Global Agrivoltaics Market Research Report: Forecast (2025-2030)

Market Definition

Agrivoltaics combines agriculture with photovoltaics, with simultaneous production of crops and electricity using solar energy. It reduces water consumption and increases land use efficiency while maintaining a balance between energy and food usage. It can also contribute to reduced use of fossil fuels for both agricultural and power generation purposes, and can increase the yield of some crops.

Market Insights and Analysis: Global Agrivoltaics Market (2025-2030):

The Global Agrivoltaics Market size was valued at around USD 5.12 billion in 2024 and is projected to reach USD 12.49 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 16.02% during the forecast period, i.e., 2025-30. This growth is primarily driven by climate resilience needs, land constraints, sustainability demands, and technological advancements.

Climate change is increasingly affecting agriculture around the world. It is increasing water consumption due to extreme temperatures and irregular rainfall patterns. This is resulting in advancing demand for agrivoltaics because solar panels and other agrivoltaics devices mitigate soil water evaporation while also helping crops retain moisture for a longer period of time. This decreases the frequency of irrigation and can reduce water consumption by approximately 40%. This helps in strengthening resilience against climate change situations in the wake of rising demand for food production.

Moreover, the market demand for agrivoltaics is growing due to its efficiency in using land for agricultural and power generation purposes. Studies have found that the dual-use of land as a result of agrivoltaics can be up to 70% more efficient than using the same area separately. This is especially relevant for regions where there is an increasing friction for land use between agriculture and renewable energy generation.

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The global agrivoltaics industry is also growing due to technological advancements and the demand for sustainability. Agrivoltaics is supporting sustainability in meeting food and energy demands by reducing the usage of non-renewable resources in both agriculture and power generation. Advancements in technology are helping the Global Agrivoltaics Market grow further by optimizing crop yields and energy output.

Global Agrivoltaics Market Driver:

Climate Resilience and Water Scarcity Driving Market Demand – Agricultural production is significantly affected by unfavorable climate conditions. Extreme temperatures are affecting the viability of agriculture around the world by reducing crop yields. Agrivoltaics prevents this loss by controlling the microclimate around crops. Structural installations maintain favorable conditions by shielding crops from excessive sun exposure. This helps in improving the yield, especially in crops that are vulnerable to extreme conditions. Project trials have found yields increased by up to 20% in various regions around the world. Agrivoltaics is also enabling agricultural activities in arid regions where farming is traditionally restricted due to high temperatures, further driving market growth.

Moreover, high ambient temperatures cause evaporation of water from the soil and loss of moisture retention in plants. This forces farmers to rely on irrigation to compensate for these losses, which requires extracting water from rivers, lakes, and underground sources. This puts additional pressure on agriculture in terms of costs and access to these resources, which is becoming more pronounced as water is becoming more scarce due to excessive usage. Agrivoltaics is boosting agriculture by reducing water consumption in farming activities by 30% on average, which is leading to increased market demand.

Global Agrivoltaics Market Opportunity:

Rising Government Support – The Global Agrivoltaics Market sees a big opportunity due to governments supporting the industry through various measures. Adoption of agrovoltaics is limited as operators lose incentives and tax grants for agriculture if they convert land usage to power generation. However, this is slowly changing as governments around the world are allowing mixed usage of agricultural land. For example, Germany is now allowing farmers to retain agricultural grants if they limit the installation of agrivoltaics systems to 85% of their farm area. Similarly, Japan is allowing farmers to retain subsidies on dual usage if their overall farm output is not affected.

Moreover, governments are also supporting the industry by making agrivoltaics financially viable. Various governments are providing benefits such as subsidies on the purchase of photovoltaic (PV) equipment, low-interest loans for agricultural development, and feed-in tariffs for supplying power to national and regional grids. For example, the Government of India is supporting agrivoltaics adoption through its PM-KUSUM scheme, which provides subsidies for purchasing solar pumps and installing grid-connected power generation units. Thus, the agrivoltaics industry is likely to see increased demand as more and more governments implement such policies.

Global Agrivoltaics Market Challenge:

Limited Compatibility with Crops & Farming Practices –  The Global Agrivoltaics Market is facing a big challenge in the form of compatibility issues with various crops and farming methods. It can have a harmful effect on crops that are affected by limited access to sunlight. Various crops are prone to low yields, cyclical disruptions, and disease risks because of reduced photosynthetic activity and increased environmental humidity. Studies have shown that the integration of agrivoltaics into wheat farms can drop yields by up to 15%, which can make its adoption unattractive for farmers.

Agrivoltaics can be difficult to implement in environments that use mechanized farming. Solar panels and other structures can create obstructions in tilling of soil, drilling of seeds, spraying of fertilizers, and other farming operations. Similarly, farms that use harvesting combines are completely incompatible with agrivoltaics, further slowing its adoption in various regions around the world.

Global Agrivoltaics Market Trend:

Product Innovation and Technology Integration – The Global Agrivoltaics Market is seeing a favorable trend in the form of product innovation and technology integration. Companies are developing PV systems that can automatically adjust the orientation of solar panels according to the requirements of crops, the position of the sun, and changing weather conditions. This can be seen in Sun’Agri systems deployed in vineyards and orchards that can dynamically tilt panels as per the environment. Similarly, companies are developing semi-transparent panels that allow some light to pass through for increased compatibility with light-sensitive crops.

The market is also seeing the adoption of vertically-oriented solar panels with PV cells on both faces, which allows maximum energy production while minimizing obstructions on farms. This is highlighted in Next2Sun’s installations in Germany and Austria that use such panels to generate power while allowing regular farm activities on 90% of the land. Additionally, the market is seeing the development of modular and portable agrivoltaics systems that are increasing adoption on small and remote farms.

Global Agrivoltaics Market (2025-2030): Segmentation Analysis

The Global Agrivoltaics Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025-2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Placement:

• Standalone
• Shading Nets
• Greenhouse
• Others (Solar Fence, Solar Windows, etc.)

Standalone is the dominant segment based on placement, with an estimated share of about 65-70% in the Global Agrivoltaics Market. Standalone placement allows the deployment of PV systems in open fields, making it compatible with large-scale farming of high-demand crops. Furthermore, commercial PV developers mainly produce standalone agrivoltaics equipment due to its shared compatibility with PV systems used in other sectors, allowing economically viable production. These compatibility benefits of standalone systems are leading to the dominance of this segment in the agrivoltaics industry on a global stage.

Standalone systems are increasing the adoption of agrivoltaics because of their enhanced flexibility, as components of these systems can be adjusted on the basis of height and spacing requirements. This supports agricultural output by creating a conducive environment for crops. This feature is highlighted in the recent deployment of a 2.7 megawatt BayWa r.e. PV system deployed on a strawberry farm in the Netherlands. Thus, high versatility is creating a strong demand for standalone systems in the Global Agrivoltaics Market.

Based on Material Type:

• Panels
• Paints

Panels dominate the market based on material type, representing over 90% share in the Global Agrivoltaics market. Panels constitute the bulk of the market because of their economic and technological maturity. PV panels are produced in high quantities and are easily available around the world, which makes their integration in agrivoltaics easier and cost-effective. On average, their cost per watt of electricity generation can be between USD 0.30-0.40, which is leading most companies in the market to use them in their agrivoltaics systems. This is further aided by their proven system efficiency of 18-22%, with specialized panels offering additional yields of up to 15%.

Panels are also highly compatible and flexible to use in different placements and system designs, which increases their versatility when it comes to their application. Semi-transparent panels can be easily integrated into agrivoltaics systems designed for row farming, which is highlighted in the deployment of high-efficiency Insolight systems in Swiss and French vineyards. These advantages are likely to continue the market demand for panels in the Agrivoltaics Market at a global scale.

Global Agrivoltaics Market (2025-30): Regional Projections

Geographically, the Global Agrivoltaics Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

Europe is the dominant region with over 30% of the Global Agrivoltaics Market. The region is seeing high adoption of agrivoltaics due to pressure for efficient land use, innovation and technological leadership, and favorable government policies.

Many countries in the region have limited agricultural land and strict emission standards, which are forcing them to use land efficiently by implementing agrivoltaics projects to meet food and energy production targets. Moreover, industry leaders like Sun’Agri (France), Insolight (Switzerland), and Next2Sun (Germany) are based in the region, which is facilitating increased adoption in Europe as a result of product innovations due to advanced R&D capabilities. Furthermore, Europe is implementing policies that are incentivizing the adoption of PV systems in agriculture.

Notable examples include the EU Green Deal and the Common Agricultural Policy that subsidize the implementation of agricultural PV systems. Furthermore, the European Union is funding agrivoltaics adoption through a planned funding of around USD600 million under its ‘climate action’ initiative. While Asia-Pacific is seeing rapid expansion of agrivoltaics driven by similar factors, Europe is likely to remain the dominant region in the Global Agrivoltaics Market due to consistently strong market demand.

Global Agrivoltaics Industry Recent Development:

• May 2025: Next2Sun announced a strategic partnership with Huasun Energy to develop heterojunction technology-based bifacial solar modules with 100% efficiency, marking a landmark in product innovation.
• June 2024: Two parks operated by BayWa r.e. were found to show substantial improvements in soil temperature and humidity with improved yield in a study conducted by the National Research Institute for Agriculture, Food and the Environment in France, promoting the implementation of agrivoltaics.

Gain a Competitive Edge with Our Global Agrivoltaics Market Report

1. Global Agrivoltaics Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Agrivoltaics Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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