Global Agrivoltaics Market Size By System Type (Fixed Agrivoltaics’ Systems, Tracking Agrivoltaic), By Technology (Monofacial Solar Panels, Bifacial Solar Panels, Translucent Photovoltaic Technology), By Application (Grassland Farming, Horticulture and Arable Farming, Indoor Farming, Pollinator Habitat), By Geographic Scope And Forecast

Agrivoltaics Market Size And Forecast

Agrivoltaics Market size was valued at USD 5.45 Billion in 2023 and is projected to reach USD 12.7 Billion by 2031, growing at a CAGR of 12.30% from 2024 to 2031.

• Agrivoltaics is an innovative approach that integrates solar panels with agricultural practices, enabling the simultaneous use of land for both crop cultivation and photovoltaic (PV) energy generation.
• This dual-use system allows for the installation of solar panels elevated above the ground, providing space for farm machinery to operate underneath and minimizing interference with agricultural activities. The challenge lies in balancing the production of crops and energy without compromising either.
• Agrivoltaic systems can be broadly categorized into two typesfixed solar panels positioned over crops and dynamic agrivoltaic systems. In the fixed system, solar panels are mounted at a constant height, allowing crops to grow beneath them. In contrast, dynamic systems may include adjustable panels that move to optimize sunlight exposure or manage shading effects.
• The effectiveness of agrivoltaics is evident in its ability to enhance land-use efficiency. For instance, approximately 48 hectares of farmland can generate enough power to meet the needs of around 100,000 households.
• The cost of solar panels is expected to decline globally, which, combined with reduced installation costs, is likely to drive significant growth in the agrivoltaics market. This approach not only boosts the economic viability of solar energy but also contributes to a reduction in carbon footprints.
• Agrivoltaics creates a synergistic relationship between agriculture and solar energy production. The photovoltaic panels offer shade, which lowers the temperature for the crops beneath, while the plants release water vapor that cools the panels from below.
• This interaction enhances the efficiency of the solar panels and benefits the crops simultaneously. This method ensures that the land remains productive year-round, providing farmers with an additional revenue stream while supporting energy sustainability.
• Agrivoltaic systems can be classified based on their applications and structures. Application-based classifications include crop + solar PV and livestock + solar PV, where land is used for growing crops or raising livestock alongside solar power generation. Structurally, agrivoltaic systems are categorized into overhead PV and interspace PV.
• Overhead PV systems feature panels mounted on elevated structures, allowing crops to be cultivated underneath. In contrast, interspace PV systems involve ground-mounted panels with gaps between rows for cultivation. This innovative approach to land use aims to enhance both energy production and food security sustainably.

Global Agrivoltaics Market Dynamics

The key market dynamics that are shaping the global agrivoltaics market include

Key Market Drivers

• Rising Water Scarcity Concerns and Rapid Climate Change As global food production is projected to increase significantly to meet the needs of a rapidly growing population, the challenge of water scarcity is becoming increasingly critical. Climate change exacerbates this issue, threatening the availability of water resources necessary for traditional agricultural practices. Without a shift in how water is used in agriculture, it may become increasingly difficult to meet future food demands. Agrivoltaics presents a promising solution to this problem by integrating solar power generation with agricultural land use. This innovative approach helps address water scarcity while simultaneously meeting the growing need for food production.
• Dual-Use Solutions Agrivoltaics combines the cultivation of crops with the installation of solar panels on the same land, offering a dual-use solution that maximizes the utility of agricultural fields. By elevating solar panels above the crops, this system allows for the use of the land beneath the panels for farming or livestock grazing. This dual-revenue stream approach not only provides farmers with additional income from energy generation but also helps them optimize land use. For instance, agrivoltaic systems have been successfully applied to cultivate shade-tolerant crops like cauliflower and cabbage, as well as various fruits such as berries and grapes. Research from the University of Arizona has shown that crops grown under the shade of solar panels can produce two to three times more yield compared to traditional methods, highlighting the effectiveness of this technology.
• Varied Advancements in Farming Techniques The growing demand for advanced farming techniques and efficient cultivation equipment further fuels the agrivoltaics market. This technology is not only a response to the pressures of climate change but also an advancement in agricultural practices. Agrivoltaic systems are particularly advantageous in regions with limited access to central electricity grids, as they allow for on-site solar power generation. This reduces reliance on costly diesel generators and minimizes transmission losses associated with transporting electricity over long distances. Surplus power generated can be used for local needs, such as agricultural processing activities including cold storage and packaging, or fed back into the grid.

Key Challenges

• High Initial Investments The high initial investment required for agrivoltaic projects is a significant barrier to market growth. The integration of photovoltaic panels with agricultural systems involves complex installations that contribute to high costs. Key factors driving these expenses include land procurement, the cost of photovoltaic panels, and the need for specialized infrastructure and equipment. The complexity of these systems also requires specialized expertise and advanced technologies to ensure optimal performance and integration, further escalating the total cost.
• High Installation Costs Installation costs are a major constraint in the agrivoltaics market. According to a report by the National Renewable Energy Laboratory (NREL), the installed cost of agrivoltaic systems typically ranges from $2.60 to $4.50 per watt. In contrast, traditional ground-mounted solar systems generally cost between $1.50 and $3.00 per watt. This significant cost disparity can hinder the widespread adoption of agrivoltaics by making it a less economically attractive option compared to conventional solar solutions. The high costs are attributed to the need for robust solar panel structures, tracking systems, wiring, inverters, and battery storage solutions, as well as the additional expenses related to feasibility studies, certification, and policy support.
• Lack of Awareness Another challenge is the lack of awareness regarding the benefits of agrivoltaics for agriculture. Many potential stakeholders may not fully understand how agrivoltaics can enhance agricultural productivity while simultaneously generating renewable energy. This lack of awareness can restrict the market’s growth in terms of value sales and limit the adoption of agrivoltaic systems.
• Shortage of Skilled Workforce The installation of agrivoltaic systems requires a highly skilled workforce with specialized training and certification. Installing solar panels on agricultural land presents additional challenges, as the panels must be elevated above the ground to accommodate crop cultivation underneath. The shortage of skilled labor capable of performing these installations accurately and without causing damage to crops poses a significant obstacle to the expansion of the agrivoltaics market.

Key Trends

• Carbon Sequestration and Emission Reduction Agrivoltaics is emerging as a powerful strategy for reducing carbon emissions and enhancing environmental sustainability. By integrating solar panels with vegetation on agricultural land, agrivoltaic systems create natural carbon sinks. Vegetation between and around the solar panels absorbs carbon dioxide from the atmosphere and stores it in plant biomass and soil. This approach not only mitigates greenhouse gas emissions but also reduces the overall carbon footprint of farms. This dual benefit of energy generation and carbon sequestration positions agrivoltaics as a key player in efforts to combat climate change.
• Growing Opportunities in Emerging Economies The global rise in population is increasing the demand for agricultural land, thereby driving the growth of the agrivoltaics market. Emerging economies such as Brazil, China, and India are anticipated to offer substantial market opportunities due to their vast agricultural sectors and the pressing need to enhance food production while managing environmental concerns. These regions, with their ideal geographic and climatic conditions, are well-positioned to implement agrivoltaic solutions on a large scale. The integration of solar power with crop cultivation addresses the challenges of electricity access in rural areas and helps mitigate the effects of climate change, such as erratic rainfall patterns.
• Government Support and R&D Initiatives Governments worldwide are increasingly investing in and subsidizing agrivoltaic systems as part of their broader efforts to transition to a renewable fuel-based economy and achieve net-zero carbon emissions. The mounting emphasis on renewable energy sources and the reduction of carbon footprints is fueling significant growth in the agrivoltaics market. Increased government initiatives aimed at boosting research and development (R&D) in agrivoltaics are expected to drive technological advancements, reduce costs, and accelerate market adoption.
• Addressing Carbon Emissions from Power Generation The rising power demand globally has led to increased carbon emissions from the power generation industry. To address this issue, many nations, particularly in the Asia-Pacific region, are implementing plans to reduce carbon emissions and promote the use of clean energy. Agrivoltaics offers a viable solution by combining solar energy production with agricultural activities, thus reducing reliance on conventional power sources and supporting efforts to lower carbon emissions. Government-backed initiatives to curb emissions are likely to further boost the agrivoltaics market.
• Enhancing Crop Productivity in Emerging Markets Agrivoltaics provides significant benefits to emerging markets in the Asia Pacific and Latin America, where agricultural production is vital but often challenged by limited access to electricity and climate-related issues. The dual function of agrivoltaic systems generating solar power while providing partial shading for crops enhances crop yields by protecting plants from excessive heat and moisture loss. This ensures more stable and productive harvests year-round, making agrivoltaics particularly appealing for these regions.

Global Agrivoltaics Market Regional Analysis

Here is a more detailed regional analysis of the global agrivoltaics market

North America

• North America has long been a leader in the agrivoltaics market, largely due to robust government support and incentives that promote renewable energy adoption.
• The United States, in particular, stands out as the largest market in the region, bolstered by the presence of major players and the development of comprehensive solar supply chains and infrastructure.
• States like California, Massachusetts, and New York have been at the forefront of agrivoltaic initiatives, thanks to favorable regulatory frameworks that facilitate investment and innovation in this sector.
• The support from incentive programs has played a crucial role in lowering installation and procurement costs, making agrivoltaic projects more commercially viable. These programs have encouraged partnerships between leading agrivoltaic installation companies and large farms, allowing for the deployment of tailored solutions that cater to specific crop and operational needs.
• The availability of land and the willingness of farmers to embrace new techniques further support the growth of agrivoltaics in North America.
• The U.S. is expected to see accelerated growth in the agrivoltaics market, driven by increasing energy demands, government backing, and the benefits agrivoltaics offer in terms of sustainable energy production and enhanced agricultural productivity.
• In addition, the U.S. has initiated the Foundational Agrivoltaic Research for Megawatt Scale (FARMS) funding program, which supports research and development projects related to agrivoltaic technologies. This program is instrumental in exploring innovative designs that can optimize both agricultural output and energy production.
• Meanwhile, the Asia-Pacific region is experiencing the highest growth rate in the agrivoltaics market, fueled by its rapidly growing population and the increasing need for sustainable agricultural and energy solutions.
• The dynamic advancements and cutting-edge solutions emerging from these regions underscore the global significance of agrivoltaics in addressing the dual challenges of energy demand and food security.

Asia Pacific

• Asia Pacific is anticipated to witness the fastest growth in the global agrivoltaics market during the forecast period.
• The Asia-Pacific region, particularly China, Japan, and India, is experiencing a rapid rise in the adoption of agrivoltaic systems, driven by a combination of policy support and the urgent need to address energy and agricultural challenges.
• China, as the largest producer of photovoltaic modules, has made significant strides in this field, installing 4GW of agrivoltaic capacity within just three years. This expansion is largely attributed to favorable policies designed to address overcapacity issues in China’s photovoltaic industry while promoting modern agricultural practices.
• The implementation of agrivoltaic systems is seen as a strategic solution to these overcapacity challenges, offering a dual benefit of enhancing domestic energy supply and advancing agricultural innovation.
• The Asia-Pacific region has emerged as the fastest-growing market for agrivoltaics globally, thanks to aggressive incentives and targets aimed at strengthening farm-based renewable energy capacity.
• Countries such as China, Japan, South Korea, and India are leading the charge due to their expanding agricultural sectors and increasing demand for renewable energy.
• In China, the government has announced substantial investments to drive agrivoltaic development as part of its broader agri-technology innovation initiative. This push is enabling domestic manufacturers to rapidly scale production, meeting both local and international market demands.
• Similarly, India is making significant investments in rural electrification programs that integrate solar energy generation with agricultural activities. Projects in northern states of India have demonstrated the feasibility of cultivating crops beneath solar panels, and this approach is expected to see increased adoption in the future.
• As densely populated countries in the region seek to maximize the productivity of limited arable land, agrivoltaic systems offer a promising solution by enhancing agricultural output while contributing to renewable energy goals. This trend underscores the growing importance of agrivoltaics in addressing the dual challenges of energy demand and food security in the Asia-Pacific region.

Global Agrivoltaics Market Segmentation Analysis

The Global Agrivoltaics Market is segmented based on System Type, Technology, Application, And Geography.

Agrivoltaics Market, By System Type

• Fixed Agrivoltaic Systems
• Tracking Agrivoltaic

Based on System Type, the Global Agrivoltaics Market is bifurcated into Fixed Agrivoltaic Systems and Tracking Agrivoltaic. The fixed agrivoltaic systems segment emerges as the dominant segment in the global agrivoltaics market owing to its practicality, cost-effectiveness, and seamless integration with agricultural operations. This array type constitutes a substantial share of agrivoltaic installations worldwide, striking an optimal balance between maximizing solar energy generation and maintaining agricultural productivity. Its simplicity and affordability make it a favored choice, enabling effective deployment on farmland while supporting ongoing crop cultivation.

Agrivoltaics Market, By Technology

• Monofacial Solar Panels
• Bifacial Solar Panels
• Translucent Photovoltaic Technology

Based on Technology, the Global Agrivoltaics Market is bifurcated into Monofacial Solar Panels, Bifacial Solar Panels, and Translucent Photovoltaic Technology. Monofacial Solar Panels is emerging as a dominating segment in the global agrivoltaics market. This preference is largely driven by their cost-effectiveness, efficiency, and suitability for agricultural settings. These traditional panels, which capture sunlight from only one side, are particularly well-suited for agrivoltaic installations where space is ample. Their proven performance and affordability make them a practical choice for integrating solar energy with ongoing agricultural operations.

Agrivoltaics Market, By Application

• Grassland Farming
• Horticulture and Arable Farming
• Indoor Farming
• Pollinator Habitat

Based on Application, the Global Agrivoltaics Market is bifurcated into Grassland Farming, Horticulture and Arable Farming, Indoor Farming, and Pollinator Habitat. The pollinator segment shows significant growth in the Global Agrivoltaics Market owing to the significant shift towards sustainable agricultural practices and renewable energy generation. This segment is instrumental in promoting biodiversity and enhancing the ecosystem services provided by agrivoltaic systems. By integrating solar panels with habitats that support pollinators, this approach not only advances environmental sustainability but also boosts the ecological benefits of agrivoltaic installations.

Agrivoltaics Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Agrivoltaics Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. North America has long been a leader in the agrivoltaics market, largely due to robust government support and incentives that promote renewable energy adoption. The United States, in particular, stands out as the largest market in the region, bolstered by the presence of major players and the development of comprehensive solar supply chains and infrastructure. States like California, Massachusetts, and New York have been at the forefront of agrivoltaic initiatives, thanks to favorable regulatory frameworks that facilitate investment and innovation in this sector. The support from incentive programs has played a crucial role in lowering installation and procurement costs, making agrivoltaic projects more commercially viable. These programs have encouraged partnerships between leading agrivoltaic installation companies and large farms, allowing for the deployment of tailored solutions that cater to specific crop and operational needs.

Key Players

The “Global Agrivoltaics Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Sun Agri, Enel, Green Power, Next2Sun, BayWa AG, JA Solar Technology Co., Ltd., Agrivoltaic Solution LLC.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Agrivoltaics Market Recent Developments

• In October 2023, the National Solar Energy Federation of India (NSEFI) announced the launch of the Agrivoltaics Alliance in Delhi, India. The fundamental goal of this effort is to simplify crop production. The country hopes to reduce the number of contaminated veggies in the market by making incremental improvements, cutting manufacturing costs, and making the best use of natural sunshine.
• In December 2022, The US Department of Energy announced the Foundational Agrivoltaics Research for Megawatt Scale (FARMS) funding, awarding $8 million to six solar energy research projects spread across six states and the District of Columbia.
• In December 2023, Turkey announced the launch of the Agrivoltaics research project, which allows researchers to examine both products and manufacturing processes. To support this endeavor, researchers devised tracker devices specialized for crops grown by Agrivoltaics methods.
• In January 2023, The Horizon Europe Programme officially started the Symbiosyst Agrivoltaics project. The main goal of this launch was to achieve net-zero emissions by 2050. Furthermore, social approval and increased investment are important variables that may lead to the project’s debut.

Report Scope

Research Methodology of Market Research