Solar Power Market Advancements Driving Clean and Sustainable Energy Solutions

Solar Power Market Size and Forecast 2025 to 2034

The global solar power market size accounted for USD 269.07 billion in 2024, and is anticipated to hit USD 286.15 billion by 2025, and is predicted to reach around USD 495.12 billion by 2034, growing at a CAGR of 6% from 2025 to 2034.

Solar Power Market Key Takeaways

• In terms of revenue, the market is valued at $286.15 billion in 2025.
• It is projected to reach $286.15 billion by 2034.
• The market is expected to grow at a CAGR of 6% from 2025 to 2034.
• Asia pacific led the global market with the largest market share of 36% in 2024.
• By technology, the photovoltaic (PV) systems segment has held the largest revenue share of 70% in 2024.
• By technology, the concentrated solar power systems segment held the largest share in the prepaid card market for 2024.
• By application, the industrial segment had the biggest market share of 35% in 2024.

Asia Pacific Solar Power Market Size and Growth 2025 to 2034

The Asia Pacific solar power market size is exhibited USD 103.01 billion in 2025 and is expected to be worth around USD 178.24 billion by 2034, at a CAGR of 6.29% from 2025 to 2034.

Asia Pacific was the leading solar power market that garnered a market share of more than 30% in 2024. Asia Pacific is the home to more than half of the global population which provides a huge consumer base. Furthermore, China, Japan, South Korea, and India are the top countries among the highly utilizing solar power countries. The rapid urbanization, rising disposable income, busy and hectic lifestyle, the rising penetration of the internet, and the increasing adoption of the smartphones are some of the significant macroeconomic factors that drives the growth of the solar power market in Asia Pacific. Moreover, the presence of huge youth population and the rising demand for renewable energy and sustainable development again fostering the market growth. The countries like China and India are showing promising growth opportunities for the market players owing to the strong economic growth in the region.

China is a major contributor to the solar power market. The strong government support for solar panel factories through various policies like land grants, subsidies, and low-interest loans helps the market growth. The growing investments in solar manufacturing capacity and higher production of solar panels drive the market growth. The growing production of various solar panel components like ingots, cells, polysilicon, modules, and wafers, and the growing export of solar panels support the growth of the market.

India is growing in the solar power market. The strong government support for renewable energy through various policies helps in the market growth. The decreasing cost of solar panels and growing demand for energy increase the adoption of solar power. The presence of abundant solar resources increases demand for solar power. The growing foreign investment in solar power projects drives the market growth.

• In June 2025, Maruti Suzuki is to invest Rs 925 crore in solar power. The company aims to increase solar power capacity to 319 MWp and enhance the use of renewable energy. 
  (Source: https://www.manufacturingtodayindia.com)
• For instance, the initiative, like the Pradhan Mantri Suryodaya Yojana scheme, provides rooftop solar installations to 10 million households. 
  (Source: https://www.ibef.org)

North America is estimated to grow at a considerable pace during the forecast period. U.S. is the prominent country with major share of solar power consumption in the region. In addition, increasing buying power, improved access to the digital technologies, higher penetration of internet, and increased adoption of the smart devices are some of the major factors that has propelled the growth of the North America solar power market.

Solar Power Market Growth Factors

Solar energy is the radiant energy emitted from the sun, which is exercised by using numerous technologies similar as photovoltaic cells, solar heating, and others. It's an effective form of unconventional energy and an accessible renewable solution toward growing greenhouse emigrations and global warming. The growth of the solar energy market is majorly driven by rise governmental provision of impulses & duty rebates to install solar panels and environmental pollution. In addition, drop in footprint of water is associated with solar energy systems has propelled their demand in power generation sectors. The solar cells demand has gained huge traction due to rise in rooftop installations, which is further followed by rise in operations in the sector of architecture. Likewise, the demand for solar power halls and parabolic troughs in the generation of electricity is anticipated to propel the concentrated solar power systems demand in the market. One of the prominent factors contributing towards the growth of the global solar power market is the growing prices of fossil fuels. The growing environmental concerns regarding greenhouse gases and carbon emissions. In addition, the growing government initiatives and favorable policies in order to curb the adverse effects of the toxic gases emissions is driving the growth of the global solar power market during the forecast period.

The solar energy market growth is driven by rise provision of government incentives and tax rebates in order to install solar panels and growing environmental pollution. Furthermore, decrease in footprint of water associated with systems of solar energy has driven their demand in the sectors of power generation. The solar cells demand has gained huge traction due to rise in rooftop installations, which is further followed by rise in architectural sector applications. In addition, the demand for solar power towers and parabolic troughs in the generation of electricity is expected to propel the demand for concentrated solar power systems.

Market Scope

Solar energy has endured spectacular growth over the once two decades. But the crises caused by the COVID-19 could vastly disrupt this momentum. Further, governments will be central more than other while determining the pace of deployment of solar energy and diving these challenges in the upcoming time period.

The impact of the COVID-19 pandemic had significant impact on the global solar power market. The growing demand for power and electricity generation is driving the growth of the global solar power market during 2020. The supply chain disruptions and halt of manufacturing units had adversely affected the growth of the global solar power market.

Furthermore, the development of storage systems named as photovoltaic (PV) is essential in order to increase the capability of photovoltaic systems in order to replace the existing conventional sources. Also, with the growth in demand for photovoltaic installations, the adoption of storage grid is likely to surge, which will drive the demand for solar energy storage lithium ion-powered battery and will also drive the growth of the solar energy market.

The underdeveloped and developing regions face issues regarding load shedding a lot. The market players are substantially taking efforts in those regions for the growth and development of the solar power market. The solar power is regarded as efficient and cost-effective option for the generation of electricity. In addition, the government is taking constant efforts for the development and expansion of the energy industry. This factor is directly impacting the growth and development of the global solar power market during the projection period.

Technology Insights

Based on the technology, the Photovoltaic (PV) systems segment dominated the global solar power market, garnering a market share of around 70% in 2023. Photovoltaic systems can differ greatly in terms of size from portable systems or small rooftop to utility-scale generation plants massive in nature which is attributing to high market demand of photovoltaic system.

On the other hand, the concentrated solar power systems segment is estimated to be the most opportunistic segment during the forecast period. The growing requirement of solar energy is huge amount is making this segment the fastest growing in the solar power market.

Application Insights

Based on application, industrial segment has generated a revenue share of more than 35% and dominated the global solar power market in 2023. The rapid growth industrial sector and cost friendly renewable energy has offered a huge growth opportunity to the solar power application in the industrial segment. However, the residential segment is the fastest growing segment owing to the rise in customer awareness regarding the monitory and environmental benefits associated with solar power which is likely to foster its market growth in the residential segment.

Solar Power Market Companies

• Abengoa Se
• Acciona S.A.
• Canadian solar, Inc.
• Esolar, Inc.
• United renewable energy co. Ltd.
• Sunpower corporation
• Kaneka corporation
• Tata power solar systems ltd.
• Wuxi suntech power co., ltd.
• Brightsource energy, Inc.

Recent Developments

• In June 2025, Egypt launched its first solar power plant in Djibouti. The project aims to strengthen energy cooperation between the two nations and is a collaborative effort between Djibouti’s Ministry of Energy and Egypt’s Ministry of Electricity & Renewable Energy. The plant is located in Omar Kaji village and aims to support sustainable development. 
  (Source: https://egyptianstreets.com)
• In June 2025, Credence Solar launched a 600 W N-type TOPCon PV panel. The power outputs of the panel range from 580W to 600W and are constructed using 144 half-cut TOPCon cells. The measurement of a solar panel is 2278 mm * 1134mm * 35mm, and its weight is 33.75kg. The module rear side gains up to 10% and front-side efficiency ranging between 22.45% to 23.25%. 
  (Source: https://renewablewatch.in)
• In June 2025, Indonesia launched its largest integrated solar panel factory in Kendal. The factory is located in the Kendal Industrial Park, Central Java. The factory lowers its dependence on imported components and becomes a manufacturing base for high-efficiency solar technology. 
  (Source: https://indonesiabusinesspost.com)
• In 13 January 2022, the key player named Billionaire Gautam  Adani's logistics-to-energy conglomerate set up a new subsidiary, named ANIL in order to undertake projects of green hydrogen, manufacture of wind turbines and generation of low carbon electricity, batteries and solar modules as it looks to become the world's largest company of renewable energy and manufacture the very less costly hydrogen.

Segments Covered in the Report

By Application

• Residential
• Commercial
• Industrial

By Technology

• Photovoltaic Systems
• Moni-Si
• Thin Film
• Multi-Si
• Others
• Concentrated Solar Power Systems
• Parabolic trough
• Solar power tower
• Fresnel reflectors
• Dish Stirling

By End Use

• Electricity Generation
• Lighting
• Heating
• Charging

By Solar Module

• Monocrystalline
• Polycrystalline
• Cadmium Telluride
• Amorphous Silicon Cells
• Others

By Geography

• North America
• Latin America
• Europe
• Asia-pacific
• Middle and East Africa