Global Solar Photovoltaic Market Size Likely to Grow at a CAGR of 8.5% By 2035

Market Size and Growth

The market size of global solar photovoltaics will be estimated at USD 305 billion in 2025 and is expected to grow to between USD 331 billion in 2026 and about USD 689 billion by 2035, with a current CAGR (compound annual growth rate) of 8.5% during the period of 2026 to 2035.

Solar Photovoltaic Market Revenue and Trends

Solar PV is a technology that uses special solar cells to convert sunlight directly into useful electrical power. Photovoltaic cells generate electricity using solar power, which can be used directly or stored in batteries or fed into the grid. Solar PV technology is used to generate electricity because it offers a safe, clean, reliable, efficient, and renewable power source used in the power industry. The electric power produced is the direct conversion of the sunlight to electricity. Cells that produce electric power from naturally occurring renewable solar energy are called solar cells, and they are generally made into solar panels.

What are the Factors That Have a Significant Contribution to the Growth of the Solar Photovoltaic Market?

Technology development for solar panels is a main factor catalyzing the growth of the PV market. Innovations in cell design, dimensions, equipment technology, and manufacturing techniques resulted in increased effective energy-gathering ability, increased efficiency, and decreased cost per watt generated. Technologies such as Bifacial Solar Panel and Passivated Emitter and Rear Cell (PERC) resulted in energy generation in a small area, even though it is not possible for thin molecule cells. All these developments resulted in cost-effective and extended utilization of solar PV systems, thereby contributing to market growth.

Cost reduction in solar technology is another key driving factor in the growth of the solar photovoltaic market. But the cost of solar panels and other related components has dropped many times in the last ten years due to increased production capabilities, the development of manufacturing methods, technological developments, and the size of the production runs. As the manufacturing capacity of the Solar PV system increases and the efficiency increases, the cost of these systems also decreases. It lowers the cost of the system and the installation of solar panels, which can be used in the residential, commercial, and industrial areas. This will bring cheaper electricity for the customer to reduce the cost of consumers, which is influenced by the excess of the solar PV system.

Regional Insights

North America held the highest market share in 2025. Growth in the region is supported by strong policy, tax incentives, and an increasing focus on sustainability. The US has the benefit of the federally administered ITC Investment Tax Credit for both residential and commercial. Other states such as California, Texas, and Florida are emerging as leading solar states with their high solar limits and various benefits for solar users. North America‘s solar market is set to expand significantly due to a growing priority for energy independence, a desire to reduce carbon footprints, and increasing corporate investments in energy and renewables.

Besides, the Asia Pacific market has the highest rate of growth in the solar photovoltaic market. The increasing demand for renewable energy sources and increasing investment in clean energy drive the Asia Pacific market growth.

Report Scope

Recent Developments

• In March 2026, Chinese leading module manufacturer Trinasolar announced the launch of two new series of solar PV modules, the new Vertex N G3 series and the Vertex S+ G3 series, both of which will be on sale in the second half of the year. (https://www.pv-tech.org/trinasolar-launches-vertex-s-g3-vertex-n-g3-ranges-i-topcon-modules/)

List of the prominent players in the Solar Photovoltaic Market:

• Wuxi Suntech Power Co. Ltd.
• BrightSource Energy Inc.
• First Solar
• SunPower Corporation
• eSolar Inc.
• Yingli Solar
• Canadian Solar Inc.
• Jinko Solar
• Waaree Group
• AccionaEnergia S.A.
• Nextera Energy Sources LLC
• Vivaan Solar
• Trina Solar
• Tata PowerSolar Systems Ltd.
• Abengoa
• Others