Solar Tracker Market Forecasts to 2028 – Global Analysis By Product Type (Photovoltaic (PV) and Concentrated Solar Power (CSP) ), Movement (Single Axis and Dual Axis), Application (Utility and Non-utility), and Geography

Solar Tracker Market Forecasts to 2028 – Global Analysis By Product Type (Photovoltaic (PV) and Concentrated Solar Power (CSP) ), Movement (Single Axis and Dual Axis), Application (Utility and Non-utility), and Geography

According to Stratistics MRC, the Global Solar Tracker Market is accounted for $6.98 billion in 2022 and is expected to reach $16.58 billion by 2028 growing at a CAGR of 15.5% during the forecast period. A solar tracker is most frequently used to place solar photovoltaic panels parallel to the Sun. It is helpful for placing space telescopes as well. The direction of a solar panel is always adjusted by the solar tracking system to match the position of the sun. Surprisingly, increasing the angle of the panels such that they face the sun causes more light to enter. A control system for automatic tracking, the solar tracking system consists of parts including PV cells, PLCs, signal processors, sensors, mechanical and electromagnetic motion control modules, and power supply systems.

According to the International Renewable Energy Agency (IRENA), in 2021, renewable accounted for 61,517 MW, of which solar PV energy accounted for 25.9%. The market in Spain showed a historical CAGR of 14.69% in terms of solar energy installed capacity from 2015 to 2021, with a net capacity of 15.9 GW in 2021.

Market Dynamics:

Driver:

Growing adoption of renewable sources for power generation

Power generation from renewable sources is growing at a healthy rate and is seen as the best feasible substitute for conventional power sources, such as coal and oil products, as carbon emissions are reduced. About 29% of all electricity is produced using renewable energy sources. By 2026, clean energy objectives and improved government backing are expected to account for about 95% of the growth in the world's electricity capacity, with solar PV accounting for more than half of that growth that are providing a wide range of renewable resource which is propels the growth of the market.

Restraint:

Investment costs and a lack of infrastructure

The increase in steel costs, which further raises the cost of the tracking systems employed in the majority of utility-scale projects, is one of the main reasons impeding the growth of the solar tracker market. Steel often accounts for more than 65% of the entire cost of solar tracking systems, making them more expensive. Additionally, the solar tracking system's overall cost is higher than setting up standard solar panels, which discourages its use in residential settings where energy demand is often lower which may hamper the market.

Opportunity:

Green energy goals to drive solar industry investments

Carbon reduction has accelerated the adoption of renewable energies as the globe transitions to a clean energy future. Solar technology and other renewable energy technologies have dramatically improved, enabling quick deployment and offering affordable solutions for decarbonising the energy sector. As a modular strategy that is easily scalable for large and small enterprises, the unequal adoption of a solar tracking system has drawn increasing attention as an energy justice issue creating wide variety of opportunities for the market growth.

Threat:

High maintenance

Even with reliability improvements, solar trackers still require more maintenance than a conventional fixed rack, albeit the solar tracker's quality can affect how much and how frequently this maintenance is required. Compared to fix racking, trackers are a more sophisticated arrangement. This indicates that normally more site preparation is required, which may need additional grading and trenching for wiring. Solar trackers are a more practical option in warmer areas because they are often made for regions with little to no snowfall. Tracking systems have a harder time adapting to harsher environmental conditions which hamper the market growth.

Covid-19 Impact

The worst global crisis in decades has been unleashed by the COVID-19 pandemic, causing shockwaves in several institutions, economies, and communities around the planet. With several lockdowns and transit limitations in 2020, the energy sector was also severely hampered. This led to a global economic slowdown, decreased trade activity, and a 4% decrease in energy consumption. The clean energy revolution must therefore be at the heart of economic recovery and stimulus initiatives, bringing about the bright spot for renewable and leading to continuing expansion installation even during the pandemic, thus positively impacted the market growth.

The Photovoltaic (PV) segment is expected to be the largest during the forecast period

The Photovoltaic (PV) segment is estimated to have a lucrative growth, due to its easy installation and favourable quality-to-price ratio when compared to other technical applications, photovoltaic solar energy is the type of energy utilised in homes the most frequently. That, despite reaching higher levels of electricity output, poses nearly insurmountable challenges for their architectural integration. Photovoltaic facility PV trackers on an atypically shaped building, taking into account the PV trackers' shadows and any nearby or on the building itself impediments, such as other structures, grass, etc. which boost the market.

The Utility segment is expected to have the highest CAGR during the forecast period

The Utility segment is anticipated to witness the fastest CAGR growth during the forecast period, due to its use more frequently in utility applications as a result of rising electricity costs and growing demand for renewable energy sources. Since utility solar installations are ground mounted and single axis trackers may be used to follow the sun all day, they are the most popular solar tracking system in the utility industry which drives the market.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increased industrialization and commercialization, as well as rising solar technology installation; the product's demand is on the rise. The market environment will also be improved by favourable regulatory rules, plans, and tax incentives to integrate cutting-edge software throughout all deployed PV systems. Due to China's production of 40% of the world's capacity, Asia Pacific serves as the centre of the tracker industry. In the upcoming years, it is anticipated that Southeast Asian nations like India, China would increase their capacity for renewable energy, which will result in a big need for trackers which will encourage in the growth of the Asia Pacific solar trackers market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the largest deployment of solar trackers for installed panel operational efficiency in North America, the United States will support regional demand for products, giving the region the top spot in the global market over the projection period. The Paris Agreement on Climate Change, which encouraged the use of renewable energy in the country's energy supply, and the growing emphasis on renewable energy are principally responsible for the growth. Through a number of measures, the American government is likewise aiming to promote the use of solar power in the economy thereby enhancing the market growth in this region.

Key players in the market

Some of the key players profiled in the Solar Tracker Market include NEXTracker, Array Technologies, Trina Solar, SunPower Corporation, Solar Steel, Scorpius Trackers, Sun Action Trackers, PV Hardware, Ideematec, ArcelorMittal Projects, Soltec, Convert Italia, Abengoa Solar S.A., AllEarth Renewables, Nclave and Powerway Renewable Energy Co. Ltd.

Key Developments:

In Feb 2023, Flex Ltd. announced that its subsidiary, Nextracker Inc. (“Nextracker”), has launched the roadshow for its initial public offering of 23,255,814 shares of its Class A common stock (“Common Stock”). The underwriters of the offering will also have a 30-day option to purchase from Nextracker up to 3,488,372 additional shares of Common Stock.

In Sep 2022, Array Technologies Launches Two New Utility-Scale Solar Tracker Systems to the U.S. Market: Providing Domestically Sourced Solutions that Meet Customer Demands, Array’s OmniTrack terrain-following solution mitigates challenges associated with projects on undulating terrain while reducing costs and schedules by enabling less complex.

In July 2022, Array Technologies, Inc. Enters Into Settlement Agreement with Nextracker LLC, Flextronics International U.S.A., Inc. As part of the settlement, the parties agreed to treat the settlement terms as confidential except to the extent required or necessitated by law, regulation, or the corporate parties’ shareholder disclosure standards.

Product Types Covered:
• Photovoltaic (PV)
• Concentrated Solar Power (CSP)

Movements Covered:
• Single Axis
• Dual Axis

Applications Covered:
• Utility
• Non-utility

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements