Solar Power

Solar power market to reach $67.52bn by 2026

Rising investments in renewable energy are expected to boost market growth

The distributed solar power generation market share is expected to grow by $67.52 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 19.25 per cent, according to a latest report. Increasing investments in renewable energy are expected to boost market growth, says the report by Technavio.

Among the geographies like APAC, Europe, North America, South America, and the Middle East and Africa, APAC will be the major growth-generating region with a growth rate of 55 per cent. The distributed solar power generation market segmentation is also done by type - commercial and industrial, residential, and off-grid.

 

MARKET DYNAMICS

One of the factors contributing to the expansion of the distributed solar power generation market is rising investments in renewable energy, points out the report.  The cost-effectiveness of producing electricity from renewable sources and their low carbon emissions have increased financial support for renewable energy projects all around the world. Due to the implementation of strict emission limits, several European nations, including Norway, Iceland, and Sweden, rely on renewable sources for more than half of their total annual power demand. As a result, investments in the renewable energy sector are increasing, which will boost the market’s expansion throughout the course of the forecast period.

The major challenge preventing the market expansion for distributed solar power generation is difficulties with solar PV system components. Several parts of solar PV systems, including inverters and PV modules, are prone to failure. Such failures result in downtime for PV systems and have a substantial impact on the production of electricity using solar PV systems.  Additionally, the standard of the components used will determine how well solar PV modules will operate. Po or durability, the use of substandard materials, and external damage are the major cause of the number of these component failures. These factors are anticipated to hinder market growth during the forecasted period.

 

VENDOR ANALYSIS

The market is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market. The increasing market competition is compelling vendors to implement various growth strategies such as promotional activities and advertising spending to increase the visibility of their services. To remain competitive in the market, some vendors are pursuing inorganic growth strategies such as mergers and acquisitions.

Some of the prominent market vendors are Auxin Solar, Canadian Solar, E Solar, Enphase Energy, Freedom Solar, General Electric, Schneider Electric, Sharp, Silfab Solar, Solar Panels Plus, TotalEnergies, Trina Solar Co, and Trinity Heating & Air.

A few more are: Hanwha: the company offers distributed solar power generation with affiliation with Hanwha solutions and Hanwha Q cells; LG: it offers distributed solar power generation such as the Neon H series panel and Neon R series panel; Panasonic Holdings offers distributed solar power generation such as overvolt solar module HK series and Evervolt black series; Sungevity offers distributed solar power generation such as floating solar photovoltaics; and Tesla: it offers distributed solar power generation such as Tesla solar panels with Powerwall home battery backup.

 

MARKET DYNAMICS

One of the factors contributing to the expansion of the distributed solar power generation market is rising investments in renewable energy, points out the report.  The cost-effectiveness of producing electricity from renewable sources and their low carbon emissions have increased financial support for renewable energy projects all around the world. Due to the implementation of strict emission limits, several European nations, including Norway, Iceland, and Sweden, rely on renewable sources for more than half of their total annual power demand. As a result, investments in the renewable energy sector are increasing, which will boost the market’s expansion throughout the course of the forecast period.

The major challenge preventing the market expansion for distributed solar power generation is difficulties with solar PV system components. Several parts of solar PV systems, including inverters and PV modules, are prone to failure. Such failures result in downtime for PV systems and have a substantial impact on the production of electricity using solar PV systems. Additionally, the standard of the components used will determine how well solar PV modules will operate. Po or durability, the use of substandard materials, and external damage are the major cause of the number of these component failures. These factors are anticipated to hinder market growth during the forecasted period.