The global photovoltaic market garnered $53.91 billion in 2018, and is estimated to reach $333.72 billion by 2026, registering a CAGR of 25.1% from 2019 to 2026. That’s according to a report by Allied Market Research titled, “Photovoltaic Market by Technology (Thin Film, Mono Si and Multi Si), System (High Concentration Photovoltaic (HCPV) and Low Concentration Photovoltaic (LCPV)), and Application (Industrial, Residential and Commercial): Global Opportunity Analysis and Industry Forecast, 2019–2026.”
Supportive government initiatives and regulations for usage of photovoltaic technology and rise in demand for PV technology in residential applications drive the growth in the market. However, low efficiency of PV modules and high cost of storage, installation, and power conversion devices restrain the market growth. On the other hand, increase in demand for renewable energy and surge in prices of fossil fuels present new opportunities.
Thin film segment
Based on technology, the thin film segment accounted for the largest market share in 2018, contributing nearly half of the total revenue, and is expected to continue its dominant status during the forecast period. This is due to generation of power at low cost per watt, consistent generation of power on overcast days and low sun angles, and reduction in usage of fossil fuels and emission of ozone-depleting gases. Contrarily, the multi si segment is estimated to grow at the highest CAGR of 25.5% from 2019 to 2026, owing to its wide usage in calculators and smartwatches, and standalone PV systems along with supportive government initiatives for PV technology. The research also discusses the mono si segment.
Based on application, the industrial segment accounted for more than two-fifths of the total market share in 2018 and is estimated to maintain its leadership position throughout the forecast period. Moreover, this segment would grow at the highest CAGR of 25.4% from 2019 to 2026. This is a lucrative segment, owing to stringent government regulations related to pollution and emphasis of governments on the usage of green energy has led to increase in demand of solar cars and buses, in which, photovoltaic cells are used. Moreover, usage in development & production of satellites for military and civil applications supplement the growth. The report also analyzes residential and commercial applications.
Asia-Pacific to be a lucrative region
Based on geography, Asia-Pacific accounted for the highest market share in 2018, accounting for more than two-fifths of the total market share, according to Allied Market Research. This region is expected to remain dominant throughout the forecast period. Moreover, this region is expected to register the largest CAGR of 26.9% from 2019 to 2026. This is due to surge in demand for commercial and industrial applications along with increase in production of solar energy.