Global Solar Panel Market to Grow Over 13 Percent CAGR by 2036

The global solar panel market is set for substantial growth over the next decade, projected to rise at a CAGR of 13.2 percent from 2026 to 2036, according to Research Nester’s latest report.

As per the report, rising adoption across residential rooftops, urban development projects, and commercial establishments is reshaping the landscape, with environmental regulations and sustainability-driven innovations playing a critical role in market expansion.

Corporate commitments to renewable energy, particularly initiatives like RE100, are fueling demand worldwide. Over 400 multinational companies, including tech giants such as Apple, Adobe, and Accenture, have pledged to operate entirely on renewable electricity. Many are installing large-scale solar farms or procuring power through Power Purchase Agreements, accelerating market growth and positioning solar panels as a cornerstone of the global clean energy transition. Microgrids powered by solar and storage solutions are also gaining traction amid increasing grid instability caused by natural disasters.

The market is driven by multiple factors, including the circular economy for recycling solar panels, growing fossil fuel volatility, geopolitical tensions, expansion of smart cities, and demand from sectors like cold chain logistics. However, challenges such as land constraints for utility-scale projects, environmental impact of manufacturing and panel disposal, and policy uncertainty remain key hurdles.

Commercial and industrial applications are expected to dominate, with data centers, manufacturing facilities, and malls leveraging solar installations to reduce electricity costs and support net-zero ambitions. In the US., corporate procurement accounts for over 18 percent of total solar capacity, with rooftop commercial solar installations growing at a 12 percent  CAGR over the past five years.

The Asia Pacific region is anticipated to capture the largest market share, reaching 37.6 percent by 2036. Countries such as China, India, and Australia offer ideal conditions for large-scale solar farms, with China leading global solar panel manufacturing, contributing over 80 percent of global supply. Rapid urbanization and government decarbonization initiatives are further driving market growth across the region.

Key industry players, including JinkoSolar, JA Solar, LONGi Green Energy, Canadian Solar, Trina Solar, Adani Solar, and Qcells, are investing heavily in research, development, and strategic partnerships. The market is witnessing frequent launches of next-generation and sustainable solutions, with joint ventures, acquisitions, and mergers helping companies expand their global footprint and innovate continuously.

As industries worldwide raise expectations for performance and sustainability, competition in the solar panel market is set to intensify, ensuring a wave of innovation and continued technological advancement over the coming decade.