Solar Power Market to Hit $194.75 Billion by 2027

The global solar power market size is projected to reach USD 194.75 billion by 2027, exhibiting a CAGR of 5.9% during the forecast period. Expanding the share of solar power in electricity generation worldwide will be a leading growth determinant for this market, states Fortune Business Insights in its report, titled “Solar Power Market Size, Share and COVID-19 Impact Analysis, By Technology (Solar Photovoltaic , and Concentrated Solar Power ), By Application (Residential, Non-Residential and Utility), and Regional Forecast, 2020-2027”. The contribution of solar energy towards electricity production has grown over the past few years. According to the International Renewable Energy Agency (IRENA), renewables generated 6,586 TWh of electricity in 2018. Of this, solar energy accounted for 562 TWh, reflecting a 28% increase in solar power generation from 2017 levels, while the overall public investment in renewables reached USD 21 billion in 2018. This level of growth in the installed capacity of solar energy is expected to create multiple opportunities for players in the solar industry, which will grow even wider with supportive policy frameworks.

Market Restraint

Delays & Cancellations of Solar Projects amid COVID-19 to Dampen Market Outlook

One of the main factors restricting the solar power market growth is the disruptions, delays, and cancellations of solar projects triggered by the COVID-19 pandemic. In the US, for example, additions to solar capacity are expected to be lower by 37% from pre-coronavirus projections. Moreover, the predicted solar deployment losses are estimated to be equivalent to powering 288,000 homes and an investment of USD 3.2 billion in the country. The situation is dire in other countries as well, because the pandemic has had deleterious effects on countries’ plans to expand their renewable capacities. For example, China was expected to phase out its feed-in-tariff system, which was in turn expected to create a rush for completion of solar and wind projects in 2020. However, a sudden economic downturn and reduced workforce are likely to thwart China’s plans. In India, power companies are withdrawing investments in renewables, citing the sharp decline in power demand since the pandemic began. For example, ACME Solar canceled a contract with the Indian government owing to the falling demand for power nationwide, which forced the government to lower tariffs.

Regional Insights

Asia Pacific to Lead the Market Supported by Low Manufacturing Cost of Components

Asia Pacific is expected to dominate the solar power market share during the forecast period on account of the manufacturing of solar components at low costs. Moreover, China and India have emerged as two of the largest markets, with China leading the charge, installing 30.1 GW of solar in 2019. The region’s market size in 2019 was at USD 74.81 billion.

In Europe, favorable regulations, such as the Europe Renewable Energy Directive, governing the renewables sector in the region are anticipated to propel the regional market. These regulations and policies are also designed to attract public and private investments in the solar industry, which will further bolster the market prospects in Europe.

Competitive Landscape

Top Players to Concentrate on Establishing Operations in Diverse Regions

Competitors in the solar power industry are focusing on expanding and establishing their presence in countries in the Middle East and South and Southeast Asia, where sunlight is available for the most part of the year. As a result, key players are designing products and implementing strategies to capture the growing market for solar devices and components in these countries.

Industry Developments:

• September 2020: Abengoa announced the completion of the first of the three solar fields the company is building in the Mohammed bin Rashid Al Maktoum Solar Park, the world’s largest solar complex based in Dubai. The company is providing technology, engineering, and construction services of three parabolic trough plants of 200 MW each.
• August 2020: Canadian Solar announced the start of the construction of one of the biggest commercial & industrial rooftop solar projects in Malaysia in partnership with Antah Solar and Eleaps. The project will have a capacity of 5 MW and cover an area of 26,000sq.m.

List of Key Companies Profiled in the Solar Power Market Report:

• Vivaan Solar (India)
• Nextera Energy Sources LLC (U.S.)
• Acciona Energia S.A.(Spain)
• Trina Solar (China)
• eSolar Inc. (U.S.)
• Tata Power Solar Systems Ltd. (India)
• Abengoa (Spain)
• Waaree Group (India)
• Azure Power (India)
• Wuxi Suntech Power Co. Ltd. (China)
• Yingli Solar (China)
• SunPower Corporation (U.S.)
• First Solar (U.S.)
• BrightSource Energy, Inc. (U.S.)
• Canadian Solar Inc. (Canada)
• Urja Global Limited (India)