricity directly
into the grid. This seamless integration into the existing electrical
infrastructure enables the widespread distribution of renewable energy.
Utilities can distribute the electricity generated by these projects to meet
the energy demands of entire cities or regions, contributing to grid stability
and reliability. Many governments around the world have recognized the
importance of utility-scale solar in achieving renewable energy and climate
goals. Consequently, they have implemented policies and incentives to encourage
the development of these projects. These policies often include favorable
feed-in tariffs, power purchase agreements (PPAs), and tax incentives that make
utility-scale solar investments financially attractive. Utility-scale solar
projects require significant land or open spaces, and they are often situated
in regions with ample sunlight and available land resources. The availability
of suitable land, combined with favorable weather conditions, supports the
growth of utility-scale solar installations. As countries strive to reduce
carbon emissions and transition to cleaner energy sources, utility-scale solar
plays a critical role in achieving renewable energy targets.
Based on region, The Middle East & Africa (MEA) is the fastest-growing region in the global solar equipment market due to a combination of abundant natural resources, strategic government initiatives, and increasing investments in renewable energy. The region's strong solar potential, coupled with growing energy demands and environmental concerns, is driving the rapid adoption of solar energy technologies. The MEA region is blessed with high levels of sunlight, making it one of the most ideal regions for solar energy generation. Countries like Saudi Arabia, United Arab Emirates (UAE), Egypt, and South Africa receive significant sunlight throughout the year, offering immense potential for large-scale solar power projects. This natural advantage is propelling the demand for solar panels and related equipment as a primary renewable energy source. Governments in the MEA region are increasingly focusing on reducing their dependence on fossil fuels and transitioning toward cleaner energy sources. Initiatives such as Saudi Arabia’s Vision 2030, the UAE Energy Strategy 2050, and Egypt's renewable energy targets are driving investments into solar energy infrastructure. These national strategies often include incentives like tax breaks, subsidies, and public-private partnerships to promote solar power development, further accelerating the demand for solar equipment. With many MEA countries seeking to diversify their economies away from oil and gas, renewable energy is seen as a key driver of long-term economic stability. Solar energy provides a sustainable and cost-effective solution for meeting domestic energy needs, particularly in remote and off-grid areas. Solar power projects are becoming integral to enhancing energy security and driving industrial growth.
Major companies operating in the Global Solar
Equipment Market are:
- Jinko Solar Holding Co. Ltd.
- JA Solar Technology Co., Ltd.
- Trina Solar Co., Ltd.
- LONGi Green Energy Technology Co., Ltd.
- Canadian Solar Inc.
- First Solar, Inc.
- Risen Energy Co., Ltd.
- Suzhou Talesun Solar Technology Co., Ltd.
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“The Global Solar Equipment market is expected to rise
in the upcoming years and register a significant CAGR during the forecast
period. Government incentives, including tax credits and rebates, coupled with
corporate sustainability initiatives, are propelling the global Solar Equipment
market. As organizations aim to reduce costs and achieve environmental
objectives, solar technology offers a cost-effective and eco-friendly energy
solution. These incentives and commitments to sustainability align economic benefits
with environmental responsibility, driving increased demand for solar equipment
across various sectors. Also, The Asia Pacific region is the largest market for
solar equipment, followed by North America and Europe. The region is expected
to maintain its dominance in the coming years due to the growing demand for
renewable energy in countries such as China, India, and Japan. Therefore, the
market of Solar Equipment is expected to boost in the upcoming years.,” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.
“Solar Equipment Market - Global Industry Size,
Share, Trends, Opportunity, and Forecast, Segmented By Equipment
(Solar Panels, Mounting and Racking Systems, Tracking System, Storage System,
Others), By Application (Residential, Non-Residential, Utility), By Region & Competition, 2019-2029F ”, has evaluated the future growth potential of Global Solar Equipment
Market and provides statistics & information on market size, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the Global Solar Equipment Market.
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