Solar Panel Market Size, Share, Growth, Trends, and Global Industry Analysis: Size, Share, Growth, Trends, and Global Industry Analysis By Type (Crystalline Silicon Solar Panels, Thin-Film Solar Panels, Emerging/Next-Generation Panels, Others), By Connection type (On-Grid, Off-Grid), By Application (Solar Farms (Utility-Scale Projects), Building-Integrated Photovoltaics (BIPV), Portable and Consumer Electronics, Solar Lighting & Specialty Applications) and By Region 2020-2031

Solar Panel Market size was valued at US$ 158.4 billion in 2024 and is projected to reach US$ 235.0 billion by 2031 at a CAGR of 5.8% from 2025-2031. The market refers to the global industry focused on the design, manufacturing, and deployment of solar panels, which are devices that convert sunlight into electricity through photovoltaic (PV) technology. These panels are composed of interconnected solar cells, typically made from silicon or other advanced materials, and are used to generate renewable energy for residential, commercial, industrial, and utility-scale applications.

The market encompasses various panel types, including monocrystalline, polycrystalline, and thin-film technologies, each offering different efficiency levels, costs, and installation flexibility. Solar panels are a core component in the global transition toward clean energy, supporting efforts to reduce carbon emissions and achieve energy independence.

The market has experienced robust growth over recent years, fuelled by declining manufacturing costs, technological advancements, and strong policy support for renewable energy worldwide. Innovations in high-efficiency cell designs, such as PERC and bifacial modules, have significantly improved panel performance and made solar power increasingly competitive with conventional energy sources. Governments and private sectors are investing heavily in solar infrastructure to meet climate targets and reduce reliance on fossil fuels. Additionally, rising awareness of environmental sustainability and the expansion of decentralized energy systems are further driving demand. As solar energy becomes a mainstream solution for power generation globally, the market is expected to remain a critical pillar in shaping a low-carbon, resilient energy future.

Facts & Figures 

• In fact, over global installed solar PV capacity surpassed 1,200 gigawatts (GW) in 2023, making solar one of the fastest-growing sources of electricity worldwide.
• Crystalline silicon technology accounts for over 90% of total solar panels produced globally, demonstrating its strong dominance over other types.
• Monocrystalline solar panels can achieve commercial efficiency rates exceeding 23%, compared to around 15–17% for polycrystalline panels.
• Bifacial solar panels can increase energy yield by 5% to 20%, owing to their ability to capture sunlight on both sides.
• More than 35 million homes globally have rooftop solar installations, emphasizing the strong adoption at the residential level.
• Some of the world’s largest solar farms, like Bhadla Solar Park in India, exceed 2,200 MW of capacity, showing the scale at which utility projects are being developed.

Key Developments

• In May 2025, Huasun Energy unveiled its next-generation heterojunction (HJT) solar panels at Intersolar Europe. These new panels feature zero-busbar (0BB) technology and ultra-high bifacial designs for improved efficiency. The Kunlun Series modules offer nearly 100% bifaciality, while the Everest series provides versatile options for various installations. Additionally, a special Agri-PV module with 32% transparency was introduced to support agricultural applications, showcasing Huasun’s innovation leadership.
• In February 2025, Micromax Informatics, India’s well-known consumer electronics brand, announced its entry into the energy sector with the launch of a solar panel manufacturing venture. The company has created a new entity called “Startup Energy” to focus on producing high-efficiency solar panels designed for residential, commercial, and industrial use. Through this initiative, Micromax Solar aims to offer affordable and scalable solar power solutions, supporting India’s growing demand for clean energy and contributing to the country’s renewable energy goals.

Solar Panel Market Segmentation

Based on the Type

• Crystalline Silicon Solar Panels
  • Monocrystalline
  • Polycrystalline
• Thin-Film Solar Panels
  • Cadmium Telluride (CdTe)
  • Amorphous Silicon (a-Si)
  • Copper Indium Gallium Selenide (CIGS)
• Emerging/Next-Generation Panels
• Others

Based on type, crystalline silicon solar panels, particularly monocrystalline variants, are anticipated to lead the Global Market. This dominance is primarily driven by their superior efficiency rates, which often exceed 20%, and their proven long-term reliability in various climates. Monocrystalline panels also require less space compared to other types, making them ideal for both residential rooftops and high-capacity commercial projects where land availability is limited. Continuous technological innovations, such as passivated emitter rear contact (PERC) cells and bifacial designs, have further enhanced their performance and appeal. Additionally, declining manufacturing costs and robust supply chains, especially in Asia-Pacific, have made crystalline silicon panels more accessible globally. As consumers and developers prioritize high-efficiency, durable, and aesthetically pleasing solutions, crystalline silicon solar panels are set to maintain their leadership position, solidifying their critical role in the transition to clean energy.

Based on the Connection Type 

• On-Grid
• Off-Grid

Based on connection type, on-grid solar panels are anticipated to lead the Global Market. This dominance is largely due to their widespread integration with national and regional electricity grids, allowing users to export excess energy and benefit from net metering policies. On-grid systems are particularly popular in urban and suburban areas, where reliable grid access makes them more cost-effective and practical. Governments worldwide offer strong incentives, subsidies, and favourable feed-in tariffs to encourage on-grid installations, further boosting their adoption. Additionally, these systems eliminate the need for costly battery storage, reducing upfront investment and maintenance costs. Technological advancements in smart inverters and grid integration solutions have also made on-grid setups more efficient and user-friendly. As countries focus on decarbonizing their electricity supply and enhancing grid resilience, on-grid solar panels are expected to maintain their leadership, playing a pivotal role in accelerating the global shift toward sustainable energy solutions.

Based on the Application

• Solar Farms (Utility-Scale Projects)
• Building-Integrated Photovoltaics (BIPV)
• Portable and Consumer Electronics
• Solar Lighting & Specialty Applications

Based on application, solar farms (utility-scale projects) are anticipated to lead the Global Market. This dominance is driven by the urgent global push for large-scale renewable energy generation to meet climate targets and reduce dependence on fossil fuels. Utility-scale solar farms benefit from economies of scale, significantly lowering the cost per watt and making solar power more competitive with traditional energy sources. Governments worldwide are supporting these projects through large tenders, long-term power purchase agreements (PPAs), and dedicated funding initiatives. Additionally, continuous technological advancements, such as bifacial modules and tracking systems, have improved the energy yield and operational efficiency of solar farms. Major installations across regions like Asia-Pacific, the Middle East, and North America underscore their rapid expansion. As nations continue to prioritize grid-scale clean energy solutions to ensure reliable and affordable electricity, solar farms are expected to maintain their leadership and drive the market forward.