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The agrivoltaics market size is forecast to increase by USD 1.99 billion, at a CAGR of 10.7% between 2023 and 2028. Agrivoltaics, the integration of agriculture and solar energy, is an emerging market gaining significant attention due to its potential to address the dual challenges of food production and renewable energy generation. The benefits of agrivoltaics are multifold, including increased land productivity, reduced water usage, and carbon sequestration. The rising opportunities for agrivoltaics energy projects are driven by government initiatives, increasing solar adoption, and the need for sustainable agriculture. However, the limited commercial reach of agrivoltaics is a significant challenge, with high upfront costs and complex implementation being major barriers. Despite these challenges, the market is expected to witness growth as technological advancements and increasing awareness of the environmental and economic benefits drive adoption.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The fixed panel segment is estimated to witness significant growth during the forecast period. Agrivoltaics, the integration of solar energy production with agricultural practices, is gaining significant attention due to its potential to enhance land efficiency and generate dual-revenue streams. Fixed panel agrivoltaics is a popular setup where solar panels are mounted at a fixed angle to optimize solar energy capture, allowing agricultural activities to continue beneath. This setup, which is commonly used in utility-scale solar farms and ground-mounted PV plants, facilitates energy production while contributing to agricultural productivity.
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The fixed panel segment was the largest and was valued at USD 1.76 billion in 2018. Crop yields can be improved through shade provision, which benefits animal welfare and supports the growth of permanent flora and grassland. Conventional agrivoltaics systems involve the installation of solar panel (solar panels market) either on or between crop fields, with adjustable density or tilt angles to optimize efficiency. Monofacial and bifacial solar panels, as well as translucent photovoltaic technology, are used in these systems. Fixed and dynamic panel configurations, such as single-axis tracking, are employed based on specific agricultural practices, including horticulture,indoor farming (indoor farming market), and grassland farming. Agrivoltaics also offers environmental benefits, such as carbon sequestration and reduced greenhouse gas emissions, contributing to climate change mitigation efforts. This setup addresses energy demand while minimizing transmission losses and providing irrigation solutions, making it an attractive option for agro-based economies.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Agrivoltaics market is experiencing significant growth as the world transitions to renewable energy sources and addresses challenges related to renewable capacity, agricultural output, and food demand. Dual-use solar systems, also known as Agrivoltaics, combine the installation of PV solar photovoltaics (PVs) market with agricultural production. This innovative approach offers numerous benefits, including increased crop types and yields, improved soil moisture and water retention through rainwater harvesting, and reduced soil degradation. Tracking equipment and soil sensors play crucial roles in optimizing the performance of Agrivoltaics systems. Data analytics helps farmers determine the most efficient crop types for specific agricultural landscapes, while ensuring optimal energy production. Vegetables, fruits, and other crops can thrive under PV panels, with some studies suggesting that crop production can even increase due to the microclimate created by the panels. The use of organic fertilizer (organic fertilizers market) and chemical fertilizers is also being reevaluated in the context of Agrivoltaics. While both types have their merits, the former is generally preferred for sustainable farming practices. The integration of Agrivoltaics in agricultural landscapes can also support grazing and livestock, further increasing overall efficiency. The
Agrivoltaics market faces challenges such as the high upfront costs of implementing the technology, the need for specialized tracking equipment and soil sensors, and the need for further research on crop types and agricultural landscapes that best suit the system. However, the potential benefits, including increased energy production, improved agricultural output, and a more sustainable farming approach, make Agrivoltaics an attractive solution for addressing both the food and power crises. Agrivoltaics systems can be implemented using various types of PVs, including microcrystalline, polycrystalline, and monocrystalline panels. Fixed solar panels can also be used, but dynamic agrivoltaics, which involve the movement of PV panels to optimize sunlight exposure and crop growth, offer even greater benefits. Ultimately, Agrivoltaics represents a promising solution for biodiversity conservation, sustainable farming practices, and the efficient production of both food and energy.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BayWa r.e. AG - The company offers agrivoltaic systems that maximize power while protecting crops from the effects of climate change.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Concentrated |
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YoY growth 2023-2024 |
8.3 |
Agrivoltaics, the integration of solar energy systems and agricultural practices, is gaining significant attention in the context of climate change and the shift towards renewable energy. This approach offers the dual benefit of energy production through solar panels and crop production on the same land. Utility-scale solar farms and ground-mounted PV plants are popular choices for agrivoltaics, with array configurations including fixed arrays and single-axis tracking. Monofacial solar panels are commonly used, but the industry is exploring the potential of bifacial panels for increased energy production. Agrivoltaics can improve land efficiency, enhance crop yields, and mitigate the effects of droughts and soil degradation. Solar panels create a microclimate, which can help retain soil moisture and improve water retention.Rainwater harvesting (Rainwater harvesting market) and the use of organic fertilizer are also compatible with agrivoltaics. However, the impact on crop yields varies depending on the crop type, with root crops and certain vegetable varieties showing promising results. The integration of agrivoltaics in agro-based economies can lead to reduced greenhouse gas emissions and contribute to food security. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Benefits of agrivoltaics is notably driving the market growth. The market is experiencing notable growth due to its ability to deliver benefits to both the agriculture and energy sectors. Agrivoltaics, which involves integrating solar energy production with agricultural practices, is proving to be a game-changer, particularly in enhancing grassland productivity and forage quality. By generating solar energy alongside agricultural activities, landowners can increase overall productivity. This synergy is especially beneficial in semi-arid regions where traditional farming faces challenges. Agrivoltaics can also contribute to higher crop yields and improved agricultural productivity through the creation of microclimates, which can mitigate the effects of droughts and extreme temperatures. Moreover, agrivoltaics can provide dual-revenue streams for farmers, as they can earn income from both energy production and agricultural output. This approach can also contribute to carbon sequestration and environmental conservation by reducing greenhouse gas emissions. Agrivoltaics can accommodate various array configurations, including fixed and single-axis tracking systems, and can be used with monofacial or bifacial solar panels and translucent photovoltaic technology.
Agrivoltaics can also be employed in various agricultural practices, such as horticulture, indoor farming, and pollinator habitat development. Agrivoltaics can also offer protection to crops by shielding them from extreme sunlight and wind, and can provide irrigation solutions to address water scarcity. As energy demand continues to grow and transmission losses become a concern, agrivoltaics can help address these challenges by generating solar energy closer to the point of consumption. Additionally, agrivoltaics can be used with root crops and dynamic panels to maximize solar energy generation while maintaining agricultural productivity. Overall, the potential of agrivoltaics to enhance agricultural productivity, reduce greenhouse gas emissions, and provide multiple revenue streams makes it an attractive proposition for farmers and landowners in the face of climate change. Thus, such factors are driving the growth of the market during the forecast period.
Rising opportunities for agrivoltaics energy projects is the key trend in the market. The market is experiencing significant growth due to supportive policies and substantial investments in various countries. France is leading the way, implementing the first EU legal framework for solar power projects on farmlands, ensuring agricultural productivity continues. . Agrivoltaics, which combines solar energy production with agricultural practices, offers dual-revenue streams, including energy generation and agricultural productivity. Solar panels can be configured as fixed or dynamic, with single-axis tracking or array configurations. Monofacial and bifacial solar panels, as well as translucent photovoltaic technology, are used in agrivoltaics.
This approach benefits various agricultural practices, including grassland farming, horticulture, and indoor farming, while providing pollinator habitats and contributing to environmental conservation. Agrivoltaics also offer potential for carbon sequestration and reducing greenhouse gas emissions. Agrivoltaics can enhance agricultural productivity, protect crops from extreme weather conditions, and provide irrigation solutions. As energy demand grows and transmission losses increase, agrivoltaics offers a solution by generating solar energy on farmlands, reducing the need for large utility-scale solar farms and ground-mounted PV plants. Additionally, agrivoltaics can mitigate the impact of climate change by improving microclimate conditions, reducing droughts, and supporting the growth of root crops. Thus, such trends will shape the growth of the market during the forecast period.
Limited commercial reach of agrivoltaics is the major challenge that affects the growth of the market. Agrivoltaics, the integration of solar energy production with agricultural practices, holds great potential for enhancing land efficiency and generating dual-revenue streams from energy production and agriculture. However, the market's commercial adoption faces challenges, including the limited range of crops and agricultural settings tested in utility-scale solar farms and ground-mounted PV plants. In India, for instance, agrivoltaics pilots primarily focus on specific crops and farming conditions. A major concern among farmers is the potential reduction in crop yield due to shading from solar panels. However, some pilot projects have reported increased yields for certain crops, such as medicinal crops and leafy vegetables, under fixed array or single-axis tracking systems using monofacial or bifacial solar panels. Translucent photovoltaic technology and dynamic panels offer potential solutions to mitigate yield loss.
Agrivoltaics also presents opportunities for environmental conservation through carbon sequestration, reduction of greenhouse gas emissions, and creation of pollinator habitats. Additionally, it can benefit various agricultural sectors, including grassland farming, horticulture, indoor farming, and agro-based economies, by providing protection from droughts and extreme temperatures. Despite these advantages, the market's growth is hindered by energy demand, transmission losses, and cold storage requirements. To build a strong knowledge base, there is a pressing need for better-designed pilots with rigorous testing methodologies and a wider range of crops and agricultural settings. By addressing these challenges, agrivoltaics can contribute significantly to renewable energy generation, agricultural productivity, and climate change mitigation. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Agrivoltaics, the integration of solar energy systems into agricultural practices, is gaining significant attention due to its potential to enhance land efficiency and increase crop yields and (precision agriculture market). This innovative approach combines the benefits of renewable energy production and agricultural productivity. Utility-scale solar farms and ground-mounted PV plants are popular choices for agrivoltaics, with array configurations ranging from fixed to single-axis tracking. Monofacial and bifacial solar panels are used, with the latter offering higher efficiency due to their ability to generate power from both sides. Translucent photovoltaic technology is another emerging trend, allowing for light to pass through solar panels and supporting grassland farming, horticulture, and indoor farming (indoor farming market)
Agrivoltaics also provides pollinator habitats, contributing to environmental conservation and carbon sequestration, reducing greenhouse gas emissions. Dynamic panels and fixed panels can be employed, with the former adjusting to optimize energy production based on microclimate conditions. Root crops and irrigation solutions are essential for agriculture in arid regions, and agrivoltaics can help mitigate the impacts of droughts and energy demand. Transmission losses are minimized due to the proximity of solar energy generation to energy consumption, making agrivoltaics a promising solution for agro-based economies facing climate change.
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Market Scope |
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Report Coverage |
Details |
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Page number |
196 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.7% |
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Market growth 2024-2028 |
USD 1.99 billion |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 36% |
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Key countries |
US, Germany, China, France, Japan, Canada, UK, Brazil, India, and Australia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BayWa r.e. AG, Enel SPA, Insolight, Jacks Solar Garden, JinkoSolar Holding Co. Ltd., Mackin Energy Japan Co. Ltd., Mirai Solar, Next2Sun, Ombrea SAS, REM TEC srl, sandbox solar llc, SunAgri, Svea Solar, Tse Energy Ltd, and ZIMMERMANN PV-Agri |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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