Solar Energy Market size is expected to proliferate abundantly from 2021 to 2027 on account of the increasing green gas emission and environment concerns. The incessant need for electricity has paved the way for the surge in government initiatives to support renewable energy sources. The rising advancements in the architectural sector have led to an increase in the number of rooftop installations. Growing technological progressions and the higher implementation of storage grids will also contribute to shaping the overall market curve.
Based on technology, the solar energy market size from photovoltaic (PV) systems will grow colossally owing to the rising preference for off-grid installations. Solar photovoltaics are increasingly utilized to convert solar energy to electrical energy. The growing obligation for storage grid networks and the higher adoption of lithium ion-powered batteries has bolstered the need for replacing the existing conventional sources. The mount in the number of PV installations is another impact rendering factor for the progression of the market share by 2027.
With regards to the solar module, the monocrystalline segment is expected to bring substantial remuneration for the solar energy industry due to increasing penetration in the residential sector. Monocrystalline solar modules are very space-efficient and offer the highest efficiency rates that typically span from 15-20%. These modules are found to be highly efficient in warm weather conditions and have the longest life. On account of their optimum performance in low-light conditions, monocrystalline solar panels are highly preferred over their similarly rated polycrystalline counterparts.
In terms of applications, the solar energy industry is bifurcated into residential, commercial, and industrial. Installation of solar energy across the residential sector is anticipated to expand given the surge in non-conventional resource costs. The rise in the number of residential projects along with the higher installation of solar energy systems will further sway the expansion of the market.
Regionally, APAC is poised to capture a dominant revenue share in the solar energy market owing to the spiraling need for electricity in the region. The expanding population and the surging number of solar power plants are some promising drivers directing the regional market expansion. For instance, in 2020, India launched a 750-megawatt solar power plant. Also, according to estimates, China installed over 48.2 GW of solar in 2020. The growing focus on ramping up the new generation capacity and the higher deployment of various solar technologies will additionally play a key role in the industry growth.
Solar World AG, Canadian Solar, Abengoa, Motech Industries, Tata Power, Sunways AG (LDK Solar Germany Holding GmbH), and BHEL are some of the prominent solar energy market participants.
Most of these companies are consistently implementing strategic decisions, including partnerships, acquisitions, and mergers, whenever possible and are focusing on capacity expansions and innovations to consolidate their foothold in the intensifying market competition.
For instance, Renesola Ltd, in November 2020, wrapped up the purchase of around 200 MW of distributed generation as well as solar plus energy storage projects across the U.S. from Nova Development Management.
In another instance, in May 2020, Abengoa Solar launched the world's largest 20 megawatts (MW) solar power plant in a bid to produce significant energy to cater to 10,000 homes through a tower that turns the sun's rays into electricity.
The ongoing COVID-19 crisis not only crafted massive unprecedented challenges on a host of business verticals worldwide but also contributed to substantial global economic turbulence. The solar energy industry also was not insulated from the impact of the pandemic on account of the disrupted supply chains of solar equipment. The initial slowdown of manufacturing mainly in China also brought project delays across various countries, like India.