Agrivoltaics Market to Grow at CAGR of 5.72% through 2029F

Enhancement of agricultural productivity and increasing investment in renewable energy infrastructure is expected to drive the Global Agrivoltaics Market growth in the forecast period, 2025-2029.

 

According to TechSci Research report, “Agrivoltaics Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2019-2029F”, the Global Agrivoltaics Market stood at USD 5.54 Billion in 2023 and is expected to reach USD 7.66 Billion by 2029 with a CAGR of 5.72% during the forecast period.

The rising awareness of climate change and its far-reaching impacts is a significant driver behind the growth of the Global Agrivoltaics Market. As the urgency to address climate change becomes more apparent, there is a growing demand for innovative and sustainable solutions that tackle both environmental and energy challenges. Agrivoltaics presents a compelling response to these needs by offering a dual benefit: it reduces greenhouse gas emissions through the production of renewable energy while promoting sustainable land use practices.

By integrating photovoltaic systems with agricultural operations, agrivoltaics enables the generation of clean energy without requiring additional land for solar installations. This approach not only helps in mitigating the adverse effects of climate change by lowering carbon emissions but also supports sustainable land management. It allows for the efficient use of available land, ensuring that agricultural productivity is maintained or even enhanced while simultaneously contributing to renewable energy goals. This dual advantage resonates strongly with stakeholders who are committed to environmental stewardship and seeking ways to balance ecological sustainability with energy needs.

Public awareness and educational campaigns play a crucial role in driving the adoption of agrivoltaic systems. As climate change concerns become more prevalent, these campaigns effectively communicate the benefits of combining solar energy with agriculture. They highlight how agrivoltaics can address the pressing need for renewable energy while preserving or improving agricultural output. This increased awareness helps build public and investor support for agrivoltaic projects, leading to higher adoption rates and more widespread implementation.

As climate change remains a critical global issue, the recognition of agrivoltaics as a viable solution for both environmental and economic sustainability continues to grow. The technology's ability to contribute to the reduction of carbon emissions while supporting agricultural productivity makes it an increasingly attractive option for those looking to address climate change challenges. Consequently, the heightened awareness of climate change impacts and the search for sustainable solutions significantly drive the expansion of the agrivoltaics market.

The economic benefits of agrivoltaics are a major catalyst for the growth of the Global Agrivoltaics Market, offering substantial financial advantages for farmers. One of the primary economic incentives is the additional revenue stream generated from the sale of electricity produced by solar panels. By installing agrivoltaic systems, farmers can monetize otherwise unused land space by converting it into a source of renewable energy. This supplementary income can significantly enhance the financial stability of farming operations, providing a buffer against market volatility and crop yield fluctuations. In addition to generating extra revenue, agrivoltaics can also help reduce operational costs for farmers. Traditional agricultural practices often require substantial amounts of energy for irrigation, heating, and other processes. By incorporating solar power into their operations, farmers can lower their reliance on external energy sources, thereby reducing their energy expenses. The integration of solar panels provides a stable and often lower-cost energy source, which can help in managing and reducing the overall operational costs of farming activities.

The potential for increased profitability is further amplified as agrivoltaic technology becomes more cost-effective. Advances in photovoltaic technology and falling installation costs are making agrivoltaic systems more accessible and economically viable for a broader range of farmers. As the technology matures and economies of scale are realized, the initial investment in agrivoltaic systems is expected to decrease, making it an even more attractive option.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Agrivoltaics Market”

 

The Global Agrivoltaics Market is segmented into array configuration, photovoltaic technology, site of installation, regional distribution and company.

Based on Photovoltaic Technology, In 2023, Bifacial Solar Panels emerged as the dominated segment in the Global Agrivoltaics Market. This dominance is attributed to the superior efficiency and increased energy generation capability of Bifacial Solar Panels. Unlike Monofacial panels, which capture sunlight only from one side, Bifacial panels are designed to absorb light from both the front and rear surfaces. This dual-sided capture allows Bifacial panels to generate significantly more energy by utilizing reflected light from the ground, which is particularly advantageous in agrivoltaic systems where the panels are elevated above crops or soil.

The enhanced energy yield of Bifacial Solar Panels directly contributes to the economic viability of agrivoltaic projects. By producing more electricity per unit area, these panels help offset the higher initial costs associated with their installation and provide a better return on investment. Bifacial panels can benefit from the natural reflectivity of the agricultural environment, which can increase their overall efficiency and performance. Bifacial technology is well-suited for integration with various agricultural practices, as it requires no additional space compared to Fixed or Single-Axis systems, thereby optimizing land use. The increasing availability of Bifacial panels and advancements in their design and manufacturing have further bolstered their adoption in agrivoltaics.

Based on region, In 2023, North America emerged as the second dominated region in the Global Agrivoltaics Market, following Europe. This position is primarily attributed to the growing emphasis on renewable energy, technological advancements, and supportive government policies in the region. The United States and Canada, in particular, have demonstrated significant commitment to integrating renewable energy solutions with agricultural practices.

In the United States, various federal and state-level incentives and programs have played a crucial role in promoting agrivoltaic systems. The U.S. Department of Agriculture’s (USDA) initiatives, including grants and funding opportunities for solar projects on farms, have spurred substantial investment in agrivoltaics. States like California and Arizona, with their abundant sunlight and progressive renewable energy mandates, are leading the adoption of agrivoltaic technologies. These states benefit from an established solar infrastructure and have implemented policies that encourage the use of land for dual purposes, optimizing both energy production and agricultural output.

Major companies operating in Global Agrivoltaics Market are:

• Jinko Solar Co., Ltd
• Invenergy LLC
• Nextracker Inc.
• Iqony Sustainable Energy Solutions
• First Solar, Inc.
• BayWa AG
• Enel Green Power S.p.A.
• Sun’Agri
• Trina Solar
• Lightsource bp

 

Download Free Sample Report

Customers can also request for 10% free customization on this report

 

“Land use optimization is a pivotal driver for the Global Agrivoltaics Market, particularly in regions where competition for land between agricultural and energy production activities is intensifying. As urbanization and industrialization increase the pressure on available land, finding ways to efficiently utilize this precious resource becomes crucial. Agrivoltaics provides an innovative solution by enabling both agricultural and solar energy production to coexist on the same parcel of land. This dual-use approach not only maximizes the value of land resources but also helps to alleviate land scarcity issues. In areas where arable land is limited, integrating solar panels with crop cultivation allows for more efficient land use. Instead of choosing between growing food and generating energy, agrivoltaics enables the simultaneous pursuit of both objectives. The ability to optimize land use aligns with broader sustainability goals, making agrivoltaics an attractive option for those committed to environmental stewardship. By reducing the need to convert additional land into energy production sites, agrivoltaics helps to preserve natural habitats and reduce the environmental footprint associated with land use changes. This alignment with sustainability objectives resonates with stakeholders across the agricultural and energy sectors, further driving the adoption of agrivoltaic systems”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Agrivoltaics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Array Configuration (Fixed, Single-Axis Tracking), By Photovoltaic Technology (Monofacial Solar Panels, Bifacial Solar Panels, Translucent Photovoltaic Technology, Others), By Site of Installation (Grassland Farming, Horticulture and Arable Farming, Indoor Farming, Pollinator Habitat), By Region and Competition, 2019-2029F”, has evaluated the future growth potential of Global Agrivoltaics 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 take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Agrivoltaics Market.

 

Contact

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States- 10170

Tel: +1-332-258-6602

Email: [email protected]

Website: www.techsciresearch.com