International. The global size of the solar energy market was estimated at more than $65 billion in 2015 and is likely to exceed $140 billion by 2023.
Cumulatively, more than 178 GW of power was installed in 2015 and is estimated to reach more than 600 GW during the forecast period, which includes photovoltaic and concentrated thermal energy. The size of the U.S. solar market is expected to witness approximately 40 GW of cumulative capacity by the end of 2016.
Increasing population coupled with rising unconventional energy prices are likely to drive market growth in Asia Pacific. China's solar market size was dominant and accounted for more than 10.8 GW installations, followed by Japan with 9.7 GW installations in 2015.
The UK contributed more than 2.4 GW to Europe's energy installation market in 2015, followed by Germany and France. The Middle East and Africa are expected to grow at such a significant rate; rising electricity prices and government subsidies are likely to be the key growth drivers in the region.
This energy can be segmented into photovoltaic and concentrated thermal. The size of the photovoltaic (PV) market was estimated at 40 GW in 2015. Trends in the solar energy market include an estimated shift towards isolated installations in some countries, where a large percentage of the population does not have access to a national grid. It is estimated that the size of the concentrated solar thermal market will reach more than 25 GW during the forecast period.
Rising environmental concerns, such as greenhouse gas emissions accompanied by increased energy consumption, are driving industries towards more sustainable and cost-effective energy resources. These factors are likely to positively drive the growth of the solar energy market.
Photovoltaic energy is preferable to concentrated solar energy due to its great utility; Europe was the main contributor in 2015. Manufacturers are switching from multicrystalline to monocrystalline solar cells due to their high efficiency, compact design and durability. Concentrated thermal technology is less popular because it requires direct solar radiation rather than diffused light, and is not economical for small installations.
