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Solar Vehicle Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Vehicles and Commercial Vehicles), By Battery Type (Lithium Ion, Lead Acid, and Others), By Solar Panel (Monocrystalline and Polycrystalline), and Regional Forecasts, 2023-2030

Last Updated: April 08, 2024 | Format: PDF | Report ID: FBI104333

 

KEY MARKET INSIGHTS

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The global solar vehicle market size was valued at USD 383.4 million in 2022. The market is projected to grow from USD 456.6 million in 2023 to USD 1,658.6 million by 2030, exhibiting a CAGR of 20.2% during the forecast period.


Solar uses solar energy as the primary source of power for propulsion. These vehicles are designed to be highly energy-efficient, with solar panels integrated into the vehicle's body to capture sunlight and generate electricity. Solar vehicles, including cars, motorcycles, and even boats, come in various shapes and sizes. They typically use an electric motor to drive the wheels and the electricity to power the motor is generated by solar panels mounted on the vehicle.


While solar vehicles have been around for several years, their practical applications have been limited due to the relatively low efficiency of solar panels and the limited amount of energy they can produce. The advances in solar panel technology and improvements in battery storage systems have made it possible to build solar-powered vehicles that can travel longer distances and at higher speeds than ever before. Solar vehicles are considered to be highly sustainable and environment-friendly, as they produce no emissions and use renewable energy from the sun. However, they are still limited by the availability of sunlight and may not be practical in areas with limited sunlight or during cloudy days. As a result, most solar-powered vehicles are designed for specific use cases such as racing or short-distance commuting, rather than for everyday use. The growing awareness regarding the environmental impact of fossil fuels has led to increased interest in renewable energy, including solar power. This has led to a growing market for solar-powered vehicles, which have been seen as a sustainable alternative to traditional gasoline-powered vehicles.


COVID 19 IMPACT


Pandemic Negatively Impacted the Market Due to Supply Chain Disruptions


The COVID-19 pandemic had a mixed impact on the market. On one hand, the pandemic has led to a significant reduction in global economic activity, which has affected the overall demand for vehicles, including solar-powered vehicles. Many manufacturers have also faced supply chain disruptions and difficulties in sourcing materials and components, which has slowed down production and delayed product launches.


On the other hand, the pandemic has also highlighted the importance of sustainability and the need to reduce carbon emissions, which has increased interest in renewable energy and sustainable transportation options. This has led to an increasing demand for solar-powered electric vehicles, which are seen as environment-friendly.


Overall, the impact of the COVID-19 pandemic on the market has been mixed, with both positive and negative effects. While the pandemic significantly reduced economic activity and disrupted supply chains, it also highlighted the importance of sustainability and increased interest in renewable energy and sustainable transportation options. It is anticipated that the market could grow in the coming years at a steady pace.


LATEST TRENDS


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Improvement in Solar Panel and Battery Storage Technology to Propel Market Growth


The solar panel’s efficiency has improved significantly in recent years, making it possible to generate more power from a smaller surface area. Solar vehicles are likely to become more efficient and practical as solar panel technology continues to improve. Battery storage technology is also improving, making storing more energy in smaller and lighter batteries possible. This is important for vehicles, which rely on battery power when sunlight is not available. Moreover, the demand for electric vehicles is growing rapidly, driven by concerns over climate change and air pollution. This is likely to spill over into the solar vehicle industry as consumers seek environment-friendly transportation options.


Governments worldwide are implementing policies to support the adoption of renewable energy and electric vehicles, including tax incentives, rebates, and subsidies. This is likely to surge the product demand, making them more affordable for consumers. These types of vehicles are becoming more practical and functional, with new designs suitable for a wider range of applications. For example, solar-powered buses and trucks are being developed for public transportation and cargo transport. All these factors are positively supporting the growth of the market


DRIVING FACTORS


Government Support for Eco-friendly Vehicles to Drive the Market Growth


Government support for eco-friendly vehicles is a major driver of the market. Governments worldwide have implemented policies and incentives to encourage the adoption of renewable energy and reduce greenhouse gas emissions, including support for electric and solar-powered vehicles. Many countries offer tax incentives for consumers who purchase electric or solar-powered vehicles, which can help reduce the overall ownership cost. Governments of different nations are offering subsidies to vehicle manufacturers to help reduce the cost of production and make electric and solar-powered vehicles more affordable for consumers.


Heavy investments are made in electric vehicle charging stations and other infrastructure to support the adoption of solar powered vehicles. Many countries, such as the U.S., Japan, and China, have implemented emission standards that require automakers to reduce their greenhouse gas emissions. This has led to increased investment in electric and solar powered vehicles as a way to meet these standards. Governments may also invest in the research & development of new solar-powered vehicle technologies. This can help to drive innovation and improve the efficiency and performance of these vehicles.


RESTRAINING FACTORS


Limited Sales in Regions with Less Sunlight to Slow Down the Market Growth


One of the major challenges facing the market is the limited sales of solar-powered vehicles in cold regions. This is attributed to the fact that solar panels generate less energy in cold temperatures, which can limit the range and performance of solar-powered vehicles. Consumers may instead choose conventional vehicles over solar cars in colder regions, which can generate more power than electric and solar-powered vehicles. The solar panels may be less efficient in snowy and cloudy conditions, which is common in many cold regions. Solar cars can be equipped with larger batteries or other energy storage systems to compensate for the reduced energy generation in cold temperatures. This can help ensure the vehicle has enough power to operate even in low light or low-temperature conditions. However, a larger battery pack leads to a higher price of the vehicle, which can be a factor obstructing market growth.


SEGMENTATION


By Vehicle Type Analysis


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Passenger Vehicles Dominated the Market in 2022 Owing to the Growing Demand for Fuel Efficient Vehicles


Based on vehicle type, the market is segmented into passenger vehicles and commercial vehicles.


The passenger vehicles segment held a dominating share in 2022. The market growth seems steady compared to other vehicles such as battery electric vehicles, plug-in hybrid vehicles PHEV, and hybrid electric vehicles. Some companies are investing in developing more efficient solar panels and energy storage systems, which can help improve the performance and range of solar passenger vehicles. Additionally, there is growing interest among consumers in eco-friendly vehicles, which could surge the demand for solar-powered cars.


For instance, in February 2020, a group of private investors invested around USD 8.84 million to relaunch solar car Lightyear2. The solar passenger vehicle demand is expected to grow with the development of solar-powered electric cars with hybrid systems. These vehicles combine solar power with other energy sources, such as gasoline or diesel, to ensure that the vehicle has enough power to operate in all weather conditions. This can help to address some of the range and performance limitations of pure solar-powered cars.


The commercial vehicles segment is also expected to grow at a high rate owing to the increasing sales of commercial electric vehicles across the globe. One area of growth in the solar-powered commercial vehicle market is the development of solar-powered buses for use in urban transportation systems. For instance, in October 2021, 386 solar powered buses were launched in India based on the 100% green energy concept. The growth of solar-powered commercial vehicles is an area of increasing interest and investment, particularly in the areas of urban transportation and delivery services. Solar-powered commercial vehicles offer several advantages over traditional gasoline or diesel-powered vehicles, including reduced fuel costs, lower emissions, and quieter operation.


By Battery Type Analysis


Increasing Demand for Lithium Ion Batteries Owing to Increasing Sales of Electric Vehicles to Support the Market Growth


Based on battery type, the market is segmented into lithium ion, lead acid, and others.


The lithium ion segment is expected to positively influence the market during the forecast period holding a significant market share of 73% by 2030. The demand for lithium ion is surging owing to increasing sales of electric vehicles globally. Lithium ion has high power storage capacity and also promises reliability, a long lifespan, and a high driving range. These batteries are lightweight and compact and can improve the performance and efficiency of solar electric vehicles.


Lead acid batteries are gaining more traction in the market. These batteries are considered to be a better choice for solar power storage. Lead acid batteries are less expensive than other batteries, making them a more affordable option for the solar-powered vehicle. The increasing demand for lead acid batteries by vehicle manufacturers to build affordable vehicles is anticipated to boost the segment demand.


By Solar Panel Analysis


Monocrystalline Solar Panels to Dominate owing to High Performance in Generating High Power for Solar Vehicles


Based on solar panel, the market is segmented into monocrystalline and polycrystalline.


The monocrystalline segment held a leading market share in 2022. Monocrystalline solar panels have high efficiency and durability, which makes them a popular choice for a variety of solar applications, including solar-powered vehicles. There has been an increasing demand for monocrystalline solar panels in vehicles owing to their superior performance compared to other types of solar panels. Monocrystalline solar panels have a higher efficiency rating, and thus they can generate more electricity from the same amount of sunlight than other solar panels. Additionally, monocrystalline solar panels have a longer lifespan than other solar panels, which is important for solar-powered vehicles requiring a reliable and long-lasting energy source. These factors are considered to boost the monocrystalline segment.


While monocrystalline solar panels are typically preferred for solar-powered vehicles due to their higher efficiency and durability, polycrystalline solar panels can also be a suitable option depending on the vehicle's specific needs. Polycrystalline solar panels are cheaper as compared to monocrystalline solar panels, making them a more affordable option for those looking to incorporate solar panels into their solar-powered vehicles. They also have a lower efficiency rating than monocrystalline solar panels, but they can still generate significant electricity from sunlight.


REGIONAL INSIGHTS


North America Solar Vehicle Market Size, 2022 (USD Million)

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North America held the leading solar vehicle market share in 2022. Factors such as low battery costs and the increasing adoption of solar panels in hybrid electric vehicles are attributed to the high market share in this region. Growing technological advancement in the automotive sector in the region is another factor supporting the North America solar vehicle market growth.


Favorable government support in terms of subsidies and stringent emission norms is responsible for the high share of Electric Vehicles (EVs) in this region. For instance, registration fees for plug-in hybrid vehicles were reduced by nearly 7% by the Dutch Government and only zero-emission vehicles will be sold in the country by 2030. Solar panel integration with electric vehicles increases their efficiency, which may lead to high adoption of these vehicles in Europe during the forecast period.


Asia Pacific is anticipated to grow at a CAGR of 23.4% over the study period. The market is expected to experience significant growth in the Asia Pacific region in the coming years. This is due to several factors, including increasing concerns about air pollution, the need to reduce greenhouse gas emissions, and government initiatives to promote the use of electric and solar-powered vehicles. China, in particular, has been a significant driver impelling market growth in the Asia Pacific. The government of China has implemented several policies and initiatives to support the use of electric and solar-powered vehicles, including subsidies and tax incentives for manufacturers and consumers. This has led to a significant rise in the production and adoption of electric and solar vehicles in China. Other countries in Asia Pacific, such as Japan, South Korea, and India, are expected to witness growth in this market in the coming years. These countries have also implemented policies and initiatives to promote the use of electric and solar-powered vehicles and there is growing interest among consumers in adopting these technologies.


KEY INDUSTRY PLAYERS 


Heavy Investment in R&D Activities to Develop Innovative Vehicles is the Key Strategy Adopted by Leading Market Players


The market for solar vehicle is evolving with a few major players such as Sono Motors, Lightyear, Venturi, and others. The key players are investing heavily in research & development activities to launch cost-effective solar-powered vehicles with high performance.


A diverse product portfolio has helped Sono Motors maintain its dominating position in the Market. Sono Motors is one of the pioneer manufacturers of solar products. The company has been developing solar kits for cars, buses, commercial trucks, and refrigerated vehicles. The company has a strong foothold in North America and Europe. 


LIST OF KEY COMPANIES PROFILED:



  • Sono Motors GmbH (Germany)

  • Lightyear (Netherlands)

  • VENTURI (Monaco)

  • Nissan (Japan)

  • Mahindra & Mahindra Limited (India)

  • Toyota Motor Corporation (Japan)

  • Ford Motor Company (U.S.)

  • Volkswagen AG (Germany)

  • Daimler AG (Germany)

  • Tesla, Inc (U.S.)


KEY INDUSTRY DEVELOPMENTS



  • January 2023 - Sono Group N.V., a key player in solar mobility solutions, secured funding of USD 1.61 million from CINEA (European Climate, Infrastructure, and Environment Executive Agency) to enhance the development of solar technology.

  • June 2022 - Bridgestone and Lightyear have joined forces to develop the world’s first long range solar electric powered vehicle. Partnership between Lightyear and Bridgestone is a direct result of shared focus on sustainability and builds upon work together for the Bridgestone World Solar Challenge

  • January 2022 - Sono Motors, one of the leaders in solar-powered technology, aims to enter the refrigerated trailer market to expand its solar business with its proprietary Sono Solar Technology to control fossil fuel emissions.

  • July 2021 - Lightyear, one of the major players in solar technology, announced its partnership with Valmet Automotive, one of the largest contract vehicle manufacturers, for the production and manufacturing of the Lightyear One car series.

  • May 2021 - Man Truck and Sono Motors made a joint venture to investigate the technical and economic feasibility of assimilating solar technology into Man vehicles. 


REPORT COVERAGE


An Infographic Representation of Solar Vehicle Market

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The report provides a detailed market analysis and focuses on key aspects such as leading companies, services, and product applications. Besides this, the report offers insights into the solar vehicle industry trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.


REPORT SCOPE & SEGMENTATION



















































   ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 20.2% from 2023 to 2030



Unit



Value (USD Million)



Segmentation



By Vehicle Type



  • Passenger Vehicle

  • Commercial Vehicle



By Battery Type



  • Lithium Ion

  • Lead Acid

  • Others



By Solar Panel Type



  • Monocrystalline

  • Polycrystalline



By Geography



  • North America (By Vehicle Type, By Battery Type, By Solar Panel Type)



  • U.S. (By Vehicle Type, By Battery Type, By Solar Panel  Type)

  • Canada (By Vehicle Type, By Battery Type, By Solar Panel  Type)

  • Mexico (By Vehicle Type, By Battery Type, By Solar Panel Type)



  • Europe (By Vehicle Type, By Battery Type, By Solar Panel  Type)



  • U.K. (By Vehicle Type, By Battery Type, By Solar Panel  Type)

  • Germany (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • France (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • Italy (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • Rest of Europe (By Vehicle Type, By Battery Type, By Solar Panel Type)



  • Asia Pacific (By Vehicle Type, By Battery Type, By Solar Panel Type)



  • China (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • India (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • Japan (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • South Korea (By Vehicle Type, By Battery Type, By Solar Panel Type)

  • Rest of Asia Pacific (By Vehicle Type, By Battery Type, By Solar Panel Type)



  • Rest of the World (By Vehicle Type, By Battery Type, By Solar Panel Type)






Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 383.4 million in 2022 and is projected to reach USD 1,658.6 million in 2030.

The market is expected to register a CAGR of 20.2% during the forecast period.

Improvement in solar panel and battery storage technology is expected to propel the market growth.

North America is the leading region of the global market.

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