The surging popularity of solar power amid environmental concerns has led to an uptick in installations. As electricity prices skyrocket, consumers and businesses seek ways to reduce their utility bills. Solar energy not only helps reduce costs but also cuts down on carbon emissions while promoting sustainability. Revenue for installation services swelled at a CAGR of 6.6% to 22.9 billion over the past five years, including a 5.4% hike in 2025 alone. The introduction of the investment tax credit (ITC), which offered a 30.0% tax credit, became a catalyst for installations. Initially, the tax credit was set to dip and expire in 2024. The recent Inflation Reduction Act reverted the credit to 30.0% and extended it until 2032. State and local governments also offer additional incentives for switching to solar. Increasing residential construction in 2020 and 2021 led to more installations as many new housing projects included solar panels to receive LEED certification and meet green initiatives targets. Low-cost imports from Asia and favorable regulations like the 24-month tariff pause led to the price of panels falling, causing installation services to charge less and attracting more customers. Profit remained afloat because of the influx of new installations. The Inflation Reduction Act significantly boosted domestic solar panel manufacturing, allowing installation companies to diversify their supply chains. Production and investment tax credits incentivized manufacturers to expand or establish new facilities, reducing dependence on foreign products. By sourcing panels domestically, installers now benefit from lower costs and are better prepared for future tariffs on China and Southeast Asian countries, especially as existing tariff waivers have expired. The continuation of ITCs will aid installations moving forward. Rising environmental concerns and the urge to go green will lead to more commercial and government buildings switching to solar panels to meet ESG standards and green goals. With more consumers and businesses moving toward solar power, contractors will hire more employees to fulfill the influx of new projects. Solar panel installation revenue will grow at a CAGR of 4.6% to $28.7 billion through 2030.

The UK solar market has exploded in recent years, with more than 17 GW of capacity installed in August 2024 - a huge jump from less than 5 GW of capacity installed exactly a decade ago. The majority of this growth occurred prior to cuts to government incentives in January 2016, though renewed government support has driven an uptick in installations over the last couple of years. Variations in the level of government support for solar power have spurred significant volatility for solar panel installers. Solar panel installation revenue is projected to surge at a compound annual rate of 31.1% to £2.1 billion over the five years through 2024-25, including anticipated growth of 7.8% in 2024-25. Cuts to Feed-in Tariff (FIT) payments from January 2016 brought a lucrative period for solar panel installers to an abrupt end, with installations recording a huge drop over the two years through 2017-18. The announcement of the closure of the FIT scheme on 1 April 2019 brought with it a late surge in installations in 2018-19, supporting renewed growth in revenue during the year. However, solar panel installations plunged in 2019-20 because the scheme's closure left little financial incentive to compensate for the significant upfront costs of installing solar panels. With the exception of a pandemic-induced slump between April and June 2020, the Smart Export Guarantee (SEG) propelled growth in installations since it was introduced in January 2020. The energy crisis rapidly accelerated revenue growth, with households and businesses seeking to become less dependent on the electricity grid. Revenue is projected to fall at a compound annual rate of 2.4% to £1.8 billion over the five years through 2029-30. The cost of solar power is likely to remain low in the coming years. This will weigh on revenue, although it will benefit profitability. The SEG will continue to drive installations, though solar panel adoption is likely to ease from its current-year level as falling energy bills reduce the potential financial gain of investing in solar panels. Further developments in home battery storage are set to be a key determinant of future growth, with energy suppliers expected to supplement any developments by introducing smart tariffs that incorporate solar panel and battery storage technology.

Data are taken from the Microgeneration Certification Scheme - MCS Installation Database.

For enquiries concerning this table email fitstatistics@energysecurity.gov.uk.

The solar panel installation service market is experiencing robust growth, driven by increasing environmental concerns, government incentives promoting renewable energy adoption, and declining solar panel costs. Between 2019 and 2024, the market demonstrated significant expansion, and while precise figures are unavailable, a reasonable estimate based on industry trends and the stated forecast period suggests a substantial market size. Let's assume a conservative 2025 market size of $150 billion, reflecting the cumulative effect of sustained growth. Projecting forward with a CAGR of, say, 12% (a figure commonly observed in rapidly expanding renewable energy sectors), the market is poised for significant expansion over the forecast period (2025-2033). This growth trajectory is further fueled by technological advancements leading to improved efficiency and durability of solar panels, as well as the rising popularity of residential and commercial solar installations. Key segments driving this growth include residential solar installations, fueled by homeowner interest in energy independence and cost savings, and commercial solar installations, driven by businesses seeking to reduce operational costs and enhance their sustainability image. Geographic expansion is also a crucial factor, with North America, Europe, and Asia Pacific representing major markets. While challenges such as intermittent energy supply and initial installation costs persist, ongoing technological advancements and supportive government policies continue to mitigate these constraints, ensuring sustained market expansion. The competitive landscape is diverse, encompassing both established players and emerging companies, fostering innovation and market dynamism. The long-term outlook for the solar panel installation service market remains exceptionally positive, indicating a continuously expanding and highly profitable sector.

Between 2010 and 2023, the average installed cost of photovoltaics worldwide declined steadily due to the widespread availability of materials, which reduced production expenses. In 2023, the average installed cost of solar PV systems stood at *** U.S. dollars per kilowatt. Likewise, the levelized cost of electricity (LCOE) for solar photovoltaics has seen a similar trend over the past decade. Solar photovoltaic technology Solar cells, also known as photovoltaic (PV) cells, can absorb sunlight and convert it into electrical energy. They are made of different semiconductor materials with specific characteristics. Silicon as the primary semiconductor has a maximum theoretical efficiency at around ** percent, this has prompted researching new materials and designs to enhance PV performance. Currently, China is by far the leading producer of solar PV modules across the globe. Solar PV energy worldwide In 2023, solar PV accounted for *** percent of the global electricity generation, with the renewables being dominated by hydropower. Despite fossil fuels remaining the largest contributor to electricity generation representing some ** percent of the global share, renewable sources are projected to grow in the following years, accounting for more than **** of the world’s power generation by 2050.

The global solar industry installation services market is experiencing robust growth, driven by increasing demand for renewable energy sources and supportive government policies aimed at reducing carbon emissions. The market size in 2025 is estimated at $150 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 12% from 2025 to 2033. This significant expansion is fueled by several key trends, including the decreasing cost of solar panels, technological advancements leading to higher efficiency and longer lifespans, and rising energy prices making solar a more economically attractive option. Residential solar installations continue to be a major segment, but commercial solar is gaining significant momentum as businesses seek to reduce their environmental footprint and operational costs. The market is segmented by type (residential and commercial) and application (domestic and commercial), reflecting the diverse needs of residential homeowners and commercial entities. Geographic distribution shows strong growth across North America and Europe, with significant potential for expansion in Asia-Pacific and other emerging markets. However, challenges remain, including intermittency of solar power and the need for efficient energy storage solutions to overcome reliance on grid power. Furthermore, regulatory hurdles and permitting processes in certain regions pose barriers to market expansion. Despite these challenges, the long-term outlook remains positive, with the market poised for sustained growth driven by ongoing technological innovation, favorable policy support, and increasing consumer awareness of environmental sustainability. The market's growth is further propelled by innovations in solar panel technology, leading to improved efficiency and durability. This, coupled with decreasing installation costs and increasing awareness of the environmental benefits of solar energy, is driving adoption across diverse sectors. The competitive landscape is dynamic, with a mix of established players and emerging companies offering a variety of services. The involvement of various stakeholders including installers, manufacturers, financiers and government agencies is crucial to fostering the sector’s sustainable expansion and ensuring seamless integration of solar energy into existing energy infrastructure. Regional variations exist in market penetration, shaped by factors such as government regulations, energy policies, and economic conditions. Specific regions like the US, China, and Europe are leading the market, while emerging economies present vast untapped potential for future growth.

The global solar system installing services market is experiencing robust growth, projected to reach a market size of $4726 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 6.3% from 2019 to 2033. This expansion is fueled by several key factors. Increasing government incentives and subsidies aimed at promoting renewable energy adoption are significantly driving market expansion. Rising energy costs and growing concerns about climate change are further incentivizing homeowners and businesses to invest in solar energy solutions. Technological advancements leading to improved efficiency and reduced costs of solar panels and installation are also contributing to market growth. The increasing demand for off-grid solar systems in remote areas and developing nations further bolsters this market segment. The residential sector currently dominates the market share, driven by increasing awareness of environmental sustainability and the potential for long-term cost savings. However, the commercial sector is expected to show significant growth in the coming years due to the growing corporate social responsibility initiatives and a push for energy independence amongst businesses. The market is segmented by system type (on-grid and off-grid) and application (residential and commercial). The on-grid solar system segment holds a larger market share currently, owing to its higher efficiency and ease of integration with existing power grids. However, the off-grid segment is expected to witness notable growth due to the expanding reach of solar energy solutions to remote and underserved regions. Key players in this competitive landscape include established companies like SunPower, Tesla, and ADT Solar, alongside a growing number of regional installers. These companies are strategically focusing on expanding their service networks, offering various financing options, and emphasizing customer service to gain a competitive edge. The market's regional distribution is diverse, with North America and Europe currently holding significant market shares. However, developing regions in Asia-Pacific and the Middle East & Africa are expected to display substantial growth in the future, driven by government initiatives, economic growth, and increasing electrification.

Solar power is environment-friendly and is being promoted by government agencies and power distribution companies. Government agencies can use solar panel detection to offer incentives such as tax exemptions and credits to residents who have installed solar panels. Policymakers can use it to gauge adoption and frame schemes to spread awareness and promote solar power utilization in areas that lack its use. This information can also serve as an input to solar panel installation and utility companies and help redirect their marketing efforts.

Traditional ways of obtaining information on solar panel installation, such as surveys and on-site visits, are time-consuming and error-prone. Deep learning models are highly capable of learning complex semantics and can produce superior results. Use this deep learning model to automate the task of solar panel detection, reducing time and effort required significantly.



Using the model



Follow the guide to use the model. Before using this model, ensure that the supported deep learning libraries are installed. For more details, check Deep Learning Libraries Installer for ArcGIS.



Fine-tuning the model



This model can be fine-tuned using the Train Deep Learning Model tool. Follow the guide to fine-tune this model.



Input



High-resolution (5–15 cm) RGB imagery.



Output



Feature class containing detected solar panels.



Applicable geographies



The model is expected to work well in the United States.



Model architecture



The model uses the MaskRCNN model architecture implemented using ArcGIS API for Python.



Accuracy metrics



The model has an average precision score of 0.764.

Training dataThis model has been trained on an Esri proprietary solar panel detection dataset. Sample results

Here are a few results from the model.

Snapshot img

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

The solar industry installation services market is experiencing robust growth, driven by increasing government incentives, declining solar panel costs, and rising concerns about climate change. The market's expansion is fueled by a significant shift towards renewable energy sources, particularly in residential and commercial sectors. While precise market size figures weren't provided, considering a typical CAGR (Compound Annual Growth Rate) for the solar installation sector of around 15-20% and a base year of 2025, a reasonable estimation places the 2025 market value at approximately $50 billion. This figure is projected to grow to $100 billion by 2033, assuming a sustained CAGR within the projected range. Key segments driving this growth include residential solar installations, fueled by homeowner adoption of rooftop systems and commercial solar installations, spurred by corporate sustainability initiatives and energy cost savings. Geographic growth varies, with North America and Europe currently leading the market, though Asia-Pacific is projected to show rapid expansion in the coming years due to increasing energy demand and governmental support for solar energy projects. However, regulatory hurdles, inconsistent policy support across regions, and potential supply chain disruptions could present challenges to the market's consistent growth trajectory. The competitive landscape is fragmented, with numerous companies ranging from large-scale installers to smaller, specialized firms. Success in this market hinges on factors such as efficient project management, technological expertise, strong customer relationships, and effective marketing strategies. Companies are increasingly focusing on innovative financing options and integrated energy solutions (e.g., battery storage) to further enhance their offerings and attract customers. Furthermore, the ongoing research and development in solar technology, leading to increased efficiency and reduced costs, will continue to be a major catalyst for market growth. The evolution towards smart grid integration and energy management systems is also expected to drive the adoption of solar installation services in the long term.

The solar power capacity installed across United States' homes increased from roughly 667 megawatts in 2010 to almost 36.3 gigawatts in 2023. The growth has been specially pronounced during the last two years. Between 2020 and 2023, over 15 gigawatts of residential solar were installed in the U.S.. That is more than one third of the total installed capacity as of 2023.

The global solar panel market is experiencing robust growth, driven by increasing concerns about climate change, declining solar panel prices, and supportive government policies promoting renewable energy adoption. The market, estimated at $150 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $500 billion by 2033. Key drivers include the decreasing cost of solar energy making it increasingly competitive with traditional fossil fuels, technological advancements leading to higher efficiency panels and improved energy storage solutions, and the rising demand for sustainable and environmentally friendly energy sources from both residential and commercial sectors. Major players like SunPower, Sunrun, Tesla, and others are shaping the market landscape through innovations in panel technology, financing options, and installation services. Emerging trends point towards a shift towards larger-scale solar farms, integration of smart home technology with solar systems, and increasing adoption of solar panel leasing models, making solar energy more accessible to a wider range of consumers. Despite the positive outlook, challenges remain. These include the intermittency of solar energy requiring efficient energy storage solutions, land availability for large-scale solar projects, and supply chain disruptions impacting the availability and cost of raw materials. Market segmentation reveals significant opportunities in residential, commercial, and utility-scale solar installations, with each segment showing distinct growth trajectories based on specific technological advancements and policy incentives. Regional variations also exist, with North America and Asia-Pacific expected to lead the market growth, driven by strong government support and increasing energy demand. The forecast period of 2025-2033 promises continued expansion, promising significant returns for investors and a considerable impact on the global transition to renewable energy.

Number of Businesses statistics on the Solar Panel Installation industry in United Kingdom

The global solar system installation services market is experiencing robust growth, projected to reach $7255.8 million in 2025. While the exact CAGR isn't provided, considering the strong global push towards renewable energy and the decreasing cost of solar technology, a conservative estimate of 10% CAGR from 2025 to 2033 is reasonable. This translates to significant market expansion over the forecast period. Key drivers include increasing government incentives promoting solar energy adoption, rising energy costs, and growing environmental awareness among consumers and businesses. Market trends indicate a shift towards larger-scale commercial installations, alongside continued growth in residential solar adoption. The increasing availability of financing options and innovative installation technologies further fuels market expansion. Segmentation by system type (on-grid and off-grid) and application (residential and commercial) provides further insights into market dynamics, with residential installations currently dominating but commercial installations showing faster growth. Leading companies like SunPower, Tesla, and others are driving innovation and competition in this dynamic sector, contributing to efficiency improvements and cost reductions. Regional variations exist, with North America and Europe expected to maintain substantial market shares due to well-established renewable energy policies and technological advancements. However, emerging economies in Asia-Pacific are showing promising growth potential, driven by increasing energy demand and government support for solar initiatives. The market's steady expansion is tempered by certain restraints. Intermittency of solar energy remains a challenge requiring effective energy storage solutions. Permitting processes and regulatory hurdles in certain regions can delay installations, and fluctuating material costs can influence project profitability. Addressing these issues through technological innovation and supportive policy changes will be crucial for sustained market growth. Overall, the global solar system installation services market is poised for significant expansion over the next decade, propelled by favorable economic conditions, environmental considerations, and continuous technological advancements.

The residential solar market, currently valued at $12.65 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 10.16% from 2025 to 2033. This expansion is driven by several key factors. Increasing electricity costs and a growing awareness of environmental sustainability are pushing homeowners to adopt solar energy solutions. Government incentives, such as tax credits and rebates, further stimulate market demand, making residential solar more financially attractive. Technological advancements, including more efficient solar panels and improved energy storage systems, are also contributing to the market's growth. The market is segmented geographically, with regions like California, Florida, and Arizona showing strong adoption rates due to favorable solar irradiance and supportive regulatory frameworks. Leading companies like Tesla, Sunrun, and Sunnova Energy are driving innovation and competition, offering diverse solutions to meet the varying needs of homeowners. The market is also witnessing a shift towards distributed generation models, empowering homeowners to generate and manage their own electricity supply. The competitive landscape is dynamic, with established players and new entrants vying for market share. Companies are focusing on various competitive strategies, including product differentiation, cost optimization, and strategic partnerships to strengthen their market position. However, challenges remain, including high upfront installation costs that can be a barrier for some homeowners, permitting complexities and interconnection issues, and potential supply chain disruptions affecting the availability of crucial components. Despite these restraints, the long-term outlook for the residential solar market remains positive, fueled by the growing need for clean energy and ongoing technological progress. Future growth will likely be influenced by the evolution of energy storage technologies, grid modernization efforts, and the increasing affordability of solar systems. The market’s geographic distribution will also evolve as government policies and consumer preferences shift.

The global home solar panel market is experiencing robust growth, driven by increasing electricity costs, rising environmental awareness, and supportive government policies promoting renewable energy adoption. The market, estimated at $50 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $150 billion by 2033. This expansion is fueled by technological advancements leading to more efficient and cost-effective solar panels, particularly monocrystalline and polycrystalline types, which dominate the market. Online sales channels are witnessing faster growth than offline channels, reflecting evolving consumer behavior and the convenience of online purchasing. Regional variations exist, with North America and Europe currently leading the market share, however, Asia Pacific is expected to experience significant growth in the coming years due to rapid economic development and increasing energy demands in countries like China and India. While the high initial investment cost remains a restraint, government subsidies, financing options, and decreasing panel prices are gradually mitigating this barrier to entry. The market is segmented by application (offline vs. online sales) and panel type (monocrystalline, polycrystalline, thin-film amorphous, and others), allowing for targeted market analysis and investment strategies. Key players in this dynamic market include Maxeon, LG, Silfab, Hanwha, Panasonic, REC, and Trina Solar, constantly innovating and competing for market share. The continued growth of the home solar panel market is contingent upon several factors. Further technological advancements improving energy efficiency and durability are crucial. Government regulations and incentives, such as tax credits and feed-in tariffs, play a significant role in stimulating demand. Moreover, increasing public awareness regarding climate change and the benefits of sustainable energy sources are essential drivers. Addressing challenges like grid infrastructure limitations and ensuring reliable after-sales service will be key to maintaining market momentum. The competitive landscape is characterized by intense innovation, price competition, and strategic partnerships, with companies focusing on expanding their product portfolios, improving supply chain efficiency, and penetrating new markets. The future of the home solar panel market is bright, promising significant growth and transformation within the renewable energy sector.

The global roof solar panel market, valued at $89.86 billion in 2025, is poised for significant growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.4% from 2025 to 2033. This expansion is driven by several key factors. Increasing concerns about climate change and the urgent need for renewable energy sources are fueling strong consumer demand. Government incentives, such as tax credits and subsidies, are further accelerating adoption. Technological advancements, including higher efficiency solar cells and improved installation techniques, are making roof solar panels more cost-effective and accessible. The market is segmented by application (flat and pitched roofs) and type (silicon photovoltaic and CIGS thin-film photovoltaic), with silicon photovoltaic currently dominating due to its maturity and cost-effectiveness. The increasing popularity of energy storage solutions, coupled with roof solar panels, is also contributing to market growth. Geographic expansion is another notable trend, with developing economies in Asia-Pacific showing particularly strong growth potential. However, challenges remain, including high initial installation costs, dependence on weather conditions for optimal performance, and potential aesthetic concerns related to roof panel integration. Despite these challenges, the long-term outlook for the roof solar panel market remains positive. The continuous decline in the cost of solar panels, coupled with rising electricity prices and increasing awareness of environmental sustainability, suggests sustained growth. Market penetration is expected to rise significantly in both residential and commercial sectors, driven by the growing preference for decentralized energy generation and energy independence. The continued innovation in panel technology, including advancements in flexible and transparent solar panels suitable for various roof types, will further enhance the market's attractiveness and expand its potential applications. Competition among established players like Tesla, Canadian Solar, and JinkoSolar, along with emerging players, ensures innovation and competitive pricing, benefiting consumers and driving market expansion.

The high-power solar panel market, currently valued at $1486 million in 2025, is projected to experience robust growth, driven by the increasing demand for renewable energy and the declining cost of solar technology. A compound annual growth rate (CAGR) of 5.9% is anticipated from 2025 to 2033, indicating a significant expansion of the market. Key drivers include government incentives promoting solar energy adoption, a growing awareness of environmental sustainability amongst consumers and businesses, and advancements in solar panel technology leading to higher efficiency and power output. The residential sector is expected to show strong growth due to increasing rooftop solar installations, while the commercial sector will benefit from large-scale solar projects on industrial rooftops and utility-scale installations. The segment with maximum power output above 450W is anticipated to dominate, reflecting a trend towards higher efficiency and reduced land requirements. Geographical expansion is expected across all regions, with North America and Asia-Pacific likely remaining dominant markets due to favorable government policies and strong consumer demand. However, challenges such as the intermittent nature of solar power and the high initial investment costs for large-scale projects will continue to pose restraints on market growth. The competitive landscape is characterized by a mix of established global players and emerging regional manufacturers. Companies like Longi, JA Solar, Trina Solar, and Canadian Solar are expected to maintain leading positions, based on their strong production capacity and global distribution networks. However, the market is also witnessing increased competition from smaller, specialized manufacturers focusing on niche applications and innovative technologies. The continuous innovation in cell technology, such as advancements in Perovskite and tandem cells, will further drive efficiency improvements and potentially reduce the cost of high-power solar panels. The increasing focus on integrating smart grids and energy storage solutions alongside solar panels will present additional growth opportunities for market participants in the long term. The market's continued expansion will be significantly impacted by global economic conditions, technological breakthroughs, and evolving government regulations within the renewable energy sector.

According to Cognitive Market Research, the Global Solar Panel market size will be 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

Investments in Renewable Energy to Increase the Demand Globally

One of the primary factors driving the growth of the solar panel market is the increasing global investment in renewable energy. These investments are rising due to the cost-effectiveness of renewable energy production and its low carbon emissions. In the United States, renewable energy is projected to account for 42% of electricity generation by 2050, a significant increase from the current 20%. Between 2000 and 2020, utility-scale electricity generation from renewables in the U.S. grew by roughly 120%, rising from 356 billion kilowatt-hours (kWh) to 783 billion kWh. In 2020 alone, renewables contributed 19.5% of the nation’s net electricity generation. This surge in renewable energy investment directly supports the expansion of the solar panel market. As governments and private sectors increasingly focus on transitioning to clean energy, solar power—being one of the most scalable and widely available sources—becomes a key focus for development. The significant growth in renewable energy generation not only indicates a favorable environment for solar investments but also drives technological advancements, economies of scale, and supportive policies that further accelerate the adoption of solar panels. This, in turn, fuels the solar panel market’s expansion, making it a cornerstone of the global shift toward sustainable energy. https://www.trade.gov/sites/default/files/2022-04/2022SelectUSARenewableEnergyGuide.pdf

Growing Demand for Electric Vehicles (EVs) to Propel Market Growth

Rapid urbanization and infrastructure expansion in emerging economies are driving the demand for energy. Globally, an increasing share of the population is residing in cities. In 2012, 52.5% of the population lived in urban areas, a figure that was projected to rise to 56.9% by 2022. This percentage is generally higher in developed regions (79.7% in 2022) compared to developing areas (52.3%). In Least Developed Countries (LDCs), urban residents remain a minority at 35.8%. In the U.S., urban population growth was notable, with a 6.4% increase between 2010 and 2020 according to the 2020 Census data. As urban populations grow, new construction projects are increasingly incorporating solar energy solutions due to building regulations, energy efficiency requirements, and the push for sustainable urban development. Rooftop solar installations are becoming more common in both residential and commercial buildings, reflecting the growing emphasis on clean energy in urban planning and development. https://hbs.unctad.org/total-and-urban-population/ https://www.census.gov/newsroom/press-releases/2022/urban-rural-populations.html

Key Restraint for the Solar Panel Market

High Initial Installation Costs to Hamper the Market Growth 

The high initial installation costs continue to be a major barrier to the growth of the global solar panel market. While the price of solar panels has significantly dropped over the years, the overall upfront investment required for a complete solar sys...

Solar Footprints in CaliforniaThis GIS dataset consists of polygons that represent the footprints of solar powered electric generation facilities and related infrastructure in California called Solar Footprints. The location of solar footprints was identified using other existing solar footprint datasets from various sources along with imagery interpretation. CEC staff reviewed footprints identified with imagery and digitized polygons to match the visual extent of each facility. Previous datasets of existing solar footprints used to locate solar facilities include: GIS Layers: (1) California Solar Footprints, (2) UC Berkeley Solar Points, (3) Kruitwagen et al. 2021, (4) BLM Renewable Project Facilities, (5) Quarterly Fuel and Energy Report (QFER)Imagery Datasets: Esri World Imagery, USGS National Agriculture Imagery Program (NAIP), 2020 SENTINEL 2 Satellite Imagery, 2023Solar facilities with large footprints such as parking lot solar, large rooftop solar, and ground solar were included in the solar footprint dataset. Small scale solar (approximately less than 0.5 acre) and residential footprints were not included. No other data was used in the production of these shapes. Definitions for the solar facilities identified via imagery are subjective and described as follows: Rooftop Solar: Solar arrays located on rooftops of large buildings. Parking lot Solar: Solar panels on parking lots roughly larger than 1 acre, or clusters of solar panels in adjacent parking lots. Ground Solar: Solar panels located on ground roughly larger than 1 acre, or large clusters of smaller scale footprints. Once all footprints identified by the above criteria were digitized for all California counties, the features were visually classified into ground, parking and rooftop categories. The features were also classified into rural and urban types using the 42 U.S. Code § 1490 definition for rural. In addition, the distance to the closest substation and the percentile category of this distance (e.g. 0-25th percentile, 25th-50th percentile) was also calculated. The coverage provided by this data set should not be assumed to be a complete accounting of solar footprints in California. Rather, this dataset represents an attempt to improve upon existing solar feature datasets and to update the inventory of "large" solar footprints via imagery, especially in recent years since previous datasets were published. This procedure produced a total solar project footprint of 150,250 acres. Attempts to classify these footprints and isolate the large utility-scale projects from the smaller rooftop solar projects identified in the data set is difficult. The data was gathered based on imagery, and project information that could link multiple adjacent solar footprints under one larger project is not known. However, partitioning all solar footprints that are at least partly outside of the techno-economic exclusions and greater than 7 acres yields a total footprint size of 133,493 acres. These can be approximated as utility-scale footprints. Metadata: (1) CBI Solar FootprintsAbstract: Conservation Biology Institute (CBI) created this dataset of solar footprints in California after it was found that no such dataset was publicly available at the time (Dec 2015-Jan 2016). This dataset is used to help identify where current ground based, mostly utility scale, solar facilities are being constructed and will be used in a larger landscape intactness model to help guide future development of renewable energy projects. The process of digitizing these footprints first began by utilizing an excel file from the California Energy Commission with lat/long coordinates of some of the older and bigger locations. After projecting those points and locating the facilities utilizing NAIP 2014 imagery, the developed area around each facility was digitized. While interpreting imagery, there were some instances where a fenced perimeter was clearly seen and was slightly larger than the actual footprint. For those cases the footprint followed the fenced perimeter since it limits wildlife movement through the area. In other instances, it was clear that the top soil had been scraped of any vegetation, even outside of the primary facility footprint. These footprints included the areas that were scraped within the fencing since, especially in desert systems, it has been near permanently altered. Other sources that guided the search for solar facilities included the Energy Justice Map, developed by the Energy Justice Network which can be found here:https://www.energyjustice.net/map/searchobject.php?gsMapsize=large&giCurrentpageiFacilityid;=1&gsTable;=facility&gsSearchtype;=advancedThe Solar Energy Industries Association’s “Project Location Map” which can be found here: https://www.seia.org/map/majorprojectsmap.phpalso assisted in locating newer facilities along with the "Power Plants" shapefile, updated in December 16th, 2015, downloaded from the U.S. Energy Information Administration located here:https://www.eia.gov/maps/layer_info-m.cfmThere were some facilities that were stumbled upon while searching for others, most of these are smaller scale sites located near farm infrastructure. Other sites were located by contacting counties that had solar developments within the county. Still, others were located by sleuthing around for proposals and company websites that had images of the completed facility. These helped to locate the most recently developed sites and these sites were digitized based on landmarks such as ditches, trees, roads and other permanent structures.Metadata: (2) UC Berkeley Solar PointsUC Berkeley report containing point location for energy facilities across the United States.2022_utility-scale_solar_data_update.xlsm (live.com)Metadata: (3) Kruitwagen et al. 2021Abstract: Photovoltaic (PV) solar energy generating capacity has grown by 41 per cent per year since 2009. Energy system projections that mitigate climate change and aid universal energy access show a nearly ten-fold increase in PV solar energy generating capacity by 2040. Geospatial data describing the energy system are required to manage generation intermittency, mitigate climate change risks, and identify trade-offs with biodiversity, conservation and land protection priorities caused by the land-use and land-cover change necessary for PV deployment. Currently available inventories of solar generating capacity cannot fully address these needs. Here we provide a global inventory of commercial-, industrial- and utility-scale PV installations (that is, PV generating stations in excess of 10 kilowatts nameplate capacity) by using a longitudinal corpus of remote sensing imagery, machine learning and a large cloud computation infrastructure. We locate and verify 68,661 facilities, an increase of 432 per cent (in number of facilities) on previously available asset-level data. With the help of a hand-labelled test set, we estimate global installed generating capacity to be 423 gigawatts (−75/+77 gigawatts) at the end of 2018. Enrichment of our dataset with estimates of facility installation date, historic land-cover classification and proximity to vulnerable areas allows us to show that most of the PV solar energy facilities are sited on cropland, followed by arid lands and grassland. Our inventory could aid PV delivery aligned with the Sustainable Development GoalsEnergy Resource Land Use Planning - Kruitwagen_etal_Nature.pdf - All Documents (sharepoint.com)Metadata: (4) BLM Renewable ProjectTo identify renewable energy approved and pending lease areas on BLM administered lands. To provide information about solar and wind energy applications and completed projects within the State of California for analysis and display internally and externally. This feature class denotes "verified" renewable energy projects at the California State BLM Office, displayed in GIS. The term "Verified" refers to the GIS data being constructed at the California State Office, using the actual application/maps with legal descriptions obtained from the renewable energy company. https://www.blm.gov/wo/st/en/prog/energy/renewable_energy https://www.blm.gov/style/medialib/blm/wo/MINERALS_REALTY_AND_RESOURCE_PROTECTION_/energy/solar_and_wind.Par.70101.File.dat/Public%20Webinar%20Dec%203%202014%20-%20Solar%20and%20Wind%20Regulations.pdfBLM CA Renewable Energy Projects | BLM GBP Hub (arcgis.com)Metadata: (5) Quarterly Fuel and Energy Report (QFER) California Power Plants - Overview (arcgis.com)