In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Growing energy crisis, high carbon emissions and increased environmental concerns has led to the implementation of solar panels for energy generation. Solar panels are systems that generate electricity from solar energy for both residential and commercial purposes. These are made up of glass, aluminum, synthetic materials, silicon and other metals which are estimated to contribute to large amount of waste after the completion of solar panels’ lifecycle, further leading to environmental degradation.
Solar panel recycling is the processing of systems or panels to obtain the parts that can be reused in the manufacturing of other products. It is a complex task as they contain certain metals which must be separated before, for proper recycling. Solar panel recycling has environmental and economic benefits.
The global solar panel recycling market is estimated to cross USD 325 million by 2027 on the back of growing adoption of solar power energy generation methods backed by favoring government regulations around the world. The market is anticipated to record a CAGR of around 21.4% over the forecast period i.e. 2019-2027. The market is segmented by shelf life into normal and early loss segments, out of which, the early loss segment is anticipated to witness significant growth in upcoming years owing to significant presence of products with less shelf life in the market. Additionally, the degradation of solar panels due to maintenance issues, unfavorable weather conditions and lack of standardization are some of the factors supporting the growth of this segment in the market.
The market is further segmented by process into thermal, mechanical and laser processes; by type into monocrystalline, polycrystalline, thin film and others, out of which, monocrystalline segment is influencing the growth of the market on account of its practical features like greater efficiency, superior grade material, longer shelf life and excellent heat resistance.
Companies in this market are focusing on untapped countries and regions in order to expand their operations. In addition, new manufacturers are also entering the market owing to the potential growth prospects pertaining to solar panels and increasing initiatives to recycle PV panels.
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Growing Environmental Concerns
The solar panels are expected to contribute to large amount of waste after completing their expected lifecycle of around 30 years, which is further expected to raise environmental concerns around the globe. According to IRENA (International Renewable Energy Agency), the total amount of PV panel waste around the globe is estimated to be 78 million tonnes by 2050. This is expected to contribute to pollution with waste released through landfill among other forms of reducing waste, driving many countries to work towards recovery and recycling PV panels. The adoption of effective waste regulations and growing investments related to recycling PV solar panels is expected to boost the growth of the market in future.
Favorable Government Regulations
Several laws and regulations, such as the European Waste Electrical and Electronic Equipment (WEEE) Directive, have laid out effective ways of managing waste related to solar panels. These regulations are proposed by governing bodies of various countries to encourage green projects. Additionally, government support in the form of subsidies and tax benefit to the service providers is one the major factors that are boosting the growth of the market.
High Investment and Lack of Skills
The research and development activities pertaining to solar panel recycling involves huge investment. Additionally, there are lack of skills and infrastructure required for recycling PV panels. These factors are anticipated to dampen the growth of the market over the forecast period.
Our-in depth analysis of the solar panel recycling market includes the following segments:
By End Users
On the basis of regional analysis, the solar panel recycling market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in North America is anticipated to witness significant growth during the forecast period owing to the increasing use of solar panels coupled with stringent recycling regulations across the region. The growing adoption of solar panels in emerging economies, such as, India & China is expected to create new growth opportunities for market players in upcoming years. These factors are estimated to boost the growth of the market in Asia-Pacific region.
The solar panel recycling market is further classified on the basis of region as follows: