Smart Solar Market Size, Growth, Industry & Revenue | 2031

Report Description

Smart Solar Market Outlook 2031

The global smart solar market size was valued at USD 15.21 Billion in 2022 and is likely to reach USD 47.54 Billion by 2031, expanding at a CAGR of 13.5% during, 2023 – 2031. The market growth is attributed to rising IoT devices and increasing need for electricity. Increasing need for electricity is projected to boost the demand for smart solar.

Smart Solar is installed on rooftops that convert the sun's energy into electricity by transforming the direct current output of solar panels into alternating current. These solar are connected to the grid which stores excess electricity to supply them during power outages. As per a report published by the International Energy Agency, global electricity demand is expected to grow at a much faster pace of 3% per year during 2023-2025.

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Smart solar is the internet-connected and automated version of the solar energy system that uses inverters and smart meters to provide real-time data on their performance. It helps users minimize electricity expenses by monitoring solar panels.

Smart solar offers asset management, meter data management, network monitoring, and others through IoT-enabled devices. It is majorly used in industries to generate heat for a wide variety of industrial applications such as water desalination, oil recovery, food processing, and others.

IoT devices are utilized in smart solar to monitor the solar panel and control energy assets from one central place. IoT devices help businesses and residents monitor how much energy is being generated and how much is being consumed, which encourages its adoption in smart solar. Thus, rising IoT devices are expected to boost the market demand. For instance,

• As per a report, the number of Internet of Things (IoT) devices is estimated to reach 29 billion by 2030 compared to 15.1 billion in 2020. 

The COVID-19 pandemic impeded the demand for smart solar. Government guidelines and preventive measures such as social distancing and lockdown measures triggered supply chain disruption and delays in project construction, reducing the demand for smart solar. Moreover, the closure of international borders and trade lessens the adoption of smart solar around the globe, significantly hampering the market. For instance,

• According to a report published by the National Library of Medicine on April 28, 2021, the solar industry witnessed a fall in demand of 28% during 2020.

Impact of Artificial Intelligence on Smart Solar Market

The growing technology integrated artificial intelligence in smart solar, creating a lucrative opportunity in the market. AI-powered smart solar optimizes solar panels, predicts energy production, and identifies potential issues with solar panels. It improves the performance of solar panels and reduces costs by optimizing solar panel placement and reducing energy output during peak hours.

Smart Solar Market Dynamics

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Major Drivers

Decreasing installation cost of solar photovoltaics is expected to drive the market as these photovoltaics are used in smart solar panels for generating energy.  The average installed cost of solar photovoltaics (PV) worldwide declined to USD 857 per kW in 2021 from USD 4,808 per kW in 2010, propelling demand for smart solar.

Increasing need for renewable energy sources is anticipated to boost the demand for smart solar. Governments and key companies around the world are focusing on generating green energy while reducing CO2 emissions from electrical power plants.

Smart solar generates renewable electricity through the sun's rays, reducing CO2 emissions, and encouraging companies and governments to adopt smart solar as one of the main energy sources. For instance,

• According to a report published by the International Energy Agency, renewable capacity in global power generation is estimated to increase by 75% by 2027.

Existing Restraints

High maintenance costs associated with smart solar are expected to restrict market growth. Smart solar is costly due to the complexity of solar panels and expensive raw materials, such as lithium for solar batteries and high-grade silicon for solar panels. Moreover, shortage of arable land is impeding the market as these smart solar are used in solar power generation projects which require huge areas of land for efficient power generation.

Emerging Opportunities

Rising number of smart cities around the world creates an immense opportunity in the market. Smart solar is installed in smart cities to lower the dependency on conventional sources of power, reducing carbon emissions and generating green energy.

Moreover, increasing investment in R&D activities by key market players to introduce smart solar with new monitoring and control systems creates a lucrative opportunity in the market. For instance,

• On March 19, 2023, Renogy a renewable energy company launched REGO smart solar system for off-grid living. It is capable of delivering more power and control for off-grid living and is powered by a new monitoring and control system with enhanced Bluetooth connectivity and automated RV self-leveling.

Scope of Smart Solar Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Smart Solar Market Segment Insights

Device Segment Analysis

Based on device, the smart solar market is segregated into intelligrid, RFID, and smart solar meters. The intelligrid segment held a large market share in 2022 due to its ability to sense disturbances and correct them or reconfigure the flow of power to mitigate disturbance interruption.

It is an integrated self-diagnosing, self-healing, and electronically controlled electricity supply system that offers real-time energy information and power exchanges, which encourages its adoption in smart solar.

The smart solar meter segment is projected to grow at a rapid pace during the forecast period owing to allowing real-time monitoring of the electricity grid. It also identifies supply interruptions, inefficient voltages, and incorrect connections, and alerts plant owners about performance issues with PV plants, allowing them to quickly address issues, offering less disruption to a customer's home or business.

It reduces the cost of electricity consumption by monitoring and managing electricity consumption spending effectively. These benefits offered by smart solar meters are projected to propel their growth.

Solution Segment Analysis

In terms of solutions, the global market is categorized into asset management, meter data management, network monitoring, analytics, supervisory control and data acquisition (SCADA), remote metering, and outage management. The asset management segment accounted for a major market share in 2022 due to its potential to reduce loss and improve efficiency through equipment monitoring.

Solar asset management uses IoT sensors to manage and track and physical assets such as farms and solar plants throughout the operational stages of its lifecycle. Smart Solar in asset management ensures proper working of solar photovoltaic (PV) systems to maximize financial returns and performance which is expected to boost their adoption in asset management.

The meter data management segment is anticipated to grow at a quick pace during the projected period owing to increasing adoption of smart meters and smart grids or intelligrid. Meter data management is required for smart meters as it stores recorded data transmitted by smart meters to give consumer insights about their electricity consumption and help in setting household budgets, increasing their adoption in residential and commercial spaces.

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Application Segment Analysis

Based on application, the smart solar market is divided into commercial, industrial, and residential. The industrial segment dominated the market in 2022 due to rising entrepreneurial ambitions and growing infrastructure.

Rapid industrialization and a decrease in fossil fuel resources around the world led to an increase in the demand for smart solar in industries. Smart solar is widely adopted in industries to minimize their electricity expenses and increase solar components' efficiency through real-time monitoring and communication.

The commercial segment is projected to grow at a considerable pace in the coming years owing to a rising number of commercial spaces such as stores, outlets, offices, malls, and others. Smart solar is adopted in these commercial spaces to generate electricity at a lower cost, saving operating expenses as these spaces rely on electricity for most of their energy consumption needs.

Regional Analysis

In terms of region, the smart solar market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022 due to the rising technological advancement and presence of key market players such as Aeris, Itron Inc., Sensus, and Vivint, Inc.

Moreover, increasing reliance on solar power for electricity generation in the region is propelling the demand for smart solar as it converts the sun's energy into electricity by transforming the direct current output of solar panels into alternating current. For instance,

• As per Electric Power Annual, solar power accounted for 3% of U.S. electricity generation in 2020.

Asia Pacific is estimated to witness a high CAGR during the assessment period owing to rising government support and an increase in electricity tariffs. Moreover, growing number of smart city projects is fueling the market as smart solar is utilized in smart cities to generate clean and sustainable energy, reducing carbon footprints and air pollution. For instance,

• The Indian government launched a mission to develop 100 smart cities across the country by June 2024, of which 22 smart city projects have been completed by April 2023.

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