Solar Vehicle Market Size - By Vehicle Type (Passenger Vehicles, Commercial Vehicles), Electric Vehicle Type (Battery Electric Vehicle, Hybrid Electric Vehicle), Battery Type (Lithium-ion, Lead-acid, Lead Carbon), Solar Panel Type & Forecast, 2023 - 2032

Solar Vehicle Market Size

Solar Vehicle Market size was valued at USD 380.3 million in 2022 and is estimated to register a CAGR of over 12% between 2023 and 2032. Increasing investments in solar-powered car startups are driving growth in the market. These funds contribute to research, development, and vehicle type, propelling innovation in sustainable transportation.
 

For instance, in September 2022, Lightyear, a Dutch startup working on the development of a hybrid solar-powered car with an extended range, has revealed today that it secured USD 85.2 million in funding as it gears up to produce its inaugural solar vehicle. This trend reflects a growing interest in eco-friendly mobility solutions and reinforces the potential for solar-powered vehicles to play a significant role in the future of transportation.

 

The surging demand for sustainable transportation is a key driver behind the growth of the solar vehicle market. As environmental concerns and the need for clean energy solutions intensify, consumers and businesses are increasingly seeking eco-friendly alternatives. This rising demand fuels investments, research, and development in solar vehicles, propelling advancements in technology and expanding market offerings. The emphasis on sustainability is reshaping the automotive landscape, highlighting the potential for solar-powered vehicles to become a mainstream and environmentally responsible mode of transportation.
 

Limited energy storage poses a challenge to the growth of the market. Current energy storage technologies, such as batteries, have constraints in terms of capacity and efficiency. Solar vehicles depend on stored energy for times when sunlight is not available, and existing technologies may not provide sufficient range or power. Advancements in energy storage solutions, including higher capacity batteries and innovative storage technologies, are crucial for overcoming this limitation and enhancing the practicality of solar vehicles.
 

COVID-19 Impact

The COVID-19 pandemic has negatively impacted the solar vehicle market. Disruptions in the global supply chain, economic uncertainties, and reduced consumer spending have slowed vehicle typeion and hindered market expansion. Lockdowns and restrictions on movement have also affected research and development activities, causing delays in technological advancements. The financial strain on individuals and businesses has led to decreased demand for non-essential items, including solar vehicles, further impeding market growth during the pandemic.
 

Solar Vehicle Market Trends

Solar electric cars designed for both private and shared mobility usage are cultivating lucrative growth for the solar vehicle industry. Offering versatile transportation options, these vehicles cater to individual owners and shared mobility services alike. For instance, in May 2022, Squad Mobility unveiled the SQUAD Solar City Car, a solar electric vehicle with the capacity of two individuals, designed for use in multiple EU countries without requiring a driver’s license. This vehicle is crafted for both private usage and shared mobility purposes. As sustainability gains importance, the appeal of solar-powered vehicles for private and shared use is contributing significantly to the expanding market, driving innovation and investment in the solar vehicle industry.
 

Supportive government incentives and policies play a pivotal role in propelling the solar vehicle industry. Various countries are offering financial incentives, tax credits, and subsidies to promote the development, adoption, and manufacturing of solar-powered vehicles. These measures not only reduce the financial burden on consumers but also encourage research and development in the solar vehicle industry. By creating a favorable regulatory environment, governments contribute significantly to the growth and mainstream integration of solar vehicles in the broader automotive landscape.
 

Solar Vehicle Market Analysis

Based on vehicle type, the passenger vehicles segment held over 60% of the market share in 2022. Technological advancements in solar-powered cars are driving the growth of passenger vehicles within the market. Ongoing innovations in solar panel efficiency, energy storage, and electric battery type systems enhance the performance and appeal of solar-powered passenger cars.
 

For instance, in February 2023, Vayve Mobility is set to introduce India's inaugural solar-powered electric vehicle, Eva. Equipped with 150-watt solar panels on the sunroof, the vehicle can achieve a daily range of 10-12 km or 3,000 km annually. This solar capability is supplementary to the power derived from the 14kWH battery, enabling the car to cover 250 km on battery power.
 

Based on the battery type, the lithium-ion battery type segment accounted for 40% of the solar vehicle market share in 2022. The high energy density of Lithium-ion (Li-ion) batteries is a key factor propelling their use in the market. Li-ion batteries offer a superior power-to-weight ratio, providing efficient energy storage for solar-powered vehicles. This characteristic is essential for maximizing the vehicle's range and performance. The ability to store more energy in a compact and lightweight form enhances the overall efficiency of solar vehicles, making Li-ion batteries a preferred choice for powering these eco-friendly vehicles.
 

Asia Pacific solar vehicle market recorded more than 35% of the revenue share in 2022. Advancements in technology and strategic partnerships are driving factors in the market. Ongoing technological innovations in solar energy and electric vehicle technologies enhance the efficiency and appeal of solar vehicles. Simultaneously, strategic collaborations between government bodies, industry players, and research institutions facilitate knowledge exchange, promote innovation, and address challenges in the development and adoption of solar-powered vehicles. These synergies contribute to a dynamic ecosystem that accelerates the growth and integration of advanced solar vehicle technologies in the Asia Pacific region.
 

Solar Vehicle Market Share

Major companies operating in the solar vehicle industry are:

• Lightyear
• Volkswagen
• Rivian Automotive
• Fisker Inc.
• Toyota Motor Corporation
• Aptera
• Ford Motor Company
• Fiat Chrysler Automobiles
• Sono Motors
• Venturi Automobiles

Major companies in the market vie for revenue share by actively pursuing government subsidies and engaging in strategic collaborations. Leveraging financial incentives encourages adoption, while partnerships with industry stakeholders facilitate research, development, and the deployment of competitive solar vehicle technologies.
 

Solar Vehicle Industry News

• In June 2022, The Dutch startup Lightyear has revealed its Lightyear 0 electric car featuring solar panels across its roof, hood, and trunk, enabling charging while in motion. A total of five square meters of curved solar panels were seamlessly incorporated into the car's roof, bonnet, and tailgate, harnessing renewable solar energy to generate electric power for driving.
   

The solar vehicle market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipment (Units) from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

Market, By Electric Vehicle Type

• Battery Electric Vehicle
• Hybrid Electric Vehicle

Market, By Battery Type

• Lithium-ion
• Lead-acid
• Lead Carbon

Market, By Solar Panel Type

• Monocrystalline
• Polycrystalline

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia