what are you looking for?
The global photovoltaic (PV) industry experienced robust growth in 2022, driven by increased demand from various application markets. As the photovoltaic manufacturing sector continues to expand, it’s important to understand the overall industry performance, regional developments, and the key factors shaping the future of solar energy.
According to the China Photovoltaic Industry Association (CPIA) and recent data from February 2023, the global photovoltaic market saw substantial growth in 2022. The newly installed photovoltaic capacity worldwide is expected to reach 230 GW in 2022, representing a 35.3% year-on-year increase. This growth is a direct result of the expanding manufacturing capacities in the photovoltaic industry chain, which continue to meet the rising demand for solar energy solutions.
The photovoltaic market is growing at varying rates across different regions. Here’s a breakdown of the key markets that significantly contributed to the global growth in 2022:
Europe experienced impressive growth in photovoltaic capacity, with the 27 EU countries adding 41.4 GW of new solar installations in 2022, marking an increase of nearly 50% compared to the previous year. The growth trend is expected to continue, with the European Photovoltaic Association predicting that installed PV capacity will approach 120 GW by 2026.
Germany led the way in 2022, with a new installed capacity of 7.9 GW, closely by Spain, which added 7.5 GW.
Looking ahead, Germany is expected to add over 10 GW of new installed capacity in 2023, with a cumulative total of 62.6 GW from 2023 to 2026.
Spain is projected to add 51.2 GW from 2023 to 2026, bringing its total installed capacity from 26.4 GW in 2022 to 77.7 GW.
Brazil’s solar market saw a remarkable increase in 2022, with a total installed photovoltaic capacity of 22 GW and 9.0 GW of newly added capacity—a 73.3% year-on-year increase. This growth was fueled by the Distributed Power Generation Act introduced in January 2022, which incentivized solar installations by exempting small distributed projects from grid usage fees until 2023. However, the introduction of grid fees in 2023 is expected to affect small-scale installations, leading to a surge in installations before the new regulation takes effect.
Brazil’s dominance in the distributed solar market—where small-scale projects make up more than 65% of the total capacity—positions it as one of the hottest solar markets for the coming years.
Japan’s photovoltaic sector grew steadily in 2022, reaching a total installed capacity of 77.6 GW—a 4.4% increase from the previous year. Japan added 3.1 GW of new solar capacity in 2022.
Key developments:
In January 2023, the Tokyo Metropolitan Assembly passed a regulation mandating that new homes in Tokyo must be equipped with solar panels starting April 2025. This legislation aims to accelerate solar adoption and is a key part of Japan’s clean energy transition.
Additionally, Japan’s Ministry of Economy, Trade and Industry is implementing policies to purchase electricity generated by rooftop solar panels at fixed high rates starting in 2024, further boosting demand for solar installations.
In contrast to the global growth, the U.S. photovoltaic market faced challenges in 2022, experiencing a 23% decline in new installations compared to 2021. This decline was primarily due to trade restrictions on China, which affected the availability of key low-cost photovoltaic materials and spare parts.
Despite the recessionary pressures, the U.S. market is expected to recover as regulatory barriers ease and demand for clean energy solutions rises. Policies such as the Inflation Reduction Act and various state-level incentives are expected to stimulate the solar market in the coming years.
In 2022, leading photovoltaic manufacturers demonstrated stable performance and growth, capitalizing on high demand and expanding production capacities. Major players in the industry saw steady growth, but the increasing competition from second- and third-tier manufacturers is creating pressure on smaller firms.
Key takeaways:
Scale and integration advantages are becoming critical, allowing leading manufacturers to maintain a competitive edge.
The increasing concentration of profits in the larger segments of the industry may lead to further consolidation, with smaller manufacturers facing greater challenges.
Cross-border photovoltaics—with major companies expanding into new international markets—remains a significant trend, though many “cross-border light chasers” have yet to realize substantial photovoltaic business revenue.
The global photovoltaic industry experienced robust growth in 2022, driven by strong demand and expanding manufacturing capabilities. While some regions, like Europe and Brazil, are leading the charge in new installations, countries like the U.S. face challenges due to trade restrictions and policy hurdles. Nonetheless, the future of solar energy remains bright, with global installed capacity expected to grow substantially in the coming years, propelled by regulatory support, technological advancements, and increasing global commitment to renewable energy.
