Global Photovoltaic Market Set to Hit $126 Billion by 2030
Global, Monday, 11 August 2025.
Driven by rising demand for renewable energy, the photovoltaic market is projected to grow from $95 billion in 2023 to $126 billion by 2030, reflecting a 9.00% CAGR.
Driving Forces Behind Market Growth
The growth of the global photovoltaic market is largely fueled by the increasing shift towards renewable energy solutions, as governments worldwide implement supportive policies and incentives. Initiatives such as subsidies, tax credits, and feed-in tariffs are proving instrumental in lowering the costs associated with solar energy, thereby enhancing its adoption both in commercial and residential settings [1]. Technological advancements are playing a significant role in driving market expansion. Innovations such as bifacial solar panels and thin-film technology have contributed to more efficient energy production, further reducing costs. The integration of advanced energy storage solutions also broadens the scope of photovoltaic applications across various sectors [1].
Challenges and Opportunities in the PV Sector
Despite the promising outlook, the photovoltaic market faces several challenges, including the intermittency of solar power and high initial installation costs. Policy uncertainties and environmental concerns regarding the disposal of solar panels at the end of their life cycle remain significant hurdles. However, these challenges present opportunities for growth, particularly in the electrification of transportation, rural electrification programs, and the deployment of smart grid systems that integrate photovoltaic solutions [1]. Moreover, increased investments from both private and public sectors are expected to sustain the upward trajectory of the solar market. The Asia-Pacific region, with leaders like China, India, and Japan, remains at the forefront due to rapid industrialization and government-backed initiatives, ensuring large-scale solar farm installations [1][3].
Market Dynamics in Specific Regions
The United States, while experiencing a period of slower growth, remains a significant player in the global photovoltaic market. Factors such as federal tax credits, decreasing technology costs, and rising corporate investments in renewable energy contribute to the market’s resilience. Meanwhile, Italy is witnessing robust growth, driven by EU sustainability targets and a 10% CAGR forecast for its solar PV market from 2025 to 2033 [5]. Italy aims to achieve 50 GW of solar capacity by 2030, reflecting its ambitious clean energy goals [5]. Furthermore, Slovenia’s recent deployment of 85 MW in the first half of 2025 underscores the expansion in commercial and industrial sectors, despite a downturn in residential installations [4].
Technological Innovations and Future Projections
Continuous innovation remains at the heart of the photovoltaic sector’s growth. Advancements in panel efficiency through perovskite materials and tandem cell technology offer the potential to revolutionize the industry. The anticipated CAGR of 9.00% for the global photovoltaic market highlights strong future prospects, with the market expected to reach USD 126 billion by 2030 [1]. This robust growth is further supported by trends such as the adoption of floating solar farms and building-integrated photovoltaics, which are increasingly being recognized for their aesthetic and functional benefits in urban planning and architecture [1].