Solar Photovoltaic (PV) Market Driving USD 753.9 Billion by 2035

Jun 27

According to the latest analysis by Future Market Insights, the global Solar Photovoltaic (PV) Market is entering a period of unprecedented expansion, driven by increasing investments in renewable energy infrastructure, declining solar technology costs, and ambitious carbon reduction commitments worldwide. According to the latest analysis by Future Market Insights, the solar photovoltaic (PV) market is projected to grow from USD 339.7 billion in 2025 to USD 753.9 billion by 2035, registering a robust CAGR of 8.3% during the forecast period.

As governments, utilities, and corporations accelerate their transition toward sustainable energy systems, solar PV technologies are becoming a cornerstone of global power generation strategies. Innovations in module efficiency, energy storage integration, and smart grid technologies are further enhancing the economic viability and scalability of solar installations across residential, commercial, and utility-scale applications.

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Featured Snippet: Key Market Insights

Market Size (2025): USD 339.7 Billion Forecast Value (2035): USD 753.9 Billion CAGR (2025–2035): 8.3% Leading Connectivity Segment: On-Grid (71.3%) Dominant Mounting Type: Ground-Mounted (64.8%) Largest End-Use Segment: Utility Sector (53.6%) Key Growth Regions: Asia-Pacific, North America, Europe Market Overview: Solar Power Becomes the Backbone of the Energy Transition

The solar photovoltaic market continues to benefit from favorable government policies, growing environmental awareness, and increasing energy security concerns. Rapid advancements in photovoltaic technology have significantly improved conversion efficiencies while reducing installation and maintenance costs.

The market is expected to add more than USD 414 billion in value over the next decade, supported by large-scale solar projects, commercial rooftop installations, community solar programs, and utility procurement initiatives worldwide.

With energy consumers seeking reliable and low-cost alternatives to conventional power sources, solar PV systems are increasingly being adopted as long-term investments capable of delivering both economic and environmental benefits.

Key Market Drivers

Global Decarbonization Commitments Countries around the world are implementing aggressive renewable energy targets and net-zero emissions goals. Solar PV remains one of the most scalable and cost-effective technologies for reducing carbon emissions across power generation systems.

Falling Costs and Technological Advancements Continuous improvements in photovoltaic cell architecture, manufacturing efficiencies, and supply chain optimization have reduced the levelized cost of electricity (LCOE) generated by solar installations.

Emerging technologies include:

TOPCon and HJT solar cells Bifacial solar modules High-current smart inverters Single-axis tracking systems AI-driven performance monitoring Growing Demand for Energy Independence Businesses, governments, and households are increasingly investing in solar solutions to reduce dependence on volatile fossil fuel markets and improve long-term energy resilience.

Regional Insights

North America

North America remains a major contributor to global solar deployment, supported by favorable federal incentives, domestic manufacturing investments, and increasing utility-scale project development.

The United States continues to expand solar capacity through large-scale installations, community solar programs, and commercial power purchase agreements (PPAs).

Europe

European markets are experiencing strong growth due to ambitious climate policies, rising electricity prices, and increased investment in renewable infrastructure.

Countries including Germany, France, and the United Kingdom are accelerating solar deployment through rooftop programs, agrivoltaic projects, and utility-scale installations paired with battery storage systems.

Asia-Pacific (Fastest Growing Region)

Asia-Pacific is expected to remain the fastest-growing regional market throughout the forecast period.

Key growth factors include:

Rapid industrialization Expanding urban populations Government renewable energy mandates Large-scale utility solar projects China and India are leading investments in both utility-scale and distributed solar systems, while Japan continues to focus on advanced solar technologies and energy efficiency initiatives.

Technology Trends Shaping the Industry

The next generation of solar PV systems is being defined by digitalization, automation, and energy optimization technologies.

Key trends include:

AI-powered predictive maintenance

Digital twin technology for asset optimization Smart inverter integration Solar-plus-storage hybrid systems Advanced tracker control algorithms Cloud-based monitoring and analytics platforms These innovations are helping project operators improve energy yield, reduce downtime, and maximize return on investment.

Challenges Facing the Market

Grid Infrastructure Constraints

As solar penetration increases, transmission bottlenecks and interconnection delays remain significant challenges in several regions.

Utilities and grid operators must invest in modernization efforts to accommodate growing renewable energy capacity.

Supply Chain and Cost Volatility

Fluctuations in raw material prices, trade regulations, and global supply chains can impact project economics and deployment timelines.

Land Acquisition and Permitting

Large-scale solar developments often face lengthy permitting processes, environmental assessments, and land-use restrictions that can delay project implementation.

Emerging Opportunities

The market is creating substantial opportunities across multiple deployment models:

Floating solar installations

Agrivoltaic systems Community solar projects Solar-powered microgrids Utility-scale storage integration Repowering of existing solar assets As energy storage costs continue to decline, hybrid solar-plus-storage projects are expected to become a major growth catalyst throughout the forecast period.

Segment Insights

On-Grid Connectivity Leads Adoption

The on-grid segment is projected to account for 71.3% of the market by 2025.

Its dominance is supported by:

Net metering incentives Utility integration benefits Lower operational costs Enhanced scalability for commercial and industrial users Ground-Mounted Systems Dominate Installations

Ground-mounted solar installations are expected to hold 64.8% of market share.

Their popularity stems from:

Superior scalability Easier maintenance access Optimized orientation and energy yield Cost advantages for utility-scale projects Utility Sector Remains Largest End User

The utility segment is forecast to capture 53.6% of the market.

Growing investments in renewable energy portfolios, large-scale PPAs, and national energy transition programs continue to drive demand from utilities worldwide.

Competitive Landscape

The solar photovoltaic market remains highly competitive, with manufacturers, tracker providers, EPC contractors, and technology developers investing heavily in innovation and operational efficiency.

Key companies operating in the market include:

Nextracker Inc. Array Technologies, Inc. Arctech Trina Solar SunPower Corporation SOLTEC STI Norland PVHardware GameChange Solar ArcelorMittal Industry participants are focusing on higher-efficiency modules, intelligent tracking systems, supply chain localization, and integrated energy storage solutions to strengthen market positioning.

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