Published Date : 20 Jun 2023
The global agrivoltaics market size surpassed USD 3.56 billion in 2022 and is expected to attain around USD 8.9 billion by 2030, expanding at a strong CAGR of 12.15 percent throughout the projection period 2022 to 2030.
Agrivoltaics is a combination of solar panels as well as plants on agricultural land. Agricultural consists of crops along with photovoltaic panels. Installed with height to enable farm machinery to pass beneath the ground. The difficulty is in producing crops and energy simultaneously and without interference. Additionally, there are two types of system designs available in the market which includes fixed solar panel over crop and dynamic agrivoltaics.
Approximately 48 hectares of farmland area is needed to add the power of the requirement of nearly 100,000 of households. As the cost of solar panel is likely to decrease in the upcoming years all across the globe, the overall expenses including installation cost of installing agrivoltaics systems is anticipated to decrease significantly in the upcoming years, which in turn is very likely to boost the overall growth of the agrivoltaics market in terms of value sales in the near future.
Additionally, agrivoltaics positively impacting on crop yield, product quality, and water consumption and also offers additional energy to the production capacity. Moreover, the recent trend of humanity crises, as well as the change of the climate in the upcoming future, needs immediate planning for the sustainability of food production as well as a solution like agrivoltaics system that help in fueling the food production, improving the saving of water and improving the efficiency of the production of the electricity which in turn is expected to fuel the overall growth of the agrivoltaics market in terms of value sales during the forecasted periods.
In the world of agribusiness, the sun has long been a source of free and healthy energy that gives crops the nutrition they need to flourish. Solar power is now being used for agricultural technologies by the larger energy sector, though. Solar power generation is seeing a rapid increase in global investment. In 2016, solar energy alone saw a 50% increase in its share of the world's electricity-generating capacity, surpassing growth in wind, gas, and other renewable technologies1. Since 2008, the price of solar photovoltaic cells, which make up the majority of the capital expense in solar systems utilizing that technology, has decreased by 80%. Manufacturing innovation and competition have increased, and Chinese manufacturers have dramatically increased their market share.
Agrivoltaics Market Report Scope:
| Report Coverage | Details |
| Market Revenue in 2023 | USD 3.99 Billion |
| Projected Forecast Revenue in 2030 | USD 8.9 Billion |
| Growth Rate from 2022 to 2030 | CAGR of 12.15% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2022 To 2030 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Report Highlights:
Regional Snapshots:
Europe has accounted for the highest market share in the agrivoltaics market owing to the predominant shortage of the agricultural land growing as well as rising agrivoltaics system in the European region that is assisting to fuel the production of food as well as crop efficiency. Moreover, The North America has emerged as one of the largest markets for agrivoltaics after Europe in terms of value sales. However, Asia-Pacific is expected to be one of the fastest-growing sector during the forecast period in terms of value sales.
Market Dynamics:
Drivers:
Agrivoltaics system is developing the same areas of agricultural land for solar energy as well as for agriculture. This emerging novel farming technique combines the generation of solar electricity with conventional farming on the same agricultural land. The renewable-based energy system such as solar photovoltaic systems as well as farmland could be developed together on common agricultural fields. Moreover, the factor which influencing positively the need for emerging agrivoltaics systems like the growing demand for efficient cultivation equipment see the effect of climate change, agrivoltaics dynamic technology aim to offer common balanced advantages between agriculture as well as production of the energy.
Restraints:
Lack of awareness regarding the use of agrivoltaics systems and its associated benefits to agriculture in the market is restricting the growth of the market in terms of value sales. Moreover, one of the major obstacles which is restricting the growth of the market is the total installation cost of the agrivoltaics system.
Opportunities:
Emerging economies such as Brazil, China, India and others are expected to offer immense opportunity for the growth of the market in terms of value sales during the forecast period. The global rise in the population is likely to offer lucrative opportunities for the rising demand for agricultural land which in turn is likely to boost the demand for agrivoltaics in the market. The increasing demand for agricultural land is offering great opportunities to the key market players in the market. Moreover, the backup and support offer by the government has fueled the economy for the agrivoltaics market.
Challenges:
The high installation cost of the agrivoltaics system in the farmland makes it impossible for the customers to opt for such technologies which in turn challenges the growth of the market during the forecast period. Also, the low penetration of agrivoltaics systems in underdeveloped countries is hampering the growth of the market in terms of value sales during the forecast period.
Major Key Players:
Market Segmentation:
By System Design
By Crop Type
By Placement
By Material Type
By Cell Type
By Crop Collaboration
By Type of Agrivoltaic Plant
By Type of Solar Panel
By Power Output
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