Global Solar Farm Market Overview
The key driver impacting the solar farm market is the growing usage of photovoltaic technology. As per International Energy Agency (IEA), solar PV capacity additions at the global level are estimated to reach nearly 107 GW in 2020. Worldwide, the distributed solar PV capacity is likely to rise by 250% attaining 530 GW by 2024. Commercial and industrial solar PV capacity stays as the biggest growth segment and is expected to boost from 150 GW in 2018 to 377 GW in 2024, with annual capacity additions expanding by 50% to 44 GW by 2024. China remains the foremost growth market. Its residential solar PV capacity climbed from 58 GW in 2018 to 143 GW in 2024, and annual capacity additions are extended more than three times to over 20 GW by 2024. .Also, the rising government regulation supporting the adoption of photovoltaic technology is adding growth to the market. For example, in the U.S. the government has executed laws such as net metering and community solar and net metering to encourage the usage of photovoltaic technology for electricity generation. Moreover, the rising number of tie-ups or contracts to improve the service and adoption of solar power in various developing countries contributes to the development of the solar farm market in the coming years.
According to Value Market Research, the global Solar Farm market size was valued at about USD $70 billion in 2020 and is estimated to grow at a CAGR of around 20% during the forecast period 2021 to 2027.
The growing investments by the government in solar farms are likely to augment the market demand in the forecast period. However, the high capital incurred during its installation may hamper the market in the long run. Also, the high storage cost of solar energy is creating a negative impact on the market growth. On the other hand, the current industry trends of increasing demand for renewable energy are expected to offer several beneficial market opportunities to the key players.
The solar farm market is vast, with many local and global players. The solar farm market is extensive, with many international and regional players. The market leaders pursue diverse business strategies to enhance their market position, such as extending acquisitions, product portfolio, contracts, product upgrades, amalgamation to raise their market share globally. The key market players studied in the report Trina Solar, TATA Power Solar Systems Ltd., BrightSource Energy, Inc., JA Solar Holdings Co. Ltd., Sharp Corporation, First Solar, Inc., and Shenzhen Topray Solar Co. Ltd.
In this research report, the Solar Farm market is segmented by type, end-users, and region.
Analysis by Type:
By Type, the report is categorized into surface suction, utility-scale, distributed generation, microgrids, and others. The utility-scale segment dominates the type segment with over half of the total share in 2020. It is due to the growth in investments for grid expansion with integration technologies such as storage and UV connectivity contributing to the utility scale segment's growth in the forecast period.
Analysis by End-Users:
By end-users, the report is devided into industrial, commercial and residential. The commercial segment dominates the end-user segment with over 55% share in 2020. It is due to the growing economies globally due to rapidly rising urbanization, and technology advancement. Also the huge adoption of solar energy by several commercial buildings such as malls, offices, airports, and others to decrease the carbon footprint contributes to the growth of the commercial segment in the forecast period.
Analysis by Region:
In the regional outlook of the global solar farm market, the Asia Pacific region dominates globally with a 65% market share in the forecast period. It is due to rising investments in solar power projects and huge favorable government policies providing financial subsidies and incentives to solar PV projects by the governments in India, Thailand, and China. Moreover, an increase in government initiatives for electrification of rural areas, such as Akshay Urja and enormous solar capacity growth in Asia's developing nations like China, contribute to the incredible market growth across North America.
Market Segmentation covered in the Report:
By Type
- Surface Suction
- Utility-scale
- Distributed Generation
- Microgrids
- Others
By End-Users
- Residential
- Commercial
- Industrial
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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