Solar Panel Market Size Report

Solar Panel Market Size and Share:

The global solar panel market size was valued at 303.4 Gigawatt in 2024. Looking forward, IMARC Group estimates the market to reach 1,168.4 Gigawatt by 2033, exhibiting a CAGR of 16.2% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 52.0% in 2024. The solar panel market share is expanding, driven by the rising environmental concerns among individuals, implementation of stringent carbon control policies by governing agencies of several countries, and technological advancements in materials and designs.

One of the very essential trends seen within this market is the promotion of renewable energy worldwide. Governments across the globe have set high renewable energy targets in light of climate change. Many countries introduce policy frameworks to promote the use of solar power, including feed-in tariffs, net metering, and renewable portfolio standards. The increase in residential and commercial installations has resulted in steady market growth. Rising environmental awareness is also helping in the adoption of solar panels. People and businesses are now opting for green energy solutions to reduce their carbon footprint. With an emphasis on corporate social responsibility (CSR), companies are investing in solar energy as part of their sustainability initiatives.

The United States has emerged as a major region in the solar panel market due to several factors. One of the most prominent trends in the market is the increasing deployment of solar energy across various sectors. Residential installations have grown steadily as homeowners seek to reduce electricity bills and gain energy independence, thereby offering a favorable solar panel market outlook. The operational costs for the commercial and industrial (C&I) sector have decreased by a significant number, coupled with their goals in terms of sustainability. Utility-scale solar projects are drastically on the rise and have been so in response to the decreased prices and the high demand for clean energy. The majority of states allow net metering, meaning homeowners and businesses can sell back their excess energy into the grid. The revenues could thus be drawn not only from selling electricity to the grid but also from Solar Renewable Energy Credits (SRECs). Thus, the financial viability of the solar systems improves. In 2024, the US inaugurated one of the biggest solar projects by putting over 52 Billion solar panels on highways all over the country. This step was taken in order to enhance the employment of clean energy in the country.

Solar Panel Market Trends:

Increasing environmental concerns

The escalating demand for solar panels because of the heightened environmental concerns of individuals is proving to be a positive market aspect. In keeping with this, the increasing necessity to reduce climate change and the carbon emissions present in the environment is supporting the growth of the market. Furthermore, the use of fossil fuels for electricity production leads to a significant amount of GHG emissions, which absorb heat in the atmosphere and warm the Earth. The Global Carbon Budget projects that the total amount of CO₂ emissions will be 41.6 Billion Tons by 2024, with an increase from the last year's value of 40.6 Billion Tons. From it, fossil fuel is claimed at 37.4 billion Tons and deforestation accounted for the rest- as reported by the WMO. Another more pristine clean way is that which emanates through Solar Panels - minimizing carbon by tons, aiding and further enhancing globalization in achieving these climatic missions towards having an ecofriendly atmosphere. Furthermore, the increasing adoption of solar panels in organizations to reduce their carbon footprint and environmental impact and maintain sustainability goals is impelling the market growth. Besides this, solar panels provide an accessible means to achieve this goal by harnessing the power of the sun. Additionally, there is a rise in the need for renewable energy sources that promote a greener environment.

Favorable government initiatives

Governing agencies of several countries are encouraging the adoption of solar panels by implementing stringent carbon control policies, which are propelling the solar panel market growth. The European Parliament has adopted the European Climate Law, which makes it legally binding to lower net greenhouse gas releases by 55% by 2030 and climate neutrality by 2050. They are also providing tax credits, wherein taxpayers get a percentage of the cost of their solar panel system as a tax deduction. Other than this, these policies and financial incentives motivate people and organizations to invest in solar energy systems. Additionally, it provides rebates or subsidies which immediately decrease the initial cost for the installation and installation costs making them even more cost-effective. Another incentive would be through policies called net metering which help those with installed solar panels generate an opportunity of selling surplus to the grid in turn. And through feed-in tariffs, that assure fixed compensation to be gained on electricity. These incentives not only reduce the financial burden of solar panel installation. Additionally, the rising development of more efficient and cost-effective solar panel technologies is contributing to the growth of the market.

Technological Advancements in solar panel design

Technological improvements in solar panels benefit from improved efficiency, durability, and cost-effectiveness. Besides that, monocrystalline and bifacial solar panels are also more efficient than others as they can produce more electricity using the same amount of sunlight. The innovations in the manufacturing process are also reducing the cost of the panels, thus supporting the market growth. In addition, material and design advancements further enhance the panel's durability and lifespan such that these panels are guaranteed to be efficient and reliable in energy generation. Besides being environmentally friendly, these technological advancements benefit the investor by increasing the returns on investment (ROI) for a solar panel purchaser. In line with this, the increasing development of transparent panels that can be integrated into windows, skylights, and building facades while allowing natural light to pass through is impelling the market growth. Moreover, smart panels equipped with integrated sensors and monitoring systems provide real-time data on energy production and system health, thereby driving the solar panel market demand. The global artificial intelligence (AI) market size was valued at USD 115.62 Billion in 2024. AI and machine learning (ML) algorithms are employed in panels to optimize their performance by predicting energy generation, improving tracking systems, and reducing maintenance costs.

Solar Panel Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global solar panel market, along with forecast at the global and regional levels from 2025-2033. The market has been categorized based on type and end use.

Analysis by Type:

• Crystal Silicon
• Monocrystalline Silicon
• Polycrystalline Silicon
• Thin Film
• Others

Crystal silicon is the biggest segment. A crystal silicon panel is one where single or several crystalline structures of silicon act as a semiconductor material, enabling it to change sunlight into electricity through photovoltaic effect. Moreover, electricity produced by these solar cells comes in direct current (DC) form and thus can be supplied to the many electrical devices for use or sent to storage within batteries for further use. Aside from these, a sheet of many silicon solar cells forms the outermost layer of a solar panel. Upon illumination of these cells with sunlight, silicon excites their electrons to an electric current. Since these types of silicon-based panels produce much more power than other technologies in a unit area, crystalline silicon panels find great usage for space-sensitive application such as household rooftops and urban use areas. Monocrystalline silicon panels, in particular, have a higher power density, allowing for maximum electricity generation in constrained areas.

Analysis by End Use:

• Commercial
• Residential
• Industrial

Commercial holds the highest market share. It encompasses business, offices, schools, and institutions. Commercial installations are typically larger than residential and power commercial buildings and facilities. As a result of the cost-effectiveness, the adoption of solar panels in the commercial sector is increasing and thus the market. In addition, companies have been adopting the panels to eliminate the carbon footprint and to show corporate social responsibility. Many companies embrace solar energy through net metering programs, which enable businesses to sell excess electricity back to the grid. This not only reduces energy costs but also creates an additional revenue stream. In addition, solar energy provides long-term financial stability by protecting businesses from rising utility rates. With the declining cost of solar technology, the return on investment (ROI) for commercial solar installations has become increasingly attractive.

Regional Analysis:

• Asia Pacific
• North America
• Europe
• Latin America
• Middle East and Africa

Asia Pacific holds 52.0% of the market share. It stands as a key region in the market, driven by the increasing adoption of renewable energy sources. Apart from this, the rising awareness among individuals about environmental issues is bolstering the market growth. Furthermore, the rising desire for energy independence among individuals is contributing to the growth of the market. In line with this, advancements in solar technology and manufacturing capabilities in Asia Pacific benefit in increasing efficiency and reducing the costs of these panels. The Asia-Pacific region is witnessing increased adoption of floating solar farms, particularly in countries with limited land availability for large-scale solar installations. Floating solar projects, also known as floating photovoltaic (FPV) systems, are installed on reservoirs, lakes, and other water bodies to maximize land use efficiency. On November 9, 2023, Indonesia's President Joko Widodo launched Southeast Asia's biggest floating solar energy facility in the West Java province of Indonesia. It is the world's third-largest floating solar power station.

Key Regional Takeaways:

United States Solar Panel Market Analysis

The market in the US is expanding, fueled by government support, advancements in technology, and greater awareness of sustainability issues. As of 2024, industry reports indicate that approximately 4.2 million homes in the United States are equipped with solar panels, with each roof having about 25 to 30 panels. Essential policies like the federal Investment Tax Credit (ITC), state-specific rebates, and renewable energy requirements are crucial in lowering installation expenses and enhancing the accessibility of solar energy. Advancements in solar efficiency and energy storage are bolstering the practicality of solar energy, as the increasing trend of energy independence fuels consumer uptake. Additionally, increasing electricity costs and environmental issues are driving both companies and residences to seek cleaner energy options. Major corporations are also pledging to sustainability objectives, thereby boosting solar demand in the commercial and industrial sectors. In general, the synergy of policy backing, technological advancements, and market need is anticipated to drive ongoing expansion in the U.S. solar panel industry.

Europe Solar Panel Market Analysis

Europe’s market is thriving, spurred by the European Union's ambitious renewable energy policies. According to EEA, in 2023, renewable energy accounted for 24.1% of the EU's final energy use, reflecting the continent's dedication to reducing carbon emissions. The EU’s Green Deal aims for carbon neutrality by 2050, driving further demand for solar energy. National governments have implemented incentives, tax breaks, and subsidies to support solar installations in residential, commercial, and industrial sectors. Energy security concerns, particularly following geopolitical developments, have reinforced the shift to renewable energy sources. Additionally, technological innovations like bifacial panels and energy storage systems have made solar power more efficient and reliable. Leading markets such as Germany, Spain, and France continue to promote aggressive solar adoption policies, with businesses and consumers alike investing in solar solutions to meet sustainability goals. Public awareness of environmental issues, combined with efforts to reduce energy costs, has made solar energy an increasingly attractive option across Europe. These factors position the European solar market for sustained growth and success in the coming years. 

Asia Pacific Solar Panel Market Analysis

The Asia Pacific market is seeing swift expansion, propelled by robust government backing and increasing energy needs. As reported by PIB, India has recently exceeded 200 GW in renewable energy capacity, in line with its goal of reaching 500 GW from non-fossil sources by the year 2030. China continues to be a world leader in solar panel manufacturing, driving the growth of solar energy throughout the area. Nations such as Japan, India, and South Korea are vigorously encouraging solar energy use by implementing supportive policies, including subsidies and feed-in tariffs. Moreover, the rising industrialization and urbanization in the region boost the need for sustainable, dependable energy solutions. With rising worries over air pollution and energy security, businesses and governments are increasingly looking to solar energy to satisfy their sustainability targets. Technological innovations, including enhanced solar panels and better storage solutions, further aid in the growth of the market. Solar energy is increasingly seen as a vital answer to fulfill the area's energy requirements and ecological objectives.

Latin America Solar Panel Market Analysis

The market in Latin America is being driven by significant growth in Brazil, which leads the region in clean energy investments, accounting for over 80% of the total in 2023. This boom is primarily fueled by the rapid rise of small-scale solar plants, each with a capacity of 5 megawatts or less. As a result, Brazil has become the world’s third-largest solar market, surpassing even Germany and India. The expansion of solar installations in Brazil is not only reshaping the country's energy landscape but also catalyzing wider adoption of solar energy across the region, further boosting the Latin American market.

Middle East and Africa Solar Panel Market Analysis

The market in the Middle East and Africa (MEA) is expanding, with the UAE leading the charge. According to industry reports, oil and gas exports now contribute to only about 30% of the UAE’s economic activity, while clean energy is rapidly increasing. The country's renewable energy capacity grew by nearly 70% between 2022 and 2023, underscoring its transition toward sustainable energy. Solar power plays a pivotal role in this shift, supporting the UAE’s strategy to diversify its energy sources, cut carbon emissions, and bolster its position in the global clean energy sector.

Competitive Landscape:

One of the primary ways leading solar companies are improving their business is by investing in advanced solar panel technologies. Companies are focusing on enhancing photovoltaic (PV) efficiency through innovations such as passivated emitter and rear cell (PERC) technology, bifacial solar panels, heterojunction (HJT) technology, and tandem solar cells. These advancements allow for higher energy output with reduced material usage, making solar power more cost-effective for consumers and businesses. To meet the growing demand for solar panels, key market players are expanding their production capacity and localizing manufacturing operations. For instance, in 2025, ES Foundry opened its high-volume solar cell production facility in South Carolina. Leading companies are securing long-term contracts for critical materials such as polysilicon, silver, and rare earth elements to ensure a stable supply. Some manufacturers are vertically integrating their operations by investing in in-house wafer, cell, and module production.

The report provides a comprehensive analysis of the competitive landscape in the solar panel market with detailed profiles of all major companies, including:

• Jinko Solar
• Trina Solar
• Canadian Solar
• JA Solar
• Hanwha Q-CELLS
• GCL-SI
• LONGi Solar
• Risen Energy
• Shunfeng
• Yingli Green

Latest News and Developments:

• January 2025: Verde Technologies, founded by Chad Miller and a UVM physics professor in 2022, is developing highly efficient, affordable, and lightweight solar panels. Their innovative solar array on the Burlington City Arts building is touted as the next generation in solar technology.
• December 2024: ACME Group plans to enter solar panel manufacturing with a 1.2 GW plant in Jaipur, set to begin operations by January 2025. MKU Holdings, part of ACME, aims to meet both domestic and export demands, expanding beyond captive use.
• October 2023: Canadian Solar announced that it is establishing a 5 GW Solar PV cell production facility at the River Ridge Commerce Center in Jeffersonville, Indiana. The solar cells produced at this facility will be used at the previously announced 5 GW module assembly plant in Mesquite, Texas.
• September 2023: Trina Solar, a global leader in smart solar products and solutions, announced it will build a more than 1 million square foot solar photovoltaic (PV) manufacturing facility in Wilmer, Texas. When completed, the facility will provide 1,500 local jobs, produce 5 GW of modules and source polysilicon from the United States and Europe.
• January 2023: JA Solar announced via the Arizona Commerce Authority that it intends to open a 2-GW solar panel assembly plant in Phoenix. In addition, the company will invest $60 million in a new manufacturing site and create 600 jobs. The site will produce solar panels for residential, commercial, and utility-scale.

Solar Panel Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the solar panel market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global solar panel market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the solar panel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.