PORTLAND, Ore., March 8, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "Solar Farm Market by Type (Utility-scale, Distributed Generation, Microgrids, and Others) and End User Industry (Residential, Commercial, and Industrial): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global solar farm industry generated $61.4 billion in 2019, and is estimated to generate $261.0 billion by 2027, witnessing a CAGR of 19.8% from 2020 to 2027.
Prime determinants of growth
Supportive government regulations for usage of photovoltaic technology drive the global solar farm market. However, high cost associated with installation hinders the market growth. Contrarily, increase in demand for renewable energy presents new opportunities in the coming years.
Manufacturing activities for solar farms have been stopped due to the lockdown imposed in many countries. In addition, raw material shortage has occurred.
China is 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.
Owing to economic uncertainty caused because of prolonged pandemic, some solar farm projects have been postponed or canceled.
The utility-scale segment to maintain its lead position throughout the forecast period
Based on type, the utility-scale segment contributed to around half of the global solar farm 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. However, the distributed generation segment is projected to witness the highest CAGR of 20.3% from 2020 to 2027.
The commercial segment to maintain its leadership status by 2027
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. Moreover, this segment is projected to portray the fastest CAGR of 20.3% 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. The research also analyzes the industrial segment.
Asia-Pacific, followed by North America, to maintain its dominant position by 2027
Based on region, Asia-Pacific, followed by North America, accounted for the largest market share in 2019, contributing to more than two-thirds of the global solar farm 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. However, Europe is expected to grow at the fastest CAGR of 21.1% 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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