Solar Energy Markets to Reach $974.7 Billion by 2031, Driven by Policy Mandates, Falling Costs, and Surging EV Infrastructure Demand

“Global solar energy market is projected to rise from $492.7 billion in 2025 to $974.7 billion by 2031, growing at a 10.8% CAGR.”

Boston, Aug. 25, 2026 (GLOBE NEWSWIRE) -- The global solar energy market is projected to grow from $492.7 billion in 2025 to $974.7 billion by 2031, at a compound annual growth rate (CAGR) of 10.8% from 2026 to 2031, according to BCC Research's newly published report, Solar Energy Markets. The report delivers comprehensive market sizing, segmentation, competitive intelligence, and technology analysis across the full spectrum of solar energy applications and technologies.

Key Findings

• The global solar energy market is valued at $492.7 billion in 2025 and is forecast to reach $974.7 billion by 2031 at a 10.8% CAGR, driven by declining levelized cost of electricity (LCOE), supportive government policy frameworks, and accelerating integration of solar with battery storage and EV charging infrastructure.
• Asia-Pacific (APAC) dominates the global market with a 57.8% share, underpinned by the region's manufacturing scale, aggressive national renewable energy targets, and dominant solar supply chain across China, India, and Southeast Asia.
• Renewable portfolio standards (RPS) and feed-in tariff (FIT) programs are structurally reshaping electricity markets globally, mandating minimum renewable sourcing thresholds for suppliers while providing long-term revenue certainty that attracts institutional investment and accelerates capacity deployment.
• National programs including Saudi Arabia's Vision 2030 and Brazil's Ten-Year Energy Expansion Plan (PDE) 2035, combined with the EU-Latin America and Caribbean Global Gateway Investment Agenda — which commits approximately $51.5 billion in renewable energy support through 2027 — are opening substantial new market corridors outside traditional solar strongholds.
• Next-generation cell architectures are rapidly displacing PERC technology, with N-type TOPCon, heterojunction (HJT), and back contact (BC) modules gaining market share. LONGi's two-terminal crystalline silicon-perovskite tandem cell achieved a NREL-certified conversion efficiency of 34.85%, while Jinko Solar's perovskite tandem cell reached 33.84% efficiency in 2025. Solar power tower CSP technology is forecast to grow at a 29.5% CAGR from 2026 to 2031, the fastest among all CSP types.
• Key market participants include Canadian Solar, LONGi, Jinko Solar, JA Solar, Trina Solar, Enphase Energy, SolarEdge, First Solar, DAS Solar, Tongwei Co. Ltd., Qcells, ReNew Energy Global PLC, Enel Green Power SpA, Scatec ASA, and Atlas Renewable Energy, among others.

Market Drivers

The solar energy market is being propelled by a convergence of structural and macroeconomic forces. Declining LCOE — driven by higher module efficiencies, manufacturing automation, and low-carbon production inputs — continues to improve the economic competitiveness of solar relative to fossil fuels, removing one of the sector's most persistent barriers to adoption. Simultaneously, growing EV penetration is creating an entirely new demand channel for solar-powered charging infrastructure, with AI-integrated systems such as Germany's EnerMAAS project illustrating the emerging intersection of solar generation and intelligent urban mobility. The rising attachment rate of batteries within solar installations is further expanding revenue per installation, as consumers and utilities alike prioritise energy resilience and grid independence.
Policy tailwinds remain a decisive force. Renewable portfolio standards and feed-in tariff mechanisms are converting political commitments into investable revenue streams, while landmark national programmes across the Middle East, Latin America, and emerging Asia are diversifying the market's geographic growth base well beyond APAC.

Investment Considerations

The solar market's near-doubling in value by 2031 presents a compelling growth thesis, but investors should weigh significant near-term headwinds. Severe overcapacity — particularly among Chinese manufacturers — drove the four largest China-based solar producers to a collective net loss exceeding $1.5 billion in 2025 despite record shipment volumes. Canadian Solar reported a 6.6% revenue decline in 2025 attributable to compressed module average selling prices, while European distributor backlog cancellations contributed to material losses at SolarEdge. Rising interest rates continue to dampen residential solar demand in key Western markets. Companies best positioned to weather margin compression are those with differentiated technology portfolios — particularly in perovskite tandem cells, thin-film PV (notably CdTe, which accounted for over 30% of large-scale U.S. solar installations in 2025), and module-level power electronics — alongside exposure to policy-backed emerging markets where pricing pressure is partially offset by guaranteed offtake structures.

About the Report

Solar Energy Markets provides detailed market sizing, segmentation by technology and application, competitive intelligence across leading global players, and a forecast period spanning 2026 to 2031.

About BCC Research

BCC Research provides objective, unbiased measurement and assessment of market opportunities with detailed market research reports. Our experienced industry analysts assess growth trends, identify and evaluate new and changing market opportunities, and provide critical information and innovative decision support tools to help inform the strategic decision-making process.
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