Solar Tracker Market 2022-2028

Solar Tracker Market 2022-2028

The global solar tracker market is estimated to grow at a significant CAGR of 17.8% during the forecast period. The major factors contributing to the growth of the market include the rising solar PV installations and favorable government initiatives for renewable energy sources. There is a significant rise in solar PV installations across the globe. According to International Renewable Energy Agency (IRENA), in the US, around 14,858 GWH of electricity generated from solar PV in 2013, which increased with an exponential growth rate and reached to around 67,393 GWH of solar photovoltaic installations in 2021.

The global solar tracker market in 2021 was valued at around $6.7 billion, which is projected to exceed $20.8 billion in 2028, growing at a CAGR of 17.8% during the forecast period. Solar panel tracking solution is an advanced tech-nology for mounting photovoltaic panels. Using Solar Trackers increases the amount of solar energy received by solar energy collector and improves the energy output of heat/electricity. Solar trackers can increase the output of solar panels by 20-30%, which improves the economics of solar panel project.

In PV systems, solar trackers enable toreduce the angle of incidence between the incoming light and the panel. This increases the amount of energy the solar panel produces. Concentrated solar PV have optics that directly accept sunlight and solar trackers must be angled properly to collect energy. Hence, all concentrated solar systems have trackers as the systems do not generate energy unless directed properly toward the sun. This rising penetration of solar PV systems is offering an opportunity for solar tracker vendors to maximize their revenue generation. The major vendors operating in the solar tracker industry include nextracker, Inc. (US), array technologies, Inc. (US), Soltec (Spain), Arctech Solar (China), and PV Hardware (Spain). These vendors are significantly focusing on distinguishing their products from other competitors to gain significant share in an increasingly global solar tracker market.

Proprietary backtracking software (nextracker) and scada software (sti norland) are of potential interest to tracker companies. Soltec is offering customer service platforms that streamline maintenance. Vendors are offering services ranging from support for designing and engineering to installation, project management, and operations and maintenance. They are focusing onpursuing energy storage offerings; however, some companies have already done that so far. For instance, Nextracker is the tracker company providing energy storage offerings. In December 2021, Nextracker introduced NX flowess to offer clean energy system solutions for future power plants. Nx flow is a DC-coupled solution that uses vanadium flow batteries, which the company integrates with its single-axis tracking systems. It is a very long duration storage solution and offers an extended lifetime for the product application. These kinds of additions have been conducted by the solar tracker companies to leverage its share in the market.

In 2021, the global solar tracker installations recorded was nearly 46.4 GW, which is expected to reach nearly 540 GW in 2028. North America is the major contributor to the growth of the market in 2021. The region occupied 33% in the global solar tracker installation market in 2021. The major factors contributing to the growth of include the increasing solar PV installations coupled the favorable government initiatives, including sunshot initiative, launched in February 2011. This initiative aims to minimize the total solar energy costs by 75%. Further, rising innovations in solar trackers are further contributing to the growth of the market in the region. For instance, in September 2021, Nextracker launched a new member of its smart single-axis solar tracker family, NX Gemini. It is the next-generation two-module-in-portrait (2P) trackerwhich is designed for customer sites with hard soils, challenging terrain, and high-wind requirements. The combination of nextracker's flagship nx horizon and nx gemini provides industry's most comprehensive solar tracker portfolio to the customers that offers greater flexibility to reliably configure systems at their project sites for maximum energy output across a wide range of site conditions.

The global solar tracker market is segmented based on type, end-user, and technology. Based on type, the market is classified into single-axis tracker and dual-axis tracker. Based on end-user, the market is segmented into commercial, residential, and industrial. Based on technology, the market is classified into PV system, concentrated solar power (CSP), and concentrator photovoltaics (CPV).

Single-axis trackers dominated the market with 85.2% of the share and generated around $5.7 billion in 2021. This value is further projected to exceed $17.1 billion in 2028 growing at a CAGR of 17.2% during the forecast period. These trackers are regarded as highly reliable as dual-axis solar trackers. It has a simple mechanism and runs at a low cost. Single-axis trackers tend to be ideal for areas with frequent cloud cover and companies that want a low-cost option. It has a better efficiency in terms of solar panels in fixed form. As a result, these trackers are being mostly adopted in utility-scale and large projects.

Among these, PV segment dominated the market with 75.3% of the share and generated around $5.0 billion in 2021. This value is further projected to exceed $15.1 billion in 2028, growing at a CAGR 17.2% during the forecast period. The compatibility of PV cells with standard photovoltaic module technologies is the major reason for the dominating market share this technology. The rising cost of electricity owing to the supply-demand gap will further augment the use of solar PV in utility and non-utility applications.

Based on end-user, industrial segment dominated the market with 79.2% of the share and generated $5.3 billion in 2021. This value is further projected to exceed $16.6 billion in 2028, growing at a CAGR of 18.0% during the forecast period. The dominance of the segment is attributed to the fact that soalr tracker are widely used in large sacle utilty projects. Horizontal Single Axis Trackers (HSAT) are typically used for large, distributed generation projects and utility scale projects. As these are commercially viable and lead to substantial energy improvements, they become the preferred choice for large scale installations. Utility-scale and large projects usually use horizontal single-axis solar trackers, while dual-axis trackers are mostly used in smaller residential applications and locations with high government. The use of solar trackers can increase electricity production significantly. In any solar application, the conversion efficiency is improved when the modules are continually adjusted to the optimum angle as the sun traverses the sky. As improved efficiency means improved yield, use of trackers can make quite a difference to the income from a large plant. This is why utility-scale solar installations are increasingly being mounted on tracking systems.

Geographically, the study of the report covers the analysis of four major regions including North America (US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and the Rest of the World. Among these, North America dominated the market 32.8% of the share and generated $2.2 billion in 2021. This value is further projected to exceed $6.5 billion in 2028, growing at a CAGR of 16.9% during the forecast period. The growth is attributed to the increasing focus on renewable energy and the Paris Agreement on Climate Change that has recommended the usage of renewable energy in the nation’s energy supply. Further, the region has the highest installation capacity for solar tracker.