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The global solar tracker market size was valued at USD 9.30 billion in 2019 and is projected to reach USD 22.33 billion by 2027, exhibiting a CAGR of 12.6% during the forecast period.
Trackers are the devices deployed along with solar panels to maximize the energy capture and therefore boost the efficiency of the overall power generation process. Trackers enable the movement of the panels in accordance with the direction of sunlight, during which they decrease the angle of incidence between the panel and the striking sunrays. This leads to more efficient operations as compared to solar panels installed without trackers. These devices can be used along with various panel technologies, which include parabolic troughs, fresnel reflectors, solar panels, and lenses.
Renewable Energy Industry Witnesses a Major Hit Due to COVID-19 Impact
The Covid-19 crisis has certainly impacted the whole renewable energy industry. In case of solar energy, the major impact has been on the global supply chain for raw materials and the unavailability of labor. This has led many of the ongoing projects to be put on hold for an unspecified timeline across the globe. These disruptions have mainly resulted because around 40% of imports of the solar PV modules are from China, which has been the first nation to be heavily impacted by the COVID-19 threat. Acknowledging the growing destruction caused by the coronavirus within the country, the production of solar modules and associated equipment was halted, which brought the global market to a standstill. This has led government bodies and private companies to push forward the commissioning date of the projects which were to be brought in operation in the coming months. This will certainly impact the investments being done in the market in the coming years and delay the pipeline projects.
This disruption of the supply chain is mainly due to the import dependency of many countries and logistical delays. These factors are expected to have a short term impact on the global industry. As per the recent study by IRENA focused on the impact of covid-19 on renewable energy sector, the existing renewable projects in operation have experienced higher utilization rates than ever before. In Europe during the first quarter of 2020, renewables accounted for 41% of total energy production an increase of 16% from previous years. The ill effects are expected on the projects under construction and pipeline projects. For instance, India has postponed its 3GW of solar installation, and only 3GW of solar capacity is expected to be installed in United States in second quarter of 2020.
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Green Energy Targets to Fuel Investments in Solar Industry
As the world is moving towards reducing carbon emissions, countries are contributing to it by setting respective green energy targets to be achieved in the coming years to help the global cause. For instance, Brazil aims to have 42.5% of its primary energy supply to be renewable at the end of 2023. According to the brief carbon analysis, the UK government aims to have about half of its electricity from renewables in 2025. Germany is also on its path to account for renewables for 65% of its total energy by 2030. In Asia, China plans to achieve 16% of its energy from renewables by 2030, and following investments and growth in the country, the renewable energy sector is expected to hold 26% share and surpass the set target.
Power Source Integrating Technologies Hold Immense Growth Opportunity
The virtual power plants (VPP) and distributed energy generation (DEG) systems are the modern-day technologies that integrate the various power sources and lead to operational advantages and also cost savings for the customer. These are majorly focused on including renewables such as solar energy and wind energy in the power mix of the country. The success of these technologies in Europe and North America has now led to them being implemented in Asia Pacific. With their success, solar installations are expected to surge and therefore open doors for tracker deployment.
Growing Adoption of Renewable Sources for Power Generation to Boost the Market
The humongous growth in population witnessed over the past decade across the globe has directly impacted the amount of power being demanded and generated. The power generation capacity per country has increased at a very healthy rate. Renewable energy sources that help in reducing carbon emissions and act as an economical source of everyday power are being looked upon as the best possible replacement for conventional power sources such as coal and oil products. At present, renewable sources account for around 29% of the total electricity generation across the globe, which is expected to rise considerably in the coming years and boost the market. For instance, in 2015, the global solar energy installed capacity stood at 217.34 GW which has increased to 578.55 GW in the span of 4 years.
Increased Efficiency of Operation with Tracker Installation Will Drive the Market Growth
Solar farms and individual solar installations that are equipped with trackers have higher efficiency as compared to the simple solar installations. Increase in time for direct exposure to sunlight is the major differentiating factor between the two. Also, these systems tend to make more efficient use of the space, which is equally required for fixed-tilt systems and moving systems. These factors, along with the availability of single-axis and dual-axis trackers, provide customers with options to choose from and are therefore expected to drive the market growth.
Heavy Capital Investment and Lack of Required Infrastructure Poses Threat to Market Growth
The key restraint for the market is the initial heavy capital investments that are required to be made for installing these devices. Also, the lack of required infrastructure is the other factor that is slowing down investment in the market. In regions such as Asia Pacific and Europe, the lack of awareness regarding the advantages and increased preference for fixed-tilt installations over tracker installations has hampered growth.
Increasing Solar Photovoltaic Installations Will Drive Growth of the Segment
Based on type, the market is segmented into solar photovoltaic and concentrated solar power. Concentrated solar power (CSP) technology uses mirrors to accumulate the sunrays and focus them on a single point. As a result, only dual-axis trackers are preferred in these installations. Also, the solar photovoltaic PV systems installations are very large in number as compared to concentrated solar power, which has been installed in some specific countries only.
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Economic Feasibility and Delivery of Expected Results to Drive the Single Axis solar tracker Segment’s Growth
Trackers are available in two types, namely single-axis and dual-axis trackers. The single-axis trackers move to and fro following the sunlight. On the other hand, dual axis trackers enable the movement of panels along both horizontal and vertical axes. The majority of the installations carried across the globe prefer single-axis trackers as these are sufficient to generate the required power, are economically feasible, and have less complex operations as compared to dual-axis trackers. The dual-axis trackers have a major presence across CSP projects, which are very low in number.
Increasing Solar-Grid Integration by Utilities Will Fuel the Growth of Utility Segment
In terms of application, the market is segmented into utility and non-utility. The utility segment is expected to lead the market owing to rising solar grid integrations that have become a common practice in many countries. The capacity of solar in overall power mix of many countries has also risen at a healthy rate in recent years, which has created opportunities for tracker installations. The standalone systems and the rooftop solar installation are found to have fixed-tilt, which eliminates the use of trackers. Further, the introduction of DEG and VPP technologies, which work on the concept of decentralized power, is also expected to attract investments for solar devices, as per the solar tracker market analysis.
North America Solar Tracker Market Size, 2019 (USD Billion)
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North America has dominated the market over the years. The US has been the country with the maximum solar tracker deployment to increase the operational efficiency of the installed panels. The market size in North America stood at USD 5.88 billion in 2019.
Following North America, the Latin American countries such as Brazil and Mexico have emerged as the major importers of the solar technologies. Out of the total tracker shipments globally in 2019, more than half were being done for North America and Latin America. The demand for solar power has increased at an healthy rate in Europe. Countries like Italy, UK, Germany and Spain have been the front runners in increasing the penetration of solar in the country’s overall power mix. This trend along with ambitious green energy targets poses enormous growth opportunities for this market in the region. Asia Pacific is the region that is the production hub for trackers as 40% of the global capacity of trackers is manufactured in China itself. India, China, and Southeast Asian countries are expected to boost their renewable energy capacity in the coming years, which can create huge demand for solar trackers. South Africa holds the lion’s share of the market in the Middle East and Africa region, which is expected to witness healthy growth over the forecast period with contracts for solar power to be commissioned.
NEXTracker, Soltec, and Arctech Solar Are Among the Leading Players in the Market
The competitive landscape of this market depicts a market dominated by tracker manufacturers such as NEXTracker, Soltec, Arctech Solar. NEXTracker has the maximum solar tracker market share in the global market, with the company acquiring contracts from different countries in every region. A well-established supply chain, customer preference, and an established brand name have been the factors for the success of the company. The market also includes other players such as Array Technologies, Exosun, and Solar Steel, which are increasing their customer reach and establishing a strong footprint in the market. This is expected to lead towards a competitive market for tracker sales in the coming years.
The solar tracker market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
An Infographic Representation of Solar Tracker Market
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Value (USD Billion) and Volume (MW)
Fortune Business Insights says that the global solar tracker market size was USD 9.30 billion in 2019 and is projected to reach USD 22.33 billion by 2027.
In 2019, the market value stood at USD 9.30 billion.
Growing at a CAGR of 12.6%, the market will exhibit healthy growth in the forecast period (2020-2027).
The single axis segment is expected to be the leading segment in this market during the forecast period.
Increasing adoption of renewable sources for power generation is fueling the market.
NEXTracker, Soltec, and Arctech Solar are among the leading players in the global market.
North America dominated the market in 2019.
The operational advantages which lead to more power generation will drive the adoption of these devices.
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