Global Agrivoltaics Market Research Report: Forecast (2022-2027)

Market Definition

Rapid changes in the global climate are enlightening the vulnerabilities of food, energy, & water system. With the burgeoning population & its food requirements, access to food has to be drastically improved. In this context, Agrivoltaics is one of the ideas gaining immense interest. It means combining food & energy production, i.e., putting solar farms in the field where crops are also grown. It shall help increase the environmental compatibility and benefits of developing solar plants with agriculture & native landscapes.

Market Overview

Global Agrivoltaics market was valued at USD 3.64 billion in 2022 and further expected to grow at a CAGR of 38% during the forecast period 2022-2027. The rapid climate changes like increasing temperature levels & reduced precipitation, coupled with rising water scarcity concerns, are creating significant challenges for both the energy & agriculture sectors worldwide.

These challenges are shifting focus toward adopting Agrivoltaics, which enables the effective use of sunlight for crop growth. It is also beneficial for farmers to earn extra money by selling the power generated using solar panels. Hence, Agrivoltaics offers dual benefits, viz., agricultural output and earnings from power generation, and it has positively influenced the overall growth of the global market.

If the current agriculture methods continue, there won't be enough water to meet the increasing food requirements. The current world population is 7.8 billion and is expected to reach 9.8 billion by 2050, which, in turn, would surge the demand for food production astronomically by then.

Technologies like solar photovoltaics can meet sustainability & address resilience concerns regarding the global energy system. The cost of solar panels is decreasing continuously, and it has resulted in the reduced installation costs of Agrivoltaics, thereby accelerating the market growth.

Impact of Covid-19 on the Global Agrivoltaics Market

• The Covid-19 pandemic in 2020 led to the imposition of unprecedented constraints on social & economic activities worldwide, and the Global Agrivoltaics Market got severely hit.
• With the enforcement of lockdown, manufacturing activities & cross-border trades got significantly affected.
• Since the renewable sector of most countries is dependent on imports from other countries, especially China, the manufacturing & supply chain of cfv
• modules got adversely affected due to the imposition of lockdown & trade restrictions by the Chinese government.
• Besides, in 2019, China’s share of global photovoltaic additions declined to less than 30% from 55% in 2017.
• Further, most solar equipment suppliers were unable to deliver orders on time, which resulted in backlogs.
• Additionally, the delay in projects also negatively impacted the overall market growth.