The turn of the decade has so far been filled with great news for the environment as renewable energy industries continue to reach unprecedented growth worldwide.
According to a recent report by U.S.-based analytics firm Allied Market Research, the global solar farms industry generated $61.4 billion in 2019, and is estimated to generate $261.0 billion by 2027, witnessing a CAGR of 19.8 percent from 2020 to 2027.
The study highlighted that the prime determinants for the growth of the sector is due to supportive government regulations for usage of photovoltaic technology drive the global solar farms market; in parallel, the increase in demand for renewable energy presents new opportunities in the coming years.
However, the solar farms industry is still witnessing barriers for market growth such as the COVID-19 pandemic and the high cost associated with installation.
The report pointed out that the global health crisis has stopped the manufacturing activities of solar farms to a screeching halt, as well as causing a shortage in the delivery of raw materials, causing ongoing installation projects to either get postponed or cancelled all together.
From a global perspective, China leads the line as the major supplier of solar panels across the world and the stoppage of production activity in the country impacted the global market, especially the U.S and South-East Asia.
Based on type, the utility-scale segment contributed to around half of the global solar farms market in 2019 and is expected to maintain its lead position throughout the forecast period. “This is due to surge in investments in grid expansion and integration technologies such as storage and UV connectivity,” the report explained.
However, the distributed generation segment is projected to witness the highest CAGR of 20.3 percent from 2020 to 2027.
In parallel, based on end-use industry, the commercial segment held the highest market share in 2019, accounting for around three-fifths of the global solar power plant market in 2019 and is expected to maintain its leadership status by 2027.
The report further noted that this segment is projected to portray the fastest CAGR of 20.3 percent from 2020 to 2027. “This is due to increase in economies around the world, rise in urbanization, and adoption of solar energy by commercial buildings such as offices, malls, airports, and others to decrease the carbon footprint,” it added.
From a regional perspective, Asia-Pacific, followed by North America, accounted for the largest market share in 2019, contributing to more than two-thirds of the global solar farms market, and is expected to maintain its dominant position in terms of revenue by 2027.
“This is due to increase in government initiatives that raise the demand for PV energy and distribution of solar lighting systems in rural areas,” the study mentioned.
It is worth noting that Europe is expected to grow at the fastest CAGR of 21.1 percent from 2020 to 2027, owing to rise in production of solar energy, increase in construction activities that led to installation of BIPV systems to generate electricity, and implementation of stringent environmental regulations to reduce carbon emission.
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