As per the current market research conducted by CMI Team, the global Solar PV Supply Chain Market size is expected to record a CAGR of 13.1% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 127.5 billion. By 2032, the valuation is anticipated to reach USD 326.2 billion.
Solar PV Supply Chain Market: Growth Factors and Dynamics
- Declining Costs and Technological Advancements: The consistent progression of technology and economies of scale has yielded a substantial reduction in solar PV component costs. This, in turn, has rendered solar energy increasingly cost-effective and appealing, driving heightened demand.
- Government Incentives and Policies: Governments worldwide have proactively extended support through incentives, tax credits, subsidies, and feed-in tariffs. These policy measures have effectively nurtured a conducive ecosystem for solar PV adoption, encouraging investments and boosting the market.
- Environmental Awareness and Emission Reduction Goals: Escalating concerns about environmental sustainability and carbon emissions have spurred individuals and businesses to embrace renewable energy sources like solar power. This heightened consciousness has significantly contributed to the soaring demand for solar PV systems.
- Energy Transition and Utility-Scale Investments: The global shift toward cleaner energy sources has prompted utilities and energy companies to engage in substantial investments in large-scale solar projects. These utility-scale endeavours play a pivotal role in propelling the overall market expansion.
- Continuous Research and Development: Sustained research and development efforts have led to substantial enhancements in solar cell efficiency, energy storage solutions, and innovative materials. These technological strides have augmented the performance and allure of solar PV systems.
- Achieving Grid Parity and Competitive Costing: The significant milestone of grid parity, where solar energy costs are at par with or lower than conventional fossil fuel-based sources, has been realized across various regions. This achievement has been a catalyst for accelerated solar PV adoption and subsequent market growth.
- Advancements in Energy Storage Technologies: The Solar PV Supply Chain Market’s growth is also being propelled by advancements in energy storage technologies. The integration of efficient energy storage solutions with solar PV systems enhances grid stability, enables power generation during non-sunlight hours, and elevates the overall reliability and appeal of solar energy, thereby further fuelling market demand.
Solar PV Supply Chain Market: Partnership and Acquisitions
- CarbonCapture Inc. and Heliogen: In 2021, Heliogen, Inc. (“Heliogen”), a leading provider of AI-enabled, modular concentrated solar energy systems, announced plans to collaborate with CarbonCapture Inc. (“CarbonCapture”) to develop sustainably powered direct air capture (DAC) facilities. Both companies were founded under a decarbonization mission.
- First Solar, Inc: In 2023, First Solar, Inc. (Nasdaq: FSLR) announced its intention to build a fifth manufacturing facility in the United States, investing up to $1.1 billion in further expanding America’s capacity to produce its own photovoltaic (PV) solar modules. The company’s nameplate manufacturing capacity by 3.5 gigawatts (GW) to reach approximately 14 GW in the US and 25 GW globally in 2026.
Report Scope
| Feature of the Report | Details |
| Market Size in 2023 | USD 147.3 Billion |
| Projected Market Size in 2032 | USD 326.2 Billion |
| Market Size in 2022 | USD 127.5 Billion |
| CAGR Growth Rate | 13.1% CAGR |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Key Segment | By Type, Application and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Solar PV Supply Chain Market: COVID-19 Analysis
The COVID-19 pandemic has had a significant impact on the Solar PV Supply Chain Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:
- Supply Chain Disruptions: The pandemic disrupted global supply chains, causing delays in the production and delivery of solar PV components. Factory closures, restrictions on movement, and transportation challenges led to supply shortages, impacting project timelines, and increasing costs.
- Demand Fluctuations: Economic uncertainties and reduced investments affected the demand for solar PV installations. Commercial and industrial projects faced postponements, cancellations, or scaled-down operations due to financial constraints, impacting market growth.
- Renewed Policy Support: Governments are introducing or extending incentives, subsidies, and policies to revitalize the renewable energy sector. These measures are encouraging solar PV adoption by making investments more attractive and financially viable.
- Digitalization and Remote Operations: The industry is embracing digital tools for remote project management, monitoring, and maintenance. This helps minimize disruptions by enabling efficient coordination even during travel restrictions and lockdowns.
- Green Recovery Investments: As economies seek sustainable recovery strategies, increased investments in clean energy projects, including solar PV installations, are gaining traction. This financial support drives demand and growth in the solar PV supply chain.
- Technological Innovations: The pandemic has accelerated innovation in solar technology and operations. Companies are focusing on automation, robotics, and efficient manufacturing processes to enhance production capacity and reduce costs.
- Resilience through Diversification: The industry is fostering resilience by diversifying supply chain sources, reducing dependence on a single region for components. This approach mitigates future disruptions, ensuring a stable flow of materials and minimizing the impact of potential supply chain challenges.
In conclusion, the COVID-19 pandemic has had a mixed impact on the Solar PV Supply Chain Market, with some challenges and opportunities arising from the pandemic. Manufacturers and retailers need to remain agile and adapt to the changing market conditions to overcome these challenges and capitalize on new growth opportunities.
List of the prominent players in the Solar PV Supply Chain Market:
- JinkoSolar Holding Co. Ltd.
- Trina Solar Limited
- Canadian Solar Inc.
- First Solar Inc.
- LONGi Green Energy Technology Co. Ltd.
- Hanwha Q CELLS Co. Ltd.
- JA Solar Holdings Co. Ltd.
- Risen Energy Co. Ltd.
- SunPower Corporation
- REC Silicon ASA
- Others
The Solar PV Supply Chain Market is segmented as follows:
By Type
- Solar Polysilicon
- Ingot and Wafer
- Solar Cell
- Solar Module
By Application
- Utility Scale
- C&I
- Residential
By Region
North America
- The U.S.
- Canada
- Mexico
Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America