The Global Solar Energy Market Size Was Worth $90.4 Billion in 2022 and Is Expected To Reach $215.9 Billion by 2030, CAGR of 11.5%.

Global Solar Energy Market to hit USD 515.3B by 2029 growing at 23.8% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

The USA Solar Energy Market is Segmented by Type (Solar Photovoltaic (PV) and Concentrated Solar Power).

According to Cognitive Market Research, the global Solar Energy market size will be USD 95451.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.50% 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 38180.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 28635.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 21953.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 4772.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% 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 1909.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
The Photovoltaic Systems Technology held the highest Solar Energy market revenue share in 2024.

Market Dynamics of Solar Energy Market

Key Drivers for Solar Energy Market

Increase in energy demand to Increase the Demand Globally

The growth of the global solar energy market is primarily driven by the increasing energy demand due to a surge in population. As the global population continues to rise, especially in developing countries, the energy demand grows proportionally. Urbanization is also accelerating, with more people moving to cities, leading to greater energy needs across residential, commercial, and industrial sectors. This rising energy demand is coupled with a growing emphasis on sustainable solutions due to environmental concerns. Solar energy, as a renewable and eco-friendly source, is well-suited to meet this demand without contributing to greenhouse gas emissions or depleting natural resources. Between 1990 and 2019, the world’s total energy supply (TES) increased by 68.2%, exceeding 600 EJ for the first time. This growth was largely driven by Asia, which accounted for 83.6% of the global increase during this period. China’s TES alone grew 4.5 times, making up over a fifth of the world’s TES by 2019. In 2022, solar PV generation saw a record increase of 270 TWh (up 26%), reaching nearly 1,300 TWh. https://unstats.un.org/unsd/energystats/pubs/documents/2022pb-web.pdf https://www.iea.org/energy-system/renewables/solar-pv

Countries Aiming to Achieve Green Energy Targets to Propel Market Growth

A global energy transition is urgently required to limit the increase in average global surface temperature to below 2°C. Consequently, the installation of renewable energy sources is expected to grow significantly in the coming years, driving market expansion. The shift from fossil fuels to low-carbon solutions will be crucial, as energy-related carbon dioxide emissions account for two-thirds of all greenhouse gases. Government initiatives and new energy targets aimed at promoting sustainable energy have positively influenced market growth. For example, Alberta has set a target for 30% of its electricity to be generated from renewable sources by 2030, with interim goals of 15% by 2022, 20% by 2025, and 26% by 2028. Canada’s current installed capacity includes 21.9 GW of wind energy, solar energy, and energy storage. In 2023, the industry added 2.3 GW of new capacity, including over 1.7 GW of new utility-scale wind, nearly 360 MW of new utility-scale solar, 86 MW of new on-site solar, and 140 MW / 190 MWh of energy storage. https://renewablesassociation.ca/by-the-numbers/ https://cleanenergycanada.org/wp-content/uploads/2023/01/RenewableCost_Report_CleaEnergyCanada_Feb2023.pdf

Restraint Factor for the Solar Energy Market

High Investment and Lack of Infrastructure to Limit the Sales

The overall cost of solar PV systems is higher than that of traditional solar panels, which may limit their adoption in residential buildings with comparatively lower energy needs. For instance, installing 15 ground-mounted solar panels with a capacity of 300 watts each would cost approximately USD 14,625, with an additional USD 500 per panel for the mounting structure. This higher initial cost can lead to reduced utilization of solar p...

The Report Covers the German Solar Energy Market Size and Share. The Market is Segmented by Type (Solar Photovoltaic and Concentrated Solar Power) and Application (Utility, Commercial/Industrial, and Residential). The Report Offers the Market Size and Forecasts for Solar Energy in Terms of Installed Capacity (GW) for all the Segments.

Solar power companies have skyrocketed, propelled by improvements in the technologies used for electricity generation and government incentives, like the renewable portfolio standard (RPS) targets. RPS legislation requires local utility companies to diversify their portfolio and generate percentages of their energy production through renewable resources. Increases in public support for green energy led to tax incentives and grants to encourage investment in solar power. This has led to more companies powering facilities with solar power, driving growth. Revenue has swelled at a CAGR of 23.2% to $32.6 billion through the end of 2025, including a 34.1% uptick in 2025 alone. Government assistance from federal and state entities led to significant growth in solar power. The number of solar projects has skyrocketed, exemplifying a triumph for energy policy in solar power, which has historically struggled to compete with traditional power sources. Government programs like credits, grants and tax exemptions have allowed many companies to overcome the high entry costs of solar power and support solar energy development. The declines in the price of inputs over the past few decades have lowered operational costs, bolstering profit. Tax credits have also bolstered the number of solar panel manufacturers in the US, allowing the industry to face little setback after tariff waivers on foreign panels expired. Through 2030, many trends that have allowed the industry to succeed will continue. Government tax credits will remain active, allowing solar power companies to compete with other energy sources. The domestic solar panel manufacturing surge will enable companies to source panels much more quickly, letting solar power expand rapidly. Even so, the new Trump administration has been vocal in supporting fossil fuels and has stated it plans to expand oil and gas production, which may weaken solar power. Nonetheless, upgrades in technology will enable solar panels to become more efficient, bringing down the cost and allowing them to achieve grid parity in states where solar is price-competitive. Revenue will expand at a CAGR of 20.5% to $82.9 billion through 2030.

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India Solar Power Market Size 2025-2029

The india solar power market size is forecast to increase by USD 754 billion billion at a CAGR of 42.4% between 2024 and 2029.

The market presents significant growth opportunities for global investors and businesses seeking to expand their renewable energy footprint. Key drivers include increasing investments in renewable energy, with the Indian government committing to achieving 175 GW of renewable energy capacity by 2022. Additionally, the declining costs of solar energy, driven by technological advancements and economies of scale, make India an attractive market for solar power adoption. However, the market faces challenges, such as the availability of other energy sources and the intermittency of solar power, necessitating the need for energy storage solutions and grid integration. Companies looking to capitalize on these opportunities should focus on collaborating with local partners, investing in research and development, and offering comprehensive energy solutions to navigate these challenges effectively. India's strategic location, large population, and growing energy demand make it an essential market for solar power players seeking to expand their global footprint.

What will be the size of the India Solar Power Market during the forecast period?

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The market has experienced significant growth in recent years, driven by the country's ambitious renewable energy targets and favorable government policies. As of now, India's solar photovoltaic (PV) installed capacity exceeds 40 gigawatts (GW), making it one of the world's largest solar markets. This figure is expected to continue growing, with plans to reach 100 GW of solar power capacity by 2022. Solar power is increasingly seen as a greener way to generate electricity, providing an alternative to traditional fossil fuel-based sources and contributing to reduced carbon emissions. Solar systems, including solar panels and permits, have become more accessible and affordable, thanks in part to tax breaks and advancements in solar PV technology. India's solar sector is also exploring the integration of artificial intelligence and other innovations to optimize energy production and efficiency. Solar power and wind power are becoming increasingly competitive with traditional energy sources, offering attractive investment opportunities for businesses and individuals alike.

How is this market segmented?

The market 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. ApplicationGrid-connectedOff-gridEnd-userUtilityRooftopGeographyIndia

By Application Insights

The grid-connected segment is estimated to witness significant growth during the forecast period.

The Indian solar power market is experiencing significant growth, driven by the depletion of fossil fuels and government initiatives such as the National Solar Mission. Solar energy, derived from solar photovoltaic (PV) systems, is becoming a greener way to meet electricity demands. Grid-connected solar PV systems, which supply solar energy directly to building loads, are expected to witness substantial growth. However, the scarcity of land for dedicated solar cell installations poses a challenge. Despite this, declining solar energy prices and favorable regulations are propelling market expansion. Additionally, the integration of wind power through wind-solar hybrid policies is expanding the renewable energy ecosystem. Foreign investment in solar power technology, including solar panels and solar modules, is also increasing. The market encompasses solar systems, electrolyzers for green hydrogen production, and fuel cells. The Indian solar power market is poised to reach new heights, with an installed capacity of several gigawatts (GW) in the forecast period.

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The Grid-connected segment was valued at USD 44.10 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of India Solar Power Market?

Increasing investments in renewable energy is the key driver of the market. The renewable energy sector in India has gained significant traction, with solar power being a key focus. As of October 2024, India's renewable energy capacity reached 201.45 GW, representing 46.3% of the country's total installed electricity generation capacity. Despite the higher cost of producing electricity from ren

The Solar Energy in Indonesia Market is segmented by Connection Type (On-Grid and Off-grid). The report offers the market size and forecasts for Indonesia's solar energy market in installed capacity in gigawatts (GW) for all the above segments.

In 2023, net solar power generation in the United States reached its highest point yet at 164.5 terawatt hours of solar thermal and photovoltaic (PV) power. Solar power generation has increased drastically over the past two decades, especially since 2011, when it hovered just below two terawatt hours.

The U.S. solar industry

In the United States, an exceptionally high number of solar-related jobs are based in California. With a boost from state legislation, California has long been a forerunner in solar technology. In the second quarter of 2022, it had a cumulative solar PV capacity of more than 37 gigawatts. Outside of California, Texas, Florida, and North Carolina were the states with the largest solar PV capacity.

Clean energy in the U.S.
In recent years, solar power generation has seen more rapid growth than wind power in the United States. However, among renewables used for electricity, wind has been a more common and substantial source for the past decade. Wind power surpassed conventional hydropower as the largest source of renewable electricity in 2019. While there are major environmental costs often associated with the construction and operation of large hydropower facilities, hydro remains a vital source of electricity generation for the United States.

The global solar energy market is expected to reach 422 billion U.S. dollars in 2022, in comparison to 86 billion U.S. dollars in 2015. Solar energy is one of the most popular renewable energy sources and in recent years more capacity was deployed than traditional energy sources. The success related to the solar energy segment can be attributed to the declining cost of installing solar photovoltaic systems.

Regional solar markets

China and the United States were two of the largest solar markets in the world, driving a large portion of global solar demand. Europe, on the other hand, had experienced a declining solar market for over five years, but has seen growth recently due to Turkey’s expansion of solar capacity. These mature markets are expected to reduce their hold on the market as emerging markets in Latin America, the Middle East, and Africa grow. However, solar prices in emerging markets will be much higher than in developed markets as business situations can be less than ideal. In these cases, development financing institutions may help cover risks associated with financing solar projects.

The Nigeria Renewable Energy Market Report is Segmented by Type (Solar, Hydro, and Other Renewable Energy Sources). The Report Offers the Installed Capacity and Forecasts for the Nigerian Renewable Energy Market in GigaWatts (GW) for all the Above Segments.

[226+ Pages Report] The global solar energy market size is expected to grow from USD 234.57 billion in 2023 to USD 425.39 billion by 2032, at a CAGR of 6.84% from 2024-2032

The Solar Energy Market in Romania size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 18.50 % during the forecasts periods. Solar energy is harnessed from the Sun's radiant light and heat using various technologies such as photovoltaic (PV) panels and solar thermal systems. PV panels convert sunlight directly into electricity through the photovoltaic effect, while solar thermal systems use sunlight to produce heat, which can be used for water heating or to generate electricity. Solar energy is a clean, renewable resource that significantly reduces greenhouse gas emissions compared to fossil fuels. It is abundant and can be harnessed in most parts of the world, making it a key player in the transition to sustainable energy. Advances in technology and decreasing costs have made solar energy more accessible and economically viable, contributing to its rapid growth and adoption globally. Recent developments include: July 2023: TotalEnergies SE, an oil and gas company announced that it had acquired a portfolio of five solar projects in the Northwest part of Romania from its trusted partner PNE, a German company with a total capacity of more than 200 Megawatt, these projects will help securing the supply of local renewable electricity to meet the country’s needs., April 2023: Amsterdam-based Independent Power Producer Photon Energy NV announced that it had finalised three solar PV projects totalling 6 MWp near the city of Calafat, Romania, and connected the plants to the grid. The newly commissioned solar farms have enabled Photon to pass the symbolic milestone of 100 MWp and reach 103.6 MWp of combined generation capacity across its markets.. Key drivers for this market are: 4., Favorable Government Policies4.; Declining Solar Panel Costs. Potential restraints include: 4., Development of Alternate Sources of Renewable Energy. Notable trends are: Supportive Government Policies to Drive the Market.

Global renewable energy market size & share estimated to surpass USD 2,202.90 billion by 2032, to grow at a CAGR of 8.5% during the forecast period.

TheIndonesia Solar Energy marketis valued at177.20m kWhbased on a five-year historical analysis. This growth is driven by government policies aimed at achieving energy independence, increasing demand for renewable energy, and declining solar panel costs. The integration of solar power into Indonesias energy mix is being accelerated through favorable subsidies, tax incentives, and supportive legislation.

The Mexico solar energy market size was valued at around USD 5.19 billion in 2022 and is estimated to reach USD 6.45 billion by 2031, expanding at a CAGR of around 2.45% during the forecast period, 2023 – 2031. The growth of the market is attributed to decreasing cost of solar technologies are becoming cost competitive with fossil fuels and other subsidies on solar systems.



Solar energy is the radiant energy released by the sun that may be captured using a variety of technologies such as solar heating, photovoltaic cells, and other methods. It is a cost-effective unconventional energy source and a practical renewable response to rising greenhouse gas emissions and global warming.

Increased environmental degradation, government incentives, and tax refunds to install solar panels are driving the market. Furthermore, the reduced water footprint of solar energy systems has boosted their demand in the power generating industry. The demand for solar cells has grown significantly with an increase in rooftop installations, followed by growth in architectural applications.



Mexico offers some of the world's most appealing sun irradiation characteristics. The country's complete territory is located between the latitudes of 14°N and 33°N, and the longitudes of 86°W and 119°W, making it one of the few nations on the earth to be located within the most favorable sunbelt. Furthermore, due to its fast deployment of solar PV plants won in the first three long-term auctions (LTAs) between 2015 and 2018, Mexico has emerged as one of the top markets for solar PV in recent years.



In 2018, the country passed the GW milestone for the first time, with 2.7 GW of additional capacity built in the same year. Furthermore, as solar technologies become more affordable, they are becoming competitive with fossil fuels, and increasing solar system subsidies are propelling the solar power sector even further. Lack of new initiatives, restricted land, and factors such as the current government's withdrawal of the fourth auction round, Mexico's undeveloped power system is likely to stifle the solar PV market's growth in the future years.



The Covid-19 pandemic affected the demand and supply of Mexico solar energy market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.</span&

The renewable energy market size is projected to grow from USD 1,262 billion in 2024 to USD 4,607 billion by 2035, representing a CAGR of 12.48%, during the forecast period till 2035.

The global concentrated solar power market size reached USD 6.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 15.4 Billion by 2033, exhibiting a growth rate (CAGR) of 8.87% during 2025-2033. Growing emphasis on clean and renewable energy sources, supportive government incentives and policies, technological advancements improving efficiency, sudden shift towards cleaner and more sustainable energy sources, escalating demand for electricity in emerging economies, and collaborative efforts among industry players are accelerating the market growth.

IMARC Group provides an analysis of the key trends in each segment of the global concentrated solar power market report, along with forecasts at the global, regional and country levels from 2025-2033. Our report has categorized the market based on technology and application.

Solar Energy Market size was valued at USD 145.72 Billion in 2024 and is projected to reach USD 541.84 Billion by 2031, growing at a CAGR of 19.68% from 2024 to 2031.

Government subsidies and tax breaks play an important role in driving the expansion of the solar energy business. For starters, these incentives serve to lower the initial costs of installing solar energy systems making them more affordable for households, companies, and utilities. Governments stimulate investment in solar power by providing financial incentives such as rebates, subsidies, and tax credits which boosts market demand and accelerates the adoption of renewable energy technology.

Government incentives bring stability and certainty to the solar energy sector boosting investor confidence and attracting private investment. Governments foster a favourable environment for businesses to invest in solar infrastructure, research, and innovation by signalling long-term support for renewable energy development through incentive programmes. This investment leads to economies of scale, technological advancements, and cost reductions further driving the growth of the solar energy market.

Solar Energy Solutions Market was valued at $35.16 B in 2023, and is projected to reach $USD 125.65 B by 2032, at a CAGR of 15.20%