ID: MRFR/E&P/6053-HCR | 111 Pages | Published By Priya Nagrale on April 2023
Smart Solar Market share is projected to be worth USD 41.56 Billion by 2027, registering a CAGR of 15.8% during the forecast period.
Smart Solar Market is projected to be worth USD 41.56 Billion, registering a CAGR of 15.8% during the forecast period 2022-2030. The market was valued at USD 13.1 billion in 2020.
Smart solar solutions help users reduce their electricity expenses and increase the efficiency of solar components by monitoring and communicating in real-time. The preference has been towards using traditional power generation techniques but they depend a lot on non-renewable energy sources and also, are responsible for air pollution. The limited supply of these resources has triggered the need for renewable energy sources. Moreover, increasing power tariffs and government subsidies on solar power are driving the smart solar solutions market. 2017 was one more historic year for the solar power sector as more solar PV capacities were installed globally than any other power generation technology. The deployment of solar capacity was more than fossil fuels and nuclear combined.
The deployment of smart solar solutions helps users minimize their electricity expenses and increase the efficiency of solar components through real-time monitoring and communication. Trends like the increasing adoption of green energy and smart cities initiatives, followed by the demand for smart solar solutions have grown tremendously across all the countries. Regulatory mandates across North America, Europe, and China also drive this market. For the forecast period, the smart solar market is expected to grow moderately.
Smart Solar systems are solar devices that could communicate over the internet. Unlike conventional solar systems, they can be controlled using smartphones or computers. Smart Solar systems allow the user to monitor the solar production and performance of the device from remote places. These features make the traditional solar systems smart.
Many key features of the smart solar systems are driving the market, Smart solar systems allow the user to have insights into the amount of energy produced, it also gives visibility to the consumption that helps the user to minimize or maximize the energy production accordingly. Without monitoring and optimizing the produced solar energy properly, an enormous amount of solar energy is wasted or not utilized properly. As there is an ongoing depletion of natural resources, organizations look for ways to utilize renewable energy and take efforts to utilities them in an efficient way.
The COVID 19 and pandemic situation has created a huge impact on several industrial sectors concerning their production line, sales, and revenue. As the majority of the countries have imposed stringent laws of social distancing and prolonged shutdown, many industries, and commercial sectors did not operate, therefore there was a significant decline in the demand for energy across the globe.
The renewable energy generation sectors are hugely dependent on imports from other countries. About 80% of the solar modules and cells in India are imported from China. As the production in China has slowed down, the industries that relied on raw materials also are affected. The solar power plant constructions are also postponed due to the severity of the Coronavirus in the locality.
Owing to the increasing demand for energy, several competitors are expected to enter the Smart Solar market in the forecast period, as solar energy is considered the most effective renewable energy resource. However, some of the important players of the market are listed below:
The developing regions are facing a slowdown in adopting colocation solutions, and services are still in the introductory phase. The developing regions include the functions undertaken in the MEA and Latin America. Therefore, the initial start-up cost prevents the companies' headquarters in these regions from adopting smart solar solutions and services. However, it is undeniable that solar energy plays a big part in reducing carbon emissions and ensuring a sustainable energy future. It helps improve functions like cooling, heating, lighting, electrical power, and transportation and even helps in environmental clean-ups. In 2015, a global solar installed capacity was 227 GW 2015, and it rose to 305 GW in 2016. Regions like the US and China drove the growth.
May 2021- Vale S.A. has selected Nextracker to supply smart solar trackers for the Sol de Cerrado solar project in Minas Gerais, Brazil.
Roof-friendly installations: As the solar systems are operated with the help of solar PV panels, they are expected to e affixed in a position that faces the sun all the time, affixing the solar panels on the rooftops is considered favorable. Light-weight solar panels are invented to make the solar panels be placed over the rooftop for convenience. In addition to that, there are no holes made on the rooftop for installing them, the racks are not disturbed by the rainwater neither does it remain stagnant in the panels.
Hairy-solar panels: Light absorbing nano-wires look like hair strands that emerge out of the carbon-nanotube fabric. These hair-like nano-wires absorb solar energy in a better way compared to the silicon can, hence allowing more energy available for harnessing.
Comparing to traditional solar systems, smart solar systems help in minimizing wastage and utilizes the power in the best way possible. This feature of the smart solar systems aids industrial growth and minimizes the costs required for energy production.
Industrial and residential end-users demand more energy for their industrial and commercial activities. As the natural energy resources are depleting by over usage, controlling the energy consumption and switching to more efficient and cleaner energy sources is crucial.
Solar energy is one of the most efficient ways of generating power because solar energy is renewable energy and offers a big contribution in reducing carbon emission and thereby ensuring a sustainable energy future. Solar energy can be utilized for heating, cooling, lighting, transportation, and various other applications, this varied utilization of solar energy also tends to raise the demand for Smart Solar systems.
Several countries have offered subsidies for installing the Smart Solar systems in their households to promote the Smart Solar Market Outlook. Germany is considered as one of the leading players as they maintain a higher value in obtaining solar capacity.
Several Smart Solar industries are utilizing several growth strategies like mergers and acquisitions, partnerships, and collaborations to increase the Market value.
The commercial and industrial segment is driving the demand for the Market compared to the residential segment. This acts as a major opportunity for the growth of the Smart Solar Market value.
The requirement of higher initial costs and higher maintenance costs are hampering the growth of the Smart Solar Market. Smart solar systems are mostly digital and possess the ability to monitor the weather conditions and take that data to project the solar system according to the needs.
Issues related to data management and device replacement are some of the issues that are hampering the growth of the Market.
A solar power plant requires a huge area of land for installation, however, the solar PV systems cannot be installed in built-up areas, forests, or agricultural land. If the land is unstable, it cannot be used for solar PV systems, hence this becomes the primary restraint for the Market growth.
Solar systems require solar panels and other pieces of equipment for efficient operation. However, the Smart Solar systems require additional responsive pieces of equipment coupled with complex technology. This complex structure of the Smart Solar systems acts as a primary challenge for the Smart Solar Market growth.
Land selection can be challenging as issues related to environmental and technological difficulties restrict the system installation. Though solar energy is available abundantly, they are intermittent and variable and hence cannot be dispatched to the distributed systems. In addition to that developed countries have reduced the subsidies for installing smart solar systems, these are some factors that hinder the Smart Solar Market growth.
Smart Solar Market is expected to witness growth in face pace as the industries are rigorously involved in developing smart grids and incorporating smart technologies into the Solar systems. The usage of the grid and off-grid systems in the residential sectors are witnessing rapid growth in recent years due to the efficient energy conversion and with the grid systems, the excess energy generated at the solar panels earns revenue for the householder and any shortfall is made up by the grid-supply.
Owing to the technical advancements and abundance of solar energy, industries, and commercial facilities utilize Smart solar systems to reduce their electricity costs. The Smart Solar global Market was valued at USD 13.1 billion in the year 2020 amid the pandemic situation, it is expected to reach over USD 41.56 billion by the year 2027 registering a CAGR of 15.8%. The growing grid automation and increased investments in the countries like Japan, India, and South Korea have hugely impacted the Market growth. In addition to that, the strict regulation imposed by the governments of the countries has created awareness concerning the Smart Solar systems and their benefits.
Smart Solar systems are witnessing growth in the commercial sector in some countries, as the electricity consumption of the industrial sector is over 26% of the total electricity consumption. Hence it is clear that the countries are facing increasing demand for electricity for industrial activities. In addition to that, there is a shift in trends of adopting the green and smart city concept has positively impacted the Smart Solar Market growth.
The Asia Pacific and Europe are some of the key regions in adopting the Smart Solar systems for their economic activities. To cut down the electricity and power generation costs, these countries majorly focus on developing Smart Solar solutions. Hence countries n Asia-pacific like India and China are investing in the Smart Solar Market significantly. Asia Pacific regions accounted for about 55% of the new installations in the year 2019. This has assured the growth in the Smart Solar Market.
Smart Solar Market in Japan is gaining momentum owing to the increased policy control through the country such as the FIT scheme. In addition to that, the grid automation concept is adding value to Smart solar systems. The Off-grid systems are intensively cost-effective when the installation and planning are done properly. The user can get back the initial investment costs within the 5years of installation through the savings in power utilization.
China has achieved a record by generating 53.06GW of Photovoltaic capacity in the year 2017. These recorded capacity additions are 54% higher than the records of the previous year. Similarly, the regulatory mandates in North America have aided to motivate other countries like Europe and China is driving the Market. Supervisory control and data acquisition are the two large segments in the Smart Solar Market in many countries as several developing countries are highly dependent on renewable resources, they focus on optimizing the Solar energy generated at the production level.
One of India’s leading energy & environment think tank company, The Energy and Resources Institute (TERI), launched a program called ‘Indian Solar Market Aggregation for Rooftops’ (I-SMART). For the said program, TERI had also formed a partnership with an American technical and strategic consultancy services provider, Cadmus Group.
The motive behind this aggregation program is to simplify the installation of rooftop solar for both domestic and business consumers in India. The program is expected to speed up the demand for rooftop solar systems of 1 GW capacity across four states and 2 Union Territories.
This report has covered:
|Market Size||2027: USD 41.56 billion 2030: Significant Value|
|CAGR||15.8% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Solutions, Services and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ABB (Switzerland), GE Power (us), Itron Inc. (us), Schneider Electric (France), Echelon Corporation (US), Silver Spring Networks Inc. (US), Landis+GYR AG (Switzerland), Sensus USA, Inc. (US), and Urban Green Energy (UGE) International (US)|
|Key Market Opportunities||Evolving solar industry Increasing environmental awareness and technological evolution|
|Key Market Drivers||Increasing adoption of green energy and the emergence of smart cities Regulatory compliance|
The rising adoption of green energy and the emergence of smart cities, a substantial rise in solar energy installation, and budding investments are driving the smart solar market.
North America, Europe, and Asia-Pacific are the key regions of the market.
The device, solution, service, application, and end-user are the segments of the market.
15.8% is the CAGR when the market will expand.
GE Power (us), Itron Inc. (us), ABB (Switzerland), Echelon Corporation (US), Silver Spring Networks Inc. (US), Schneider Electric (France) are the key players of the market.