Agrivoltaics Market size is expected to reach USD 15 Billion by the end of 2036, growing at a CAGR of 11% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of agrivoltaics was USD 3 Billion. The reason behind the growth is impelled by the growing agriculture industry across the globe. Agriculture is one of the world's largest and most important industries, which has made incredible progress driven by rapidly increasing demand for agricultural products owing to the growing world's population. According to estimates, the global agriculture market is expected to grow by over 5% between 2024-2028.
The growing installation of Agrivoltaics systems is believed to fuel the agrivoltaics market growth. Agri-PV systems are complex systems that include at least spatial systems, energy systems, and agricultural systems to optimize land's potential without harming the ecosystem. For instance, agricultural solar power systems will become increasingly important around the world in the coming years, with the total installed capacity expected to reach more than 8GW by 2030.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~11% |
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Base Year Market Size (2023) |
~ USD 3 Billion |
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Forecast Year Market Size (2036) |
~ USD 15 Billion |
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Regional Scope |
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Cell Type (Monocrystalline, Polycrystalline)
The monocrystalline segment in agrivoltaics market is estimated to gain a robust revenue share of 60% during the forecast period owing to the benefits provided by monocrystalline cells. Solar cells composed of a single crystal of silicon are known as monocrystalline cells, which are among the most effective kinds of solar panels on the agrivoltaics market. A monocrystalline solar panel has a half-cut which is efficient, has higher heat resistance, and is known to work best in gloomy environments as they are more effective in low light.
In addition, polycrystalline also known as "multi-crystalline panels," are solids made up of numerous tiny crystals, which are typically used in residential residences and have more than 55 solar cells each, and are also well-liked by people trying to install solar on a tight budget.
Crop Type (Leafy Greens, Root Crops, Fruits)
The leafy greens segment in agrivoltaics market is set to garner a notable share shortly. Leafy greens such as lettuce and spinach make for strong power and can be grown in shaded areas below solar panels, where the reduced sunlight can help prevent the plants from bolting and prolong the growing season this is where PV projects related to agriculture have shown the highest potential. In addition, solar panels can also be used to cultivate root crops including carrots, potatoes, radishes, and beets since they are best suited for use in Agrivoltaics systems that have been demonstrated to be shade-tolerant and adaptable to changing environmental circumstances.
System Design (Fixed Solar Panels, Dynamic)
The fixed solar panels segment in agrivoltaics market is poised to gain a noteworthy share. The most popular solar panels on the industry are fixed solar panels, which are premium monocrystalline solar panels that are made to harness solar energy and offer special advantages for special lifestyles. The solar panels are raised five meters above the crop field using fixed support systems enabling agricultural equipment to reach the crops below, drastically reducing light and increasing the number of crops that may be planted beneath them. The majority of traditional agrivoltaics systems comprise solar panels that are affixed permanently to crop fields is one of the most popular techniques for implementing agrivoltaics for large-scale projects since it permits the growth of grassland and permanent vegetation between and underneath the solar panels.
In addition, Agrivoltaics systems integrate dynamic photovoltaic panels with crops on a single piece of land, which is the earliest and most basic crop protection system that was created in Japan. Dynamic Agrivoltaics systems are intended to maximize agricultural output, and balance and mutually benefit energy generation and agriculture.
Our in-depth analysis of the global agrivoltaics market includes the following segments:
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System Design |
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Cell Type |
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Crop Type |
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Material Type |
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Placement |
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Plant Type |
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Output |
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North American Market Forecast
Agrivoltaics market in North America region is predicted to account for the largest share of 43% by 2036 impelled by the growing number of Agrivoltaics projects driven by increasing government funding. The U.S. Department of Energy (DoE) announced Funding for Megawatt-Scale Basic Agricultural Research (FARMS), providing over USD 5 million to around 5 solar energy research projects in states and the District of Columbia. The project aims to provide new economic opportunities for farmers and maximize benefits for farmers, rural communities, and the solar industry.
According to the National Renewable Energy Laboratory, there were around 314 agricultural solar projects in the United States as of March 2023. Particularly, there are lately more than 250 agricultural solar power systems in the United States.
APAC Market Statistics
The Asia Pacific agrivoltaics market is estimated to be the second largest, during the forecast timeframe led by the increasing population. India is well on its way to becoming the world's most populous country, which is expected to drive the need for power and food, leading to a higher demand for Agrivoltaics. For instance, India's population is projected to exceed 1 billion by 2030 and over 1.5 billion by 2050.
Author Credits: Payel Roy, Dhruv Bhatia
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