Solar Photovoltaic (PV) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The solar photovoltaic market size in terms of installed base is projected to be 2.34 Terawatt in 2025, 2.91 Terawatt in 2026, and reach 7.23 Terawatt by 2031, growing at a CAGR of 19.92% from 2026 to 2031. This report is Segmented by Technology (Monocrystalline-Si, Multicrystalline-Si, Thin-Film, Tandem/Perovskite), Deployment Type (Ground-Mounted, Rooftop/BIPV, Floating PV), End-User (Residential, Commercial and Industrial, Utility-Scale IPPs), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Volume (GW).

Global Solar Photovoltaic (PV) Market Trends and Insights

Falling Module ASPs Widen Grid-Parity Zones

Spot prices in the Solar PV market dropped to USD 0.082 per watt-peak FOB China in July 2025, a 32% fall from early 2024. The decrease expanded grid-parity to 142 nations where utility-scale solar now undercuts coal and gas generation by 15-25%. Market consolidation accelerated as the five largest suppliers controlled 68% of 2025 shipments. Regulatory efficiency thresholds of 21% for utility projects and 19% for rooftop systems safeguard performance standards. Developers responded by integrating module production and EPC services to recapture margin. Forward price curves suggest another 10-15% decline by 2027 as N-type TOPCon technology achieves manufacturing parity with PERC.

IRA-Driven On-Shoring of PV Manufacturing in the U.S.

Section 45X credits of USD 0.07 per watt-dc for modules and USD 0.04 per watt-dc for cells spurred USD 10 billion of factory announcements through 2025. First Solar’s Louisiana plant adds 3.5 GW of thin-film output in 2026. Domestic module production reached 12 GW dc in 2024, yet satisfied only 8% of local demand. Treasury guidance now requires 55% U.S. cost content by 2027 to qualify for the full 30% investment tax credit. Vertically integrated supply chains cut lead times to eight weeks and slashed freight costs by 40% for East Coast projects.

Grid-Congestion & Curtailment Risks in High-Penetration Regions

California curtailed 2.6 million MWh of renewable electricity in 2023, equal to 385,000 homes’ annual use. Evening ramps increase gas-peaker cycling costs by USD 15-20 per MWh. ERCOT foresees 4 million MWh of curtailment each year by 2028 as West-Texas solar surpasses transmission capacity. Germany paid EUR 1.2 billion to compensate curtailed generators in 2024. South Australia imposed dynamic export limits on rooftop systems, cutting household feed-in revenue 12-18%. U.S. interconnection queues above 2,000 GW stretch upgrade timelines to a decade, posing a key challenge for the Solar photovoltaic PV market by pushing developers toward behind-the-meter installations.

Other drivers and restraints analyzed in the detailed report include:

• AI-Enabled Solar Forecasting Cuts Balancing Costs
• Demand From Green-Hydrogen Electrolyzer Projects
• Rapid Polysilicon Price Swings Squeeze Producer Margins

Segment Analysis

Monocrystalline silicon maintained 86.1% solar panels market share in 2025 as cell efficiencies reached 27.81%, reinforcing its leadership in the Solar PV industry. The solar panels market size for advanced tandem and perovskite modules is forecast to grow at 31.1% CAGR through 2031, reflecting Oxford PV’s 24.5% commercial products and 10,000-hour stability milestones. Multicrystalline declined to 8.2% as producers migrated toward N-type TOPCon and heterojunction lines that lift performance by 1.5-2 percentage points at comparable costs.

Investment in R&D topped USD 1.2 billion among leading firms in 2025, focusing on bifacial, half-cut, and multi-bus-bar layouts that push 600 W-plus panel ratings. Thin-film cadmium-telluride retained a 4.9% share, favored for hot-climate utility sites where lower temperature coefficients elevate annual energy yield 3-5%. Bankability hinges on IEC 61215 and IEC 61730 compliance, which underpins financing terms and lowers debt margins by up to 50 basis points.

Complete Report Scope:

• By Technology
  • Monocrystalline-Si
  • Multicrystalline-Si
  • Thin-film (CdTe, CIGS, a-Si)
  • Tandem/Perovskite
• By Deployment Type
  • Ground-mounted
  • Rooftop/Building-Integrated (BIPV)
  • Floating PV
• By End-User
  • Residential
  • Commercial and Industrial
  • Utility-scale IPPs
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacifc
    • China
    • India
    • Japan
    • South Korea
    • ASEAN Countries
    • Australia
    • Rest of Asia-Pacifc
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • South Africa
    • Nigeria
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific closed 2025 with 64.3% of global installed capacity, driven by China’s 210 GW of new projects and India’s 85 GW cumulative base. Japan’s feed-in tariff step-down slowed rooftop growth, but corporate PPAs advanced 62% as LNG volatility spurred interest in price stability. ASEAN markets added 18 GW thanks to concessional finance that trimmed debt premiums 30-40 basis points. Australia’s household penetration reached 38%, yet dynamic export caps in high-renewables states redirected capital toward utility-scale solar-plus-storage.

The Middle East and Africa are set for a 21.5% CAGR, supported by Saudi Arabia’s 58.7 GW Vision 2030 roadmap and the UAE’s 5 GW Dubai park expansion. Saudi Arabia’s 1.5 GW Sudair plant achieved a record USD 0.0104 per kWh bid price. The UAE’s Noor Abu Dhabi now covers 10% of local demand and exports into the Gulf interconnector. South Africa awarded 3.2 GW in Bid Window 6 but postponed 1.8 GW due to grid constraints. Nigeria deployed 450 MW of mini-grids in 2025, extending service to 2.8 million people.

North America accounted for 12.8% of the solar photovoltaic market capacity in 2025. The United States added 32 GW, with Texas surpassing California in annual additions. Canada’s 30% clean-electricity tax credit stimulated 2.5 GW across Alberta and Ontario. Mexican rooftop deployment slowed amid net-metering uncertainty. Europe captured a 9.4% share; Germany installed 8.5 GW and Spain 6.2 GW under carbon-price pressures near EUR 90 per t CO₂. Brazil’s distributed-generation base hit 18 GW in 2025, retaining full retail credit for exports.

List of Companies Covered in this Report:

• LONGi Green Energy Technology Co. Ltd.
• Trina Solar Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• JA Solar Technology Co. Ltd.
• First Solar Inc.
• Canadian Solar Inc.
• Hanwha Q Cells Co. Ltd.
• SunPower Corporation
• Risen Energy Co. Ltd.
• Sharp Corporation
• Suntech Power Co. Ltd.
• REC Solar Holdings AS
• GCL System Integration Technology
• Maxeon Solar Technologies
• Yingli Solar
• Adani Solar
• Axitec Energy GmbH
• FuturaSun Srl
• Waaree Energies Ltd.
• Meyer Burger Technology AG

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support