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Solar EPC Market size exceeded USD 256.18 billion in 2023 and is projected to expand at over 4.5% CAGR from 2024 to 2032. Driven by the tightening sustainable development targets across several global economies.
Supportive government policies, norms, and mandates designed to help meet the ambitious global decarbonization goals are creating a high demand for sustainable energy. This is redirecting many energy industry revenue streams towards the incorporation of more solar capacity in the energy mix, promoting industry growth.
With COVID-19 behind them, many countries are focusing on recovering from the pandemic slump. Several are subsequently looking to kickstart their economies by investing heavily in infrastructure development initiatives. As a result, vast amount of capital is being driven towards largescale solar power projects that were left incomplete during the lockdown and social distancing era.
Report Attribute | Details |
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Base Year: | 2023 |
Solar EPC Market Size in 2023: | USD 256.81 Billion |
Forecast Period: | 2024 to 2032 |
Forecast Period 2024 to 2032 CAGR: | 4.5 % |
2032 Value Projection: | USD 382.38 Billion |
Historical Data for: | 2019 to 2023 |
No. of Pages: | 800 |
Tables, Charts & Figures: | 1,917 |
Segments covered: | Technology, Classification, End-Use |
Growth Drivers: |
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Pitfalls & Challenges: |
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Solar energy projects, by their inherent nature require vast patches of land to effectively catch the sun’s rays to convert it into energy. Typically, they also need to be in reasonable proximity to the settlements they are powering to eliminate the need for a comprehensive energy storage and transmission infrastructure. These requirements often create a potent mix that make it difficult for industry players to acquire the permits needed to construct solar farms, limiting the industry in its scope.
In terms of technology, the solar EPC market from PV segment held a capacity of more than 210 GW in 2022. Going forward, the technology is slated to dominate the industry owing to the rapidly declining costs of PV components and panels. The growing affordability of the tech is expected to play well into the rising integration of advanced components and performance units, driven by the surging demand for efficient and commercially available solutions. With many economies kicking off infrastructure development initiatives, major contractors have been showing an increasing interest to deploying largescale clean energy projects, which will further complement the segment outlook.
In terms of classification, the solar EPC market valuation from rooftop segment is anticipated to surpass nearly USD 122.5 billion by 2032 due to rising strong demand from residential and commercial establishments. To reign in their respective carbon footprints, many governments worldwide have introduced favorable schemes and initiatives to promote small-scale rooftop solar adoption. This is creating a notable revenue stream in the market. Governments are also rolling out strict green building regulations that mandate the use clean energy and sustainable solutions to make new constructions carbon neutral, ensuring further growth avenues for the industry.
Asia Pacific solar EPC market size accounted for USD 121.5 billion in 2022. Moving ahead, efforts to improve the integration of renewables in the energy mix will foster the regional scenario. Regional governments have outlined strategic roadmaps and plans to promote solar power integration for both remote and urban areas, creating lucrative revenue pockets for the market. The region is also witnessing a number of closed tie-ups among leading contractors to deliver utility scale solar projects to achieve clean energy targets.
Some of the leading companies operating in the global industry are
Strategic collaboration, partnerships and mergers and ongoing development of expansive utility projects will likely sway the industry scenario. The initiative will help them augment the rollout and development of solar capacity across the region.
The COVID-19 pandemic had a notably negative impact on the solar EPC market as global lockdowns and supply chain disruptions led to many long halts in ongoing projects. This prevented revenues from flowing freely in the market, with global semiconductor shortage further exacerbating the situation. However, post-pandemic economic recovery efforts and initiatives to diversify the global semiconductor production ecosystem are set to put the market back on track. Many global carbon pledges are also likely to play their part in driving capital into the sector.
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Market Insights, By Technology
Market Insights, By Classification
Market Insights, By End-Use
The above information has been provided for the following regions and countries: