Global solar energy market worth at USD 271.73 Million in 2024, is expected to surpass USD 1090.78 Million by 2034, with a CAGR of 13.6% from 2025 to 2034.

According to Cognitive Market Research, the global Solar Energy market size was 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 Soloar Energy Market

Key Drivers of Soloar 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.

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.

Key Restraint of Soloar 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 power generation systems. Additionally, inadequate infrastructure further restricts investments in the market.

Trends in Soloar Energy Market

Rapid Adoption of Floating Solar (Floatovoltaics): With limited land availability and rising energy demand, floating solar farms are gaining traction—especially in countries like China, India, and Japan. These systems are installed on lakes, reservoirs, and irrigation ponds, reducing land use while benefiting from natural cooling that boosts efficiency. They also help diminish water evaporation and algae growth, offering both energy and environmental advantages. As deployment costs decline and performance improves, floating solar is emerging as a fast-growing segment of utility-scale solar energy.

Integration of Solar + Storage and Energy-as-a-Service Models: The solar sector is shifting toward integrated solutions that pair photovoltaic systems with battery storage and smart energy management services. This enables consumers and businesses to optimize energy use, store excess production, and gain grid independence. Energy-as-a-Service (EaaS) models—where solar-plus-storage setups are offered on a subscription basis—are becoming popular in commercial and industrial markets. These models reduce upfront costs and simplify system adoption, accelerating distributed solar...

The value of the United States' solar energy market increased from some **** billion U.S. dollars in 2020 to more than ** billion U.S. dollars in 2024. Since 2022, the value of the U.S. solar market has more than doubled. U.S. solar electricity generation In the last few years, solar power generation in the United States has seen remarkable growth, reaching a record high of ***** terawatt-hours in 2024. This represented an increase of roughly ** percent from the previous year, when solar power production amounted to ***** terawatt-hours. Overall, solar energy accounted for a share of *** percent of U.S. electricity generation in 2024, a figure that has been increasing rapidly in the last few years. Solar energy: main driver of power sector growth in the U.S. Since 2021, solar energy has remained the largest contributor to new power capacity additions in the United States. In 2024, solar accounted for roughly ** percent of newly installed capacity, followed by storage and wind power. The growth of solar installations in the last few years has significantly contributed to job creation in the sector, with installation and construction-related employment accounting for ** percent of all solar jobs in the U.S. in 2023.

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.

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 global solar energy market was valued at around USD 53 billion in 2018 and is estimated to reach around USD 224 billion with a CAGR of nearly 20.5% over the forecast period, 2021-2028. Solar energy consists of energy radiated from the sun. With enhancements in technology, solar energy has emerged as an efficient and convenient form of unconventional energy.



Photovoltaics and concentrated solar power systems are the technologies used to harness solar energy. They are used to combat greenhouse emissions and global warming. Solar energy is widely available and promoted in all developing and developed countries, which has positively influenced the market.

Market Trends, Drivers, Restraints, and Opportunities:

• The development of solar energy market is driven by increasing government incentives and tax rebates, followed by increasing demand for electricity in industrial sector, due to rise in population and infrastructure.


• Climate change has fueled the demand for protection of environment. Conventional energy systems use fossil fuels, which experience fluctuating prices and lead to pollution. Solar energy, which is a renewable source of energy, generates power and may replace conventional energy systems. This factor is anticipated to favor the market growth. Increasing investments, R&D, and incentives in solar energy drive the growth of the solar energy market. For example, China has planned to provide solar Feed in Tariff (FIT) payments to large-scale projects.


• The initial prices of installing solar panels and silver, which is used as a component, are high. This is expected to hinder the market growth. In addition to this, limitation in land available due to technical problems and ecological concerns are estimated to hamper the market growth. Countries like Russia, which have unfavorable or cold climatic conditions, restrain the growth of the solar energy market.


• Advancements in solar photovoltaic systems are estimated to increase the implementation of storage grids, hence leading to increased opportunities in the solar energy market.

Scope of Solar Ener

Dataset Description Title: Electricity Market Dataset for Long-Term Forecasting (2018–2024)

Overview: This dataset provides a comprehensive collection of electricity market data, focusing on long-term forecasting and strategic planning in the energy sector. The data is derived from real-world electricity market records and policy reports from Germany, specifically the Frankfurt region, a major European energy hub. It includes hourly observations spanning from January 1, 2018, to December 31, 2024, covering key economic, environmental, and operational factors that influence electricity market dynamics. This dataset is ideal for predictive modeling tasks such as electricity price forecasting, renewable energy integration planning, and market risk assessment.

Features Description Feature Name Description Type Timestamp The timestamp for each hourly observation. Datetime Historical_Electricity_Prices Hourly historical electricity prices in the Frankfurt market. Continuous (Float) Projected_Electricity_Prices Forecasted electricity prices (short, medium, long term). Continuous (Float) Inflation_Rates Hourly inflation rate trends impacting energy markets. Continuous (Float) GDP_Growth_Rate Hourly GDP growth rate trends for Germany. Continuous (Float) Energy_Market_Demand Hourly electricity demand across all sectors. Continuous (Float) Renewable_Investment_Costs Investment costs (capital and operational) for renewable energy projects. Continuous (Float) Fossil_Fuel_Costs Costs for fossil fuels like coal, oil, and natural gas. Continuous (Float) Electricity_Export_Prices Prices for electricity exports from Germany to neighboring regions. Continuous (Float) Market_Elasticity Sensitivity of electricity demand to price changes. Continuous (Float) Energy_Production_By_Solar Hourly solar energy production. Continuous (Float) Energy_Production_By_Wind Hourly wind energy production. Continuous (Float) Energy_Production_By_Coal Hourly coal-based energy production. Continuous (Float) Energy_Storage_Capacity Available storage capacity (e.g., batteries, pumped hydro). Continuous (Float) GHG_Emissions Hourly greenhouse gas emissions from energy production. Continuous (Float) Renewable_Penetration_Rate Percentage of renewable energy in total energy production. Continuous (Float) Regulatory_Policies Categorical representation of regulatory impact on electricity markets (e.g., Low, Medium, High). Categorical Energy_Access_Data Categorization of energy accessibility (Urban or Rural). Categorical LCOE Levelized Cost of Energy by source. Continuous (Float) ROI Return on investment for energy projects. Continuous (Float) Net_Present_Value Net present value of proposed energy projects. Continuous (Float) Population_Growth Population growth rate trends impacting energy demand. Continuous (Float) Optimal_Energy_Mix Suggested optimal mix of renewable, non-renewable, and nuclear energy. Continuous (Float) Electricity_Price_Forecast Predicted electricity prices based on various factors. Continuous (Float) Project_Risk_Analysis Categorical analysis of project risks (Low, Medium, High). Categorical Investment_Feasibility Indicator of the feasibility of energy investments. Continuous (Float) Use Cases Electricity Price Forecasting: Utilize historical and projected price trends to predict future electricity prices. Project Risk Classification: Categorize projects into risk levels for better decision-making. Optimal Energy Mix Analysis: Analyze the balance between renewable, non-renewable, and nuclear energy sources. Policy Impact Assessment: Study the effect of regulatory and market policies on energy planning. Long-Term Strategic Planning: Provide insights into investment feasibility, GHG emission reduction, and energy market dynamics. Acknowledgment This dataset is based on publicly available records and market data specific to the Frankfurt region, Germany. The dataset is designed for research and educational purposes in energy informatics, computational intelligence, and long-term forecasting.

The United States Solar Energy Market Report is Segmented by Type (Solar Photovoltaic and Concentrated Solar Power), Mounting Type (Ground-Mounted, Rooftop, and Floating Solar), and End-Use (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Solar-based energy is becoming one of the most promising sources for producing power for residential, commercial, and industrial applications. Energy production based on solar photovoltaic (PV) systems has gained much attention from researchers and practitioners recently due to its desirable characteristics. However, the main difficulty in solar energy production is the volatility intermittent of photovoltaic system power generation, which is mainly due to weather conditions. For the large-scale solar farms, the power imbalance of the photovoltaic system may cause a significant loss in their economical profit. Accurate forecasting of the power output of PV systems in a short term is of great importance for daily/hourly efficient management of power grid production, delivery, and storage, as well as for decision-making on the energy market, facilitate early participation in energy auction markets and efficient resource planning.

Rapid rise in adoption of solar power systems and solutions in countries across the globe owing to rising focus on renewable energy sources, growing support from energy investors and scientific establishments, acceleration in solar power solutions to replace conventional fossil fuels and more

The global renewable energy market is expected to continue its upward growth over the next years. According to the Group Next Move Strategy Consulting, the market will reach over two trillion U.S. dollars by 2030. Environmental concerns regarding fossil fuels, rapid urbanization, and economic growth in emerging regions are all major factors that are contributing to the projected market growth.

The Residential Solar Energy Market Report is Segmented by Technology (Monocrystalline PERC, N-Type TOPCon/HJT, and More), Installation Type (Rooftop-Mounted PV and Building-Integrated Solar Roof Tiles), Grid Type (On-Grid, Off-Grid, and Hybrid), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

The global solar energy market size reached nearly 205.13 Gigawatt in 2024. The market is assessed to grow at a CAGR of 7.70% between 2025 and 2034, reaching around 430.71 Gigawatt by 2034.

The market size of the solar energy sector in Latin America grew from roughly *** billion U.S. dollars in 2020 to almost **** billion U.S. dollars in 2022. By 2030, the sector is forecast to reach a market size of **** billion U.S. dollars. More information about the renewable energy sector in Latin America can be found here.

Renewable energy market is projected to grow from USD 1.54 trillion in 2025 to USD 5.79 trillion by 2035 at a 14.18% CAGR, during the forecast period till 2035

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Canada Solar Energy Market Size 2025-2029

The Canada solar energy market size is forecast to increase by USD 2.25 billion at a CAGR of 23.9% between 2024 and 2029.

The Canadian solar energy market is experiencing significant growth, driven primarily by increasing government support for solar power technology. This trend is reflected in various initiatives, including subsidies, tax incentives, and regulations that promote renewable energy adoption. Another key driver is the growing adoption of the pay-as-you-go (PAYG) model, which makes solar energy more accessible to a wider consumer base by allowing them to pay for the system in installments. However, the market faces challenges, such as intense competition from alternative energy sources like wind and hydroelectric power. Additionally, the intermittency of solar power and the high upfront costs of installation remain significant obstacles to market expansion.
Companies looking to capitalize on opportunities in this market should focus on innovations that address these challenges, such as energy storage solutions and financing models that reduce the financial burden on consumers. By staying abreast of government policies and consumer trends, businesses can effectively navigate the competitive landscape and position themselves for long-term success in the Canadian solar energy market.

What will be the size of the Canada Solar Energy Market during the forecast period?

Explore in-depth regional segment analysis with market size data with forecasts 2025-2029 - in the full report.
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The market continues to evolve, with research and development in solar cell materials driving technological advancements and expanding applications across various sectors. Energy storage capacity, including thermal energy storage, plays a crucial role in optimizing system performance and ensuring grid stability. Solar energy policy and feed-in tariff schemes support energy security benefits and economic feasibility studies, leading to a 10% annual growth expectation in the industry. Building-integrated photovoltaics and peak demand reduction contribute to energy independence goals and climate change mitigation efforts. Solar energy infrastructure development, such as energy transmission lines, is essential for maximizing solar energy yield.
Power purchase agreements and renewable portfolio standards further incentivize the adoption of sustainable energy solutions. Environmental impact assessments and system performance optimization are critical considerations in the industry, with solar panel lifespan and greenhouse gas emissions under constant scrutiny. The ongoing integration of solar energy into the grid and the reduction of reliance on traditional energy sources will continue to shape the market landscape. For instance, a recent study revealed a 30% increase in solar installations in a major Canadian province, underscoring the market's continuous dynamism.

How is this Canada Solar Energy Market segmented?

The Canada solar energy market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029,for the following segments.

Application

  Grid-connected
  Off-grid


End-user

  Utility
  Rooftop


Technology

  Photovoltaic systems
  Concentrated solar power systems


Geography

  North America

    Canada

By Application Insights

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

The Canadian solar energy market is experiencing significant growth, with the grid-connected segment leading the application landscape in 2024. Grid-connected solar PV systems directly supply solar energy to buildings without energy storage, feeding excess energy back to the grid and importing energy during shortfalls. Renewable energy sources, electric mobility, and grid digitalization are driving this segment's expansion. Canada is prioritizing solar PV systems for power generation, enhancing energy security, promoting economic growth, and supporting environmental sustainability. For instance, the City of Toronto's Green Standard initiative mandates new buildings to incorporate solar panels, leading to a surge in rooftop solar installations.

Furthermore, the country's solar resource assessment and mapping have identified abundant solar potential, particularly in regions like Alberta and Saskatchewan. Inverter technology and solar tracker systems are crucial components of grid-connected solar systems, ensuring optimal performance ratio metrics and power system stability. The market is expected to grow substantially during the forecast period, with utility-scale solar projects and ground-mounted solar farms contributing significantly to the expansion. Energy storage solutions, such as batteries, are also gaining traction to enhance the efficiency of sol

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.

Solar energy Market size was valued at USD 243.5 Billion in 2024 and is forecasted to reach USD 674.2 Billion by 2034 at a CAGR of 10.7%. Solar energy report classifies global market by share, trend, and on the basis of technology, application, end-use, and region | Solar energy industry | Solar Pow...

The Germany Solar Energy Market Report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Component (PV Modules, Inverters, Balance-Of-System, Battery Energy-Storage Systems, and Others), Application (Utility-Scale Solar Parks, Commercial and Industrial Rooftop, Residential Rooftop, and Others). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

[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