by The agrivoltaics market has seen significant growth in the past decade. Agrivoltaic systems refer to the combination of agriculture and photovoltaic systems, where solar panels are installed above farmland and crops are grown underneath. This allows dual use of limited arable lands for both electricity generation as well as crop production. Agrivoltaic systems have been found to provide favorable microclimatic conditions for various crops as the panels reduce surface temperature and provide shade. They also help in increasing per hectare crop yields and improving profitability for farmers.
The global agrivoltaics market is estimated to be valued at US$ 7.61 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the agrivoltaics market are Ombrea, SunAgri, SunSeed APV Private Limited, JA Solar Holdings Co. Ltd., Enel Green Power Spa, Mirai Solar, Namaste Solar, BayWa AG, Next2Sun Technology GmbH, and Insolight SA. The key players are focusing on developing efficient agrivoltaic systems and expanding their presence globally.
The growing need for food security and emphasis on sustainable agricultural practices are expected to open up significant opportunities for Agrivoltaics Market Demand Countries across Asia Pacific, Europe, and North America are exploring opportunities for agrivoltaic projects. Subsidies and incentives by governments for deployment of such renewable energy systems are further fueling market growth.
The global expansion of the agrivoltaics industry is attributed to growing awareness about the dual benefits of these systems. Rising agrivoltaic installations in countries like India, China, France, Italy, UK, USA are expected to drive the market. Partnerships between farmers, solar developers and technology providers are catalyzing widespread adoption of agrivoltaics.
Market Drivers
The increasing demand for dual land utilization is a key driver for the agrivoltaics market. With rapid urbanization, arable lands are declining at an alarming rate. Agrivoltaic systems help optimize land usage for both energy production and farming. This drives their adoption globally. The other major driver is sustainability. Agrivoltaics provide green and clean energy without compromising food security goals. Government incentives and dual revenue streams also boost the attractiveness of agrivoltaic projects.
PEST Analysis
Political: The Agrivoltaics Market Size And Trends is positively influenced by government initiatives and policies encouraging solar energy production along with agricultural activities. Subsidies and tax exemptions are offered to agrivoltaic projects in many countries.
Economic: Rising energy costs paired with growing food demand is propelling the agrivoltaics market. Integrating agriculture and solar power helps improve farm productivity while generating sustainable solar energy.
Social: Environmental consciousness and farm efficiency are driving adoption of agrivoltaics. Combined farming and renewable energy supports sustainable land usage and rural electrification.
Technological: Advancements in solar panel technology allow for balanced light transmission for crops underneath. Smart monitoring systems aid in maximizing agricultural yields and power outputs through optimized light filtration and shading control. Latest innovations ensure compatibility of dual agricultural-solar functions.
The higher adoption of agrivoltaic systems is concentrated in Europe and Asia Pacific regions in terms of value. Countries like Germany, Italy, China, Japan and South Korea have extensive agrivoltaic projects underway leveraging governmental initiatives. The United States is also emerging as a lucrative market with large solar and agricultural bases.
The agrivoltaics market is forecast to witness fastest growth in the Middle East & Africa region over the coming years. Factors such as exponential population growth, limited arable lands as well as exponential rise in energy demands are steering extensive agrivoltaic installations. Government efforts in GCC countries to diversify economies through renewable energy along with food security concerns are further strengthening the regional market.
Discover the Report for More Insights, Tailored to Your Language.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
