Solar PV Module Market Projected to Reach $260.2 Billion by 2030

The global solar photovoltaic (PV) module market is forecast to expand to $260.2 billion by 2030, up from $127.9 billion in 2020, according to a new report by Allied Market Research. The market is expected to grow at a compound annual growth rate (CAGR) of 7.4% between 2021 and 2030.

Driving this growth is the increasing need to reduce energy costs, coupled with rising electricity demand in commercial and residential sectors. Renewable power development in Asia-Pacific and LAMEA (Latin America, Middle East, and Africa) regions, along with supportive domestic content laws and the expiration of federal investment tax credits (ITC), are also contributing factors.

In 2020, crystalline silicon technology held the largest market share, accounting for nearly 80% of the total market, due to its higher conversion efficiency. Among product types, monocrystalline modules led, capturing close to half of the market share, attributed to their longevity, efficiency, and operational cost. On-grid systems dominated connectivity, driven by government incentives like feed-in tariffs and net metering.

Geographically, the Asia-Pacific region represented the largest market share in 2020, exceeding half of the global market. However, challenges such as grid connection issues and insufficient grid capacity may pose hurdles to market expansion. Conversely, rising fossil fuel prices are expected to create further opportunities for the solar PV module market.