EV Solar Modules Market is driven by High Growth Amid Rise in Carbon Neutral Goals

Author : Vedant B | Published On : 17 Apr 2024

Electric Vehicle (EV) solar modules provide electric power from solar panels installed on EVs. The integrated solar panels are lightweight, thin-film modules that are less expensive to produce compared to traditional silicon panels. EVs with solar modules can supplement the vehicle's battery charging on-the-go, extending driving range per charge. As governments and individuals alike pay more attention to sustainability and reducing carbon emissions from transportation, EVs with solar power provide an eco-friendly driving solution.

The Global EV Solar Modules Market is estimated to be valued at US$ 1,829.8 Mn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.

Growing concerns regarding carbon emissions from vehicles and rising focus on renewable energy are driving demand for solar-powered EVs. Solar modules help cut energy costs for EV owners while supporting sustainability goals. Additionally, solar module manufacturers are developing more efficient, lightweight panels to boost EV driving range without adding vehicular weight.

Key Takeaways
Key players operating in the EV Solar Modules Market are Volkswagen, Jinko Solar, Trina Solar, Canadian Solar, JA Solar, Hanwha Q CELLS, LONGi Solar, REC Group, LG Electronics, SunPower, Capsolar, Innolia, and Maxeon Solar Technologies. These companies are investing heavily in R&D to design advanced thin-film solar cells for rooftop and sunroof integration in cars. They also partner with leading automakers to provide customized solutions as automakers launch more solar-enabled EV models.

The global transition toward electric mobility presents significant growth opportunities for solar module suppliers targeting the nascent EV market. Automakers are introducing new EV concepts with more efficient solar panels capable of adding over 1,000 miles of driving range annually. Widespread rooftop solar adoption in cities and homes also creates an adjacent aftermarket for used panels to retrofit existing EVs.

North America and Europe are established markets for solar PV and EVs which will drive early adoption of EV solar modules as well. However, Asia Pacific is anticipated to be the fastest growing regional market owing to China's push for electrified transportation paired with domestic solar capabilities. Other Southeast Asian countries are also prioritizing renewables and EVs in their decarbonization plans.

Market Drivers
Stringent emission regulations- Toughening fuel economy standards and emission norms by governments worldwide are compelling automakers to accelerate EV development and production. Solar-powered EVs synergistically address both these policy drivers.
Tax credits and subsidies- Favorable financial incentives for purchasing EVs and installing renewable energy systems lower the ownership cost of solar-electric vehicles, encouraging higher consumer demand.

Market Restraints
High upfront costs- Solar modules and their installation significantly increase the upfront price of EVs compared to non-solar models, posing an adoption barrier until costs reduce over time.
Battery life concerns- Frequent charging of EV batteries using unpredictable solar power may reduce battery longevity compared to control charging from grids. This remains a deterrent until battery technology advances.

Segment Analysis
The residential EV solar modules segment currently dominates the market due to increase in demand for rooftop solar panels across residential buildings worldwide. The rising concerns regarding environment protection and awareness about benefits of solar energy are encouraging home owners to install solar panels. The commercial EV solar modules segment is expected to witness highest growth during the forecast period owing to large-scale installation of solar rooftops in malls, restaurants, offices and other commercial establishments.

Global Analysis
North America region holds the major share in the global EV solar modules market primarily due to supportive government policies and investment towards sustainable energy production in U.S. and Canada. The Asia Pacific region is projected to be the fastest growing market during the forecast period. This is credited to ongoing renewable energy projects and investments in China, India and Southeast Asian countries to address increasing energy needs in an eco-friendly manner. These countries are adopting innovative technologies and offering subsidies for adoption of solar energy, which is fueling market growth. Europe is also emerging as a lucrative market attributed to stringent emission norms and focus on clean energy transition in countries like Germany, U.K, France and others.

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