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.
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"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
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“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.
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