Agrivoltaics, also known as solar farming, refers to land management systems that integrate solar panel installation with agricultural activities on the same area of land. As agricultural sites often experience underutilized spaces, agrivoltaic systems efficiently utilize these areas by installing solar panels above crop fields or grazing land. The modular structure of solar panels allows adequate sunlight and airflow to pass through to crops below. This helps farmers generate solar power while continuing traditional farming and livestock activities underneath solar panels.
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 from 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. These players are focusing on product innovation and partnerships to meet the rising demand for agrivoltaic systems. The growing demand for sustainable food production and renewable energy is a major factor fueling the agrivoltaics market growth. Additionally, increasing governmental support through subsidies and incentives is encouraging farmers to adopt agrivoltaics. On the global front, countries in Europe, Asia Pacific, and North America are witnessing significant expansion of agrivoltaic installations to achieve renewable energy targets.
Market Key Trends
One of the major trends contributing to the Agrivoltaics Market Demand the development of smart agrivoltaic systems and solutions. Manufacturers are innovating advanced agrivoltaic technologies integrated with sensors, IoT, and data analytics to optimize crop growth and power generation. Real-time monitoring of crop conditions helps farmers effectively respond to pest infestations or changes in weather patterns. Cloud-based management systems also aid remote supervision and control of agrivoltaic farms. Such smart technologies are gaining traction among farmers looking to boost agricultural yields and maximize solar energy harvesting.
Porter’s Analysis
Threat of new entrants: High capital requirements and regulatory barriers make entry difficult in this Agrivoltaics Market Size And Trends Bargaining power of buyers: Individual customers have low bargaining power due to numerous suppliers but industrial and commercial buyers have higher bargaining power. Bargaining power of suppliers: Suppliers of solar panels, mounting systems and other components have moderate bargaining power due to availability of substitutes. Threat of new substitutes: Emerging technologies for renewable energy production pose threat of substitution. Competitive rivalry: The market has few large players and many small regional players leading to high competitive rivalry.
Geographical Regions
The agrivoltaics market in Asia Pacific region held the largest share in terms of value in 2024 owing to favorable government policies and growing investments in renewable energy sector in countries like India and China. India is estimated to be the fastest growing regional market between 2024 to 2031 with expected CAGR of over 12% driven by government initiatives to adopt agrivoltaic systems across the country especially in states receiving high solar radiations.Agrivoltaics help farmers generate sustainable power while protecting crops from extreme weather and allowing cultivation of dual-use crops. This dual land use system is proving beneficial for the agriculture sector in tropical countries.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
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