GCC Solar Power Market By Size, Share, Growth, Trends, Forecast 2027, Segmented By Technology, By Raw Material, By Installation, By Application, By Company, By Region, Competition Forecast and Opportunities

According to Cognitive Market Research, the Global Solar Panel market size was USD 171548.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 68619.2 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 51464.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 39456.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 8577.4 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 3430.9 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The Photovoltaic Systems Technology held the highest Solar Panel market revenue share in 2024.

Market Dynamics of Solar Panel Market

Key Drivers for Solar Panel Market

Increasing Investments in Renewable Energy : Global investments in renewable energy are on the rise, driven by their cost-effectiveness and minimal carbon emissions. Both governments and the private sector are enhancing support for solar power development through various policies, incentives, and technological innovations, which are promoting economies of scale. This heightened emphasis on adopting clean energy is boosting the global demand for solar panels.

Escalating Urban Energy Requirements : The rapid pace of urbanization is escalating energy demand, leading to the increased adoption of rooftop and building-integrated solar solutions. Urban development initiatives are emphasizing energy efficiency and sustainable infrastructure, resulting in a rise in solar installations across residential, commercial, and industrial sectors. This trend is particularly pronounced in emerging economies that are witnessing rapid urban population growth and infrastructure development.

Key Restraint for the Solar Panel Market

Significant Initial Investment : Even with decreasing panel prices, the overall initial investment—which includes costs for inverters, storage, installation, and maintenance—remains substantial. Limited financing options and extended payback periods discourage both residential and commercial users, especially in developing markets. These high initial costs continue to hinder the widespread adoption of solar technology on a global scale.

Variable Energy Generation : Solar energy generation is contingent upon sunlight availability, resulting in intermittent and weather-dependent energy production. Areas with limited sunlight hours experience decreased efficiency, necessitating additional energy systems or storage solutions. This variability can deter large-scale adoption and complicate grid integration, posing a challenge to consistent market growth.

Key Trends for the Solar Panel Market

Advanced Panel Technologies : Innovations such as monocrystalline, bifacial, and transparent panels improve efficiency, durability, and versatility. Intelligent solar panels equipped with sensors enhance energy production, while innovative materials prolong lifespan and lower costs. These developments expand applications, ranging from building facades to urban infrastructure, facilitating widespread adoption in both residential and commercial sectors. (Source: https://www.ecoticias.com/en/transparent-solar-panel-windows/8339/)

Integration with EV Charging Infrastructure : Solar panels are increasingly being integrated with electric vehicle (EV) charging stations. This combination fosters sustainable energy utilization, diminishes dependence on the grid, and encourages green mobility. As global EV adoption continues to rise, the integration of solar generation with charging infrastructure is becoming a significant driver of market growth. Introduction of the Solar Panel Market

Solar Panels are devices that convert sunlight into electricity using photovoltaic (PV) cells and have become central to the global transition toward r...

The Middle East Solar Power Market is Segmented by Technology (solar photovoltaic (PV) and concentrated solar power (CSP))and Geography (Saudi Arabia, the United Arab Emirates, Oman, and the rest of the Middle East). The report offers the market size and forecasts in installed capacity (gigawatts) for all the above segments.

The GCC Solar Photovoltaic Market is segmented by Deployment (Utility, Commercial and Industrial, and Residential), and Geography (United Arab Emirates, Saudi Arabia, and Rest of GCC).

The GCC solar panel market size reached around USD 12.40 Billion in 2024. The market is projected to grow at a CAGR of 8.20% between 2025 and 2034 to reach nearly USD 27.27 Billion by 2034. The market growth can be attributed to rapid technological advancements, declining costs of PV installation, economies of scale and labour cost advantages.

In GCC Solar Energy Market , was valued at approximately USD 10.11 billion in 2022 and is projected to reach USD 12.45 billion by 2029,

The GCC solar photovoltaic (PV) industry is experiencing robust growth, driven by ambitious government targets for renewable energy adoption, the region's abundant sunlight, and decreasing solar PV system costs. A CAGR exceeding 12.50% from 2019 to 2033 indicates a significant expansion of the market. Several factors contribute to this growth. Firstly, the UAE and Saudi Arabia are leading the charge with substantial investments in large-scale solar projects, aiming to diversify their energy sources and reduce carbon emissions. Secondly, supportive government policies, including feed-in tariffs and tax incentives, are attracting significant private investment in the sector. Thirdly, increasing energy demand in the region, coupled with the rising cost of fossil fuels, makes solar PV an increasingly attractive alternative. The residential segment, while currently smaller than commercial and industrial, demonstrates high growth potential as awareness of solar energy benefits increases and financing options become more accessible. Despite the positive outlook, challenges remain. Land availability, particularly in densely populated areas, and grid integration issues can hinder project development. Furthermore, the industry's reliance on imported technologies and components introduces vulnerabilities to global supply chain disruptions and price fluctuations. However, the GCC's commitment to renewable energy independence and the ongoing technological advancements in PV technology are expected to mitigate these challenges. The market segmentation, encompassing utility-scale, commercial & industrial, and residential deployments across the UAE, Saudi Arabia, and the rest of the GCC, reflects a diverse landscape with opportunities for various players, from large-scale developers to smaller residential installers. The competitive landscape, featuring both international and regional players like Canadian Solar, First Solar, and Masdar, further highlights the industry's dynamism and potential for continued expansion. The market is expected to show strong growth, exceeding the current estimated market size with each passing year. Recent developments include: In April 2021, ACWA Power inaugurated the 300 MW Sakaka PV IPP, the country's first utility-scale renewable energy project, at an investment cost of SAR 1.2 billion. The project was awarded to ACWA Power at a record-breaking tariff of USD 2.3417 cents/kWh (8.781 halalas/kWh)., At the starting of 2020, the Hanergy Thin Film Power Group announced its plan to build a thin-film industrial park in Saudi Arabia, at an estimated cost of USD 1 billion (EUR 870 million). Furthermore, after completion of the project, it will be the first such park in the Middle East.. Notable trends are: Utility Sector as a Significant Sector.

Middle-East and Africa Solar Photovoltaic (PV) Market is Segmented by End-User (Residential, Commercial, and Utility) and Geography (United Arab Emirates, Egypt, Saudi Arabia, South Africa, and the Rest of the Middle East and Africa). The report offers the market size and forecasts in installed capacity (MW) for all the above segments.

GCC Rooftop Solar PV Market growth is driven by increasing energy costs, supportive government initiatives, and technological advancements.

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Solar Panels Market Size 2025-2029

The solar panels market size is forecast to increase by USD 60.1 billion, at a CAGR of 8.2% between 2024 and 2029.

The market is witnessing significant growth, driven by increasing investments in the renewable energy sector. This trend is fueled by governments and businesses worldwide seeking to reduce carbon emissions and promote sustainable energy solutions. Another key driver is the continuous advancements in thin-film solar photovoltaic (PV) modules, making solar energy more cost-effective and accessible. However, the intermittent nature of solar power poses a significant challenge. Solar energy production depends on sunlight availability, which can be unpredictable. This variability necessitates efficient energy storage solutions and smart grid management systems to ensure a consistent energy supply. Companies in the market must focus on developing innovative technologies to address this challenge and capitalize on the growing demand for renewable energy. By investing in research and development, collaborating with energy storage providers, and optimizing solar panel designs, companies can effectively navigate this market landscape and seize opportunities for growth.

What will be the Size of the Solar Panels Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, driven by technological advancements and expanding applications across various sectors. Off-grid systems, once a niche application, are increasingly gaining traction as an alternative power solution. Thin-film solar panels, with their flexibility and lower manufacturing costs, are finding new uses in solar powered appliances and buildings. Silicon wafer technology, a mainstay in solar panel manufacturing, faces competition from emerging alternatives. Solar powered refrigeration systems are revolutionizing cold storage solutions, while solar tracking systems optimize panel efficiency. Commercial solar adoption is on the rise, with businesses recognizing the cost savings and sustainability benefits. Solar panel warranty and performance degradation are key considerations for investors and consumers alike. Solar panel manufacturing processes are continuously improving, with a focus on reducing costs and increasing efficiency. Solar energy storage and solar energy policy are crucial components of the renewable energy landscape. Industrial solar applications are expanding, from powering factories to providing clean energy for heavy industry. Solar panel maintenance and cleaning are essential for maximizing system performance and longevity. Battery energy storage and net metering are transforming the way we store and distribute solar energy. Solar farm development and ground-mounted solar installations are shaping the future of utility-scale solar. Solar powered electronics, from calculators to smartphones, are becoming increasingly common. Solar powered homes and solar powered buildings are the future of sustainable living. The market is a dynamic and evolving landscape, with endless possibilities.

How is this Solar Panels Industry segmented?

The solar panels industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userPower utilitiesCommercialResidentialTypeCrystalline panelThin-film panelConnectivityOn-gridOff-gridTechnologySolar PVConcentrated solar power (CSP)GeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW).

By End-user Insights

The power utilities segment is estimated to witness significant growth during the forecast period.The solar panel market experienced significant growth in 2024, with the power utility segment leading the way. Utility-scale solar power plants continued to expand, contributing to the reduction of carbon emissions and the generation of clean energy. According to the International Energy Agency (IEA), renewable capacity additions reached record levels in 2024, with solar photovoltaics (PV) accounting for around 80% of the growth in renewable electricity capacity. China, the US, Germany, Japan, and India were among the major contributors to the utility segment. For instance, China installed 277 GW of solar capacity in 2024, as reported by the National Energy Administration (NEA). Residential solar installations also gained traction, with homeowners seeking to save on energy costs and reduce their carbon footprint. Solar panel financing options, such as leasing and power purchase agreements, made solar adoption more accessible. Solar panel costs continued to decline, making solar energy a cost-effective solution for both residential and commercial

The Middle East and Africa Solar Panel market was USD 3430.9 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031. The market is foreseen to reach USD 6174.1 million by 2031, owing to the increasing development of solar infrastructure, including transmission and distribution networks.

GCC Solar Photovoltaic Market size was valued to be USD 4.8 Billion in the year 2024 and it is expected to reach USD 12.6 Billion in 2032, at a CAGR of 12.8% from of 2025 to 2032.

GCC Solar Photovoltaic Market: Definition/ Overview

Solar Photovoltaic (PV) refers to a technology that converts sunlight directly into electricity using semiconductor materials, typically silicon-based solar cells.

It is widely applied in residential, commercial, and utility-scale power generation, supporting sustainable energy goals and reducing carbon footprints. Applications range from rooftop solar panels and building-integrated photovoltaics to large solar farms and off-grid solutions for rural electrification.

Middle-East and Africa Distributed Solar Power Generation Market is segmented by Geography (Saudi Arabia, United Arab Emirates, South Africa, and the Rest of Middle-East and Africa). The report offers the market size and forecasts Middle-East and Africa Distributed Solar Power Generation Market in Installed Capacity (MW) for all the above segments.

GCC Solar PV Mounting System market’s growth is supported by increasing solar energy adoption, advancements in mounting technology, and supportive government policies

Middle East and Africa Space Solar Panel And Array Market size is USD 5.22 million in 2024 and will expand at a compound annual growth rate (CAGR) of 22.0% from 2024 to 2031.

The Middle East Solar Power Market size was valued at USD 28.7 billion in 2024 and is projected to reach USD 70.8 billion by 2032, growing at a CAGR of 11.9% from 2025 to 2032.

Government Initiatives and Renewable Energy Targets: Middle Eastern countries are implementing ambitious renewable energy programs and policy frameworks to diversify their energy mix and reduce carbon emissions. The UAE's Energy Strategy 2050 aims to increase clean energy contribution to 50% of the total energy mix by 2050. Saudi Arabia's Vision 2030 has set a target of generating 50% of its electricity from renewable sources by 2030, with solar power playing a central role.

Declining Solar Technology Costs and Improved Efficiency: The significant reduction in solar technology costs has made solar power increasingly competitive with conventional energy sources in the Middle East. According to IRENA, the cost of utility-scale solar PV in the region dropped by more than 85% between 2010 and 2020.

GCC Solar PV Panels Market is projected to grow around USD 322.4 billion by 2031, at a CAGR of 12.6% during the forecast period.

The Middle East and Africa Solar PV Inverter market is experiencing robust growth, driven by the region's increasing commitment to renewable energy sources and ambitious targets for solar power deployment. A 7.39% CAGR indicates significant expansion, projected to reach a substantial market value in the coming years. Key drivers include government incentives promoting solar energy adoption, the declining cost of solar photovoltaic (PV) systems, and rising electricity demand in rapidly developing economies. The trend towards larger-scale utility projects fuels demand for central and string inverters, while the residential and commercial sectors show increasing adoption of microinverters due to their efficiency and ease of installation. However, challenges remain, including the intermittent nature of solar power and the need for reliable grid infrastructure to support increased renewable energy integration. Furthermore, high upfront investment costs can hinder widespread adoption in certain regions. Segment-wise, the utility-scale segment is expected to dominate, given the large-scale solar farm developments underway. The UAE and Saudi Arabia, with their substantial investments in renewable energy, represent the largest markets within the region, followed by Israel and other MEA countries exhibiting steady growth. Leading players like Omron, Mitsubishi Electric, FIMER, Siemens, Schneider Electric, Delta Energy Systems, Huawei, and Enphase Energy are vying for market share through technological innovation and strategic partnerships. The market is expected to witness increased competition and consolidation in the coming years, with a focus on providing efficient, reliable, and cost-effective solutions tailored to the specific needs of different market segments within the diverse Middle East and Africa landscape. The forecast period (2025-2033) promises continued expansion, largely driven by increasing government support for renewable energy initiatives across the Middle East and Africa. The consistent decline in solar PV system costs, coupled with rising energy demands in the region, will further propel market growth. Technological advancements in inverter technology, such as higher efficiency and improved grid integration capabilities, will also contribute to the market's expansion. However, factors such as potential grid instability in some areas and the need for skilled workforce for installation and maintenance could pose challenges. Nevertheless, the long-term outlook for the Middle East and Africa Solar PV Inverter market remains positive, with significant opportunities for both established players and new entrants. The market will likely witness a shift toward smart inverters with enhanced monitoring and control capabilities, contributing to improved grid stability and optimized energy production. Recent developments include: August 2022- The completion of another solar project in Syria was reported, which included 1,818 solar panels and 10 inverters for converting energy to power. In the village of Autan, a 1-megawatt solar power station was wired into the power system., January 2022- At the World Future Energy Summit in Abu Dhabi, the Chinese inverter maker Sungrow unveiled its brand-new "1+X" central modular inverter with an output of 1.1MW. The 1+X modular inverter has a DC/ESS interface for connecting energy storage devices and may be stacked into eight units to produce 8.8MW of power (ESS).. Notable trends are: Central Inverters Segment is Expected to Dominate the Market..

The size of the Middle East and Africa Solar Tracker Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 18.36% during the forecast period. The growth in the solar tracker market in MEA is gaining momentum, primarily due to increasing investments in renewable energy and a constant push toward sustainable development. The region is rich in solar intensity as well as good climatic conditions, creating appropriate opportunities for harnessing solar energy. The capability of solar trackers lies in maximizing energy production and efficiency since they adjust the orientation of solar panels to track the movement of the sun. In the region of MEA, many countries in North Africa and the GCC nations are increasing their capacities for solar energy in response to the growing demands for energy and decreasing reliance on fossil fuel. Even such steps as Vision 2030 by Saudi Arabia and Energy Strategy 2050 by the UAE indicate a pledge to develop the share of renewable sources. In addition, governmental incentives and policies that accommodate the technology have also further nurtured the innovation. Despite growth opportunities available, high investment costs as well as skilled labor requirements for installation and maintenance tasks might create some barriers. The main drivers for the growth of the MEA solar tracker market will be advanced technologies and falling prices of solar trackers. Overall, the solar tracker market is gaining pace in the MEA region, becoming a key part of the area in its stride towards an economy less-dependent on fossil fuels. Recent developments include: March 2022: NexTracker Inc. bagged a contract to supply smart solar trackers for a large solar project in Saudi Arabia, the Sudair Solar PV project. The 450 MW solar project is expected to power around 185,000 homes and reduce carbon emissions in the country by 2.9 tons annually.. Key drivers for this market are: 4., Growing Demand to Develop the Natural Gas Infrastructure4.; Increase in Offshore Oil and Gas Exploration and Production (E&P) Activities. Potential restraints include: 4., High Volatility of Oil and Gas Prices. Notable trends are: Single-Axis Trackers Expected to Witness Significant Growth.

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Middle East and Africa Renewable Energy Market Size 2024-2028

The Middle East and Africa renewable energy market size is forecast to increase by USD 17.28 billion at a CAGR of 8.88% between 2023 and 2028.

The renewable energy market in the Middle East and Africa is experiencing significant growth due to increasing energy demand and the rising popularity of clean energy technologies. Solar energy, harnessed from the abundant sunlight in these regions, is a major focus. However, off-grid power solutions are also gaining traction to address power outages, particularly in remote areas. Wind energy, though dependent on weather conditions, is another promising source. Rain, tides, waves, and geothermal heat are also being explored for their potential. The environmental impact of these technologies is a crucial consideration, with efforts underway to minimize disruptions to ecosystems. Competition from alternative energy sources, such as fossil fuels, remains a challenge. One of the primary reasons for the growth of the renewable energy market in the Middle East and Africa is the need to reduce greenhouse gas (GHG) emissions. Overall, the renewable energy market in the Middle East and Africa presents significant opportunities for growth, driven by the region's unique energy resources and the global shift towards sustainable energy solutions.

What will be the size of the market during the forecast period?

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The renewable energy market in the Middle East and Africa is witnessing significant growth due to various factors. The region's abundant natural resources, including sunlight, wind, rain, tides, waves, and geothermal heat, make it an ideal location for renewable energy generation. This shift towards clean energy is driven by several key trends and challenges. The region is home to some of the world's largest fossil fuel reserves, making it a significant contributor to global GHG emissions. Renewable energy sources, such as solar, wind, hydro, and biomass, offer a viable alternative to traditional gas-based power generation. Another factor driving the renewable energy market in the Middle East and Africa is energy security. The region is heavily reliant on imported fossil fuels, making it vulnerable to price volatility and supply disruptions. Renewable energy sources offer a more stable and secure energy supply, reducing the region's dependence on imported fuels. Despite the numerous benefits of renewable energy, there are also challenges that need to be addressed. One of the main challenges is the environmental impact of renewable energy generation.
For instance, the production of solar panels and wind turbines requires the use of raw materials and energy-intensive manufacturing processes. Additionally, the construction of hydroelectric power plants can have significant environmental impacts, including the displacement of communities and the destruction of habitats. Another challenge is the high upfront costs of renewable energy projects. Solar and wind energy, in particular, require significant capital investment for the installation of solar panels and wind turbines. However, the long-term cost savings and the environmental benefits make renewable energy a worthwhile investment. The renewable energy market in the Middle East and Africa is expected to continue growing in the coming years. In conclusion, the renewable energy market in the Middle East and Africa offers significant opportunities for growth. The region's abundant natural resources, the need to reduce GHG emissions, and the desire for energy security are driving the shift towards renewable energy. While there are challenges, such as the environmental impact and high upfront costs, these can be addressed through sustainable practices and innovative technologies. The renewable energy market in the Middle East and Africa is poised for growth, and it is an exciting time for investors, developers, and policymakers to be a part of this transformation.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Residential
  Industrial
  Commercial


Type

  Hydropower
  Wind
  Solar
  Others


Geography

  Middle East and Africa

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

The residential sector is a significant consumer of energy worldwide, leading to energy inefficiency and negative environmental impacts. These impacts include air pollution, greenhouse gas emissions, and the urban heat island effect, which can negatively influence human health and social and economic development. To mitigate these issues, transitioning to renewable