Global Solar Photovoltaic System Market: A Report on Growth and Sustainability Alignment

The global Solar Photovoltaic (PV) System market is forecast to achieve a valuation of USD 250 billion by 2031, expanding at a Compound Annual Growth Rate (CAGR) of 7.5% from 2025 to 2031. The market is estimated to reach USD 150 billion in 2024, reflecting significant growth driven by industrial adoption and technological innovation. This expansion is critically aligned with the global pursuit of the United Nations’ Sustainable Development Goals (SDGs), particularly those concerning energy, climate, and sustainable infrastructure.

Contribution to Sustainable Development Goals (SDGs)

The growth of the solar PV market is intrinsically linked to advancing several key SDGs. The industry’s expansion provides a direct pathway to a more sustainable and equitable global energy future.

SDG 7: Affordable and Clean Energy

The primary contribution of the solar PV market is towards ensuring universal access to affordable, reliable, and modern energy. Declining installation costs, coupled with government incentives, are making solar energy increasingly accessible for residential, commercial, and utility-scale applications, thereby accelerating the transition from fossil fuels to clean energy sources.

SDG 13: Climate Action

By generating electricity without producing greenhouse gas emissions, solar PV systems are a cornerstone of global efforts to combat climate change. The market’s growth directly supports the reduction of carbon footprints and helps nations meet their commitments under international climate agreements.

SDG 11: Sustainable Cities and Communities

Urbanization and the push for energy independence are driving the adoption of rooftop solar installations and Building-Integrated Photovoltaics (BIPV). These technologies contribute to making cities more resilient, sustainable, and energy-efficient by decentralizing power generation and integrating renewable energy into the urban fabric.

SDG 9: Industry, Innovation, and Infrastructure

The market fosters innovation in energy technology and promotes the development of resilient infrastructure. Advancements in panel efficiency, smart grid integration, and energy storage solutions are central to building a modern, sustainable energy infrastructure capable of supporting long-term economic growth.

Key Market Growth Drivers

1. Technological Advancements and Innovation: Continuous innovation in PV technology, including bifacial modules, advanced tracking systems, and lightweight materials, is enhancing efficiency and reducing costs. The integration of AI, IoT, and advanced analytics is creating smarter, more reliable energy systems, directly supporting SDG 9.
2. Favorable Government Policies and Infrastructure Investment: Governments worldwide are implementing supportive policies, including tax incentives and funding programs, to accelerate the energy transition in line with SDG 7 and SDG 13. Public-private partnerships and national initiatives like smart cities are creating a favorable environment for market expansion.
3. Expanding Applications Across End-Use Sectors: The increasing integration of solar PV solutions across diverse industries such as manufacturing, automotive, and telecommunications is broadening the market’s base. This cross-sector relevance ensures consistent demand and promotes sustainable industrial practices.
4. Increased Investment in Research & Development: A surge in public and private investment in R&D is focused on creating next-generation solar products with higher efficiency and greater sustainability. This commitment to innovation is crucial for achieving long-term clean energy goals.

Market Segmentation Analysis

By Technology

• Monocrystalline
• Polycrystalline
• Thin-film
• Bifacial
• Building-integrated photovoltaics (BIPV)

By Application

• Residential
• Commercial
• Utility-scale
• Off-grid
• On-grid

By Component

• Solar Cells
• Inverters
• Mounting Systems
• Batteries
• Charge Controllers

Regional Analysis and SDG Implementation

North America

The North American market is characterized by advanced technology, high consumer demand, and significant investment in innovation, aligning with SDG 9. Strong regulatory frameworks and infrastructure support sustained growth in the region.

Europe

Driven by strong environmental policies and a commitment to SDG 13, Europe is a rapidly growing market. Nations like Germany, the UK, and France are leading the adoption of advanced solar technologies to meet ambitious renewable energy targets.

Asia-Pacific

The Asia-Pacific region is projected to exhibit the highest growth potential. Rapid industrialization, urbanization, and a rising middle class in countries like China and India are fueling massive investments in solar infrastructure to meet escalating energy demands in a sustainable manner, directly addressing SDG 7 and SDG 11.

Rest of the World

Markets in Latin America, the Middle East, and Africa are showing steady growth. These regions represent significant opportunities for market expansion, driven by infrastructure development and the need to provide clean energy access to growing populations.

Key Market Players

• First Solar
• SunPower Corporation
• Canadian Solar
• JA Solar Technology
• Trina Solar
• LONGi Solar
• JinkoSolar
• Hanwha Q CELLS
• Risen Energy
• Sungrow Power Supply
• Enphase Energy

Relevant Sustainable Development Goals (SDGs)

1. SDG 7: Affordable and Clean Energy

   The article’s central theme is the growth of the solar photovoltaic (PV) system market. It directly addresses the shift towards “clean and renewable energy sources” and making solar energy “more reliable and accessible.” This aligns perfectly with the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all.

2. SDG 9: Industry, Innovation, and Infrastructure

   The text emphasizes “technological advancements and innovation” such as “bifacial modules, tracking systems, and lightweight photovoltaic materials.” It also discusses the “integration with smart grids” and the development of “sustainable infrastructure,” which are core components of building resilient infrastructure and fostering innovation.

3. SDG 13: Climate Action

   A primary driver for the solar PV market growth, as stated in the article, is “growing environmental concerns” and the “global emphasis on reducing carbon emissions.” This directly connects to taking urgent action to combat climate change and its impacts.

4. SDG 11: Sustainable Cities and Communities

   The article mentions that “Rooftop installations are gaining momentum due to urbanization and increased energy independence goals among consumers.” This points to making cities and human settlements inclusive, safe, resilient, and sustainable by integrating renewable energy solutions into the urban fabric.

Specific Targets Identified

• Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

  The article’s forecast of the solar PV market reaching “USD 250 billion by 2031” and the discussion of a “continuous rise in installations and capacity expansion” directly support this target of increasing the proportion of renewable energy like solar power.

• Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.

  The article highlights “Increased Investment and Focus on Research & Development” from both private and public entities, as well as “regional partnerships to enhance market presence” as key growth factors. This reflects the promotion of investment and cooperation in clean energy technology.

• Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies.

  The text describes the adoption of solar PV systems in “residential, commercial, and utility-scale applications” and the development of “sustainable infrastructure.” Innovations like “AI, IoT, advanced analytics, and automation” are mentioned as enabling “smarter and more efficient use cases,” which aligns with upgrading industries with clean technologies.

• Target 13.2: Integrate climate change measures into national policies, strategies and planning.

  The article explicitly states that “Favorable Government Policies and Infrastructure Push,” including “funding programs, tax incentives, and policy frameworks,” are supporting market growth. It also refers to “energy transition policies” strengthening worldwide, showing the integration of climate-friendly energy solutions into national planning.

Indicators for Measuring Progress

• Market Growth and Investment:

  The article provides specific financial figures that can serve as indicators, such as the market projection of “USD 250 billion by 2031” and the “CAGR of 7.5%.” The mention of “a surge in investment from both private and public entities” also serves as a qualitative indicator of financial flows towards clean energy.

• Renewable Energy Capacity:

  The text implies an increase in capacity through phrases like “continuous rise in installations and capacity expansion across major regions.” The number of installations (e.g., rooftop installations) and the total installed capacity (in megawatts or gigawatts) would be concrete indicators.

• Technological Adoption and Innovation:

  The article mentions specific technological advancements like “bifacial modules, tracking systems, and lightweight photovoltaic materials” and improved “panel efficiency.” The rate of adoption of these advanced technologies in new installations can be used as an indicator of progress towards more efficient and sustainable infrastructure.

• Policy and Regulatory Support:

  The existence and number of “Government incentives,” “funding programs,” “tax incentives,” and “policy frameworks” mentioned in the article are direct indicators of how climate change measures are being integrated into national policies.

• Reduction in Carbon Emissions:

  The article states that a key driver is the “global emphasis on reducing carbon emissions.” While not providing specific numbers, it implies that the expansion of the solar PV market contributes to this reduction, which is a primary indicator for climate action.

SDGs, Targets, and Indicators Analysis

Source: openpr.com