The Europe Agrivoltaic Market is projected to grow at a CAGR of 69.34% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. In recent years, the demand for renewable energy in Europe increases as a result of changing climatic conditions, high temperatures, etc. In order to meet the demand for both agricultural land and clean energy, European nations including Germany, France, Belgium, Italy, and others have been making significant investments in agrivoltaic systems resulting in the growth of market share.
The region's agricultural photovoltaic projects are currently growing, and several private organizations investing in them. Additionally, European countries have collaboratively declared their objective to attain net-zero emissions by 2050. The countries have also amended their energy transition roadmap for 2030, focusing on decreasing reliance on fossil fuels and increasing the installation of solar and wind energy generation facilities.
At the same time, various nations like Germany, France, Italy, and others are promoting the growth of large-scale agrivoltaic projects through auctions and significant expenditures. These nations also encourage the private sector players to participate in order to meet the goals for sustainable agriculture and combating climate change, aligning with the framework established by the government. For instance, the Italian government published a new set of agrivoltaic standards in 2022 that are primarily focused on expediting project clearance and providing incentives to private businesses. This eventually led to the establishment of agrivolatic systems for farmers by private enterprises, led to enhance the Europe Agrivoltaic Market size in the coming years.
Agrivoltaic presented an opportunity for European nations to support the transitions to sustainable agriculture and clean electricity. Thus, by implementing agrivoltaic, the European farm sector became more resilient to climate change, and sustainable through the use of solar energy, which in turn enhances food production, uses less water for irrigation, and generates more renewable energy. Agrivoltaic system development in the agriculture sector would also be accelerated by the numerous collaborations that were started in Europe to tends the economy toward a greener future. Thus, using agrivoltaic technology helping agriculture sector by improving crop quality and quantity overall by making it easier to control temperature, further states the research report, “Europe Agrivoltaic Market Analysis, 2023.”
Based on Crop Collaboration, Vegetables segment Would Hold Major Share of the Europe Agrivoltaic Market.
Based on the crop collaboration segment, the market is further bifurcated into, Vegetables, Fruits Crops, and Others (Herbs, etc.). The rising vegetable production instigate companies to adopt the sustainable method of production. In agriculture sector, large amount of electricity is consumed during the irrigation process and thereby increased the dependency of farmers on the on-grid source of electricity and increases the cost of production. Hence, the implementation of Agrivoltaic plants, serving the purpose of producing vegetables and generating renewable electricity, thereby reducing the dependency of farmers towards the on-grid source.
Additionally, the transition to sustainable agriculture has made it possible to deploy environmentally beneficial agricultural production techniques. In the agricultural industry, irrigation uses a significant quantity of electricity, which makes farmers more dependent on the on-grid source of power which increases the cost of production. As a result, the demand for agrivoltaic system in the production of vegetables across the region is anticipated to increase the market share throughout the years 2023–2028
The UK is Anticipated to Account for Prominent Share of the Market
The UK is expected to hold a sizable market share in the European Agrivoltaic Market, due to several reasons including continuous government efforts to implement low-carbon emission supportive strategies in the agriculture industry. Also, the increasing demand for energy in various industries, and the country’s strong commitment to energy security through diversifying energy production and funding renewable energy projects has led to the expansion of the agrivoltaic market size in the UK. As, these systems offer a sustainable and efficient approach to meet energy needs while supporting agriculture and environmental goals.
Furthermore, in order to reach these targets, the UK established a variety of regulations and incentives to aid in the transition as well as promoting decentralized energy generation by encouraging local community participation. Agrivoltaic systems empower landowners to participate in energy production while undertaking crop cultivation methods by mixing solar energy generation with agricultural activities. Moreover, the agrivoltaic system provides economic and environmental benefits, assisting the European Union's activities in meeting their objectives. Such activities are expected to boost market share of the UK in the upcoming years, which further enhances the market growth during 2023-2028.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Enel Green Power, Engie, Sun' Agri, GreenYellow, REM Tec, Kilowattsol, Trina Solar, Altergie, TDK Electronics, SunEwat, Akuo Energy, BayWa r.e., Next2Sun, Falck Renewables, Others.) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report