SOLAR PV MODULE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Solar PV Module Market Size and Forecast – 2025-2032

The global solar PV module market is estimated to be valued at USD 55.45 Bn in 2025 and is expected to reach USD 97.56 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.4% from 2025 to 2032.

Key Takeaways of the Solar PV Module Market:

• The monocrystalline segment is expected to account for 37.4% of the market share in 2025.
• The rooftop solar panels segment is projected to hold 56.8% of the market share by 2025.
• The residential segment is expected to represent 37.6% of the solar PV module market share by 2025.
• Asia Pacific is projected to lead the global market with a 34.2% share in 2025 followed by the North America region, which is expected to hold a 20.5% share in 2025.

Market Overview:

The market has seen steady rise over last few years driven by supportive government policies and declining solar technology costs. Many countries have introduced renewable energy targets and policies supporting installations of solar panels on residential buildings and public infrastructure. This is positively impacting the market growth. This market is expected to witness significant growth during forecast period supported by factors like growing concerns about the environment and initiative towards adopting clean energy. Many governments such as the U.S. are focusing on achieving a sustainable future by transitioning from fossil fuels to solar and other renewable sources of energy. There is a visible shift in consumption patterns as a greater number of commercial and industrial facilities are installing solar panels to meet their electricity needs.

Segmental Insights

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Technology Insights - Monocrystalline Segment Dominates due to Superior Efficiency and Reliability

In terms of technology, the monocrystalline segment is expected to contribute 37.4% share of the market in 2025, owing to its high efficiency and reliability. Monocrystalline panels are made from a single silicon crystal growing stage that results in a very ordered and pure structure with minimum defects. This orderly structure enables monocrystalline panels to absorb sunlight very efficiently and convert it into electricity better than other wafer technologies. They typically have an efficiency rating between 15-22%, which is the highest among all wafer types. This high conversion efficiency means monocrystalline panels can generate more power from the same amount of space compared to polycrystalline or thin-film equivalents.

Mounting Type Insights - Convenience and Flexibility Drives Rooftop Silar Panel Demand

In terms of mounting type, the Rooftop Solar Panels segment is expected to account for 56.8% of the market share in 2025, driven by its flexibility and convenience for homeowners and businesses. Rooftop systems have become a preferred solar solution as they utilize existing rooftop spaces without the need for additional land. These systems can be easily installed on residential buildings, apartments, shopping centers, warehouses, and others, providing electricity without interfering with current infrastructure. This makes them especially suitable for urban areas with limited land availability while also reducing transmission losses typically associated with energy transfer from remote solar farms.

Application Insights - Residential Sector Leads Solar Adoption

In terms of application, the residential segment is projected to hold a 37.6% share of the market in 2025, positioning it as a leading early adopter of solar energy solutions. Homeowners have increasingly turned to rooftop PV systems to mitigate rising electricity costs, benefit from savings and cash incentives, and support a more sustainable future. The significant decline in solar panel prices over the past decade has made these systems more affordable, while heightened environmental awareness has further fueled residential demand for clean energy alternatives.

Regional Insights

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Asia Pacific Solar PV Module Market Trends

The Asia Pacific region is expected to lead the solar PV module market, capturing a 34.2% share by 2025. This dominance is driven by robust government initiatives supporting renewable energy adoption and a strong manufacturing base. Countries such as China and India provide production-linked incentives and have set ambitious renewable energy targets to lower emissions. Additionally, the region is home to major global solar manufacturers such as LONGi Solar with large-scale production facilities, meeting both domestic and international demand.

North America Solar PV Module Market Trends

North America is expected to capture 20.5% of the solar PV module market share in 2025, with the region showing the highest growth rate. This growth is primarily driven by ongoing investments in renewable energy integration, where governments are providing long-term power purchase agreements and tax incentives to encourage private sector involvement.

Solar PV Module Market Outlook for Key Countries

China Solar PV Module Market Trends

China holds its position as the largest market for solar PV modules, contributing nearly 60% of global installations, according to Statista data published in 2023. The nation’s strong focus on renewable energy stems from ambitious government policies aimed at reaching carbon neutrality by 2060. In 2023, China was projected to install more solar capacity than all other countries combined, supported by substantial investments in manufacturing capabilities and technological innovations.

U.S. Solar PV Module Market Trends

The U.S. solar PV market is experiencing robust growth, primarily due to the Inflation Reduction Act, which incentivizes renewable energy investments. In 2023, the market was projected to expand as residential and commercial sectors increasingly adopt solar solutions to reduce energy costs. Major companies such as First Solar are also ramping up production capabilities to meet rising demand.

India Solar PV Module Market Trends

India's solar photovoltaic (PV) module market is experiencing significant growth, driven by government initiatives, increasing domestic manufacturing capacity, and substantial investments in renewable energy projects. In April 2021, the Ministry of New and Renewable Energy (MNRE) approved the 'National Programme on High-Efficiency Solar PV Modules,' investing US$ 520.2 Mn to support the establishment of integrated manufacturing units for high-efficiency solar PV modules. This initiative aims to enhance domestic manufacturing capabilities and reduce reliance on imports.

Germany Solar PV Module Market Trends

Germany's solar photovoltaic (PV) module market has experienced significant developments, marked by substantial growth in installations, evolving market dynamics, and emerging challenges. In 2024, Germany added approximately 16.2 gigawatts (GW) of new solar capacity, reinforcing its position as a leader in renewable energy within Europe. German industries are increasingly investing in solar power to mitigate rising energy costs and reduce carbon footprints. For instance, Tridelta, a metal products factory in Thuringia, installed a solar power system capable of supplying energy to 900 households, highlighting the economic and environmental benefits for businesses.

Japan Solar PV Module Market Trends

Japan's solar PV market is undergoing a recovery following adjustments to the Feed-in Tariff (FIT) system, with a renewed emphasis on efficiency and innovation. This market is expected to expand as companies focus on advanced solar technologies and integrated energy storage solutions. Government policies supporting renewable energy adoption continue to play a pivotal role in driving growth. 

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In December 2024, India's Tata Power inaugurated a 4.3 GW solar module and cell manufacturing facility in Tamil Nadu, primarily focused on serving the domestic market. The facility's output over the next 12 to 16 months is already committed to ongoing projects within India.
• In October 2024, Transition Equity Partners led an investment of up to US$ 54 million in Canadian solar-module manufacturer, Heliene, supporting the construction of a new factory in Minnesota, U.S. This investment was bolstered by government incentives and the Inflation Reduction Act, which provide tax credits and support for clean-energy manufacturing. Transition Equity Partners (TEP) is a private equity firm specializing in investments that facilitate the transition to cleaner, more efficient, and sustainable energy infrastructure across North America.
• In 2022, Gstar Solar, a Singapore-based PV product manufacturer, acquired the U.S. -based EPOCH Green Energy, expanding its presence in the U.S. solar PV module market

Top Strategies Followed by Global Solar PV Module Market Players

• Established Players: Leading manufacturers such as LONGi Green Energy Technology Co., Ltd., Trina Solar Co., Ltd., and JinkoSolar Holding Co., Ltd. focus on large-scale production and technological innovation
  • For instance, LONGi achieved a module supply of 66.44 GW in 2023, marking a 42% year-on-year increase. These companies invest heavily in research and development to improve module efficiency and reduce costs, maintaining their leadership in the market.
• Strategic partnerships are another important strategy adopted by major players. Companies often form partnerships or collaborations with other players to gain manufacturing expertise, explore new geographical markets together, or bundle products and services. For instance, Canadian Solar tied up with several global EPC companies and contractors to undertake large scale projects worldwide.
• Mid-Level Players: Companies like Canadian Solar Inc. and Risen Energy Co., Ltd. balance expansion and specialization. Canadian Solar, for example, has been expanding its manufacturing capacities and entering new markets, aiming to increase its global footprint. These mid-level players often adopt flexible business models, including both manufacturing and project development, to adapt to market demands and mitigate risks.
• Small-Scale Players: Smaller manufacturers, such as India's Solex Energy, focus on niche markets or specific regions. Solex plans to invest approximately US$ 1 billion by 2030 to expand its production capacities and enter the solar cell manufacturing market, aligning with India's goal to add 500 GW of clean energy capacity by 2030.

Emerging Startups - Solar PV Module Industry Ecosystem

• Innovative Technologies: Emerging startups in the global solar PV module market are pioneering innovative technologies and sustainable solutions, significantly contributing to the industry's evolution. For instance, GraphEnergyTech, a Cambridge spin-out, has developed conductive graphene ink to replace traditional silver electrodes in solar panels, offering a cost-effective and resource-efficient alternative.
• Sustainable Solutions: Startups focusing on sustainability include modules made from recycled wood waste by Enkat Solar or tracker systems made from recycled aluminum by Array Technologies. These eco-friendly innovations, developed by Transition Equity Partners (TEP) and their portfolio companies, aim to reduce solar's carbon footprint and advance sustainable energy practices. Other startups are developing all-glass or flexible thin-film modules to enable reuse and recycling at the end-of-life. Such circular business models from startups would significantly contribute to sustainability in the long run.

Market Report Scope

Market Dynamics

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Solar PV Module Market Growth Factors

Increasing demand for renewable energy sources

The global demand for clean energy has surged over the past decade due to the escalating impacts of climate change. Governments, organizations, and individuals are prioritizing greener alternatives, driving a significant shift towards renewable energy sources. Solar power, renowned for its sustainability and scalability, has emerged as a leading solution. Its adoption has grown rapidly, spanning large-scale utility projects and rooftop installations for residential and commercial use, highlighting its pivotal role in the global energy transition.

Solar PV Module Market Challenge - High initial installation costs

One of the key challenges faced by the global solar PV module market is the high initial installation costs associated with setting up solar power systems. While solar energy is a renewable source of energy and helps reduce dependence on fossil fuels, the upfront capital costs required for installing solar panels and other ancillary equipment can be quite prohibitive. Homeowners and businesses need to spend thousands of dollars to get a residential or commercial solar power system up and running. The payback periods tend to be medium to long term. This high initial outlay prevents rapid adoption of solar energy solutions by many potential customers. Additionally, solar power projects require large land areas for installing panels in utility-scale projects, driving up costs.

Solar PV Module Market Opportunity - Technological advancements enhancing efficiency and reducing costs

One of the key opportunities for the global solar PV module market lies in the ongoing technological advancements that have the potential to enhance the efficiency of solar panels while lowering costs. Continuous research and development is helping drive significant improvements in solar cell technologies. For example, the emergence of newer thin-film technologies is making solar panels lighter and less expensive to produce. At the same time, advancements in nanotechnology applications are helping manufacturers boost the efficiency and performance of crystalline silicon solar cells. Such innovations are positively impacting the economics of solar energy generation. Additionally, larger-size wafers and modules are also enabling higher power outputs without a corresponding increase in costs.

Analyst Opinion (Expert Opinion)

• The solar PV module market is expected to grow significantly over the next decade driven by supportive government policies and regulations across major markets. Countries in Europe and Asia Pacific are providing subsidies and tax incentives to boost solar power generation among both commercial and residential sector. Additionally, with the declining cost of solar panels and the increasing need for clean and renewable sources of energy, the demand for solar modules is likely to rise steadily.
• A major restraint could be the limited lifespan of solar modules which causes additional costs for replacement and equipment maintenance over the project life. However, ongoing innovation leading to higher efficiencies and better performing panels may help address this challenge. The market is also hampered by inconsistent government policies and uncertainties around the reduction or removal of incentives in major regions.
• The Asia Pacific region, primarily China, is anticipated to continue dominating the global solar PV module space backed by strong domestic demand and significant manufacturing capabilities. North America rapidly increasing its market presence. These trends reflect the global shift towards sustainable energy solutions and the varying regional approaches to achieving renewable energy goals.

Market Segmentation

•  Technology Insights (Revenue, USD Bn, 2020 - 2032)
• • Monocrystalline
  • Polycrystalline
  • Thin-Film
  • Bifacial
•  Mounting Type Insights (Revenue, USD Bn, 2020 - 2032)
• • Rooftop Solar Panels
  • Ground-Mounted Solar Panels
•  Application Insights (Revenue, USD Bn, 2020 - 2032)
• • Residential
  • Commercial
  • Utility-Scale
  • Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
• • 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
  • First Solar, Inc.
  • Canadian Solar Inc.
  • JinkoSolar Holding Co., Ltd.
  • Trina Solar Limited
  • SunPower Corporation
  • LONGi Green Energy Technology Co., Ltd.
  • Q CELLS (Hanwha Q CELLS)
  • Silfab Solar Inc.
  • JA Solar Technology Co., Ltd.
  • Risen Energy Co., Ltd.
  • REC Group
  • Yingli Green Energy Holding Company Limited
  • Adani Solar
  • GCL-Poly Energy Holdings Limited
  • Solaria Energía y Medio Ambiente, S.A.