Photovoltaic (PV) Market By Technology (Crystalline Silicon, Thin Film, Others); By Application (Residential, Commercial, Industrial, Utility-Scale); By Installation (Rooftop, Ground-mounted, Floating Solar); By Connection Type (On-Grid, Off-Grid); By Geography, Segment Revenue Estimation, Forecast, 2024–2032.

Photovoltaic (PV) Market Size & Overview

The Global Photovoltaic (PV) Market was valued at USD 91.3 billion in 2024 and is projected to reach USD 220.1 billion by 2030, growing at a CAGR of 15.6%. Photovoltaics (PV) is a technology that converts sunlight directly into electricity using semiconductor materials, typically through solar cells.

 

Photovoltaic (PV) Market Dynamics:

Market Drivers

• Rising demand for clean and renewable energy

In 2024, renewable energy played a key role in driving clean growth, achieving a record 858 TWh—marking a 49% increase from the previous peak in 2022. Solar power remained the leading contributor for the third consecutive year, generating 474 TWh and reaching a 6.9% share. Over the past three years, solar electricity output has doubled, surpassing 2,000 TWh in 2024. In 2023, global photovoltaic (PV) capacity reached 1.6 TW, rising from 1.2 TW in 2022. Newly commissioned PV systems increased from 407.3 GW to 446 GW, with an estimated 150 GW of modules held in inventories worldwide. According to a recent report from the Energy Information Administration (EIA), large-scale solar and battery plant development is projected to reach a record high in 2025. These projects will make up 81% of the new power generation added to the U.S. electric grids by energy companies. By 2050, worldwide electricity demand is projected to be twice as high as it was in 2020. According to the International Renewable Energy Agency (IRENA), renewable sources have the potential to provide 90% of the world's electricity by 2050—and should be the primary energy supply moving forward.

 

• Government incentives, subsidies, and policies

Since 2020, governments worldwide have allocated nearly $2 trillion in direct investment for clean energy, nearly three times the amount pledged after the 2007-08 financial crisis. In 2023, the European Union took steps to relax tax credit restrictions, making it easier for member states to offer incentives for solar installations. Although China and the European Union have led recent clean energy manufacturing, the U.S. has been expanding its domestic supply chain. To accelerate solar energy expansion nationwide, the United States has introduced multiple federal policies, programs, and regulations. Among them is the Federal Investment Tax Credit (ITC), commonly known as the solar tax credit, which enables homeowners to deduct 30% of their solar installation costs from their taxes between 2022 and 2032. Various states and municipalities provide extra incentives for solar adoption, including rebates, property tax exemptions, and solar renewable energy credits (SRECs). New York offers state tax credits of up to $5,000, while certain cities in California grant additional cash-back rebates. Modifying existing regulations can help improve access to solar energy. The rise in trade policies and domestic manufacturing incentives indicates that clean energy is becoming a key focus of industrial policies.

 

Market Restraints

• High initial installation cost

The high initial installation cost of photovoltaic (PV) systems remains a major barrier to market growth. Based on the latest data from the EnergySage Marketplace, the average cost per watt for solar installations in the U.S. is approximately $2.56 before incentives. A 2025 survey of 1,000 solar customers found that the average cost of a professionally installed solar panel is $1,200. As a result, full-size solar systems—typically ranging from 20 to 30 panels—come with a price tag between $24,000 and $36,000.

 

Average cost of an 11 kW solar panel installation in 2025

	Cost before federal tax credit	Cost after federal tax credit
Low-end	$24,626	$17,238
Average	$29,360	$20,552
High-end	$33,193	$23,235

 

The cost of solar panels can differ significantly between states, influenced by factors such as labor and permitting expenses, state-specific incentives and regulations, and the degree of market competition among installers. In states like California and New York, solar installation costs tend to be higher due to elevated labor rates and more stringent building regulations.

 

• Limited energy storage options and high battery costs

 

Market Opportunities

• Technological innovations

Solar panel technology has undergone significant advancements in recent decades, driving remarkable innovation. Improvements include enhanced solar cell efficiency, the adoption of new, more readily available materials, progress in manufacturing techniques, and the development of flexible designs. Most solar panels today are made from silicon. However, perovskite solar cells have gained attention as a promising alternative, offering high efficiency and lower production costs. MIT researchers have introduced ultralight fabric solar cells, marking a significant breakthrough in solar panel technology. These incredibly thin solar cells—finer than a human hair—can be laminated onto a variety of surfaces, including canvas and plastic. In 2025, solar energy storage systems are expected to see major advancements, with a strong emphasis on improving battery technology. Key developments include more advanced lithium-ion and flow batteries, designed specifically for solar energy storage. AI-driven optimization of solar energy systems represents a groundbreaking innovation. By forecasting energy production and consumption, AI algorithms enable more efficient energy management and seamless grid integration.

 

• Expansion in emerging markets

 

Photovoltaic (PV) Market: Recent Developments

• On May 12, 2025, Alstom, a global leader in smart and sustainable mobility, made significant progress in its sustainability strategy by installing a photovoltaic panel system at its Ciudad Sahagún manufacturing site in Mexico, one of its largest plants worldwide. This initiative underscores Alstom’s dedication to reducing carbon emissions and aligns with the broader goal of achieving net-zero emissions across the value chain by 2050.

 

• In May 2025, South Korea-based Gosan Tech Co., Ltd., introduced a new line of inkjet printers designed for manufacturers of perovskite solar photovoltaic (PV) cells and modules.

 

• On May 12, 2025, Huasun Energy, the world's leading manufacturer of heterojunction (HJT) solar products, formalized an exclusive strategic cooperation agreement with Germany's Next2Sun for the European market. Signed at Intersolar Europe 2025, this partnership marks a significant milestone in the continued development and adoption of vertical photovoltaic (PV) applications.

 

Photovoltaic (PV) Market Segmentation: A Comprehensive Overview

By Technology

• Crystalline Silicon 

• Thin Film

• Others

 

By Application

• Residential

• Commercial

• Industrial

• Utility-Scale

 

By Installation

• Rooftop

• Ground-mounted

• Floating Solar

 

By Connection Type

• On-Grid

• Off-Grid

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

 

Segmentation Analysis – Photovoltaic (PV) Market

By Technology:

Crystalline silicon dominates the market due to its high efficiency and widespread availability. This technology is expected to be a key driver in addressing the world's increasing energy needs, with projections indicating it could contribute up to 80% of the global energy mix by 2050. The U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) advances research and development in crystalline silicon photovoltaic (PV) technology, fostering innovations that bring solar solutions to the market.

 

Thin film technology is gaining traction for its lightweight and flexible properties, particularly in niche and portable applications. The Advancing U.S. Thin-Film Solar Photovoltaics funding program allocates $44 million to support research, development, and demonstration initiatives focused on two key thin-film photovoltaic (PV) technologies. These projects aim to enhance domestic manufacturing of cost-effective solar hardware, boost the U.S. economy’s share of solar hardware value, and strengthen American leadership in thin-film PV technology.

 

Other emerging technologies such as perovskite and organic PV are also being explored for future potential. Trinasolar has secured the leading spot in the Global Perovskite Solar Cell Invention Patent Ranking, released by intellectual property analytics firm IPRdaily, with an impressive total of 481 patent applications in the perovskite solar cell sector.

 

By Application:

Residential and commercial sectors are increasingly adopting PV systems for cost savings and energy independence, while industrial and utility-scale projects drive large-volume installations to meet rising energy demands and sustainability goals. Husk Power Systems, a solar minigrid solutions provider, has introduced BEEM, a specialized rooftop solar service for residential customers across India. Leveraging its expertise in solar technology design, installation, and long-term service, the platform delivers comprehensive photovoltaic (PV) solutions tailored to individual homeowners. Summit Ridge Energy (SRE), a U.S. commercial solar developer, and investor Apollo have committed $400 million to a new joint venture aimed at jointly owning and managing a portfolio of commercial solar assets in Illinois.

 

By Installation Type:

Rooftop systems are popular in urban and residential settings due to space efficiency. In 2024, over 50 gigawatts of rooftop solar systems were installed across the United States, covering 5 million homes and commercial buildings. Savings vary depending on location and system size, but on average, U.S. homeowners can expect to save approximately $50,000 over 25 years after installing rooftop solar panels. According to a report from the Clean Energy Council, Australia installed nearly 3GW of rooftop solar PV in 2024.

 

Ground-mounted systems are prevalent in large-scale solar farms, and floating solar installations are emerging as innovative solutions for space-constrained regions and water bodies. TotalEnergies ENEOS has successfully completed its inaugural ground-mounted solar photovoltaic (PV) project in Singapore in collaboration with Tanah Merah Country Club (TMCC), a highly regarded golf club in Asia. This milestone establishes TMCC as the first country club in Singapore to be predominantly powered by an onsite ground-mounted solar PV system, representing a notable advancement in golf industry sustainability.

 

By Connection Type:

The market is divided into on-grid systems, which are connected to the main power grid and widely used in urban and industrial setups, and off-grid systems, which are vital for remote and rural areas lacking grid infrastructure. According to the 2025 Sustainable Energy in America Factbook, nearly 50 GW of new solar generation capacity was added to the U.S. power grid in 2024.

 

By Region:

Asia Pacific leads the global PV market with countries like China, India, and Japan investing heavily in solar infrastructure. In 2023, the Asia-Pacific region installed 254GW of solar photovoltaic (PV), exceeding the combined installations of all other regions by more than double. Between 2025 and 2050, the Asia Pacific region holds a total investment potential of $1.1 trillion in solar photovoltaic (PV) technology. Longi, the Chinese PV module manufacturer, has announced that its proprietary hybrid interdigitated back contact (HIBC) crystalline silicon solar cell, utilizing a full-size silicon wafer, has set a new world record with a power conversion efficiency of 27.81%.

 

Europe and North America follow, driven by strong policy support and climate goals. According to SolarPower Europe, the EU's solar generation capacity continued to grow, reaching an estimated 338 GW in 2024. On March 12, 2024, European legislators approved the EU Solar Standard as part of the Energy Performance of Buildings Directive in the European Parliament. Under this new law, solar installations will be mandatory for buildings across the European Union. Consequently, solar systems must be incorporated into new construction projects, while public bodies will be required to retrofit their buildings with photovoltaic (PV) systems, with implementation gradually beginning in 2026.

 

Latin America, the Middle East, and Africa are witnessing growing adoption supported by increasing solar potential and expanding electrification needs. Brazil, Mexico, and Chile are leading the charge in renewable energy with large-scale projects in progress. With vast wind and solar resources, Latin America is set to emerge as a major renewable energy powerhouse. The region's clean energy expansion is fueled by supportive policies, declining technology costs, and the pressing need to combat climate change.

 

Key Players in the Photovoltaic (PV) Market

• LONGi Solar

• JinkoSolar

• Trina Solar

• Tongwei Solar

• JA Solar

• Canadian Solar

• Hanwha Q CELLS

• Maxeon Solar

• First Solar

• Vikram Solar

 

Photovoltaic (PV) Market Report Coverage

Report Attribute	Details
Forecast Period	2024 – 2032
Market Size Value in 2024	USD 91.3 Billion
Revenue Forecast in 2030	USD 220.1 Billion
Overall Growth Rate	CAGR of 15.6% (2024 – 2030)
Base Year for Estimation	2023
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2024 – 2030)
Segmentation	By Technology, By Application, By Installation, By Connection Type, By Geography
By Technology	Crystalline Silicon, Thin Film, Others
By Application	Residential, Commercial, Industrial, Utility-Scale
By Installation	Rooftop, Ground-mounted, Floating Solar
By Connection Type	On-Grid, Off-Grid
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Germany, China, India, Japan, Brazil, etc.
Market Drivers	Rising demand for clean energy, government incentives, and declining costs of solar technology
Customization Option	Available upon request