Global Solar PV Installation Market to Surpass US$ 1 Trillion by 2035

The global solar photovoltaic (PV) installation market is on the verge of a transformative decade. Valued at US$ 279.4 Bn in 2024, the industry is forecast to expand at a robust CAGR of 13.5% from 2025 to 2035, ultimately reaching US$ 1,063.4 Bn by the end of 2035. This strong growth trajectory reflects the pivotal role of solar PV in the global energy transition, as governments, industries, and consumers increasingly pivot toward clean, sustainable, and cost-competitive energy solutions.

Declining solar module prices, technological innovations, and supportive policy frameworks are the cornerstones of this growth. Simultaneously, rising global electricity demand—driven by population growth, industrialization, digitalization, and electrification of transport—positions solar PV as a critical energy source for the decades ahead.

Analysts’ Viewpoint on the Solar PV Installation Market

Industry analysts view the solar PV installation market as one of the most dynamic segments of the renewable energy landscape. Falling equipment costs and the widespread adoption of advanced technologies such as bifacial modules, thin-film PV, and intelligent inverters are making solar more efficient and financially viable than ever.

Moreover, government incentives, renewable energy mandates, and long-term sustainability targets are accelerating the deployment of solar PV across residential, commercial, industrial, and utility-scale projects. Supply chain localization and capacity expansions in solar manufacturing are also helping nations address energy security concerns while reducing exposure to global price fluctuations.

Strategic partnerships, long-term power purchase agreements (PPAs), and bundled services such as operation and maintenance (O&M) further enhance the market structure. As a result, industry leaders are optimistic about solar PV’s role in achieving global net-zero carbon targets and facilitating a broad-based energy transition.

Solar Photovoltaic (PV) Installation Market Overview

Solar PV installation involves the deployment of systems that convert sunlight into electricity using photovoltaic panels, inverters, and supporting infrastructure. Applications range from rooftop residential systems to utility-scale solar farms that supply national grids with gigawatts of clean power.

Residential installations reduce household dependence on conventional electricity sources and cut utility bills.

Commercial and industrial projects lower operational costs, help organizations meet climate goals, and reduce reliance on fossil fuels.

Utility-scale solar delivers large-scale power to grids, supporting national renewable energy targets.

PV installations also encompass a range of services including design, engineering, procurement, construction, and O&M, ensuring long-term system performance and economic feasibility.

Market Drivers

1. Declining Installation Costs Increase Solar Project Feasibility

One of the most significant drivers of the solar PV installation market is the steady reduction in costs. Over the past decade, the price of solar modules has fallen by more than 80% since 2010, thanks to economies of scale, manufacturing efficiency, and technological advancements.

This decline extends beyond panels to include inverters, mounting systems, and balance-of-system components, making solar one of the most cost-competitive power sources globally. Lower capital expenditures (CAPEX) have reduced the levelized cost of electricity (LCOE), making solar PV attractive to investors, governments, and consumers alike.

Automation, digitization, and standardized system designs have further streamlined installation, cutting labor and engineering expenses. These improvements lower project risks, making solar PV highly bankable, particularly in emerging economies where cost is a critical factor in bridging energy access gaps.

2. Growing Electricity Demand Drives Large-Scale Solar Adoption

The surge in global electricity demand—driven by rapid urbanization, population growth, industrialization, data center expansion, and the rise of electric vehicles—is creating unprecedented pressure on power systems. Traditional fossil fuels are increasingly constrained by price volatility, regulatory pressures, and environmental concerns.

Solar PV offers a scalable, low-cost, and sustainable solution. Utility-scale solar parks are being commissioned at record speed due to their ability to meet large capacity needs quickly—often within 12 to 18 months.

In developing regions such as India, Southeast Asia, and Africa, PV installations are helping meet industrial growth and rural electrification needs. In developed markets, rising electricity demand from digital infrastructure is also fueling new solar projects.

Technology Segmentation: Crystalline Silicon Leads

Among PV technologies, monocrystalline silicon panels dominate the market due to their high efficiency, compact size, and superior performance. These panels generate more electricity in smaller areas, making them ideal for space-constrained urban rooftops and commercial installations.

Advancements such as Passivated Emitter and Rear Cell (PERC) technology have further boosted performance while driving down costs. As a result, monocrystalline silicon is the most widely adopted PV technology across residential, commercial, and utility-scale installations.

Regional Outlook

Asia-Pacific: The Global Leader

Asia-Pacific dominates the solar PV installation market, with China, India, Japan, and South Korea leading deployment.

China spearheads large-scale utility projects under ambitious national policies, cementing its role as the world’s largest solar market.

India promotes both rooftop and grid-connected solar projects to meet surging power demand and national clean energy targets.

Japan and South Korea continue to innovate through advanced PV technologies and smart-grid integration.

Strong government backing, rapid industrialization, and cost declines make Asia-Pacific the largest and fastest-growing solar PV market globally.

Other Regions

Europe: Aggressive decarbonization policies and high energy costs drive solar adoption.

North America: Growing demand from data centers, EVs, and corporate sustainability commitments fuels installations.

Middle East & Africa: Abundant sunlight and falling PV costs are driving large-scale projects in GCC nations and rural electrification across Africa.

Latin America: Brazil and Mexico are emerging as key solar hubs, leveraging abundant resources and government support.

Competitive Landscape

The solar PV installation market is highly competitive, with companies investing in next-generation technologies, manufacturing expansions, and global project pipelines. Key players include:

JA Solar Technology Co., Ltd. – Leading global module producer with a strong utility-scale portfolio.

SunPower Corporation – Known for high-efficiency, durable panels for residential and commercial applications.

Suntech Power Holding Co. Ltd. – Competitive pricing backed by large-scale manufacturing.

Sharp Corporation – Integrates solar with electronics expertise for both small- and large-scale projects.

Acciona SA – Europe-based innovator with a focus on sustainability-driven installations.

Tata Power Solar Systems Ltd. – India’s leading solar manufacturer, supporting national energy goals.

These companies are also investing in bifacial panels, intelligent inverters, and energy storage integration, ensuring solar PV remains competitive in the evolving global energy mix.

Key Market Developments

2025: JA Solar was awarded 2.4 GW of the 5.1 GW PV module tender by Yalong River Hydropower Development Co., Ltd. in China. The project is part of the 80 GW Yalong River Integrated Hydro-Wind-Solar Base, showcasing large-scale hybrid renewable deployment.

2024: Tata Power began commercial production at a 4.3 GW solar cell and module factory in Tamil Nadu, India. The facility employs TOPCon and Mono PERC technology, supporting India’s push for localized, high-quality solar manufacturing.

These developments highlight the global push for scaling up solar PV production and deployment to meet both national and international clean energy targets.

Market Snapshot

Market Size (2024): US$ 279.4 Bn

Forecast Value (2035): US$ 1,063.4 Bn

CAGR (2025–2035): 13.5%

Drivers: Declining installation costs, rising electricity demand, technological innovation

Dominant Technology: Crystalline silicon (monocrystalline leading)

Leading Region: Asia-Pacific

Conclusion

The solar photovoltaic (PV) installation market is set for exponential growth over the next decade. Falling costs, rising electricity demand, and supportive policy frameworks are positioning solar as a mainstream energy source worldwide. With innovations in module technology, energy storage, and grid integration, solar PV is expected to play a pivotal role in the global decarbonization journey, creating vast opportunities for investors, developers, and technology providers