Solar Equipment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Equipment (Solar Panels, Mounting and Racking Systems, Tracking System, Storage System, Others), By Application (Residential, Non-Residential, Utility), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 136.21 Billion
CAGR (2026-2031)	10.67%
Fastest Growing Segment	Residential
Largest Market	Asia Pacific
Market Size (2031)	USD 250.26 Billion

Market Overview

The Global Solar Equipment Market will grow from USD 136.21 Billion in 2025 to USD 250.26 Billion by 2031 at a 10.67% CAGR. The Global Solar Equipment Market comprises the manufacturing and supply of critical hardware for solar energy generation, specifically photovoltaic modules, inverters, racking structures, and balance of system components. The primary drivers sustaining market momentum include stringent government decarbonization policies, continuous manufacturing cost efficiencies, and urgent energy security initiatives that necessitate diverse power sources. According to the Global Solar Council, in 2024, the global solar industry reached a historic cumulative installed capacity of 2 terawatts.

However, a substantial challenge posing a risk to sustained expansion is the inadequacy of current grid infrastructure. Many national power networks lack the capacity to accommodate high volumes of intermittent renewable energy, resulting in significant interconnection delays and generation curtailment. This grid congestion remains a critical bottleneck that could impede the pace of future solar equipment deployment across major regions.

Key Market Drivers

Supportive government regulatory frameworks and financial incentives serve as the primary catalyst for the Global Solar Equipment Market. Governments worldwide are implementing aggressive decarbonization mandates, supported by mechanisms such as tax credits, feed-in tariffs, and renewable energy auctions, which de-risk projects for developers and ensure stable demand for equipment manufacturers. These policies directly stimulate capital flow into the sector, encouraging the scaling of production lines for photovoltaic modules and inverters to meet national targets. According to the International Energy Agency, June 2025, in the 'World Energy Investment 2025' report, global investment in clean energy technologies was projected to reach $2.2 trillion for the year, with solar photovoltaics attracting the largest share of this capital due to these robust policy environments.

The continuous decline in photovoltaic component and installation costs is the second critical driver, fundamentally altering the economic viability of solar projects. Technological advancements in cell efficiency and massive expansions in manufacturing capacity have created a supply surplus, driving prices down for end-users and enabling deployment in previously price-sensitive regions. According to PV Magazine, January 2025, in the 'Global solar module prices mixed on varying demand expectations' article, the benchmark price for TOPCon solar modules from China dropped to $0.086 per watt, a record low driven by sustained upstream oversupply. This affordability has fueled an unprecedented surge in adoption rates across all market segments. According to SolarPower Europe, May 2025, in the 'Global Market Outlook for Solar Power 2025-2029', the global solar industry installed a record 597 GW of new capacity in 2024, confirming the direct correlation between equipment affordability and market expansion.

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Key Market Challenges

The inadequacy of existing grid infrastructure currently acts as a severe constraint on the growth of the Global Solar Equipment Market. While manufacturing capabilities for photovoltaic modules and inverters have surged to meet decarbonization goals, national power networks in key regions often lack the transmission capacity required to integrate these new energy sources. This infrastructure gap creates a bottleneck where completed solar projects remain offline or are forced to curtail generation to prevent system overloads. For equipment suppliers, this operational friction creates a direct financial impact, as confirmed orders are frequently postponed or cancelled when developers fail to secure necessary interconnection approvals within viable timeframes, leading to inventory accumulation and stalled revenue recognition.

The magnitude of this restriction is evident in the sheer volume of capacity currently unable to connect to the grid. According to the International Energy Agency, in 2024, approximately 1,700 gigawatts of renewable energy projects were stalled in interconnection queues globally due to grid constraints. This substantial backlog effectively freezes the addressable market for solar hardware, preventing manufacturers from capitalizing on the full potential of global demand and significantly slowing the pace of equipment deployment despite supportive government policies.

Key Market Trends

The Global Solar Equipment Market is currently undergoing a decisive technological shift from traditional P-type PERC cells to advanced N-type architectures, specifically Tunnel Oxide Passivated Contact (TOPCon) and Heterojunction (HJT) technologies. This transition is characterized by equipment manufacturers rapidly overhauling production lines to prioritize these high-efficiency cells, which offer superior bifaciality and lower degradation rates compared to legacy products. The speed of this industrial retooling has effectively established N-type technology as the new manufacturing standard, rendering older capacities obsolete much faster than anticipated. According to the China Photovoltaic Industry Association, September 2024, in the '2023-2024 China Photovoltaic Industry Development Roadmap', the market share of TOPCon technology was projected to surge from just 23% in 2023 to 60% by the end of 2024, confirming its position as the dominant cell technology globally.

Simultaneously, the market is witnessing a widespread proliferation of hybrid solar-plus-storage system architectures, fundamentally reshaping the demand for inverters and balance-of-system components. As electrical grids face saturation and feed-in tariffs decline, end-users are increasingly prioritizing energy independence by purchasing systems that integrate photovoltaic generation directly with battery storage. This trend is driving a surge in the deployment of sophisticated hybrid inverters capable of managing bidirectional power flow, moving the industry beyond simple grid-tied solutions. According to SolarPower Europe, June 2024, in the 'European Market Outlook for Battery Storage 2024-2028', the European market experienced a 94% year-on-year increase in installed battery storage capacity in 2023, a growth trajectory primarily anchored by the residential segment's rapid shift toward these integrated self-consumption models.

Segmental Insights

The Residential segment is recognized as the fastest-growing category within the Global Solar Equipment Market, primarily driven by favorable government policies and increasing electricity tariffs. National energy authorities are implementing supportive financial frameworks, such as investment tax credits and net metering, which significantly reduce the upfront capital required for rooftop installations. These incentives render solar power a cost-effective alternative for households seeking to lower monthly utility expenses. Consequently, the shift toward decentralized energy generation is accelerating, positioning the residential sector as a primary engine of demand in the global landscape.

Regional Insights

Asia Pacific leads the global solar equipment market due to the high concentration of manufacturing facilities in China and India. This regional dominance is supported by government policies that encourage both the production and adoption of photovoltaic technology. For instance, the National Energy Administration in China implements frameworks that support large-scale solar energy development and grid integration. Consequently, the availability of local components and rising energy demand in developing economies drive the continuous expansion of solar infrastructure throughout the region.

Recent Developments

• In December 2024, Trina Solar announced a technological breakthrough by achieving a world-record efficiency of 27.08% for its industrial n-type fully passivated heterojunction (HJT) solar cell. This achievement, independently verified by the Institute for Solar Energy Research in Hamelin, utilized large-area phosphorus-doped silicon wafers combined with advanced thin-film passivation and ultrafine line printing technologies. The manufacturer stated that this was the first instance of a crystalline silicon solar cell with a front-and-back contact structure surpassing the 27% efficiency mark, signaling a significant advancement in the performance capabilities of bifacial photovoltaic components.
• In December 2024, Nextracker marked a significant supply chain milestone by delivering the solar industry's first tracker components manufactured with 100% U.S. domestic content. This achievement was the result of a strategic collaboration with a domestic steel fabricator, which enabled the production of critical structural parts within the United States. The equipment was supplied to a large-scale solar-plus-storage project in California, demonstrating the company's commitment to onshoring manufacturing capabilities. This development highlighted the firm's ability to provide resilient, low-carbon infrastructure solutions while meeting strict local content requirements for utility-scale renewable energy projects.
• In October 2024, JinkoSolar launched its latest generation of high-performance photovoltaic modules, the Tiger Neo 3.0 series, based on advanced N-type TOPCon technology. The company reported that these new panels deliver a maximum power output of up to 670 watts and achieve a conversion efficiency of 24.8%, setting a new benchmark for the product line. Designed to serve both utility and distributed generation sectors, the modules feature enhanced bifacial factors and superior performance in low-light environments. The manufacturer emphasized that this product release aimed to maximize power density and economic value for solar developers globally.
• In June 2024, Enphase Energy introduced a suite of new power management products tailored for the European market during a major trade exhibition in Munich. The launch included the IQ Battery 5P, characterized as the company's most powerful energy storage solution to date, and the IQ8X Microinverter, which is engineered to support high-output solar modules. These innovations were developed to accommodate dynamic electricity pricing structures and improve energy independence for residential and commercial customers. The company highlighted that these technologies would enable more seamless integration of solar generation with reliable, scalable battery storage systems.

Key Market Players

• Jinko Solar Holding Co. Ltd.
• JA Solar Technology Co., Ltd.
• Trina Solar Co., Ltd.
• LONGi Green Energy Technology Co., Ltd.
• Canadian Solar Inc.
• First Solar, Inc.
• Risen Energy Co., Ltd.
• Suzhou Talesun Solar Technology Co., Ltd.

By Equipment	By Application	By Region
Solar Panels Mounting and Racking Systems Tracking System Storage System Others	Residential Non-Residential Utility	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Solar Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Solar Equipment Market, By Equipment:

• Solar Panels
• Mounting and Racking Systems
• Tracking System
• Storage System
• Others

• Solar Equipment Market, By Application:

• Residential
• Non-Residential
• Utility

• Solar Equipment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE