BUILDING INTEGRATED PHOTOVOLTAICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Building Integrated Photovoltaics Market Size and Trends

Global building integrated photovoltaics market is estimated to be valued at USD 28.13 Bn in 2024 and is expected to reach USD 86.98 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 17.5% from 2024 to 2031.

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Global building integrated photovoltaics market growth is driven by accelerating transition to renewable energy sources and embrace of green building codes promoting zero-energy building design. Key trends contributing to the market growth includes rising demand for aesthetically appealing and energy-efficient building facades, increasing consumer awareness about renewable energy sources, growing focus of real estate developers on green construction, and supportive government policies and incentives promoting solar power generation.

Increasing demand for renewable energy sources

Growing environmental concerns around the world have prompted many countries as well as the public to shift towards cleaner and greener sources of energy like solar. There has been increase in energy demands of the global population due to economic growth and rising standards of living. According to data from World Meters in 2024, global population is growing at an approximate rate of 0.91% per year. This growth rate translates to an annual increase of about 73 million people. This steady rise in population highlights the ongoing demographic changes and the need for effective planning in areas such as resource management, infrastructure, healthcare, and food security to accommodate the growing number of individuals worldwide. Fossil fuels which have traditionally met majority of the global energy needs are leading to various environmental issues like climate change when burned. This has boosted need for countries and companies to move towards sustainable energy alternatives.

Solar energy provides several advantages as compared to traditional fossil fuels as it is abundant, universally available and completely clean. However, the large-scale adoption of solar power was hindered in the past due to high upfront capital costs of installation. Building integrated photovoltaics or BIPV offers a promising solution to this issue by allowing the solar panels to become an integral part of the building infrastructure. With BIPV, solar panels can be installed as the exterior component of a new building like roof or walls during construction itself. This eliminates additional costs and effort of setting up solar panels as a separate exercise after building is ready. As a result, BIPV solutions have become increasingly cost competitive compared to tradition solar power projects and find more takers.

Environmental concerns have only grown stronger amongst both public and private sectors. There has been growing understanding that energy independence through domestic renewable sources like solar and wind is critical for energy security of nations. Many countries such as India, China and other have outlined ambitious targets for increasing the share of renewable energy in their future electricity mix. Concerns around climate change have led many large private organizations to commit to transitioning to carbon neutral operations. All these long-term sustainability targets have significantly boosted the demand for viable solar energy solutions. With their seamless integrated design and construction capabilities, BIPV systems have emerged as a highly suitable technology to meet this increased demand for clean renewable sources of energy across large residential and commercial buildings.

Market Concentration and Competitive Landscape

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Government incentives and subsidies for solar energy adoption

Most governments around the world recognize the strategic and environmental importance of replacing fossil fuels with renewable sources like solar and wind over the long run. However, setting up large scale solar projects is expensive due to high installation and initial equipment costs. To incentivize greater adoption of solar among building owners as well as overcome the high upfront costs, many administrations offer vital subsidies and tax incentives. These measures have played a key role in boosting the solar photovoltaic market globally in past decade.

When it comes to building integrated photovoltaics systems, governments provide attractive subsidy schemes to encourage higher utilization of this innovative technology. Newly constructed buildings which opt for BIPV solutions as an integral part of their design may qualify for additional subsidies over roof top solar panels. This helps reduce the price difference between normal construction and installing BIPV systems for builders. Many nations also allow accelerated depreciation on BIPV systems to lower the tax burden and returns on investment further. Some local authorities have instituted renewable purchase mandates which make it mandatory for new large buildings to source a certain percentage of power needs from on-site BIPV or pay penalties.

The governments remain committed to these subsidy programs as BIPV complements their long-term energy security and environmental protection plans. As the awareness rises around benefits of seamlessly integrating solar panels in buildings, many nations are expected to form favorable policy frameworks to support greater adoption of this clean energy technology.  

Key Takeaways from Analyst:

Global building integrated photovoltaics market growth is driven by rising demand for renewable energy sources along with supportive government policies focusing on solar energy adoption. Many countries such as India China are providing subsidies and tax incentives for installation of BIPV systems in new buildings as well as their integration in existing infrastructure. This encourages construction companies and building owners to increasingly invest in these sustainable building solutions.

North America dominated the market due to stringent green building codes and high demand for zero energy buildings especially in Germany, U.K., Italy and France. Asia Pacific is projected to emerge as the fastest growing regional market led by rapidly increasing construction activities combined with expansion of solar PV production capacities in China and India.

High initial costs of BIPV systems and fluctuation of raw material prices can hamper their widespread adoption. Moreover, lack of awareness among potential consumers can also hamper the market growth. Market players such as BAFS SE and other must focus on developing more affordable and efficiently designed products to target cost-sensitive small-scale commercial and residential users. Technology advances towards more efficient manufacturing and integration processes could help reduce costs and boost inclusion of BIVP in mainstream construction.

Market Challenge - High initial costs of BIPV systems

Global building integrated photovoltaics market growth can be hampered due to high initial costs associated with BIPV systems. Integrating solar panels into the building envelope during new construction or renovations requires upfront investment. The installation of roof tiles or glass modules that serve the dual purpose of generating renewable energy as well as forming part of the building structure increases costs. Manufacturers are also continuously researching innovative ways to incorporate solar cells seamlessly into building designs, whether facade panels or skylights, and this increases cost. While BIPV delivers long term savings through electricity cost reductions and government incentives offset some of the premium, the high capital expenditure remains a major deterrent for widespread adoption, especially in price sensitive markets. For the market to truly take off, solutions must be developed that can reduce installation costs and make BIPV more affordable for homeowners and commercial clients.

Market Opportunity - Technological advancements in solar cell efficiency

Global building integrated photovoltaics market can witness growth opportunities due to continued technological advancements that can improve the efficiency and performance of solar cells. Higher efficiency photovoltaic materials and components used in BIPV modules translate directly to more electricity generated per unit area. This enhances the overall value proposition for building owners. Ongoing research into new thin film technologies, multifunction cells as well as organic and perovskite cells holds promise to significantly boost efficiency ratings in the near future. Advancements are also being made through new nanoparticle formulations, enhanced light trapping mechanisms and cell interconnection designs. As efficiency levels increase steadily, the energy and cost savings from BIPV will rise accordingly, strengthening the business case for investments. This will accelerate market expansion rates globally as the technology becomes increasingly competitive against traditional construction materials and electricity rates.

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Insights, By Technology: Affordability of thin-film solar cells

In terms of technology, thin-film solar cells segment is estimated to contribute the highest market share of 38.7% in 2024. Thin-film solar cells are made by depositing one or more thin layers, or thin film (thin films are thickness in micrometers or nanometers), of photovoltaic material on a substrate, such as glass, plastic or metal. These are less expensive to manufacture than traditional silicon-based solar panels, since these use significantly less material. The affordability factor has enabled thin-film solar cells to witness widespread adoption even in budget-conscious residential building projects.

Thin-film solar cells are highly flexible and can easily blend into the outward structure of buildings without appearing cumbersome. This enhances their aesthetic appeal and make them suitable for building facades or as semi-transparent solar panels for atriums, canopies and skylights. Their flexibility to conform to any surface or rooftop further adds to their appeal among builders.

Owing to the moisture-proof encapsulation between layers, thin-film solar cells are also more durable than silicon alternatives and better suited to withstand extreme weather conditions and areas prone to natural calamities. This makes them a reliable renewable energy solution for buildings even in remote areas.

Combined advantages of affordability, flexibility, robustness and aesthetic conformity enable thin-film solar cells to gain highest consumer acceptance.

Insights, By Application: Increasing adoption of renewable sources for homes

In terms of application, residential buildings segment is estimated to contribute the highest market share of 39.8% in 2024, due to rising trend of installing solar panels on rooftops and facades of homes to tap renewable energy. Growing residential sector can drive the segment growth. For instance, according to data published by IBEF in 2021, India's real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%.

There has been growing environmental awareness among homeowners regarding energy efficiency and carbon footprint reduction. Many countries also offer subsidies and tax incentives for residential solar installations to promote clean energy adoption. This has encouraged many homeowners to incorporate solar power into their residences. Further, with technological advancements, solar systems have become lighter, more durable and easier to install on residential rooftops. Their low maintenance requirement is also suitable for busy homeowners. This has made residential solar more accessible than before.

Regional Insights

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North America dominates the global building integrated photovoltaics market, with an estimated market share of 38.7% in 2024, due to factors like strong government incentives promoting renewable energy adoption, growing emphasis on energy-efficient building practices, and increasing awareness of sustainability among consumers and businesses. The region's advanced technological landscape fosters innovation in BIPV solutions, enhancing their integration into modern architectural designs. Major players in the market are actively investing in research and development to create aesthetically pleasing and high-efficiency BIPV products, further, driving the market growth. Rising residential and commercial construction projects, coupled with rising trend of green buildings, contributes to the robust demand for BIPV systems in North America. As states and municipalities implement stricter energy regulations, the market will witness continued expansion, positioning North America as a key player in the global transition toward sustainable energy solutions.

Asia Pacific region has been the fastest growing market for building integrated photovoltaics due to huge demand from China and Japan. China, with its large construction sector and rapid urbanization, has seen BIPV actively used in infrastructure projects like highways, airports and railway stations. Government incentives like waived permit fees for construction projects integrating solar have boosted adoption. Japan has emerged as a major BIPV consumer, utilizing it extensively across residential rooftops and factories. This can be attributed to the country's focus on renewable energy following the Fukushima disaster. Furthermore, presence of major solar panel manufacturers in the region like Trina Solar and JinkoSolar has played a key role in expanding Asia Pacific's market through competitive pricing and innovative product offerings.

Market Report Scope

Key Developments

• In 2023, GAF Energy collaborated with a prominent roofing company to broaden its Building-Integrated Photovoltaics (BIPV) offerings throughout the U.S. This partnership aims to enhance the availability of solar energy solutions in roofing systems, promoting sustainable energy practices across the country.
• In 2023, LG Electronics launched a new line of high-efficiency Building-Integrated Photovoltaic (BIPV) modules specifically designed for commercial buildings. These advanced modules aim to enhance energy generation while seamlessly integrating into building designs, promoting sustainability and energy efficiency in the commercial sector.
• In 2023, Solaria Corporation secured a contract to provide integrated solar solutions for a significant residential project. This agreement underscores Solaria's commitment to delivering innovative solar technology that enhances energy efficiency and sustainability in residential developments.
• In 2023, Wacker Chemie AG expanded its production capacity for solar-grade silicon to address the increasing demand in the market. This expansion reflects the company's commitment to supporting the renewable energy sector and meeting the rising needs for high-quality materials used in solar technology.

*Definition: Global Building Integrated Photovoltaics Market involves manufacturing and installation of solar photovoltaic (PV) modules or solar panels utilized as functional building materials in new or existing buildings. Key products in this market include BIPV roofing tiles or shingles, BIPV facades including glass and plastics, BIPV skylights, and BIPV sunshades that generate solar electricity when integrated into a building's infrastructure providing power for different constructions like houses, commercial buildings.

Market Segmentation

• By Technology Insights (Revenue, USD Bn, 2019 - 2031)
• • Thin-Film Solar Cells
  • Crystalline Silicon Solar Cells
  • Building-Integrated Photovoltaics (BIPV)
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Residential Buildings
  • Commercial Buildings
  • Industrial Buildings
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Sika AG
  • Tesla, Inc.
  • Solaria Corporation
  • SunPower Corporation
  • First Solar, Inc.
  • JinkoSolar Holding Co., Ltd.
  • Hanwha Q CELLS
  • BASF SE
  • Canadian Solar Inc.
  • LG Electronics
  • Kyocera Corporation
  • Trina Solar Limited
  • Sharp Corporation
  • REC Group
  • GAF Energy
  • Onyx Solar
  • Wacker Chemie AG
  • SolarWorld Industries
  • Renesola Ltd.
  • Ascent Solar Technologies, Inc.