The global solar energy industry is expected to reach 422 billion USD by 2022 from 86 billion in 2015. The growth of the solar energy market is driven by increase in environmental pollution and provision of government incentives & tax rebates to install solar panels. Also, decrease in water footprint associated with solar energy systems has fueled their demand in power generation sectors.
Based on technology, the global solar energy industry is bifurcated into photovoltaic cells and concentrated solar power systems (CSP). The market is divided into first, second, and third generation. Applications covered include agriculture & horticulture, transportation, and architecture. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Increase in photovoltaic applications have fueled the demand for first-generation cells. The third-generation cells segment is expected to show high growth rate owing to ongoing R&D and increase in efficiency of solar panels. However, the geographical footprint has affected the solar energy market, but increased investments in R&D and increase in adoption of solar storage systems are expected to boost the demand for solar energy systems.
Emerging economies such as China and Japan have significantly increased the production of solar technologies. Moreover, North America and Europe have largely focused on researches to maximize the solar potential. Middle East and Africa have also gained traction owing to increase in applications of solar energy for power generation, agriculture, and architecture. The competition has significantly increased among manufacturers with the development in photovoltaic-based power distribution systems. Moreover, the price of solar modules differs significantly in regions of Europe and Asia-Pacific, as the market is demand oriented.
With the rise in demand for PV installations, the adoption of storage grid is projected to increase, which fuels the demand for lithium ion-powered battery for solar energy storage and increase the solar energy market growth. In addition, government incentives for solar panel installations have fueled the market growth. For example, the market in Israel is expected to grow at a CAGR of 25% from 2016 to 2022.
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