Agrivoltaic Market Size - By System Design (Fixed, Dynamic), By Harvest Type (Root Crops, Vegetables, Fruits), By Placement (Ground Mounted, Shading Nets, Greenhouses), & Forecast, 2024 - 2032

Agrivoltaic Market Size - By System Design (Fixed, Dynamic), By Harvest Type (Root Crops, Vegetables, Fruits), By Placement (Ground Mounted, Shading Nets, Greenhouses), & Forecast, 2024 - 2032

Global Agrivoltaic Industry will register a 5.9% CAGR between 2024 and 2032, attributed to technological advancements in solar panel efficiency alongside supportive government initiatives and policies. Improved solar technology allows for greater energy generation per unit area, enhancing the economic viability of agrivoltaic systems. Furthermore, government incentives, subsidies, and mandates encouraging renewable energy adoption and sustainable agriculture provide a conducive environment for market expansion. As stakeholders seek to address climate change and promote energy security, the convergence of technology and policy will drive significant growth in the agrivoltaic industry.

For instance, in October 2023, the National Solar Energy Federation of India (NSEFI) launched the India Agrivoltaics Alliance (IAA), consisting of 12 organizations. Collaborating with the Ministry of New and Renewable Energy (MNRE) and the Ministry of Agriculture and Farmers Welfare, Government of India, the alliance aims to foster the expansion of agrivoltaics across the country. This signifies a concerted effort to promote agrivoltaics at a national level, thus fostering collaboration between key stakeholders and government bodies, thereby strengthening the agrivoltaic market's growth and development.

The agrivoltaic market share is divided based on harvest type, placement, and region.

The root crops segment will capture a noteworthy share through 2032 due to its unique benefits and widespread cultivation. Root crops, such as potatoes, carrots, and radishes, thrive under partial shading provided by solar panels in agrivoltaic systems. This symbiotic approach optimizes land use and enhances crop yields and quality. Additionally, root crops are staples in many diets worldwide, driving consistent demand and market growth. As agrivoltaic technology evolves to accommodate various crop types, the root crops segment will stand out as a primary driver of the market's expansion.

The agrivoltaic market size from the ground-mounted segment will garner notable gains by 2032. Ground-mounted solar arrays offer installation flexibility, making them suitable for various terrains and agricultural practices. This segment appeals to farmers seeking to maximize land use efficiency while simultaneously generating renewable energy. Additionally, ground-mounted systems often have lower installation costs than other mounting options, further driving their popularity. As sustainability initiatives gain momentum globally, the ground-mounted segment will emerge as a frontrunner in facilitating the integration of agriculture and solar energy, thereby securing the largest market share.

Asia Pacific agrivoltaic industry will capture a remarkable CAGR from 2024 to 2032, owing to a convergence of factors. Rapid urbanization, in line with increasing energy demand and agricultural activities, fuels the adoption of agrivoltaic systems. Favorable government policies and incentives further accelerate market growth. Moreover, the region's vast agricultural landscapes provide ample opportunities for integrating solar panels with farming practices. With its significant contribution to renewable energy and agricultural sectors, the Asia Pacific region will emerge as a key contributor to the agrivoltaic market.