Solar Energy Market Report 2025 (Global Edition)

Global Solar Energy Market Report 2025 Market Size Split by Technology (Photovoltaic Systems, Concentrated Solar Power Systems), by Solar Module (Cadmium Telluride, Amorphous Silicon Cells, Others), b...

Solar Energy Market Report Description

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Impact of Trumph Tariff on Energy and Power Industry

In 2025, global trade entered a turbulent phase as the U.S., under President Donald Trump, introduced aggressive "Liberation Day Tariffs" to address trade imbalances. These tariffs, ranging from 10% to 46%, heavily impacted the energy and power sector, which relies on global supply chains for critical components like rare earth metals, solar panels, wind turbines, and lithium. The U.S.–China trade war escalated, with reciprocal tariffs and China's trade surplus with the U.S. reaching USD 102.6 billion. Retaliatory tariffs from the EU and Canada further disrupted energy supply chains, raising material costs and causing delays in key projects.

The U.S. imposed a 20% tariff on rare earths, impacting EVs and clean tech; 25% on solar panels, increasing installation costs; 15–25% on wind turbine parts, affecting project timelines; and 10–15% on oil and gas equipment, pushing producers to rethink supply networks. Sub-sectors like renewables, EVs, oil & gas, and power generation are all experiencing rising costs, supply bottlenecks, and delayed investments. For instance, solar and wind projects now face 10–30% higher costs, and EV producers are struggling with battery input inflation.

China remains central to the U.S. energy supply chain, with even indirect imports via countries like Vietnam and Malaysia tightly linked to Chinese inputs. As a result, U.S. energy firms are exploring alternative sourcing from Southeast Asia, Latin America, and domestic production to reduce exposure. However, switching suppliers requires significant investment, coordination, and time.

In this volatile environment, market research is critical. It helps energy firms map supplier risks, track price trends, and explore alternative sourcing. It enables supply chain optimization through AI and predictive analytics, while regulatory tracking and scenario planning allow companies to anticipate future disruptions. Energy firms like NextEra and First Solar are responding by diversifying suppliers, investing in local production, and leveraging digital tools to improve procurement and adapt to tariff-driven challenges. Those using data-driven strategies and flexible operations are best positioned to thrive amid rising trade tensions.

Solar Energy Market Insights Video

Competitive Landscape of the Solar Energy Market

The competitive landscape of the Solar Energy market is characterized by a range of players competing to gain market share through product innovation, strategic partnerships, and aggressive marketing efforts. Key players in the market include established manufacturers, specialized Solar Energy companies, and emerging start-ups aiming to disrupt the market with innovative solutions.

January 2022: Canadian Solar announced that its subsidiary, Recurrent Energy, LLC, had signed a purchase and sale agreement with Appalachian Power for the Recurrent Firefly Energy solar project located in Pittsylvania County, Virginia. This project will be the largest solar energy acquisition for Appalachian Power. (Source: https://recurrentenergy.com/recurrent-energy-signs-agreement-to-sell-150-mwac-virginia-solar-project-to-appalachian-power/)

Top Companies Market Share in Solar Energy Industry: (In no particular order of Rank)

• Trina Solar
• SolarEdge Technologies
• Canadian Solar
• JA Solar Holdings Co. Ltd.
• Hanwha Q Cells Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• SunPower Corporation
• First Solar Inc.
• Enphase Energy Inc
• Yingli Green Energy Holding Company Limited
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Solar Energy Market

Which Region Dominates the Solar Energy Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024. The residential solar market in North America has grown significantly due to rising electricity costs and the declining price of solar panels. In 2022, the United States installed 6.4 gigawatts (GW) of small-scale solar capacity, setting a new record for the most added in a single year. The U.S. small-scale solar capacity surged from 7.3 GW in 2014, when estimates first began, to 39.5 GW in 2022. During this period, residential solar panels generated 37 million megawatt-hours of electricity, representing 18% of all solar energy in the U.S., according to the Energy Information Administration. With the average American home consuming around 11,000 kilowatt-hours annually, residential solar panels produce enough energy to power 3.4 million homes in 2022. Small-scale solar now accounts for roughly one-third of the total solar capacity in the United States, as more homeowners turn to solar systems to cut their energy costs and increase their property values. https://www.eia.gov/todayinenergy/detail.php?id=60341 https://usafacts.org/articles/how-much-solar-energy-do-homes-produce/

Which Region is Expanding at the Fastest CAGR?

Governments across Asia-Pacific are actively promoting the adoption of renewable energy through supportive policies and regulations. These measures include setting renewable energy targets, offering feed-in tariffs, and establishing power purchase agreements (PPAs) that provide financial incentives for solar energy projects. Additionally, various countries provide subsidies, tax credits, and rebates to reduce the cost of solar installations, making solar energy more appealing and affordable for both residential and commercial users. In the Interim Budget for 2024-2025, there has been a substantial increase in fiscal allocation for solar power grid infrastructure development, rising to Rs. 8,500 Crore (US$ 1.02 billion) from the previous year's Rs. 4,970 Crore (US$ 0.60 billion). To support large-scale grid-connected solar projects, a scheme called the "Development of Solar Parks and Ultra Mega Solar Power Projects" is being implemented, with a target capacity of 40 GW to be achieved by March 2024. https://www.ibef.org/industry/renewable-energy https://static.pib.gov.in/WriteReadData/specificdocs/documents/2022/mar/doc20223321901.pdf

The current report Scope analyzes Solar Energy Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Solar Energy Market Analysis

According to Cognitive Market Research, the global Solar Energy market size was estimated at USD 95451.6 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 38180.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Solar Energy market with a market size of USD 30124.5 million in 2024 and is projected to grow at a CAGR of 4.5% during the forecast period. The nation's rapidly increasing energy needs across various sectors, driving the market.
• The Canada Solar Energy market had a market share of USD 4581.6 million in 2024 and is projected to grow at a CAGR of 5.5% during the forecast period. Canada's robust regulatory framework supports clean energy, driving the market.
• The Mexico Solar Energy market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 3474.4 million in 2024.

Europe Solar Energy Market Analysis

According to Cognitive Market Research, the global Solar Energy market size was estimated at USD 95451.6 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 28635.4 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2031.

• The United Kingdom Solar Energy market had a market share of USD 4810.7 million in 2024 and is projected to grow at a CAGR of 5.8% during the forecast period. In the UK, Solar Energy sales witness an upswing due to the supportive government policies including financial incentives, and increasing efforts to reduce greenhouse gas emissions.
• The France Solar Energy market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 2634.4 million in 2024.
• According to Cognitive Market Research, the German Solar Energy market size was valued at USD 5669.8 million in 2024 and is projected to grow at a CAGR of 5.2% during the forecast period. In Germany, Solar Energy surged due to ambitious renewable energy goals, and substantial investments in solar infrastructure.
• The Italy Solar Energy market is projected to witness growth at a CAGR of 4.4% during the forecast period, with a market size of USD 2462.6 million in 2024.
• The Russian Solar Energy market is projected to witness growth at a CAGR of 4.0% during the forecast period, with a market size of USD 4438.5 million in 2024.
• The Spain Solar Energy market is projected to witness growth at a CAGR of 4.1% during the forecast period with a market size of USD 2348.1 million in 2024
• The Luxembourg Solar Energy market is projected to witness growth at a CAGR of 5.1% during the forecast period, with a market size of USD 887.7 million in 2024.
• The Portugal Solar Energy market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 601.3 million in 2024.
• The Greece Solar Energy market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 343.6 million in 2024.
• Rest of Europe's Solar Energy market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 4438.5 million in 2024.

Asia Pacific Solar Energy Market Analysis

According to Cognitive Market Research, the global Solar Energy market size was estimated at USD 95451.6 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 21953.8 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.

• According to Cognitive Market Research, the China Solar Energy market size was valued at USD 9879.2 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period. Solar Energy surged in China due to rapid urbanization, and rising energy needs.
• The Japan Solar Energy market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 3029.6 million in 2024.
• The India Solar Energy market had a market share of USD 2634.4 million in 2024 and is projected to grow at a CAGR of 10.3% during the forecast period. India's aggressive solar energy targets, and significant investments in solar technology, driving the market.
• The South Korean Solar Energy market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 2195.3 million in 2024.
• The Australian Solar Energy market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 1141.6 million in 2024.
• The South East Asia Solar Energy market is projected to witness growth at a CAGR of 9.5% during the forecast period, with a market size of USD 1514.8 million in 2024.
• The Rest of Asia Pacific Solar Energy market is projected to witness growth at a CAGR of 8.3% during the forecast period, with a market size of USD 1558.7 million in 2024.

South America Solar Energy Market Analysis

According to Cognitive Market Research, the global Solar Energy market size was estimated at USD 95451.6 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 4772.5 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031. .

• According to Cognitive Market Research, the Brazil Solar Energy market size was valued at USD 2042.6 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period. Solar Energy flourished in Brazil due to the growing interest and financial commitment to solar energy.
• Argentina's Solar Energy market had a market share of USD 801.7 million in 2024 and is projected to grow at a CAGR of 6.8% during the forecast period. Argentina's commitment to expanding solar infrastructure and harnessing its high solar irradiance augments the demand.
• Colombia's Solar Energy market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 424.7 million in 2024.
• Peru's Solar Energy market is projected to witness growth at a CAGR of 6.1% during the forecast period, with a market size of USD 391.3 million in 2024.
• Chile's Solar Energy market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 343.6 million in 2024.
• The Rest of Latin America's Solar Energy market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD 768.3 million in 2024.

Middle East Solar Energy Market Analysis

According to Cognitive Market Research, the global Solar Energy market size was estimated at USD 95451.6 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 1909.0 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.

• The GCC Countries Solar Energy market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 817.0 million in 2024. The GCC countries are investing heavily in solar energy to diversify their energy mix and reduce reliance on fossil fuels.
• The Egypt Solar Energy market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 200.4 million in 2024.
• The South Africa Solar Energy market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 301.6 million in 2024. In South Africa, the demand for the Solar Energy market is driven by decreasing costs of solar technology and increasing public and private sector investments in solar projects.
• The Turkey Solar Energy market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 164.1 million in 2024.
• The Nigeria Solar Energy market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 200.4 million in 2024.
• The Rest of the MEA Solar Energy market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 225.2 million in 2024.

Solar Energy Market Analysis

Solar Energy Market Technology Segment Analysis

According to Cognitive Market Research, Photovoltaic Systems stands out as the dominant category over the projected period. The cost of photovoltaic (PV) systems has seen a significant decline over the years, thanks to advancements in manufacturing processes, economies of scale, and heightened competition among suppliers. Reduced installation costs have made PV systems more accessible to a wider range of consumers and businesses. Technological advancements and increased production capacities have led to a notable drop in the price of solar PV modules. This decrease in module costs has been a major factor in the overall reduction in the cost of solar PV systems.

Concentrated Solar Power Systems emerge as the fastest-growing category in the Solar Energy market. Concentrated Solar Power (CSP) systems capture solar energy by focusing sunlight to generate high temperatures, which are then used to produce electricity. This approach can achieve higher efficiencies than traditional photovoltaic (PV) systems, particularly in regions with abundant solar radiation. CSP systems frequently include thermal energy storage solutions, such as molten salt storage, which enables them to store excess heat collected during peak sunlight hours. This stored energy can be utilized to generate electricity during periods without sunlight, such as at night or on cloudy days. This feature enhances the reliability and flexibility of CSP systems, effectively addressing the intermittency challenges associated with solar energy.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Solar Energy Industry. Request a Free Sample PDF!

Solar Energy Market Solar Module Segment Analysis

According to Cognitive Market Research, Cadmium Telluride stands out as the dominant category over the projected period. Cadmium Telluride (CdTe) solar modules are typically more cost-effective to produce than conventional silicon-based panels. The manufacturing process for CdTe modules requires fewer materials and less energy, resulting in lower production costs. This cost efficiency makes CdTe modules appealing for both large-scale installations and residential use. Additionally, CdTe modules are effective in low-light and high-temperature environments. Their capacity to generate electricity efficiently under less-than-optimal conditions makes them suitable for a wide range of geographic locations and climates.

Polycrystalline emerges as the fastest-growing category in the Solar Energy market. Polycrystalline solar modules are typically cheaper to manufacture than monocrystalline panels. Their production involves melting silicon to create a block, which is then sliced into wafers—a simpler and less energy-intensive process compared to the one used for monocrystalline cells. This cost advantage makes polycrystalline modules appealing for both residential and commercial use. Their affordability and performance have made them a popular choice for residential solar systems, with homeowners increasingly selecting polycrystalline panels to lower their energy costs and enhance property value.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Solar Energy Application Segment Analysis

Solar Energy Market Application Segment Analysis

According to Cognitive Market Research, Industrial stands out as the dominant category over the projected period. Industrial operations often require substantial energy, and solar energy can help these businesses substantially lower their electricity expenses. Solar panels offer a consistent and predictable energy cost, contrasting with the variable prices of grid electricity, which supports effective long-term cost management. By generating their solar power, industrial facilities can decrease their reliance on the grid, protecting themselves from fluctuating electricity prices and ensuring a more stable and reliable energy supply. Additionally, solar energy systems that include energy storage solutions, like batteries, offer backup power during outages and periods of low sunlight, thereby improving the continuity and security of industrial operations.

Commercial emerges as the fastest-growing category in the Solar Energy market. Commercial buildings, such as offices, retail spaces, and industrial facilities, generally have high energy consumption. By generating power on-site through solar energy, these buildings can lower their electricity bills and reduce their dependence on grid electricity. This results in significant cost savings over time, particularly as energy prices rise. Additionally, many governments offer financial incentives for commercial solar installations, including tax credits, rebates, and grants. These incentives help reduce initial costs and enhance the financial appeal of investing in solar energy. For instance, the Investment Tax Credit (ITC) in the United States provides a substantial tax benefit for solar installations.

• Residential
• Commercial
• Industrial

Solar Energy End-Use Industry Segment Analysis

Solar Energy Market End-Use Industry Segment Analysis

According to Cognitive Market Research, the dominant category is Electricity Generation. Governments worldwide have established bold renewable energy targets and enacted policies to boost solar power adoption. These initiatives include renewable energy mandates, feed-in tariffs, and power purchase agreements (PPAs) that offer financial incentives for solar energy projects. Solar power, being a clean and renewable resource, plays a crucial role in decreasing greenhouse gas emissions and reducing dependence on fossil fuels. With rising concerns about climate change and environmental sustainability, there is mounting pressure on both governments and businesses to invest in renewable energy solutions such as solar power.

The fastest-growing category in the Solar Energy market is heating. Programs such as the Renewable Heat Incentive (RHI) in the UK, along with similar initiatives in other countries, offer financial support to users of solar thermal systems. These incentives lower the initial costs and enhance the return on investment for solar heating projects. As a result, both residential and commercial sectors are increasingly turning to solar heating solutions. This shift is driven by a growing interest in sustainable alternatives to traditional heating methods, aimed at reducing energy expenses and minimizing environmental impact.

• Electricity Generation
• Lighting
• Heating
• Charging
• Others

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Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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