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

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 North America Solar Photovoltaic (PV) Market is segmented by Application (Residential, Commercial, and Utility), Deployment (Ground Mounted and Rooftop Solar), Technology (Crystalline Solar and Thin Film), and Geography (United States, Canada, and Mexico). The report offers the market size and forecasts installed capacity (GW) for all the above segments.

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...

Residential Solar Market Outlook

The global residential solar market size in 2023 is estimated to be around USD 55 billion and is projected to grow at a compound annual growth rate (CAGR) of 15% to reach approximately USD 145 billion by 2032. This impressive growth trajectory is driven by a multitude of factors, including increasing environmental awareness, the declining cost of solar technology, and supportive governmental policies aimed at reducing carbon emissions. As the world moves towards sustainable energy solutions, residential solar systems have emerged as a primary contributor to the energy transformation, providing eco-friendly power alternatives to homeowners.

The growth of the residential solar market is significantly fueled by the declining cost of solar photovoltaic (PV) technology. Over the past decade, technological advancements have led to enhanced efficiency and reduced manufacturing costs of solar panels, making them more affordable for residential use. Furthermore, innovations in energy storage solutions, such as batteries, have increased the reliability of solar energy, allowing homeowners to store excess energy for later use. This technological progress has made solar power a viable and attractive option for individual homeowners and housing communities alike, encouraging widespread adoption across the globe.

Government incentives and policies also play a crucial role in the market's expansion. Many countries are implementing favorable policies, such as tax credits, rebates, and feed-in tariffs, to promote the adoption of solar energy. These initiatives are designed to make solar installations more financially accessible and appealing to homeowners. For instance, the Investment Tax Credit (ITC) in the United States has been instrumental in driving the growth of the residential solar market by allowing homeowners to deduct a significant portion of the installation cost from their taxes. Such policies have provided a substantial boost to the solar industry, encouraging more individuals to transition to renewable energy sources.

Rising environmental consciousness among consumers is another significant driver of market growth. As concerns about climate change and environmental degradation intensify, more individuals are seeking sustainable living solutions, with solar energy at the forefront of this movement. The desire to reduce carbon footprints and achieve energy independence is motivating homeowners to invest in residential solar systems. Furthermore, the long-term financial benefits of reduced electricity bills make solar power an economically attractive option, further accelerating its adoption. This growing awareness and preference for clean energy contribute to the robust expansion of the residential solar market globally.

Regionally, the market exhibits diverse growth patterns, with Asia Pacific leading the charge due to rapid urbanization and increasing energy demands. The region's abundant sunlight and favorable economic conditions have made it an attractive market for residential solar systems. North America and Europe also show promising growth prospects, driven by strong government support and consumer demand for clean energy. In contrast, the Middle East and Africa are beginning to explore the potential of solar energy, although infrastructural challenges and policy limitations may slow their progress. Overall, the regional outlook for the residential solar market remains optimistic, with significant growth expected across all major regions.

As the residential solar market continues to expand, innovative solutions like Residential Solar Carport Sales are gaining traction. These solar carports not only provide shade and protection for vehicles but also serve as a sustainable energy source by harnessing solar power. They are particularly advantageous in urban areas where space is limited, allowing homeowners to maximize their property’s energy potential without sacrificing valuable land. By integrating solar panels into carport structures, residents can generate electricity for their homes while reducing their carbon footprint. This dual functionality makes solar carports an attractive option for eco-conscious homeowners looking to enhance their property's energy efficiency.

Product Type Analysis

The residential solar market offers a variety of product types, with monocrystalline, polycrystalline, and thin-film solar panels being the primary categories. Monocrystalline solar

The residential solar market in the United States continues to grow, with Sunrun leading the pack as the largest installer in 2023. Holding an 11 percent market share, Sunrun outpaced competitors like Freedom Forever and SunPower, while Tesla Energy secured the fifth position with a two percent share. In that same year, Tesla Energy generated a revenue of over six billion U.S. dollars, experiencing significant revenue growth from the last few years. Growth of U.S. home solar As of 2023, residential solar PV capacity in the U.S. surpassed 36 gigawatts, accounting for about 25 percent of total solar installations nationwide. California, Texas, and Florida lead in residential solar system installations, with California boasting approximately 11.7 gigawatts of home solar at the end of 2023. The market expansion is evident in the newly installed residential sector PV capacity, which reached 6.8 gigawatts in 2023, a 15 percent increase from the previous year. Market trends and future outlook The residential solar market shows promising growth potential. The number of solar-equipped homes in the U.S. reached 4.4 million in 2023, with projections indicating a substantial increase to 16.8 million by 2032, which equates to a penetration rate of roughly 18 percent of single-unit housing. Detached single-family homes dominate the residential solar market, accounting for 94 percent of home solar system installations in 2023.

The value of the United States' solar market increased from some 24.1 billion U.S. dollars in 2020 to more than 60 billion U.S. dollars in 2023. In just four years, the U.S. solar market value increased by more than double.

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

Restraint Factor for the Solar Panel Market

High Initial Installation Costs to Limit the Sales

While the cost of solar panels has dropped considerably, the overall initial investment for a complete solar panel system—including installation, inverters, battery storage, and maintenance—remains relatively high. For many residential and commercial users, these upfront expenses can be a barrie...

This statistic represents the market share of leading commercial solar installers in the United States in 2011. With a national market share of nine percent, California-based SunPower was ranked first that year.

The market is segmented by Location of Deployment (Residential and Commercial and Industrial), and Geography (United States, Canada, and Rest of North America)

This statistic provides the distribution of the residential solar market in the United States based on ownership from 2011 to 2013, with estimates from 2014 to 2018. In 2017, it is estimated that about 67 percent of the residential solar market will belong to third-parties.

The average size of solar energy projects, broken down by regions can be found here.

United States solar tracker market size is projected to exhibit a growth rate (CAGR) of 7.80% during 2025-2033. The rising opportunities for businesses and investors in the renewable energy sector, along with the growing number of solar panels, are primarily driving the market growth across the country.

The Report Covers the Residential Solar Energy Market Size & Share and is Segmented by Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Report Offers the Market Size and Forecasts in Terms of Installed Capacity for all the Above Segments.

North America Single Axis Solar Tracker Market size was valued at USD 3.75 Billion in 2024 and is projected to reach USD 8.96 Billion by 2032 growing at a CAGR of 13.25% from 2026 to 2032.

Key Market Drivers: Government Incentives for Renewable Energy: The US Department of Energy (DOE) has committed more than $50 billion in renewable energy investments through a variety of programs. According to the U.S. Solar Energy Industries Association (SEIA), the solar market in the United States will expand by 23% in 2022.

Declining Solar Panel Costs and Increasing Efficiency: According to the US National Renewable Energy Laboratory (NREL), the cost of solar energy has decreased by more than 70% over the last decade, considerably enhancing the economic sustainability of solar energy projects.

The Solar Panel Market Report is Segmented by Type (Crystal Silicon, Monocrystalline Silicon, Polycrystalline Silicon, Thin Film, and Other Types), End User (Residential, Commercial & Industrial, and Utility), and Geography (North America, Asia-Pacific, Europe, South America, and Middle East and Africa). The Report Offers the Market Size and Forecast for the Solar Panel Market in Revenue (USD) for all the Above Segments.

The Report Covers North America Solar Tracker Market Report Size & Share and It is Segmented by Axis Type (single Axis and Dual Axis) and Geography (United States, Canada, Mexico). The Report Offers the Market Size and Forecasts for the North American Solar Tracker Market in USD for all the Above Segments.

Solar Farm Market size was valued at USD 93.84 Billion in 2024 and is projected to reach USD 275.54 Billion by 2031, growing at a CAGR of 15.90% from 2024 to 2031.

Global Solar Farm Market Drivers

Declining Costs: As a result of technological improvements, economies of scale, and heightened market rivalry, the cost of solar photovoltaic (PV) technology has been progressively dropping over time. As a result, solar energy is becoming more and more competitive with conventional fossil fuels.
Environmental Concerns: As people’s awareness of and concern for environmental degradation and climate change grows, governments, businesses, and consumers are looking for greener, renewable energy sources, such solar power. With less greenhouse gas emissions than fossil fuels, solar farms provide a sustainable energy source.
Government Policies and Incentives: To encourage the use of solar energy, numerous governments throughout the world are putting supportive policies and incentives into place. These consist of feed-in tariffs, tax credits, renewable energy goals, and financial assistance for solar power projects. These regulations aid in lowering up-front expenses and promote solar farm investment.
Energy Security: By broadening the energy mix and lowering reliance on imported fossil fuels, solar energy helps to provide energy security. This is especially crucial for nations that depend substantially on energy imports or are susceptible to supply disruptions.
Technological Advancements: The efficiency, robustness, and scalability of solar PV systems have all improved as a result of ongoing research and development activities in solar technology. The possible uses and viability of solar farms are growing because to innovations like bifacial panels, floating solar farms, and energy storage systems.

This statistic shows the market share of the U.S. photovoltaic cell and module production in 2010. Arizona-based manufacturing company First Solar had a market share of around 20.2 percent in this period.

Product segments include:Crystalline Solar: Mono- and polycrystalline panels dominate the market, offering high efficiency and durability.Thin Film: Thin-film panels are lightweight and flexible, but offer lower efficiency than crystalline panels. Recent developments include: November 2022:EE North America, a European Energy company, partnered with Elio Energy By to develop a Solar Power Plant and Energy Storage in Arizona, USA. The construction of the 2 GW project will tentatively start in 2023 rings to activate Wind.. Notable trends are: Growing adoption of solar energy in the residential sector drives market growth..

South America Solar Cells Market size will be USD 4297.41 million in 2024 and will expand at a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031.