Solar Energy Panel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Solar Energy Panel Market is projected to expand from USD 151.95 Billion in 2025 to USD 260.36 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 9.39%. Defined as photovoltaic modules that transform sunlight into electricity via semiconductor materials, the market is primarily propelled by strict global decarbonization mandates and a strategic push for energy independence, both of which attract government subsidies and regulatory backing. Furthermore, the continuous decrease in the levelized cost of electricity has positioned solar power as a financially competitive alternative to traditional fossil fuels, a trend underscored by the International Renewable Energy Agency reporting a record-breaking 451.9 GW of new capacity added globally in 2024.

However, a major obstacle impeding broader market development is the insufficiency of current grid infrastructure, as many aging electrical networks struggle to manage the fluctuating influx and substantial volume of distributed renewable energy. This infrastructure deficiency leads to grid congestion and the curtailment of surplus power, resulting in significant delays for project interconnections. Consequently, the sluggish pace of transmission modernization stands as a critical barrier that threatens to restrict the future integration of solar assets.

Market Drivers

The decreasing levelized cost of solar photovoltaic systems acts as a major catalyst for adoption, effectively eliminating financial barriers that previously hindered widespread deployment. This reduction is largely attributed to economies of scale in manufacturing and technological breakthroughs that have improved module efficiency while lowering production expenses, allowing solar energy to achieve grid parity in many regions. According to SolarPower Europe's 'Global Market Outlook for Solar Power 2024-2028' released in June 2024, solar module prices fell by approximately 50% in 2023 due to a vast increase in global production capacity, creating a favorable pricing environment that enables developers to maximize returns and accelerate both utility-scale and distributed projects.

Implementation of supportive government policies and financial incentives serves as the second crucial driver, fostering long-term market stability and investor trust. Governments globally are enacting rigid decarbonization mandates alongside mechanisms like investment tax credits, feed-in tariffs, and renewable portfolio standards to meet net-zero targets, which stimulate capital flow by de-risking infrastructure ventures. As noted in the International Energy Agency's 'World Energy Investment 2024' report from June 2024, global solar PV investment is expected to surpass $500 billion in 2024, an influx that translated into a 23% surge in solar generation in 2023 according to Ember's 'Global Electricity Review 2024', maintaining its status as the world’s fastest-growing electricity source.

Market Challenges

The insufficiency of existing electrical grid infrastructure serves as a primary restraint on the expansion of the global solar energy panel market. As the rate of solar installations accelerates, legacy transmission networks frequently lack the physical capacity and flexibility required to integrate high volumes of variable renewable generation, leading to grid congestion that forces operators to curtail power output. Such curtailment directly diminishes revenue potential for project owners and creates financial uncertainty that discourages future investment in photovoltaic modules.

Furthermore, these infrastructure bottlenecks result in substantial administrative delays for new installations attempting to connect to the power network, often stalling the overall momentum of market deployment. Data from the International Energy Agency in 2024 indicates that approximately 3,000 gigawatts of renewable power projects were waiting in advanced stages of grid connection queues globally, with solar photovoltaics accounting for the largest share. This backlog effectively caps the immediate demand for solar panels regardless of their economic competitiveness against other energy sources.

Market Trends

The rapid transition from P-Type PERC to N-Type TOPCon and HJT cell architectures represents the most fundamental technological shift in the sector, as manufacturers aggressively retool production lines to overcome the theoretical efficiency limits of P-type technology. N-Type cells, particularly Tunnel Oxide Passivated Contact (TOPCon) variants, offer superior conversion efficiencies, lower degradation rates, and improved performance in high-temperature environments. This industrial pivot is evident in data from VDMA's 'International Technology Roadmap for Photovoltaic (ITRPV)' in April 2025, which showed N-type wafers accounting for a 70% share of the global market in 2024, effectively ending the dominance of P-type technology.

Simultaneously, the mainstream commercialization of bifacial solar modules is reshaping utility-scale project economics by maximizing energy generation per square meter. Unlike traditional monofacial panels, bifacial modules capture sunlight from both the front and rear surfaces, utilizing albedo light reflected from the ground to significantly boost energy yield without increasing the array footprint. According to the IEA PVPS 'Trends in Photovoltaic Applications 2025' report from April 2025, bifacial modules dominated the global landscape, representing over 75% of total production in 2024.

Key Players Profiled in the Solar Energy Panel Market

• JinkoSolar Holding Co., Ltd.
• Canadian Solar Inc.
• Trina Solar Co., Ltd.
• First Solar, Inc.
• LONGi Green Energy Technology Co., Ltd.
• JA Solar Holdings Co., Ltd.
• Hanwha Q CELLS Co., Ltd.
• Risen Energy Co., Ltd.
• GCL System Integration Technology Co., Ltd.

Report Scope

In this report, the Global Solar Energy Panel Market has been segmented into the following categories:

Solar Energy Panel Market, by Technology:

• Solar PV
• Concentrated Solar Power

Solar Energy Panel Market, by Module Type:

• Thin Film
• Crystalline

Solar Energy Panel Market, by Grid Connectivity:

• On-Grid
• Off-Grid

Solar Energy Panel Market, by Application:

• Residential
• Commercial
• Industrial

Solar Energy Panel Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Solar Energy Panel Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.