GLOBAL SOLAR SIMULATOR MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Global Solar Simulator Market Drivers:

• Growing solar PV installations: Rising installations of solar photovoltaic (PV) systems around the world is a major factor driving the growth of the global solar simulator market. Solar PV capacity additions have been increasing significantly over the last decade. According to International Energy Agency, solar PV generation increased by a record 270 TWh (up 26%) in 2022, reaching almost 1300 TWh. It demonstrated the largest absolute generation growth of all renewable technologies in 2022, surpassing wind for the first time in history. Countries like China, U.S., India, Japan, and Germany are among the top markets. The rise in solar PV panels requires extensive testing to ensure efficiency and performance. Solar simulators play a vital role in the research and development of solar panels. They are used by solar panel manufacturers to test the electrical parameters of cells and panels under simulated sunlight. The growth in PV production and installations is thus fueling the demand for advanced solar simulators. For instance, According to Department of Energy during the initial six months of 2023 (H1), there was a substantial rise in photovoltaic (PV) installations, with notable increases observed in China (153%) and Germany (102%). The United States also experienced growth, albeit to a lesser extent, with a 34% increase.
• Use in material testing and weathering studies: Solar simulators find widespread use in material testing applications across industries. Materials used in outdoor applications such as coatings, plastics, and glass need to be tested for weathering stability under sunlight. Solar simulators provide the ability to accurately replicate and control the spectral distribution of sunlight. For instance, in 2022, Atlas, a material testing company, offered an extensive range of light exposure and weathering services and instruments for the solar-thermal, photovoltaic (PV) and concentrated PV (CPV) industries for testing both module and material durability. They can simulate UV radiation, moisture, heat and other conditions experienced by materials. Industries like automotive, aerospace, construction, plastics use solar simulators for material durability testing. With investments in product R&D rising, the use of solar simulators for material testing is expected to increase.
• Automotive industry applications: Solar simulators are widely used in the automotive industry for component testing and measurement. They are used to test automotive lights, displays, coatings, plastics and electronics for performance under simulated solar conditions. Car window glazing and films need to be tested for infrared (IR), ultraviolet (UV) and visible light transmission. According to USD Analytics, the global automotive solar carport charging stations market is projected to experience significant growth, with an estimated increase of 10.4% during the forecast period from 2023 to 2030. Automotive lighting like headlamps, brake lights need testing to meet regulations. Moreover, adoption of automotive displays, camera systems, (Advanced driver-assistance system) ADAS technologies will drive testing requirements. The growing electric vehicles market also relies on solar simulators for development. Major automotive hubs in Europe, Asia use solar ssimulators for R&D. The automotive industry's demand is thus fueling the market growth.
• Investments in R&D: Investments in R&D by public and private institutions to develop advanced solar technologies are driving the demand for solar simulators. Academic institutes and universities use solar simulators to test new materials, cell designs for improving solar efficiencies. Moreover, companies are launching R&D centers dedicated to solar technologies. For example, in 2021, REC, a solar energy company opened a solar experience center in Singapore for PV research. Such investments in R&D for solar and other technologies require advanced solar simulators

Global Solar Simulator Market Opportunities

• Emerging applications in agriculture: The agriculture sector offers significant opportunities for solar simulator providers to cater to emerging applications. Solar simulators can be used in indoor farming and greenhouse facilities to provide artificial sunlight for plant growth. This allows climate and light control for year-round crop production. Companies are developing specialized horticulture lamps using Light-emitting diode (LED) with tailored spectra. Moreover, research facilities use solar simulators to study how different light spectra, intensity impact plant growth, physiology and yields. The expected growth in controlled-environment agriculture worldwide will drive demand.
• Testing of new materials: The development of new materials for various applications will drive demand for testing under simulated sunlight conditions. For instance, solar simulators are used to test properties like degradation, discoloration of new polymers, coatings under UV exposure. They help assess the behavior of nanomaterials, biomaterials under light and radiation. In the construction industry, solar simulators are important for testing glazing, glass, exterior coatings. For instance, Fluke, a manufacturer of industrial test, measurement, and diagnostic equipment, offers solar meters and tools for photovoltaic testing equipment, including clamp meters, irradiance meters, and photovoltaic tester’s .Healthcare uses them to test UV protection of products. As investments in materials R&D increases, the need for solar simulators will rise.
• Off-grid and concentrated solar power: Solar simulators will find increased adoption in testing of technologies for off-grid installations and concentrated solar power systems. Off-grid solar use is rising for remote locations, utilities, telecom infrastructure, and others. Testing components like batteries, inverters for reliability is essential. Moreover, concentrated PV systems have complex optics, thus heat dissipation needs requiring testing. According to World Bank estimates from 2020, globally around 620 million people still rely on solid biomass for cooking which has severe health and environmental impacts. The expected growth of off-grid and concentrating solar-thermal power solar will create opportunities for testing applications.
• Market expansion in emerging economies: High growth solar markets in Asia, Latin America, Middle East &Africa offer significant expansion opportunities for solar simulator companies. Countries like India, Brazil, Saudi Arabia, and Egypt have ambitious solar targets and projects in the pipeline. This is driven by rising energy needs and climate goals.

Global Solar Simulator Market Restraints

• High equipment and operating costs: The high equipment and operating costs associated with solar simulators is a major limiting factor inhibiting the growth of the global solar simulator market. Solar simulators require the use of sophisticated equipment including xenon arc lamps, Light-emitting diode (LED) lights, filters and parabolic reflectors that can precisely mimic natural sunlight. The acquisition and setup costs of such advanced light sources and components are substantial. Metal halide and LED systems also require significant investments. Moreover, operating costs are also high due to electricity consumption of high-power lamps. Xenon lamps require replacement over their lifetime. This leads to reluctance among small and budget-constrained end users.
• Counterbalance: Companies need to focus on developing cost-effective and energy-efficient solutions. Though the initial investment is high, solar simulators can lead to long-term cost savings by providing accurate and accelerated testing of solar panels and materials, which reduces the time and cost associated with outdoor testing
• Lack of standardization: Global solar simulator market lacks a universal set of standards for equipment performance and classification. Different parameters like lamp types, light intensity, uniformity, and spectral match have vendor-specific classifications. For instance, standards like A, B, C for intensity uniformity vary across providers. This leads to confusion among end users regarding comparing product specifications. Establishing industry-wide standards will increase adoption by ensuring minimal performance criteria is met. Global standards organizations need to address this gap. Encourage manufacturers, researchers, and standard-setting organizations to work together for the development of universally accepted standards.
• Competition from used/rental equipment: Competition from used and rental solar simulators poses a restraint for vendors in terms of new equipment sales. Startups and academic institutes may opt for refurbished or used systems due to budget constraints. Online platforms have made used equipment more accessible. Moreover, companies like OAI rent out solar simulators by providing a cost-effective option. This limits the new sales expansion potential and affects profit margins for established market players.
• Counterbalance: Developing value-added services beyond equipment sales can help counter this. Highlighting the long-term cost-effectiveness of investing in new equipment due to lower maintenance costs, higher operational efficiency, and better performance can sway decision-makers.