The global solar photovoltaic (PV) market size was calculated at USD 179.69 billion in 2024 and is projected to hit around USD 451.23 billion by 2034, with a remarkable CAGR of 9.64% from 2025 to 2034.
Solar Photovoltaic (PV) technology is a method of generating electricity by converting sunlight directly into electrical energy using semiconducting materials, typically silicon-based solar cells. When sunlight hits these cells, it excites electrons, creating an electric current—a phenomenon known as the photovoltaic effect. PV systems are widely used in residential, commercial, and industrial applications, offering a clean, renewable, and sustainable source of energy. They can be installed on rooftops, ground-mounted setups, or integrated into building materials. With advancements in technology and decreasing costs, solar PV is playing a crucial role in the global shift towards green energy and reducing dependency on fossil fuels.
Solar Photovoltaic (PV) Market Key Takeaways
- Asia Pacific dominated the global market with the biggest market share of 38% in 2024.
- North America is projected to expand at the notable CAGR during the forecast period.
- By technology, the monocrystalline silicon segment contributed the largest market share in 2024.
- By technology, the thin film segments is estimated to be the fastest-growing segment during the forecast period.
- By installation, the ground-mounted segment captured the biggest market share in 2024.
- By installation, the rooftop segments is predicted to be the fastest-growing segment during the forecast period.
- By grid type, the on-grid segment contributed the highest market share in 2024.
- By grid type, the off-grid segment is expected to grow at a significant CAGR from 2025 to 2034.
- By application, the utility segment has held the largest market share in 2024.
- By application, the residential segments is expected to be the fastest-growing segment during the forecast period.
Asia-Pacific Leads the Global Solar PV Industry
The Asia-Pacific region continues to dominate the solar photovoltaic (PV) landscape, driven by strong government initiatives, rising energy consumption, and rapid industrial growth. In 2024, the region showcased a solar PV valuation of USD 68.28 billion, and it is projected to reach approximately USD 169.74 billion by 2034, reflecting a robust compound annual growth rate (CAGR) of 9.65% from 2025 to 2034. China remains the global leader in solar PV production and installation, accounting for more than 30% of the world’s solar capacity, while India is rapidly expanding its renewable energy footprint with large-scale solar parks and rural electrification programs. The declining cost of solar modules—dropping by nearly 80% over the past decade—combined with abundant solar resources and favorable climate conditions, further fuels adoption. With continued investments and supportive clean energy policies, the region is set to remain at the forefront of global solar energy transformation.
Solar Photovoltaic (PV) Market Trends
- Record Installations Worldwide
- Global PV installations crossed 350 GW in 2023, a jump from ~240 GW in 2022.
- China alone added over 200 GW of new PV capacity in 2023 — the highest ever by any country.
- Rapid Growth in Residential Solar
- Residential solar systems saw a surge, with over 6 million US homes now equipped with rooftop PV.
- Germany installed 2.9 GW of rooftop solar in 2023, up from 1.9 GW in 2022.
- Utility-Scale Projects Dominating in Developing Nations
- India commissioned over 12 GW of utility-scale solar in 2023.
- Brazil added over 9 GW of new solar capacity, largely driven by utility-scale plants.
- Rise of Bifacial Solar Panels
- Bifacial module installations account for ~40% of utility-scale PV projects globally in 2024.
- These modules produce 6%–20% more energy compared to monofacial ones, depending on conditions.
- Higher Efficiency Technologies Gaining Ground
- TOPCon (Tunnel Oxide Passivated Contact) modules are expected to capture over 50% of the new module market by the end of 2025.
- Efficiency levels are rising with commercial panels exceeding 23% efficiency.
- Cost Decline and Module Price Drop
- Average global module prices dropped below $0.20/Watt in Q4 2023 — a 30% YoY decline.
- Price drops driven by overcapacity in China and polysilicon price reductions.
- Energy Storage Integration with PV
- Over 50 GW of PV+storage projects are in the pipeline globally as of early 2024.
- US added 4.8 GW of solar paired with battery storage in 2023, a 57% increase over 2022.
- Floating Solar (FPV) Momentum
- Floating PV capacity surpassed 6 GW globally.
- Asia leads adoption, with Vietnam and China accounting for 60% of all floating solar installations.
- Corporate & Industrial Solar Adoption Rising
- Amazon, Google, and Microsoft signed solar PPAs totaling over 12 GW in 2023 alone.
- In India, C&I sector contributed nearly 45% of rooftop solar demand in 2023.
- Recycling and End-of-Life Management Focus
- Over 78 million tons of PV waste expected by 2050, prompting increased investment in recycling tech.
- EU mandates PV recycling under WEEE directive; newer methods can recover ~95% of silicon and glass.
Solar Photovoltaic Market Report Coverage
| Report Attribute | Key Statistics |
| Market Size in 2025 | USD 196.94 Billion |
| Market Size in 2034 | USD 451.23 Billion |
| Growth Rate from 2025 to 2034 | CAGR of 9.64% |
| Dominating Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Technology, Grid Type, Installation, Application, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Technology Analysis
The solar photovoltaic (PV) market is segmented by technology into monocrystalline silicon, thin film, polycrystalline silicon, and others. Monocrystalline silicon technology dominates the market due to its high efficiency and long lifespan. It is widely adopted in residential and commercial applications where space is limited but high output is required. Thin film solar technology, although less efficient, is flexible, lightweight, and cost-effective, making it suitable for certain niche applications such as portable solar systems and building-integrated photovoltaics. Polycrystalline silicon, on the other hand, offers a balance between performance and cost and is commonly used in large-scale installations. The “others” category includes emerging technologies such as perovskite and organic PV, which are in the early stages of development but hold potential for future growth due to ongoing research and innovation.
Grid Type Analysis
Based on grid type, the solar PV market is classified into on-grid and off-grid systems. On-grid systems, also known as grid-tied systems, are connected to the utility grid and are most commonly used in urban and industrial settings. These systems allow users to sell excess electricity back to the grid, thereby reducing energy costs and improving energy efficiency. Off-grid systems, in contrast, are independent of the utility grid and are primarily used in remote or rural areas where grid connectivity is limited or non-existent. These systems rely on battery storage to provide electricity during non-sunny periods and are essential for promoting energy access in underdeveloped regions.
Installation Analysis
The market is also segmented by installation type into ground mounted, rooftop, and others. Ground-mounted PV systems are typically used in utility-scale solar farms and large commercial projects. They are ideal for open spaces and offer easy maintenance and system expansion. Rooftop installations are commonly adopted in residential, commercial, and industrial sectors, offering an efficient way to utilize unused rooftop space while reducing electricity bills. The “others” segment includes innovative installation methods such as floating solar panels and building-integrated photovoltaics (BIPV), which are gaining traction due to their space-saving benefits and aesthetic integration into structures.
Application Analysis
In terms of application, the solar PV market is categorized into residential, non-residential, and utilities. The residential segment is driven by growing consumer awareness of renewable energy, declining installation costs, and government incentives. Homeowners are increasingly turning to rooftop PV systems to reduce their dependency on conventional electricity and lower energy bills. The non-residential segment includes commercial and industrial facilities that use solar PV to power operations, cut energy expenses, and meet sustainability goals. Meanwhile, the utilities segment represents large-scale solar power plants that generate electricity for distribution through the national grid. This segment plays a crucial role in national renewable energy targets and is supported by large investments from both governments and private players.
Solar Photovoltaic (PV) Industry Recent Activities
Surge in Renewable Energy Installations: In 2024, global renewable energy installations hit a record high, with 92.5% of newly added electricity capacity coming from sources such as solar and wind. China played a major role in this expansion, contributing nearly 64% of the total new renewable energy capacity.
China’s Solar Capacity Expansion: During the first two months of 2025, China added around 39.5 GW of new solar power capacity, raising its cumulative installed photovoltaic (PV) capacity to an impressive 930 GW.
U.S. Tariff Revisions on Solar Imports: The Biden administration implemented significant tariff hikes on solar materials imported from China, effective January 1, 2025. Tariffs on polysilicon and solar wafers were doubled from 25% to 50% in an effort to strengthen domestic manufacturing and address ongoing human rights issues.
Controversy Over UK Solar Panel Sourcing: The UK government came under criticism for allegedly sourcing solar panels linked to forced labor practices in China’s Xinjiang region. While proposed amendments to the Great British Energy Bill sought to block public funding for such imports, the initiative encountered political resistance. Source: https://www.precedenceresearch.com
