Agrivoltaic Market: Current Analysis and Forecast (2024-2032)
Emphasis on System Design (Fixed Solar Panel Over Crops and Dynamic Agrivoltaic); Crop Type (Leafy Greens, Root Crops, and Fruits); and Region and Country
Agrivoltaic Market Size & Forecast
The Agrivoltaic market was valued at approximately USD 5 billion in 2023 and is expected to grow at a substantial CAGR of around 11.5% during the forecast period (2024-2032) owing to the growing need for renewable energy sources drives the adoption of Agrivoltaic systems.
Agrivoltaic Market Analysis
Agrivoltaics means having solar photovoltaic (PV) systems on the same piece of land where farming activities are carried out. Such a system enables the integration of two processes, a solar energy process and an agricultural process, either crop farming or animal rearing. The solar panels are usually mounted at a certain height or position in a way that ensures that the sun’s rays can get to the crops as they land on other structures depending on the use of the land and add onto it by providing shade and reducing evaporation of water in the process.
The increasing demand of the world for the production of renewable energy resources increases the utilization of the same piece of land for the production of energy and crops. Furthermore, increases in technology features and advancements in the structure of panels including bifacial solar panels and tilt mounts make agrivoltaic systems more efficient and viable. In December 2021, U.S. solar developer iSun worked with German agrivoltaics mounting company Next2Sun to jointly develop a vertical agrivoltaic system in the United States. iSun installs Next2Sun’s first U.S. system in Vermont. In addition, growing concerns about environmental conservation and corporate social responsibility make consumers and investors more inclined towards the usage and investment of agrivoltaic solutions.
Agrivoltaic Market Trends
This section discusses the key market trends influencing the various segments of the Agrivoltaic market as identified by our research experts.
Fixed Solar Panels Segment Transform Agrivoltaic Industry
The use of solar panels which are fixed contributes towards the growth of the agrivoltaics market as they provide a sustainable means and method of deploying solar energy in agri-operations. This is due to their static nature, and lack of moving parts, which makes their installation rather easy, and they require less maintenance for large agrivoltaic applications. Some of the fixed panels can be placed facing towards the sun to help in getting optimal sunlight for the crops while at the same time shielding some of the crops from the complete sun by allowing partial shading to enhance crop production. They contribute to the increase of efficiency and sustainability of agrivoltaic projects in terms of operation costs. Further, fixed panel adoption may fast-track adoption through increased availability of a tested, and easily scalable technology that complements current farming methods. They both equally help to increase the market’s growth by enabling more frequent and diverse installations of agrivoltaics.
France had a significant share of the market in 2023.
France holds the largest share of the development of the agrivoltaics market due to favorable government measures and subsidies that support sustainable land management and energy. The French government has signed up for more green energy and climate initiatives that have seen them provide subsidies and tax incentives for agrivoltaic initiatives. France has a large agricultural industry which means this sector will offer many opportunities for the use of solar panels thereby increasing the productivity of the land. In September 2024, The French solar project developer Green Lighthouse Développement received the French government’s approval for its 450 MW Terr’Arbouts agrivoltaic project in Landes (Southern France). The project should cover 46 agricultural blocks, representing a combined area of about 7 km2, where 2 km2 of panels are planned to be installed. The project’s 450 MW of installed capacity is expected to contribute to generating about 650 GWh/year, enough to power 140,000 households, once it becomes operational by 2028. Also, in France, the observation and innovation moving forward in agrivoltaic systems and configuration stress the improvement of the relationship between photovoltaic operations and farming. Currently, French firms and collaborations are coming up with unique innovative agrivoltaic solutions, which is rather encouraging. A supportive regulatory environment and the focus on sustainability also explain the investment and implementation of agrivoltaic systems in France.
Agrivoltaic Industry Overview
The Agrivoltaic market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Agrivoltaic Solutions LLC, Sun’Agri, Enel Spa, BayWa r.e. AG, TotalEnergies, Vattenfall AB, RWE, REM TEC s.r.l., Boralex, Next2Sun Technology GmbH.
Agrivoltaic Market News
In February 2023, Vattenfall invested in a 76-megawatt agrivoltaic project. Vattenfall will implement this innovative concept of land use on a commercial scale with partners. The project in Tützpatz aims to combine module types on different mounting systems with suitable agricultural uses over an area of 95 ha, and thus gain further practical experience for future commercial projects of this kind.
In April 2024, Lesaffre, a key player in fermentation and micro-organisms for over 170 years, and Qair, an independent renewable energy company, signed a contract for the direct purchase of renewable electricity (CPPA) from an agrivoltaic plant.
In May 2024: Baywa re, commissioned a 54 MW agrivoltaic solar project in Spain. Denmark-based Velux has agreed to purchase most of its 96.8 GWh of annual output under a long-term power purchase agreement (PPA).
Agrivoltaic Market Report Coverage
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 11.5% |
Market size 2023 | USD 5 billion |
Regional analysis | China, Japan, India, South Korea, France, Italy, Germany, US, Rest of the World |
Major contributing region | China is expected to grow at a significant CAGR during the forecasted period. |
Key countries covered | China, Japan, India, South Korea, France, Italy, Germany, US, Rest of the World |
Agrivoltaic Solutions LLC, Sun’Agri, Enel Spa, BayWa r.e. AG, TotalEnergies, Vattenfall AB, RWE, REM TEC s.r.l., Boralex, Next2Sun Technology GmbH. | |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By System Design, By Crop Type, By Region/Country |
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global Agrivoltaic market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Agrivoltaic Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Agrivoltaic market were the three major steps undertaken to create and analyze the adoption of Agrivoltaic in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Agrivoltaic market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the Agrivoltaic market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Agrivoltaic market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as system design, crop type, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Agrivoltaic market. Further, we conducted factor analysis using dependent and independent variables such as system design, crop type, and regions of the Agrivoltaic market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Agrivoltaic market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Agrivoltaic market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Agrivoltaic market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Agrivoltaic market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Agrivoltaic market. Data was split into several segments and sub-segments after studying various parameters and trends in the system design, crop type, and regions of the global Agrivoltaic market.
The main objective of the Global Agrivoltaic Market Study
The current & future market trends of the global Agrivoltaic market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the Agrivoltaic market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of the system design, crop type, and regions.
- Define and analyze the regulatory framework for the Agrivoltaic
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the Agrivoltaic market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
- Company profiles of the Agrivoltaic market and the growth strategies adopted by the market players to sustain the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the Agrivoltaic market's current size and growth potential?
Q2: What are the driving factors for the growth of the Agrivoltaic market?
Q3: Which segment has the largest share of the Agrivoltaic market by system design?
Q4: What are the major trends in the Agrivoltaic market?
Q5: Which region will dominate the Agrivoltaic market?
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