According to IMARC Group’s latest research publication, The global solar photovoltaic (PV) market size reached 1,585.1 TWh in 2025. Looking forward, IMARC Group estimates the market to reach 5,009.6 TWh by 2034, exhibiting a CAGR of 13.64% during 2026-2034.

How AI is Reshaping the Future of Solar Photovoltaic (PV) Market

• Smart Solar Panel Tracking and Optimization: AI systems dynamically adjust panel angles throughout the day to capture maximum sunlight. Machine learning algorithms predict sun positioning and use real-time weather data to optimize energy absorption, improving overall system efficiency even during variable conditions.
• Predictive Maintenance and Defect Detection: Computer vision and machine learning analyze sensor data from solar panels to identify temperature anomalies, voltage irregularities, and potential equipment failures. These AI-powered systems detect issues before serious damage occurs, reducing maintenance costs by up to 40% while minimizing downtime.
• Energy Forecasting and Grid Management: AI models process weather patterns, historical generation data, and grid conditions to predict solar power output with remarkable accuracy. This enables better grid stability, optimal battery storage timing, and efficient energy trading in wholesale markets, particularly as renewable energy penetration increases.

Solar Photovoltaic (PV) Industry Overview:

Asia Pacific continues leading the global solar PV market with 55% market share, driven by China’s aggressive expansion which installed 197.9 GW of new capacity in just the first five months of this year. The United States strengthened its position through the Inflation Reduction Act, offering 30% Investment Tax Credits for solar installations through 2032, while utility companies achieved record installations of 50 GW. European markets are accelerating toward their 2030 target of 600 GW total solar capacity, supported by the Energy Performance of Buildings Directive mandating solar installations on new commercial buildings by 2026 and residential buildings by 2029.

Explore Updated 2026 Market Trends & Analysis

Solar Photovoltaic (PV) Market Trends & Drivers:

Government incentives and supportive policies are fundamentally reshaping solar adoption worldwide. The U.S. maintains its 30% federal Investment Tax Credit for both residential and commercial installations through 2032, significantly reducing upfront costs and making solar economically attractive for millions of property owners. India’s PLI Scheme allocated USD 1.61 billion across 11 companies to build 39,600 MW of domestic solar manufacturing capacity, supporting the country’s ambitious target of 100 GW solar installations. China implemented new market-based pricing from June onward, moving 100% of wind and solar generation to wholesale markets, creating greater revenue certainty for large-scale projects while front-loading installations with 92.9 GW added in May alone ahead of the policy change.

Technological breakthroughs continue driving solar panel efficiency and affordability to unprecedented levels. Trina Solar achieved a world record 25.44% conversion efficiency in heterojunction modules during early 2024, demonstrating how advanced n-type TOPCon and bifacial technologies are pushing performance boundaries. Japan committed ¥227 billion toward commercializing perovskite solar cells, which promise lighter weight, flexible form factors, and higher efficiency potential for applications on buildings, vehicles, and nontraditional surfaces. Global PV investment exceeded USD 500 billion, surpassing all other electricity generation sources combined. Researchers in India and the UK developed AI-enhanced hybrid systems integrating CNN-LSTM forecasting and reinforcement learning for dual-axis tracking, achieving R2 accuracy above 0.99 for energy prediction while improving thermal stability by over 35%.

Corporate energy procurement strategies have fundamentally shifted toward massive portfolio-based partnerships to secure clean power for AI infrastructure and data centers. Meta executed multiple gigawatt-scale deals including 720 MW with Zelestra, 600 MW with Enbridge, and partnerships with Engie, all concentrated in Texas’s ERCOT market to hedge price volatility and support regional grid decarbonization. SOLV Energy, ranked the top solar EPC globally, announced plans to build 6 GW of solar and storage projects across six U.S. states, reflecting unprecedented demand from hyperscale technology companies. European corporate financing activity showed signs of consolidation with 50 M&A deals completed in the first half, representing 25% year-over-year growth and involving 19.9 GW of total project capacity, signaling market maturation and strategic positioning by major investors.

Leading Companies Operating in the Global Solar Photovoltaic (PV) Industry:

• Acciona
• Canadian Solar
• First Solar
• JA Solar Technology Co. Ltd.
• Jinko Solar Co., Ltd.
• KYOCERA Corporation
• LONGi Green Energy Technology Co. Ltd.
• Renesola
• Sharp Corporation
• Tata Power Solar Systems Ltd.
• TCL Electronics
• Trinasolar
• Wuxi Suntech Power Co., Ltd.

Solar Photovoltaic (PV) Market Report Segmentation:

By Type:

• Thin Film
• Multi-Si
• Mono-Si

Thin film represents the largest segment, offering flexibility in applications and cost-effectiveness for various installation scenarios.

By Grid Type:

• On-Grid
• Off-Grid

On-grid accounts for 85.0% market share as it provides cost-effectiveness and eliminates battery storage needs while using the grid as a virtual battery.

By Deployment:

• Ground-mounted
• Rooftop Solar

Ground-mounted holds the largest share driven by utility-scale projects and government solar energy targets for large-scale electricity generation.

By End Use:

• Residential
• Commercial
• Utility

Utility represents the largest segment due to economies of scale in large-scale solar farms providing renewable energy to broad customer bases.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific exhibits a clear dominance with 55.0% market share due to low production costs, abundant sunlight, strong government support, and rapid infrastructure development led by China and India.

Recent News and Developments in Solar Photovoltaic (PV) Market:

• January 2026: LONGi Green Energy Technology signed a strategic cooperation agreement with Nio to promote photovoltaic-generated clean energy in electric vehicle charging stations. This partnership creates industry-leading integrated stations coupling solar energy storage with EV charging, advancing carbon neutrality in the transportation sector.
• January 2026: Ascent Solar Technologies highlighted progress in flexible thin-film PV solutions for space applications after securing orders from a major satellite manufacturer. The company formed teaming agreements with NovaSpark and CisLunar Industries to expand into defense and U.S. space markets with lightweight CIGS technology.
• December 2024: The UK government announced Clean Power 2030 Action Plan targeting 45-47 GW of solar installations by 2030, up from 16.6 GW currently. The plan includes potential for additional 9-10 GW from rooftop solar deployment, supported by revised building regulations and the proposed Future Homes Standard.
• March 2024: Waaree Energies partnered with Sprng Energy to supply 220 MW of solar PV modules for Gujarat projects. The agreement delivers AHNAY Series Bi-55 545Wp modules to projects backed by Shell Group, reflecting growing domestic manufacturing capabilities in India’s solar supply chain.
• April 2024: FuturaSun launched n-type TOPCon Solar Panel series for rooftop and large-scale PV projects. The FU570-580M Silk Nova collection features 182x91mm n-type 144 cells with power ratings from 570-580W and efficiency range of 22.0%-22.4%, demonstrating continuous innovation in module technology.

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