Solar Power Market Size, Share, Growth, Trends, and Global Industry Analysis: By Technology (Solar Photovoltaic, Concentrated Solar Power) By Product (Solar Panels, Charge Controllers, Batteries, Inverters) By End-User (Residential, Commercial and Industrial, Utility-Scale) and Region Forecast 2020-2031

Solar Power Market size was valued at US$ 216.6 billion in 2024 and is expected to reach US$ 803.7 billion by 2031, growing at a significant CAGR of 20.6% from 2025-2031. The solar power industry is the global market focused on harnessing the power of the sun and turning it into electricity through photovoltaic (PV) panels or concentrating solar power (CSP) systems. The solar energy industry is driven by several factors such as increasing environmental consciousness, government incentives, and advances in solar technology.

The increasing demand for clean energy sources as well as declining prices of solar panels has made solar power accessible at residential, commercial, as well as utility levels. Advances in energy storage systems as well as grid integration are also making solar power more stable, thus getting widely adopted. The market is also propelled by technological innovation such as high-efficiency photovoltaic cells and concentrated solar power systems that provide improved efficiency in energy conversion and system performance.

However, the market is limited by high initial installation costs, weather-dependent intermittent power generation, and challenges in grid integration. Instability caused by the variability of solar power generation can result in energy grid stability problems, requiring capital expenditure on standby sources or storage facilities. In addition, the accessibility of land space to undertake large-scale solar farms and the possible environmental effects of the disposal of solar panels pose challenges for long-term sustainability. Despite these challenges, ongoing research and policy interference have ensured that the market keeps moving forward.

Facts & Figures:

• Global Capacity: In 2023, global solar PV capacity reached approximately 1.6 terawatts.
• Growth: Solar PV generation increased by 25% in 2023, reaching over 1,600 TWh.
• Share of Electricity: In 2023, solar PV accounted for 5.4% of total global electricity generation.
• Renewable Energy Share: Solar PV is the third largest renewable electricity technology globally, behind hydropower and wind.
• S. Solar: About 3.4% of the electricity generated in the U.S. comes from solar energy.
• S. Renewable Share: Solar makes up 15.9% of the renewable electricity generated in the U.S.
• S. Capacity: The U.S. has 248 gigawatts of installed solar capacity.

Key Developments:

• In May 2025, Meta signed two PPAs with AES for 650 MW of solar to run data centers in Texas and Kansas, adding to Meta’s 12 GW renewable portfolio.
• In May 2025, Heelstone Renewable Energy bought Valor Infrastructure’s 190 MWp PV pipeline in Texas, lifting its U.S. platform above 5 GW.
• In May 2025, Zeo acquired Heliogen to integrate thermal storage into its residential solar offer.
• In May 2025, Summit Ridge Energy purchased a 40 MW Illinois community-solar bundle from Arena Renewables, enough to power 5,000 homes.

Solar Power Market Segmentation:

Based on the technology:

• Solar Photovoltaic
• Concentrated Solar Power

Solar photovoltaic held 99.6% of 2024 capacity, confirming its status as the cornerstone of the solar energy market. Falling levelized costs down 4.6% in place PV ahead of gas peakers and onshore wind in many regions. The segment is expected to grow, powered by efficiency gains such as perovskite-silicon tandem cells hitting 31.6% laboratory performance. Multi-junction designs could push conversion rates beyond 40%, opening space-constrained rooftops.

Based on the product:

• Solar Panels
• Charge Controllers
• Batteries
• Inverters
• Others

The batteries division contributes significantly to the solar power industry through the provision of effective energy storage and grid stability. Solar batteries capture excess energy produced during peak sunlight hours, giving users access to power where solar generation is minimal, i.e., during nights or overcast weather. This function raises the reliability of solar systems and minimizes reliance on conventional grid electricity. The solar battery market is growing as a result of advances in lithium-ion and solid-state battery technology, which provide increased efficiency, longer life, and better energy density.

Based on the end user:

• Residential
• Commercial
• Industrial
• Utility

The utility segment dominates the market owing to increasing installation targets and the high operating efficiency of PV panels compared to other counterparts. Large-scale photovoltaic power plants, consisting of many PV arrays installed together, prove helpful utilities. Utilities can build PV plants much more quickly than conventional power plants as the arrays are easy to install and can connect electrically. Solar energy adoption across residential segments is increasing due to increasing energy demand. The number of residential construction projects is increasing along with the growing public awareness regarding using renewable and efficient energy sources for residential purposes. Therefore, such factors are expected to drive the residential segment’s growth.