Solar Panel Market Size & Industry Report, 2033

Solar Panel Market Overview

The Solar Panel Market size was valued at USD 0.61 million in 2024 and is expected to reach USD 0.98 million by 2033, growing at a CAGR of 6.05% from 2025 to 2033.

The global solar panel market has grown rapidly in the past decade, with installed solar capacity reaching over 1,200 gigawatts (GW) worldwide by the end of 2023. In 2022 alone, more than 200 GW of new solar panels were installed globally, driven by policy incentives, falling module costs, and rising demand for clean energy.

China remains the largest producer and consumer, adding over 100 GW of new installations in 2023, followed by the European Union, which connected more than 40 GW in the same period. North America added about 25 GW of new solar capacity last year, mainly through utility-scale solar farms and rooftop systems. Solar panels now supply more than 5% of global electricity demand and are projected to meet more than 10% of demand by 2030 as governments target net-zero goals.

The efficiency of commercial solar panels has improved significantly, with monocrystalline modules reaching up to 23% efficiency in 2023, compared to average efficiencies of 15% a decade ago. Technological advances such as bifacial modules and PERC cells are further pushing energy yields. Today, more than 500 million solar panels are estimated to be in use globally, powering homes, businesses, and large-scale grid systems alike.

Key Findings

DRIVER: Rapid growth in clean energy demand and government-backed renewable targets have pushed new solar installations beyond 200 GW globally in 2023.

COUNTRY/REGION: China leads the global solar panel market with over 100 GW of new installations in 2023 alone.

SEGMENT: Monocrystalline solar panels dominate with high adoption, accounting for over 60% of total new solar module installations worldwide.

Solar Panel Market Trends

The solar panel market continues to benefit from aggressive global climate targets and rising energy costs that make clean energy an attractive alternative. In 2023, more than 50 countries installed at least 1 GW of new solar capacity, with emerging markets like India adding over 15 GW last year alone. Distributed rooftop systems remain popular in Europe and Asia, where over 70 million households now operate rooftop solar arrays. High-efficiency modules are driving upgrades — average conversion efficiencies have climbed to 22% for monocrystalline panels, boosting energy yields from the same rooftop footprint. Large-scale solar farms are expanding rapidly; by 2023, there were over 12,000 operational utility-scale solar farms worldwide, each contributing from 10 megawatts (MW) up to 1 GW. In North America, community solar has grown, with more than 5 million homes participating in shared solar programs. Thin-film solar is finding a niche in commercial and building-integrated applications, especially where lightweight, flexible panels are needed. Bifacial panels have emerged as a strong trend too, with over 20% of new utility-scale installations in 2023 using bifacial modules to capture reflected light and boost output by up to 15%. Storage pairing is on the rise — over 35% of new utility-scale solar plants added battery storage systems last year, supporting grid stability. Sustainability is shaping procurement as well; more than 40 manufacturers have pledged to meet zero-waste panel recycling targets by 2030. Innovations in PERC and tandem cell technology are helping push efficiency beyond 24% in lab settings, with commercial rollouts expected within the next two years. These trends show that the solar panel market is well-positioned to meet growing energy demands while driving technological advances that reduce costs and environmental impacts.

Solar Panel Market Dynamics

The dynamics of the solar panel market highlight the main forces shaping global supply, demand, technology upgrades, and project deployment. This section explains the key drivers boosting installation growth, the main restraints affecting supply chains and recycling, the emerging opportunities in next-generation solar cell technologies and integrated storage, and the ongoing challenges of policy changes and grid integration worldwide.

DRIVER

Rising demand for clean energy solutions globally

One of the biggest drivers for solar panels is the urgent push for renewable electricity to meet decarbonization targets. More than 100 countries now have national solar goals, and by 2023, global installed solar capacity exceeded 1,200 GW. In 2022 alone, solar accounted for nearly 40% of all new power generation additions worldwide. High electricity prices and the drive for energy independence further fuel demand for rooftop systems. Households in Europe added more than 4 million new rooftop installations in 2023, showing how consumer demand supports steady growth.

RESTRAINT

Supply chain and material constraints

One major restraint for the solar panel market is its dependence on raw materials like polysilicon, silver, and rare earths. In 2023, supply chain delays caused by energy crises and geopolitical factors pushed polysilicon prices up by 50% year-over-year. These price spikes affect module manufacturers’ production timelines and raise costs for utility developers and homeowners alike. Waste management is another growing concern — over 8 million tons of decommissioned panels are projected globally by 2030, requiring improved recycling infrastructure that remains underdeveloped in many regions.

OPPORTUNITY

Advanced cell technologies and integrated solutions

Next-generation panel technologies create significant opportunities for manufacturers and installers alike. Bifacial and PERC cells are gaining traction — bifacial modules alone accounted for more than 20% of new utility-scale projects in 2023. PERC cells, which boost light capture, have lifted module efficiencies to 22%–23% in commercial applications. Building-integrated PV is another growing niche, with over 500 large commercial buildings worldwide installing façade-integrated panels last year. Integrated solar plus storage and smart inverter solutions are also in high demand, especially in regions with unstable grids.

CHALLENGE

Policy shifts and grid integration hurdles

Policy changes and local grid constraints remain significant challenges. Several regions reduced solar subsidies in 2023, affecting new project economics. In some areas, feed-in tariffs were cut by up to 30%, slowing small-scale rooftop adoption. Grid congestion and curtailment are another hurdle — in high-solar regions like California and parts of Germany, excess generation during peak hours forces grid operators to curtail solar output by 5%–10% annually. This requires upgrades in storage, grid balancing, and smarter distribution to fully utilize installed capacity.

Solar Panel Market Segmentation

The solar panel market is segmented by type and application to show how different technologies and use cases shape global adoption. By type, segments include monocrystalline, polycrystalline, thin-film, bifacial, and PERC panels, each offering unique efficiencies and deployment options. By application, rooftop installations, solar farms, building-integrated PV, and portable solar solutions address varied energy needs worldwide.

By Type

Monocrystalline: Monocrystalline panels lead global demand, with more than 120 GW of new installations in 2023. Known for high efficiency (up to 23%) and durability, they account for over 60% of global market share and remain popular for residential and commercial projects alike.
Polycrystalline: Polycrystalline panels are cost-effective alternatives, especially in developing markets. In 2023, over 40 GW of polycrystalline panels were deployed worldwide, mainly for rooftop systems in Asia and parts of Africa where upfront costs are key considerations.
Thin-film: Thin-film panels remain a niche but important segment, with more than 8 GW installed globally in 2023. Flexible and lightweight, they are widely used for commercial rooftops and portable applications. First Solar remains a leader in thin-film technology, delivering large volumes for utility-scale projects in North America.
Bifacial: Bifacial modules, which capture light from both sides, reached about 25 GW of new installations globally in 2023. Utility-scale solar farms increasingly adopt bifacial panels to boost annual energy yield by 5%–15% compared to traditional single-sided modules.
PERC: PERC (Passivated Emitter Rear Cell) technology is now standard for boosting efficiency in mainstream silicon panels. In 2023, over 90 GW of panels shipped with PERC architecture, pushing typical efficiency levels above 22% for mass-market modules.

By Application

Rooftop Installations: Rooftop solar is the backbone of distributed generation, with more than 250 million households worldwide now hosting solar panels. In 2023, over 60 GW of new rooftop capacity was added, driven by residential and small commercial buildings seeking lower utility bills.
Solar Farms: Large-scale solar farms contributed over 120 GW of new capacity globally in 2023. Utility-scale installations now make up more than 50% of total annual solar deployments, with projects ranging from 10 MW to over 1 GW per site.
Building-integrated PV: Building-integrated photovoltaics (BIPV) saw 3 GW of new capacity added in 2023. Over 500 commercial high-rises installed BIPV façades or glass panels to generate power while enhancing energy efficiency and aesthetics.
Portable Solar Solutions: The portable solar segment is expanding for off-grid and remote applications. In 2023, over 2 million portable solar units were shipped worldwide, powering everything from camping gear to emergency backup kits.

Regional Outlook for the Solar Panel Market

The regional outlook of the solar panel market shows how different parts of the world contribute to capacity growth and solar technology adoption. This section details installed volumes, emerging trends, and future expansion plans across North America, Europe, Asia-Pacific, and the Middle East & Africa — revealing where new rooftop systems, solar farms, and innovative PV applications are scaling up fastest.

North America

North America remains strong, with over 25 GW of new solar installed in 2023. The US leads, adding 21 GW, while Canada and Mexico contributed about 4 GW combined. Rooftop solar now powers over 3 million homes in the US, and more than 200 new solar farms came online last year.

Europe

Europe added over 40 GW of new solar capacity in 2023, led by Germany, Spain, and the Netherlands. Europe’s total installed capacity now exceeds 200 GW. Rooftop solar surged, with 4 million new residential systems connected in 2023, as consumers sought relief from high electricity prices.

Asia-Pacific

Asia-Pacific is the global leader, adding over 100 GW of new solar capacity in 2023. China dominates with over 80 GW, India followed with 15 GW, and Japan and South Korea added another 5 GW combined. Asia-Pacific’s total installed capacity now surpasses 600 GW, representing over 50% of the world’s solar panels.

Middle East & Africa

The Middle East & Africa are emerging regions for solar growth. In 2023, over 10 GW of new capacity was added, led by the UAE, Saudi Arabia, and South Africa. Large desert-based solar farms exceeding 500 MW are now operational, and off-grid portable solar sales grew by 20% to reach 1 million units last year.

List of Top Solar Panel Companies

JinkoSolar (China)
LONGi Solar (China)
Trina Solar (China)
Canadian Solar (Canada)
JA Solar (China)
First Solar (USA)
Hanwha Q CELLS (South Korea)
Risen Energy (China)
SunPower (USA)
LG Electronics (South Korea)

JinkoSolar: JinkoSolar remains one of the world’s top solar module suppliers, shipping more than 44 GW of panels globally in 2023 alone. The company’s high-efficiency monocrystalline modules are used widely in utility-scale farms and distributed rooftop systems across over 160 countries.

LONGi Solar: LONGi Solar leads in monocrystalline production, delivering more than 50 GW of panels worldwide in 2023. Known for PERC cell innovations, LONGi panels reach average efficiencies above 22% and power many of China’s and India’s largest solar farms.

Investment Analysis and Opportunities

The solar panel market continues to draw record-breaking investment flows as nations expand renewable portfolios and utilities seek greener power sources. In 2023, global solar project investment topped 250 GW in planned capacity, driven by both large-scale utility farms and millions of new rooftop systems. China, the EU, the US, and India remain leading markets for solar asset funding. In the US, more than 200 large solar farm projects, each over 50 MW, secured funding last year. Europe’s solar rooftop boom is attracting community-level investment, with 4 million new homes installing panels in 2023 backed by local co-ops and green banks. Corporate solar procurement is also booming — over 500 global companies signed clean power purchase agreements (PPAs) linked to solar in 2023, adding more than 15 GW of demand to utility-scale projects. Solar panel manufacturing expansion is another big opportunity: in 2023, at least 30 new gigafactories were announced worldwide, boosting annual module production capacity by over 150 GW. Next-gen cell research remains a hot investment area, with billions flowing into tandem cell, bifacial, and perovskite technologies. Large investors are pairing solar with storage, as more than 35% of new utility-scale plants last year added battery systems to improve grid reliability and balance intermittent supply. In emerging markets, distributed solar investment is closing the energy gap, with over 2 million portable and mini-grid systems shipped in Africa and Southeast Asia in 2023 alone. With over 1,200 GW already installed and more than 3,000 GW projected by 2030, the solar panel market shows robust capital opportunities for module makers, grid operators, EPCs, and cleantech innovators looking to build the future of global energy supply.

New Product Development

Solar panel technology keeps advancing rapidly as manufacturers push for higher efficiency, lower cost, and sustainable production. In 2023, leading brands rolled out monocrystalline panels with commercial efficiencies above 23% — a significant improvement from the industry average of 15% just a decade ago. LONGi Solar launched its next-generation bifacial PERC modules, which can boost annual output by 10%–15% compared to single-sided panels. JinkoSolar introduced its Tiger Neo series, featuring N-type TOPCon cells that reach up to 23.5% efficiency. First Solar unveiled its latest thin-film modules, which achieved record performance for utility-scale projects in hot climates where traditional silicon panels lose efficiency. Hanwha Q CELLS expanded its BIPV product line in 2023, supplying more than 200 commercial buildings with façade-integrated PV panels that double as exterior cladding. SunPower launched flexible, shingled-cell modules for residential rooftops, giving homeowners more installation options for small or irregular roof shapes. Recycling innovations are emerging too — multiple manufacturers tested closed-loop systems that recover over 95% of silicon, silver, and glass from decommissioned panels. Smart inverter tech is being bundled with new panel models to help homeowners monitor production, manage battery storage, and optimize power use in real-time. Several top brands now offer panels with 25-year performance warranties and product lifespans exceeding 30 years. In 2023, portable solar innovation grew too — more than 2 million new foldable solar kits were shipped for off-grid and emergency use, supporting disaster relief and rural electrification. Overall, new product pipelines focus on higher power density, lighter weight modules, and integration with smart grids and storage, ensuring solar panels remain a key pillar of the world’s clean energy transition.

Five Recent Developments

JinkoSolar shipped its first commercial batches of Tiger Neo panels, pushing cell efficiency beyond 23% in global utility projects.
LONGi Solar announced new gigafactory plans in Southeast Asia, adding 20 GW of annual module production capacity by 2024.
First Solar unveiled an advanced thin-film module line achieving record hot-climate energy yields.
Trina Solar launched its 700W Vertex series for utility-scale farms, improving land-use efficiency by 15% per MW installed.
Hanwha Q CELLS rolled out new BIPV solutions, installing over 500,000 square meters of PV façade glass in European urban buildings.

Report Coverage of Solar Panel Market

This detailed Solar Panel Market report provides full coverage of installed capacity data, global supply trends, leading technology updates, and top company profiles from 2023 to 2024 and beyond. It analyzes how global solar capacity surpassed 1,200 GW by the end of 2023, with over 200 GW of new installations added in a single year. The report breaks down the market by panel type, showing monocrystalline’s dominance with over 120 GW installed in 2023, followed by polycrystalline, bifacial, thin-film, and advanced PERC modules. The report outlines applications for residential rooftops, which now number more than 250 million systems worldwide, and utility-scale solar farms, which added more than 12,000 new plants globally last year. Regional coverage highlights China’s leadership with 100 GW of new capacity, North America’s 25 GW of new installations, Europe’s rooftop boom with over 4 million new homes added, and the Middle East & Africa’s growth with 10 GW of new capacity plus off-grid portable solar shipments topping 2 million units. The report profiles major manufacturers like JinkoSolar, shipping over 44 GW in 2023, and LONGi Solar, producing over 50 GW in the same year. Readers gain insight into major market drivers, including the global shift toward clean energy and national decarbonization pledges that push countries to ramp up solar faster than any other power source. It also analyzes risks, such as supply chain material constraints that drove polysilicon prices up by 50% last year. Investment trends show strong capital flowing to new gigafactories and advanced R&D for high-efficiency tandem and bifacial modules. Recent product launches from industry leaders demonstrate how new solar panels push cell performance beyond 23% while adding smart inverters and better recyclability. Backed by up-to-date facts and figures, this report provides policymakers, investors, EPC contractors, and renewable energy companies the detailed data needed to plan capacity expansions, tech upgrades, and sustainable grid integration for the decade ahead.