Agrivoltaic industry's growth forecast indicates an impressive progression, set to hit US$ 7.96 billion by 2029, boasting a strong Compound Annual Growth Rate (CAGR) of 10.2% throughout the projection period.
In a recent report published on openPR, Maximize Market Research Pvt. Ltd. has predicted a robust growth trajectory for the agrivoltaics market. The market, currently valued at approximately USD 4.71 billion, is expected to reach USD 8.34 billion by 2032, reflecting a compound annual growth rate (CAGR) of 8.5% during this period.
This growth is attributed to the rising demand for sustainable farming practices combined with renewable energy integration, supported by favourable government policies and significant investments in renewable energy infrastructure worldwide.
Key market dynamics include the expansion of production capacity for agrivoltaic systems, with large-scale farms growing by over 20% in regions like North America and Europe as of 2024. Cost reductions, too, are playing a significant role, with module costs decreasing by about 12% year-over-year, making agrivoltaic adoption more economically viable, particularly in emerging markets.
The report also highlights a 15% surge in export volumes of agrivoltaic components in 2025, especially to the Asia Pacific region, indicating a strong international demand. Moreover, the increasing utilization of agrivoltaics across diverse agricultural applications, such as fruit shading systems and greenhouse-integrated photovoltaics, is helping to enhance both crop yields and solar energy generation efficiency.
Overall, the agrivoltaics market is poised for sustained and significant growth in the coming decade. This growth is driven by the dual benefits of maximizing land use efficiency for simultaneous food production and clean energy generation. This dual-use approach is increasingly seen as a crucial strategy for achieving food security and renewable energy targets.
Sources: [1] Maximize Market Research Pvt. Ltd. (2023). Agrivoltaics Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2022-2032. [2] United Nations Food and Agriculture Organization (2022). The Role of Solar Energy in Agriculture: A Review.
- The growth in the agrivoltaics market is driven by the increasing interest in environmental science, especially the integration of renewable-energy sources like solar panels with farming practices.
- As the renewable-energy industry expands globally, the finance sector is taking note of the potential economic benefits of agrivoltaics, with cost reductions leading to increased adoption in emerging markets.
- The environmental-science community is excited about the potential dual benefits of agrivoltaics, as it promises to improve both crop yields and energy efficiency, contributing to food security and renewable energy targets.
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