Global Rooftop Solar PV Market: Snapshot
The pressing demand for energy in the face of depleting fossil fuels, has led to the uptake of rooftop solar PV systems in both residential and commercial spaces. Besides providing energy-efficient solutions, such systems are also easy to install. In addition, the rooftop solar PV systems on account of their high electricity-generating capacity are fast becoming a preferred source of alternative energy, beating other green sources of energy. Yet another advantage of these systems is their durability. On account of so many unique perceived benefits, rooftop solar PV systems are seeing their demand soar. Tax sops offered by governments of different regions for deploying solar panels to generate heat is also boosting demand for these systems. As a result both private and public investors are funneling money into the companies manufacturing those.
One factor hobbling the global rooftop solar PV systems market is the dearth of smart grid infrastructure. This makes them unviable for energy supply on a larger scale. Further, the market is also being deterred by the negative sentiment pertaining to the net metering policies for this setup.
Despite such obstacles, the global rooftop solar PV systems market will expand at a healthy 11.0% CAGR from 2015 to 2023, predicts a report by Transparency Market Research. The market was worth US$1.79 bn in 2014 and is slated to attain a value of US$4.58 bn in 2023.
Tax Rebates Make Residential Sector a Primary Driver of Demand
Depending upon end use, the global rooftop solar PV systems market can be split into residential and commercial. Among the two, the residential sector accounts for maximum demand in the market because of a flurry of incentives and tax rebates provided by various governments for installing them.
The rooftop solar PV systems also provide easy electricity solutions to residential consumers. This along with the rise of third-party operated (TPO) model in various countries will likely stoke their market further. The commercial buildings will drive up demand too owing to their growing usage in government buildings.
Some of the prominent names operating in the global market for rooftop solar PV systems are Jinko Solar, Trina Solar, Canadian Solar, Yingli Green Energy Holding Company Limited, and SunPower. In order to bolster their positions, they are channeling money into research and development for product development. They may also mull over strategic mergers and acquisitions to diversify their product portfolio, enhance outreach, and expand client pool.
Powered by China and India, Asia Pacific to Gain Maximum Market Share
North America accounts for maximum share in the global market for rooftop solar PV systems on account of the swift adoption of the TPO model. Going forward, the region is expected to retain its dominant share in the market due to rooftop installations gaining further traction.
In terms of growth rate, however, Asia Pacific is predicted to outpace all other regions by clocking a CAGR of 11.5% between 2015 and 2023. The market in the region is predicted to be worth US$1.09 bn by the end 2023. India and China are the main engines of growth in the Asia Pacific market on account of their urgent need to bring down pollution levels. To that end, initiatives such as the Jawaharlal Nehru National Solar Mission will likely stoke demand for rooftop solar PV systems in India in the next couple of years.
Installation of rooftop solar photovoltaic (PV) systems is poised to surge as energy crisis is felt globally. Besides providing energy-efficient solutions, these systems are also easy to install, which is primary driver of the global rooftop solar PV market. Due to their ability of generating high capacity energy, rooftop solar PV systems is slowly becoming a preferred choice as an alternative energy source worldwide.
With government offering lucrative tax benefits, intended at encouraging the use of energy derived from alternative sources, the future of the global rooftop solar PV market seems quite promising. For the purpose of the study, the market is segmented based on various parameters such as end-use and geography. Regionally, Asia Pacific, Europe, North America, and Rest of the World make the key segments of the global rooftop solar PV market. By end-use the market can be bifurcated into commercial and residential.
The report presents a granular analysis of the various factors influencing the market profoundly. The growth drivers and restraints shaping its trajectory are also studied in detail. To present an executive-level blueprint of the market, some of the leading companies operating therein are profiled. Using industry-leading analytical tools their strengths and weaknesses are analyzed. The report also provides insights into the threats and opportunities that these companies could witness during the course of the forecast period between 2015 and 2023.
Global Rooftop Solar PV Market: Overview
The global rooftop solar PV market is projected to exhibit a robust 11% CAGR between 2015 and 2023. The market had a valuation of US$1.79 bn in 2014, and is expected to reach US$4.58 bn by the end of 2023. Based on end-use, the residential buildings segment emerged dominant. Regionally, North America dominated the global rooftop solar PV market in 2014. However, Asia Pacific holds tremendous opportunities for the market. The regional market is expected to report the leading CAGR during the forecast period.
The market is significantly gaining from the increasing demand for rooftop solar PV systems both across commercial and residential sectors. With the recent technological advancements, the deployment of rooftop solar PV systems is expected to increase further in the forthcoming years. Experts suggest, very soon these systems are slated to receive wide acceptance as primary sources of energy. A rooftop solar PV has a lifespan of over 30 years, which is a key factor encouraging the adoption of the system.
Despite exhibiting positive growth, the absence of smart grid infrastructure is the key factor challenging the mass adoption of solar PV systems. Moreover, these systems are likely to be installed mainly for individual usage purpose than large-scale supply. This could hamper the market’s growth as well. Nevertheless, technological advancements will make possible to mitigate these challenges, thereby ensuring considerable growth of the market in the forthcoming years.
Companies Mentioned in Report
To present a definitive analysis of the vendor landscape in the market, the report profiles some of the leading players operating therein. The top five companies, which registered their lead with a share of 43% in the market in 2014, are Yingli Green Energy Holding Company Limited, Jinko Solar, SunPower, Canadian Solar, and Trina Solar. Besides these, the report also includes profiles of some of the prominent vendors, whose strategies have reported significant impact on the market in the past.
Global Rooftop Solar PV Market is segmented as:
Global Rooftop Solar PV Market: By End-use
Global Rooftop Solar PV Market: By Region
- North America
- Asia Pacific
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments