Global Photovoltaics Market to Reach USD 968.32 Billion by 2030, Driven by Grid Modernization and Technological Innovation

 The global photovoltaics market is projected to be valued at USD 613.57 billion in 2025 and USD 968.32 billion by 2030, growing at a CAGR of 9.6% during the forecast period. Grid modernization and the adoption of smart energy systems are crucial in accelerating the integration of photovoltaic power into national grids. Traditional grids were designed for centralized power generation, but the rise of distributed solar energy requires a more flexible and responsive infrastructure. Smart grids, equipped with advanced sensors, automation, and digital communication technologies, enable real-time monitoring and management of power flows. This allows utilities to efficiently balance supply and demand, handle the variability of solar output, and improve grid stability. Additionally, features such as demand response, smart metering, and predictive analytics help optimize energy use and enhance the reliability of solar-powered systems. Overall, grid modernization supports a more resilient and scalable solar PV deployment in urban and remote areas.

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Emerging technologies such as perovskite, quantum dot, dye-sensitized, and organic solar cells are driving innovation and expanding the potential of the photovoltaics market. Perovskite solar cells offer high efficiency at lower production costs and are compatible with flexible and tandem configurations, making them ideal for next-generation PV applications. Quantum dot solar cells provide tunable bandgaps and excellent light absorption properties, enabling enhanced performance in low-light or indoor environments.

Based on component, the balance of system (BOS) segment is expected to hold the largest market share in 2030. The segment is expected to hold the largest market share due to its high collective cost compared with other components and its critical role in supporting the overall solar power infrastructure. BOS includes all components of a PV system excluding the solar panels—inverters, mounting structures, wiring, switches, junction boxes, monitoring systems, and energy storage. As solar installations grow in size and complexity, the demand for advanced BOS solutions increases to ensure optimal performance, safety, and efficiency. Technological advancements in smart inverters, tracking systems, and grid integration tools also drive BOS investments. Furthermore, utility-scale projects, which require substantial BOS infrastructure, are expanding rapidly across key markets, further reinforcing this segment’s dominant position.

The floating segment is expected to witness the highest CAGR during the forecast period by installation type. This is due to its ability to overcome land constraints and utilize underused water bodies such as reservoirs, lakes, and canals. This installation type offers the dual advantage of generating clean energy while reducing water evaporation and algae growth. Countries facing land scarcity and high population density, such as Japan, South Korea, and parts of Europe, are increasingly investing in floating PV solutions. Additionally, improved floating structures and anchoring technologies make deployments more cost-effective and scalable. With supportive policies and growing interest in hybrid water-energy projects, the floating PV market is poised for rapid expansion globally.

The photovoltaics market in North America is witnessing considerable growth owing to the increasing deployment of PV modules in residential and non-residential applications. This growth is driven not only by small PV projects but also by large-scale PV projects in the pipeline. The photovoltaics market in North America is competitive owing to several global and local manufacturers of PV modules in the region and the rising demand for new PV installations. The governments of countries of North America have taken several initiatives, such as the National Community Solar Partnership and Climate Action Incentive Fund to promote the use of PV modules in North America. The favorable economic conditions in the US, growing awareness among the masses in North America about the benefits offered by rooftop PV systems, and formulation of different energy policies by different countries of the region encourage companies based in North America to develop PV systems for efficient energy generation and supply.

The photovoltaics market in the US is experiencing significant growth driven by supportive government policies, technological advancements, and increasing demand for clean energy. The Inflation Reduction Act (IRA) has been a major catalyst, providing tax incentives and funding to boost domestic solar manufacturing and installation. Utility-scale solar projects have expanded rapidly, accounting for a large share of new electricity generation capacity added annually. Residential and commercial solar installations are also rising, supported by favorable state policies and net metering programs. Additionally, growing corporate commitments to sustainability and the electrification of transportation and industry further propel solar adoption. Despite some supply chain challenges, the long-term outlook remains strong, with projections indicating substantial capacity additions over the next decade. These factors collectively position the US as one of the leading markets in the global photovoltaic industry, driving the country’s transition toward a low-carbon energy future.

The photovoltaics market is witnessing significant growth due to increasing global investments in renewable energy and continuous technological advancements. Governments and private sector players channel capital into large-scale solar projects to meet climate targets and enhance energy security. At the same time, emerging technologies such as perovskite solar cells are gaining traction due to their high efficiency, low-cost manufacturing potential, and compatibility with flexible and tandem solar applications. These innovations are expanding the scope of solar deployment beyond traditional formats, creating new avenues in building-integrated photovoltaics, transportation, and portable energy systems. These factors generate lucrative opportunities for manufacturers, developers, and investors across the solar value chain.

Frequently Asked Questions (FAQs) on the Photovoltaics Market

1. What is the photovoltaics market?
The photovoltaics market refers to the global industry focused on the development, production, and deployment of solar photovoltaic (PV) technologies, which convert sunlight into electricity using semiconductor materials. It includes a wide range of applications such as residential rooftop systems, commercial solar farms, and utility-scale installations, and plays a critical role in the transition to renewable energy sources.

2. What factors are driving the growth of the photovoltaics market?
The key drivers of photovoltaics market growth include declining costs of solar panels, increasing government incentives and subsidies, growing environmental awareness, advancements in solar technology, and rising demand for clean and sustainable energy due to climate change concerns and the need to reduce dependence on fossil fuels.

3. What are the major types of photovoltaic technologies?
The major types of photovoltaic technologies are crystalline silicon (c-Si) and thin-film solar cells. Crystalline silicon is the most widely used and includes monocrystalline and polycrystalline types, known for their efficiency and reliability. Thin-film technologies, such as cadmium telluride (CdTe) and copper indium gallium selenide (CIGS), offer advantages like lightweight design and flexible applications but generally have lower efficiency.

4. Which regions are leading the photovoltaics market?
Asia-Pacific, particularly China and India, leads the global photovoltaics market due to massive investments in solar infrastructure, favorable government policies, and abundant solar potential. Europe and North America also hold significant market shares, driven by climate goals, green energy initiatives, and strong adoption of residential and commercial solar systems.

5. How is grid modernization impacting the photovoltaics market?
Grid modernization is significantly boosting the photovoltaics market by enabling better integration of distributed solar power into existing energy systems. Upgraded smart grids, energy storage solutions, and demand-response technologies improve the stability, flexibility, and reliability of electricity supply, making solar energy more viable and attractive for both consumers and utilities.

6. What challenges does the photovoltaics market face?
The photovoltaics market faces several challenges including intermittency of solar power, land use concerns, recycling and disposal of solar panels, high initial installation costs in some regions, and the need for upgraded grid infrastructure to handle variable power input. Addressing these challenges is essential to ensure sustained market growth.

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