by The agrivoltaics market involves the installation of solar panels on or above agricultural lands with an aim to allow simultaneous use of land for electricity generation and crop cultivation. Agrivoltaic systems provide various advantages over standalone agriculture and solar projects such as maximizing land use, reducing water needs for crops through shading from solar panels, and bee-friendly electric fencing.
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 growing concerns towards land constraints along with rising food and energy demand globally have increased the focus on dual-use of agricultural lands through Agrivoltaics Market Demand Several companies and governments across regions including Europe, Asia Pacific, and North America are emphasizing on agrivoltaic projects to ensure energy security and food sufficiency.
With benefits such as improved water and land use efficiencies along with pollinator-friendly electric fencing offered by agrivoltaic installations, the demand from farmers and landowners have been increasing substantially. Various factors including regulatory support in terms of subsidies and economic incentives by governments worldwide has encouraged widespread adoption of agrivoltaic technologies. Agrivoltaic companies are also expanding geographically with significant growth opportunities in developing regions to cater to the rising energy and food demand.
Market Drivers
The major driver for agrivoltaics market is the growing demand for dual-use of agricultural lands. With rapid urbanization and industrialization, arable lands have been decreasing considerably. However, the global population is surging which is increasing the global demand for food and energy. Agrivoltaic systems help address the challenge of land constraints by enabling simultaneous generation of solar power and agriculture on the same lands. This promotes sustainable and optimal utilization of available land resources. The concept of agrivoltaics is therefore gaining widespread recognition as a viable solution to meet the dual objective of increasing solar power capacity as well as ensuring food security.
Current geopolitical situation is significantly impacting the growth of the agrivoltaics market. With global energy prices rising due to supply constraints caused by the Russia-Ukraine war, countries worldwide are focusing more on developing domestic renewable energy sources including agrivoltaics. This is creating strong growth opportunities for the agrivoltaics market, especially in European nations which were previously dependent on Russian oil and gas imports. However, protracted geopolitical conflicts also add an element of uncertainty to investment decisions. Project timelines could be disrupted depending on availability of critical materials sourced from conflict areas. Developers will need to diversify supply chains, explore localized manufacturing, and potentially increase offtake agreements to derisk projects. Close monitoring of geopolitical dynamics will be essential to mitigate risks and leverage new opportunities arising from the global push for energy security and independence.
In terms of value, North America currently dominates the Agrivoltaics Market Size And Trends . The collective efforts of the US and Canada to scale up crop-wind projects under the Bilateral Climate Change Agreement 2021 have accelerated commercialization. Growing awareness about agrivoltaics providing additional income to farmers is also driving higher adoption across Midwestern states. However, Asia Pacific is rapidly emerging as the fastest growing regional market for agrivoltaics. Countries like India, China, and Vietnam recognize the potential of this dual use technology to address the interlinked challenges of meeting food and renewable energy targets. Supported by conducive government policies and investment in large project tenders, Asia Pacific will likely surpass North America in market share over the coming years.
Europe is another major geographical concentration area for the agrivoltaics industry in terms of value. Nations including Germany, Italy, Netherlands, Spain and France have long championed the research and development of innovative agrivoltaics solutions tailored to their climatic and agricultural conditions. Rising prioritization of self-sufficient green energy production post the Russia-Ukraine war will further boost Europe’s market share going forward. Meanwhile as Southeast Asian countries rapidly industrialize, their immense rooftop and floating solar project pipelines will drive high compound growth in this region. If deployment hurdles around land availability and grid infrastructure can be successfully addressed, the Middle East and Africa market will also emerge as an important future growth engine.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya
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. LinkedIn
