Global Solar Power Equipment Market Size, Share & Industry Trends Analysis Report By Equipment (Solar Panels, Mounting, Racking & Tracking System and Storage System), By Application, By Regional Outlook and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Solar Power Equipment Market
Market Report Description
The Global Solar Power Equipment Market size is expected to reach $202.4 billion by 2027, rising at a market growth of 11.3% CAGR during the forecast period.
Solar power equipment is used to capture the sun's energy and convert it to electricity for utilization in the industrial, commercial, utility, or residential sectors. Solar power systems are made up of a variety of components that transform solar energy into electricity, store it, and then supply it as needed.
A solar energy system is a significant part of solar power equipment. Solar power equipment assists in harnessing the sun's energy, reducing carbon emissions, and lowering or eliminating electricity bills. In the coming years, all of these elements are anticipated to augment the growth of the solar power equipment market. In addition, in response to growing global energy crises, a number of international organizations are developing significant solutions for implementing renewable energy-based technology.
As a result, they are now concentrating on taking rigorous actions to manage present carbon dioxide emission amounts while also monitoring future emission intensity. The construction of renewable energy-generating sources such as wind power, solar power, and others, would significantly help in developing green energy sources, hence, the demand for these sources would rapidly increase throughout the forecasting years.
The penetration of renewable power equipment is likely to be driven by a number of factors, including rising global warming, increased awareness of renewables, and fuel cost reduction. Additionally, it is predicted that the use of solar power equipment in non-residential, residential, and utility applications would increase in the near future. In addition, in this market, there is currently no direct substitute available. As a result, the concern about the availability of substitute products is minimal.
According to the International Energy Agency (IEA), renewable energy generation would increase by 7% in 2020, with solar PV and wind technologies accounting for over 60% of this increase. Renewable energy's proportion in worldwide electricity generation increased by two percentage points each year, reaching over 29 percent in 2020.
COVID-19 Impact Analysis
The COVID-19 outbreak was one of the most hazardous pandemics of the century. The advent of the novel coronavirus caused a major disruption to economies all over the world. It demolished numerous small as well as large businesses. In addition, the COVID-19 pandemic forced governments across the world to enforce lockdowns in their countries. The stringent regulations under the lockdown completely evolved consumer behavior. Moreover, due to travel restrictions, imports and exports of various goods were hauled, due to which, the supply chain of these goods, as well as their comprehensive goods, were significantly disrupted. Due to imposed lockdowns and travel limitations, the COVID-19 pandemic brought a favorable impact to the outdoor solar power equipment sector.
Market driving Factors:
Increasing demand for rooftop solar panels
There has been a rise in the demand for solar panels in residential rooftop applications. Prices for essential components such as polysilicon and silver, which are used to make solar cells, have reduced dramatically. Solar panels make no noise and emit no pollutants. The decline in prices for industrial commodities utilized in the production of solar panels, as well as increasing price predictions for natural gas and electricity, are the primary reasons for increasing the demand for rooftop solar panels. The market for solar panels has been driven by an increase in the prices of power combined with the availability of cheaper panels. Solar power can be used in a variety of functions. For instance, photovoltaics can be utilized in order to generate electricity or solar thermal.
Offers environment-friendly energy alternate
Solar power systems harness the sun's clean and pure energy. Deploying solar panels in the home can help in reducing greenhouse gas emissions, as well as, it can also eliminate the reliance the society on fossil fuels. Electricity is traditionally generated using fossil fuels like coal and natural gases. When these fossil fuels are used to generate power, toxic gases are released, which are the leading source of air pollution as well as global climate change. Fossil fuels are not only harmful to the environment but are also a limited resource. As a result, the price is continually changing and can rise dramatically in the upcoming years. Moreover, renewable energy is good for people's health. The operation of coal and natural gases power plants pollute the air and water, endangering human health.
Marketing Restraining Factor:
Increased Upfront cost
The scarcity of financing options, combined with the expensive initial capital cost, is limiting the widespread use of solar power equipment across the residential sector. Additionally, the solar power equipment market is anticipated to be significantly countered by the heavy reliance on fossil fuels and the predominance of alternative energy sources. Another key impediment to market growth is the fact that solar power's operating capacity is limited and is reliant on bright weather. A solar system is expensive to buy at first. Solar panels, inverters, batteries, wiring, and installation are all included. Solar energy can either be used immediately or stored in big batteries. These solar batteries, which are utilized in off-grid solar systems, can be recharged throughout the day and can be used at night.
Based on Equipment, the market is segmented into Solar Panels, Mounting, Racking, & Tracking System, and Storage System, and Others. In 2020, the storage segment recorded a substantial revenue share of the solar power equipment market. The increasing growth of this segment is attributed to the rapidly evolving climate conditions. Storage allows solar panels to continue the electricity supply to a facility or residency for a certain time period even when there is no source of power. It also helps to smooth out fluctuations in the flow of solar energy on the grid. Changes in the amount of sunshine falling on photovoltaic panels or concentrating solar-thermal power systems cause these variances. Moreover, season, clouds, time, dust, haze, and other factors such as shadows, snow, rain, snow, and soil can all alter solar energy production.
Based on Application, the market is segmented into Utility, Residential, and Non-Residential. In 2020, the utility segment witnessed the largest revenue share of the solar power equipment market. Constantly rising global temperatures are causing a significant rise in global warming over the world, resulting in rising ocean water levels and causing a threat to various coastal areas. Climate change has also grown the frequency of droughts and floods, which has had a severe impact on the global economy. As a result of these factors, there has been an upsurge harvesting of renewable energy, which has boosted the market for solar power equipment. Moreover, the solar power business is also being spurred by an increase in the utilization of solar water heaters by both residential and commercial customers. Therefore, the growth of this segment is being accelerated.
|Market size value in 2020||USD 99.9 Billion|
|Market size forecast in 2027||USD 202.4 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 11.3% from 2021 to 2027|
|Number of Pages||174|
|Number of Tables||275|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Equipment, Application, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, Asia-Pacific procured the largest revenue share of the solar power equipment market. The growth of this segment is increasing due to the rising demand for energy-efficient solutions. Due to increased demand from planned and existing solar power projects throughout the Asia Pacific, the worldwide solar power equipment market is expected to grow significantly. In addition, the solar power equipment industry is estimated to be benefitted by numerous government efforts as well as funding for clean and renewable energy. All of these reasons are estimated to increase the regional market for solar power equipment.
Free Valuable Insights: Global Solar Power Equipment Market size to reach USD 202.4 Billion by 2027
KBV Cardinal Matrix - Solar Power Equipment Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; ABB Group is the major forerunner in the Solar Power Equipment Market. Companies such as Hanwha Q CELLS Co., Ltd., SunPower Corporation and Trina Solar Co., Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Canadian Solar Inc., First Solar, Inc., Hanwha Q CELLS Co., Ltd., LONGi Green Energy Technology Co., Ltd., SunPower Corporation, Shunfeng International Clean Energy Co., Ltd., Jinko Solar Holding Co., Ltd., Trina Solar Co., Ltd., JA Solar Holdings Co., Ltd., and ABB Group.
Recent Strategies Deployed in Solar Power Equipment Market
» Partnerships, Collaborations and Agreements:
- Feb-2022: Q Cells expanded its Q.Peak Duo series by introducing two variants of solar panels for the European market. The product offers intensively high yield per surface area with the help of the company's, high-performance metrics, Q.antum technology.
- Feb-2022: LONGi introduced the Hi-MO 5m 54c, a new module. The product is developed primarily for C&I and residential rooftop systems. Additionally, it would expand LONGi's product portfolio, which witnessed unexpected popularity in massive installations due to reliability, excellent performance, and advanced technology.
- Nov-2021: SunPower introduced Virtual Power Plant solution. This product facilitates SunVault energy storage consumers to get compensated for utilizing stored energy during the peak necessity as well as contribute more to a stable power grid in the community. Additionally, consumers can take part in events that would help in balancing the grid of the community along with neutralizing the cost of the system.
- Oct-2021: SunPower along with The New Home Company introduced the Eureka Grove, solar systems, battery storage, and at-home electric vehicle chargers standard. Through this launch, utilizing solar and storage, lenders can produce electricity from roofs by deploying stored energy and leverage during a power outage as well as when rates are highest.
- Mar-2021: JA Solar introduced DeepBlue 3.0, a Light high-efficiency module tailored for the commercial and residential rooftop. The product would advertise the application of high-efficiency PV products to bring maximum profits to distributing PV consumers across the globe.
- Nov-2020: Trina Solar introduced Vertex S, the latest in their high-efficiency PV module series. The product offers a universal solution calculated for distributed photovoltaic power plants, accessible in various customizable varieties, and serves both commercial and residential consumers.
- Aug-2020: JA Solar introduced Jumbo, the world's biggest and most powerful panel with an 810 W model. The product provides quadruple layouts of 47 cells and dimensions of 2,220 by 1,757mm consuming a triple-cut cell design with 11 busbars on 210mm wafers. Moreover, it delivers a maximum output power of 800W.
- Feb-2020: Trina Solar introduced Duomax V, bifacial double-glass modules, and Tallmax V back sheet. The product offers lesser resistance loss and extremely improves the anti-cracking as well as anti-hot spot conduct of the modules along with maximizing space usage. Additionally, it was developed by combining modern non-destructive cutting, high-density packaging, and three-piece technologies.
» Acquisitions and Mergers:
- Oct-2021: Hanwha Solutions Corporation, the parent of solar panels maker Q Cells completed the acquisition of RES Mediterranee SAS, the French renewables development business formerly owned by UK-based RES Group. Through this acquisition, the company focused on expanding new confines for clean energy business from off-shore and on-shore wind, small as well as large solar projects, directly to green electricity options accessible to the moderate small business or household.
- Oct-2021: SunPower took over Blue Raven Solar, one of the fastest-growing residential solar providers in the U.S. Under this acquisition, Blue Raven's appreciative geographic reach and growth orbit would provide SunPower to expand its solar market in underpaying areas such as Mid-Atlantic and Northwest to serve more consumers. Additionally, this acquisition would propel the growth strategy by providing systematic and powerful solar technology convenient for a new set of lenders.
- Sep-2020: Trina Solar completed the acquisition of Nclave Renewable, a designer and manufacturer of solar energy equipment. Under this acquisition, the company aimed to attend the company's strategic transformation into an organization focused on developing renewable and alternative energy solutions that work in the gig with the Internet of Things environment.
» Product Launches and Product Expansions:
- Dec-2021: JinkoSolar Holding's principal operating subsidiary, Jinko Solar came into partnership with Aldo Solar, the largest distributor of solar energy solutions in Brazil. This partnership focused on distributing around 4 million photovoltaic modules as well as 2 GW of installed power. Additionally, this partnership would ensure the installers and resellers in Brazil continue to commodify the Tiger Pro family of panels.
- Nov-2021: Solar module maker JA Solar came into an agreement with the government of Chaoyang City, Liaoning Province. Together, the entities aimed to build a 5 GW solar module factory and the distribution of a 2 GW hybrid wind-solar storage facility. Additionally, this facility would add 5 GW of state-of-the-art PV module capacity and 2 GW of renewable energy volume that would include solar PV power, power storage, and wind.
- Sep-2021: SunPower signed a multi-year agreement with Toll Brothers, the nation’s leading builder of luxury homes. Under this agreement, SunPower would be the only supplier of solar technology to Toll Brothers communities and homes around California. Additionally, every Toll Brothers built home in California would consist of SunPower Equinox home solar system, to produce more power in less space along with fewer parts transparency than old school solar electric systems.
- Jul-2021: Q CELLS formed a partnership with Samsung Electronics, a South Korean multinational electronics corporation. Together, the companies focused on working towards authorizing new solutions under which Samsung’s SmartThings Energy service is linked to Q CELLS’ solar modules and energy storage systems. Additionally, the solution would allow lenders to create and store their own energy, to tackle the SmartThings IoT platform to monitor and immediately optimize energy consumption for their heat pumps and home appliances.
- Jul-2021: SunPower Corp came into a strategic partnership with Wallbox, a leading provider of electric vehicle charging solutions. Under this strategic partnership, the companies are focused on providing SunPower consumers to choose Wallbox home EV charger at the same time as solar and storage system installation.
» Business Expansions:
- Feb-2021: Trina Solar unveiled Trina Storage, a dedicated global business unit. The product offers a resilience storage solution for various application scenarios such as solar + storage, for large as well as independent industrial and microgrid. Additionally, this would climactic transform the way of energy distribution across the world as it would consume Trina Solar’s established supply chain to provide cost-effective, robust, and safe solutions.
Scope of the Study
Market Segments Covered in the Report:
- Solar Panels
- Mounting, Racking, & Tracking System
- Storage System
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Canadian Solar Inc.
- First Solar, Inc.
- Hanwha Q CELLS Co., Ltd.
- LONGi Green Energy Technology Co., Ltd.
- SunPower Corporation
- Shunfeng International Clean Energy Co., Ltd.
- Jinko Solar Holding Co., Ltd.
- Trina Solar Co., Ltd.
- JA Solar Holdings Co., Ltd.
- ABB Group
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What would be the size of the solar power equipment market by 2027?
The solar power equipment market size is projected to reach USD 202.4 billion by 2027.
What are the key driving factors and challenges in the solar power equipment market?
Increasing demand for rooftop solar panels are driving the market in coming years, however, increased upfront cost limited the growth of the market.
Who are the leading players in the solar power equipment market?
Canadian Solar Inc., First Solar, Inc., Hanwha Q CELLS Co., Ltd., LONGi Green Energy Technology Co., Ltd., SunPower Corporation, Shunfeng International Clean Energy Co., Ltd., Jinko Solar Holding Co., Ltd., Trina Solar Co., Ltd., JA Solar Holdings Co., Ltd., and ABB Group.
Has COVID-19 impacted the solar power equipment market?
Yes, Due to COVID-19 pandemic brought a favorable impact to the outdoor solar power equipment sector.
Which segment shows a high revenue share of the solar power equipment market in 2020?
The Solar Panels segment acquired the maximum revenue share in the Global Solar Power Equipment Market by Equipment in 2020, thereby, achieving a market value of $65.2 billion by 2027.
Which region dominated the solar power equipment market in 2020?
The North America is the fastest growing region in the Global Solar Power Equipment Market by Region in 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $45.9 billion by 2027.