Solar Tracker for Power Generation Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Technology (Concentrated PV Tracker and Non-Concentrated PV Tracker), By Type (Active Solar Tracker & Passive Solar Tracker), By Products (Single Axis, Horizontal, Vertical, Polar Aligned, Titled, Double Axis, Tip-Tilt and Azimuth-Altitude), By Region & Competition, 2019-2029F

Market Overview

Global Solar Tracker for Power Generation Market was valued at USD 7.8 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 6.2 % through 2029.

A Solar Tracker for Power Generation is a device that orients solar panels or modules toward the sun to maximize the amount of solar energy captured throughout the day. Unlike fixed solar panels, solar trackers adjust the angle of the panels to follow the sun's trajectory, thereby increasing the efficiency and energy output of solar power systems. There are various types of solar trackers, including single-axis and dual-axis trackers, each offering different levels of efficiency enhancement depending on their ability to follow the sun's path horizontally and/or vertically. The market for solar trackers is on the rise primarily due to the growing global emphasis on renewable energy sources as a means to combat climate change and reduce dependence on fossil fuels. Governments and organizations worldwide are implementing supportive policies, incentives, and subsidies to encourage the adoption of solar technology, which directly boosts the demand for solar trackers. Additionally, advancements in technology are making solar trackers more reliable, efficient, and cost-effective, thus making them an attractive option for large-scale solar power projects. The increasing need for efficient and sustainable energy solutions in both developed and developing regions is also driving market growth. Furthermore, the decreasing cost of solar photovoltaic (PV) panels, coupled with the enhanced energy yield from using trackers, makes solar energy a more viable and competitive option compared to traditional energy sources. As solar energy becomes more integrated into national energy grids and as businesses and homeowners seek to lower their energy costs, the adoption of solar trackers is expected to expand significantly. This growth is also supported by rising awareness of environmental sustainability, leading to increased investments in renewable energy infrastructure and technology. As a result, the solar tracker market is projected to experience robust growth in the coming years, driven by the dual factors of technological advancement and heightened global commitment to sustainable energy practices.

Key Market Drivers

One of the primary drivers for the Solar Tracker for Power Generation Market is the substantial support and incentives provided by governments worldwide. In an effort to combat climate change and reduce greenhouse gas emissions, numerous countries have implemented policies that encourage the adoption of renewable energy sources, including solar power. These policies often come in the form of tax credits, subsidies, and grants, which significantly reduce the financial burden associated with installing solar power systems. For instance, in the United States, the federal Investment Tax Credit (ITC) allows for a deduction of a significant percentage of the cost of installing a solar energy system from federal taxes. Similarly, countries in the European Union have established feed-in tariffs, which guarantee a fixed premium price for solar energy supplied to the grid, thereby ensuring a return on investment for solar power projects.

Moreover, government mandates for renewable energy targets create a favorable environment for the solar tracker market. Many countries have set ambitious goals to increase the share of renewable energy in their total energy mix. These targets often include specific quotas for solar energy, which necessitates the deployment of advanced technologies like solar trackers to meet the efficiency and output requirements. Additionally, international agreements such as the Paris Agreement have prompted countries to commit to reducing their carbon footprints, further driving the demand for renewable energy solutions. The cumulative effect of these government interventions is a robust growth trajectory for the Solar Tracker for Power Generation Market, as they provide both the financial impetus and regulatory framework necessary for widespread adoption.

Technological Advancements and Efficiency Gains

Another significant driver for the Solar Tracker for Power Generation Market is the continuous advancements in technology that enhance the efficiency and reliability of solar tracking systems. Innovations in solar tracker design and materials have led to the development of more durable, accurate, and cost-effective systems. For example, modern solar trackers are equipped with sophisticated control systems and sensors that optimize the angle of the solar panels in real-time, ensuring maximum solar energy capture throughout the day. These advancements not only improve the energy yield but also reduce the maintenance requirements and operational costs of solar power systems.

Furthermore, the integration of Internet of Things (IoT) technology and artificial intelligence (AI) in solar trackers has revolutionized the way these systems operate. IoT-enabled solar trackers can collect and analyze vast amounts of data on weather conditions, solar irradiance, and system performance, allowing for predictive maintenance and real-time adjustments. AI algorithms can further optimize the tracking process by learning from historical data and making precise adjustments to maximize energy output. These technological innovations make solar trackers more efficient and reliable, thereby enhancing the overall feasibility and attractiveness of solar power projects.

The decline in the cost of photovoltaic (PV) panels and other related components also plays a crucial role in driving the market. As the cost of solar panels continues to decrease, the overall cost-effectiveness of solar power systems improves, making the additional investment in solar trackers more justifiable. The combined effect of increased efficiency and reduced costs leads to a higher return on investment for solar power projects, encouraging more stakeholders to adopt solar tracking technology.

Rising Demand for Renewable Energy

The global demand for renewable energy is escalating rapidly, driven by a combination of environmental, economic, and social factors. This rising demand is a major driver for the Solar Tracker for Power Generation Market. As awareness of climate change and its impacts grows, there is a strong push from both consumers and businesses to adopt cleaner and more sustainable energy sources. Solar power, being one of the most abundant and accessible forms of renewable energy, is at the forefront of this transition. Solar trackers, by enhancing the efficiency of solar power systems, play a crucial role in meeting this growing demand.

In many regions, the grid parity of solar power – the point at which solar electricity is equal to or cheaper than grid electricity – has been achieved or is within reach. This economic viability is a powerful incentive for utilities, businesses, and residential users to invest in solar power systems. Solar trackers, by boosting the energy output and efficiency of these systems, make solar energy even more competitive with traditional fossil fuels. Additionally, the increasing instances of power outages and grid instability in some regions further underscore the need for reliable and efficient energy solutions, which solar trackers help to provide.

Corporate sustainability initiatives are also contributing to the rising demand for renewable energy. Many corporations are committing to significant reductions in their carbon footprints and are investing heavily in renewable energy projects as part of their environmental, social, and governance (ESG) strategies. Solar power, augmented by solar trackers, is a key component of these renewable energy portfolios. As more companies set ambitious renewable energy targets and seek to source their electricity from renewable sources, the demand for efficient solar power systems, including those equipped with solar trackers, is expected to increase substantially.

Key Market Challenges

High Initial Investment and Maintenance Costs

One of the significant challenges facing the Solar Tracker for Power Generation Market is the high initial investment and ongoing maintenance costs associated with solar tracker systems. While solar trackers significantly enhance the efficiency and energy output of solar power installations, they also entail a higher upfront capital expenditure compared to fixed-tilt systems. The cost of purchasing and installing solar trackers, which include advanced mechanical components, control systems, and sensors, can be substantial. This high initial cost can be a deterrent for many potential investors, particularly in markets with limited financial resources or in developing regions where the upfront capital availability is constrained.

Moreover, the complex nature of solar tracker systems requires specialized knowledge for installation and maintenance. The moving parts and sophisticated technology involved in solar trackers necessitate regular maintenance and occasional repairs to ensure optimal performance and longevity. Maintenance tasks can include the alignment and calibration of the trackers, lubrication of moving parts, and the replacement of worn or damaged components. These ongoing maintenance requirements add to the overall operational costs of solar power systems equipped with trackers. Additionally, the need for skilled technicians to perform these maintenance activities can further drive up costs, particularly in regions where such expertise is scarce.

The financial implications of these high costs are particularly pronounced for smaller-scale projects or for individual residential installations, where the return on investment might not justify the additional expenditure on solar trackers. In contrast, larger-scale utility projects may be better positioned to absorb these costs due to economies of scale and the ability to spread the investment over a larger energy output. However, for widespread adoption of solar trackers to occur, solutions must be found to reduce both the initial capital costs and the long-term maintenance expenses. This could involve advancements in technology to simplify the design and improve the durability of trackers, as well as policy measures such as subsidies or financing options to alleviate the financial burden on investors.

Regulatory and Environmental Challenges

Another critical challenge for the Solar Tracker for Power Generation Market is the complex regulatory and environmental landscape that can impact the deployment and operation of solar tracker systems. Regulatory frameworks for solar energy projects can vary significantly from one region to another, presenting a myriad of compliance requirements that can be both time-consuming and costly to navigate. These regulations often pertain to land use, environmental impact assessments, grid connection standards, and permitting processes. For instance, obtaining the necessary permits for large-scale solar projects can be a lengthy process involving multiple governmental agencies, public consultations, and adherence to stringent environmental standards.

Environmental considerations are particularly pertinent for solar tracker installations, which typically require more land compared to fixed-tilt systems due to their moving components and the need to avoid shading throughout the day. This increased land usage can lead to conflicts with agricultural interests, conservation efforts, and local communities, particularly in densely populated or ecologically sensitive areas. The environmental impact of solar tracker installations must be carefully assessed and mitigated to avoid adverse effects on local ecosystems, wildlife habitats, and land use patterns. In some cases, these environmental concerns can lead to opposition from local communities and environmental groups, potentially resulting in project delays, increased costs, or even cancellation.

Furthermore, the integration of solar tracker systems into existing power grids can pose regulatory challenges. Grid operators often have specific technical requirements and standards that solar power systems must meet to ensure grid stability and reliability. The intermittent nature of solar energy, combined with the variable output of tracker-equipped systems, necessitates advanced grid management solutions and the potential need for energy storage systems to balance supply and demand. Compliance with these technical standards can add to the complexity and cost of deploying solar tracker systems.

To overcome these regulatory and environmental challenges, it is crucial for stakeholders in the Solar Tracker for Power Generation Market to engage in proactive planning and collaboration with regulatory authorities, local communities, and environmental organizations. Streamlining regulatory processes, developing clear and consistent standards, and investing in environmentally sustainable practices can help mitigate these challenges. Additionally, advancements in technology that reduce the land footprint of solar trackers and enhance their compatibility with grid requirements can further facilitate the growth of this market. By addressing these regulatory and environmental hurdles, the solar tracker industry can better position itself for sustainable and scalable growth in the global renewable energy landscape.

Key Market Trends

Integration of Advanced Technologies

One of the prominent trends in the Solar Tracker for Power Generation Market is the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning. These technologies enhance the performance, efficiency, and reliability of solar trackers by enabling real-time data collection, analysis, and automated adjustments. IoT sensors can monitor various parameters, including weather conditions, solar irradiance, and system performance, allowing for precise control and optimization of the trackers. AI and machine learning algorithms can analyze historical data to predict optimal tracking positions, improve energy yield, and perform predictive maintenance, thus reducing downtime and maintenance costs. The integration of these advanced technologies is driving the development of more intelligent and adaptive solar tracking systems, which are becoming increasingly attractive to both utility-scale and smaller-scale solar power projects.

Increasing Adoption of Single-Axis and Dual-Axis Trackers

The Solar Tracker for Power Generation Market is witnessing a growing preference for both single-axis and dual-axis trackers, driven by their ability to significantly boost energy output compared to fixed-tilt systems. Single-axis trackers, which rotate panels along a single axis to follow the sun’s movement from east to west, are becoming increasingly popular due to their relatively lower cost and simplicity. They offer a considerable increase in energy capture with a manageable increase in complexity and cost. On the other hand, dual-axis trackers, which adjust panels both horizontally and vertically to precisely follow the sun’s path, provide the highest energy yield but come with higher costs and maintenance requirements. The choice between single-axis and dual-axis trackers often depends on the specific needs and budget of the solar power project. As technology advances and costs decrease, both types of trackers are expected to see increased adoption, further driving market growth.

Expansion of Utility-Scale Solar Projects

The expansion of utility-scale solar projects is a significant trend shaping the Solar Tracker for Power Generation Market. Large-scale solar farms are increasingly incorporating solar trackers to maximize energy production and enhance the overall efficiency of their installations. Utility-scale projects benefit greatly from the higher energy yield provided by solar trackers, which can make a substantial difference in the economic viability and return on investment for these large installations. The scalability of solar trackers makes them particularly well-suited for utility-scale applications, where the cost of trackers can be offset by the substantial increase in energy output. Additionally, as countries and regions continue to set ambitious renewable energy targets, the demand for large-scale solar installations equipped with advanced tracking systems is expected to grow. This trend is supported by favorable regulatory environments, increasing investments in renewable energy infrastructure, and the continued decline in the cost of solar photovoltaic panels and tracking technology.

Segmental Insights

Products Insights

In 2023, the single-axis tracker segment dominated the Solar Tracker for Power Generation Market and is expected to maintain its dominance during the forecast period. Single-axis trackers, which rotate solar panels along a single axis typically oriented east to west, have become the preferred choice for many solar power projects due to their balanced combination of increased energy yield, cost-effectiveness, and operational simplicity. These trackers offer a significant improvement in energy capture compared to fixed-tilt systems, usually increasing efficiency by 25-35%, which makes them highly attractive for large-scale utility projects as well as smaller installations. The cost advantage of single-axis trackers over more complex double-axis systems, which adjust both horizontally and vertically, further reinforces their widespread adoption. Single-axis trackers require less maintenance and have a simpler design, leading to lower operational and maintenance costs, which is a critical consideration for maximizing the return on investment in solar power projects. Additionally, advancements in single-axis tracker technology, such as improved durability, enhanced control systems, and better resistance to environmental conditions, have bolstered their reliability and performance. This technological progress, coupled with the growing demand for efficient and scalable renewable energy solutions, has solidified the position of single-axis trackers as the leading product segment in the market. Given these advantages, and the continued focus on optimizing the balance between cost and performance in solar energy systems, single-axis trackers are projected to sustain their market leadership throughout the forecast period, driving substantial growth in the Solar Tracker for Power Generation Market.

Regional Insights

In 2023, the Europe region dominated the Solar Tracker for Power Generation Market and is expected to maintain its dominance during the forecast period. This leadership can be attributed to several factors, including robust government policies, substantial investments in renewable energy, and a strong commitment to reducing carbon emissions. The European Union’s ambitious renewable energy targets and the Green Deal, which aims to make Europe the first climate-neutral continent by 2050, have significantly boosted the adoption of solar power technologies, including solar trackers. Countries such as Spain, Italy, and Germany have been at the forefront of this growth, leveraging high solar irradiance and favorable climatic conditions to develop large-scale solar power projects.

The region's advanced technological capabilities and strong focus on innovation have led to the widespread deployment of sophisticated solar tracking systems. European manufacturers and research institutions have been instrumental in developing and commercializing cutting-edge solar tracker technologies, which enhance the efficiency and reliability of solar power installations. Additionally, the availability of financial incentives, such as feed-in tariffs and subsidies, has made the investment in solar trackers more attractive, driving further market growth.

Europe’s comprehensive regulatory framework, which includes stringent environmental standards and mandates for renewable energy usage, has also played a crucial role in promoting solar tracker adoption. The region’s emphasis on sustainability and the transition to a low-carbon economy aligns with the increased use of solar trackers to maximize energy output and improve the overall performance of solar power systems. Furthermore, the rising electricity prices and the growing demand for energy independence have incentivized businesses and households to invest in solar power solutions, including tracking systems, to reduce energy costs and reliance on traditional energy sources.

With continuous advancements in solar tracker technology and ongoing support from both the public and private sectors, Europe is well-positioned to sustain its dominance in the Solar Tracker for Power Generation Market throughout the forecast period. The region’s commitment to renewable energy, combined with favorable market conditions and technological innovation, ensures continued growth and leadership in this dynamic market.

Recent Developments

• In March 2024, SnapNrack, a leading manufacturer of solar mounting solutions, and CertainTeed, a prominent North American manufacturer of sustainable building materials, announced a partnership. They will jointly offer integrated warranties covering solar panels, racking systems, asphalt shingles, and workmanship for residential photovoltaic (PV) projects.
• In June 2024, Nextracker, a leading provider of solar tracker and software solutions worldwide, has completed the acquisition of Ojjo for around USD 119 million. Ojjo, based in the U.S., focuses on foundation technology and services tailored for utility-scale ground-mount solar power projects. This strategic merger aims to enhance Nextracker's offerings to solar EPCs and developers by providing a wider range of foundation options designed to perform effectively across different soil conditions. Ojjo's innovative foundations can be installed without the need for pre-drilling, potentially lowering subsurface risks in solar installations.

Key Market Players

• Integrated Solar Technology, LLC (SunTegra)
• Ergosun Holdings, LLC
• CertainTeed, LLC
• Canadian Solar Inc
• Erertex solartechnik GmbH
• FlexSol Solutions B.V
• Tesla Inc
• Anu Solar Power Pvt Ltd
• PV Technologies Inc.
• SunFlare Co., Ltd