Solar Tracker Market Size, Share, and Industry Report [2031]

Report Description

Solar Tracker Market Outlook 2031

The global solar tracker market size was valued at USD 3.4 Billion in 2022 and is expected to reach USD 29.3 Billion by 2031, expanding at a CAGR of around 20% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising concerns about energy conservation and the switch from non-renewable to renewable energy sources.

A solar tracker is a device that tracks the sun's daily rotation from east to west. To maximize energy capture, these devices adjust their orientation during the day to follow the course of the sun. Solar trackers are used to maintain solar collectors/panels alignment with the sun as it moves across the sky each day.

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The solar energy collector receives more solar energy when Solar Trackers are used, which boosts the energy output of the produced heat/electricity. The production of solar panels can be increased with solar trackers by 20–30%, which boosts the project's economy. Solar tracker manufacturers have to be exceedingly strategic and operationally effective to succeed in a price-competitive industry.

The report finds that the COVID-19 pandemic impacted negatively in the market. At the time of the pandemic, the supply chains were halted and the workforce was also reduced.

Furthermore, the shortage of labor was also seen in almost every region which results in supply chain disruption. Rising costs of equipment and logistic shipments were also impacted due to strict government regulations delaying the market flow during the pandemic.

Solar Tracker Market Dynamics

Major Drivers

The convenience of generating as much electricity as needed is expected to drive the market.  The solar panels on the solar tracking system help to generate electricity by adjusting the panels to the direction of the sun. Another benefit of incorporating solar PV trackers is that it enhances the production of electricity.

A solar tracking system with a single axis tracker deployed performance from 25 to 35 percent. On the other hand, a dual axis tracker boosts its performance by five to 10 percent which is expected to drive the market during the forecast period.

Existing Restraints

High purchasing cost of solar tracking systems is expected to hinder the market in the coming years. The deployment process of solar tracking systems including batteries, solar panels inverters, wiring costs, and maintenance costs is expected to lower its adoption in rural areas.

Transportation and deployment of solar PV trackers are associated with greenhouse gas emissions which affect the environment. Moreover, the usage of toxic and hazardous materials during its manufacturing process is expected to restrain the market. 

Emerging Opportunities

Upgrading software technologies with sustainable energy for solar PV trackers are expected to create key opportunities for the market players. The solar tracking system provides functional benefits and is expected to provide more fruitful output in the future with the help of software advancements.

Solar tracker presents a complex scenario in its daily generation cycle that requires balancing its infrequent nature to produce too much or too little electricity. For instance, the Orlando Utilities Commission (OUC) with the engineering students of the University of Central Florida (UCF) decided to start a project through which it is expected to forecast when the clouds could cover the farms and its consecutive impacts on the grid.

Scope of Solar Tracker Market Report

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

Solar Tracker Market Segment Insights

Type Segment Analysis

Based on type, the market is bifurcated into dual axis and single axis. The dual axis segment held a major market share in 2021 and is projected to maintain its dominance during the forecast period.

Due to their capacity to track the sun in both the horizontal and vertical planes, dual axis trackers provide maximal solar energy absorption. Compared to single axis trackers, dual axis solar trackers help generate 8 to 10 % more energy.

Dual-axis trackers have high O&M costs because they require more land, complicated technology, and extensive motor and control system maintenance. In places with high isolation, single axis systems can outperform fixed solar PV cells by 20% or more since they track the sun's rays along just one axis.

Compared to fixed solar panels, single axis solar trackers require more space because their movement might cast shadows that reduce the efficiency of nearby panels.

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Technology Segment Analysis

On the basis of technology, the market is segregated into concentrated photovoltaic (CPV), concentrated solar power (CSP), and solar photovoltaic (PV). The solar photovoltaic (PV) segment accounted for a market share of around 84% in 2021.

The primary reason for the highest share of PV technology is that PV cells are compatible with conventional photovoltaic module technologies. Solar PV is increasingly used in utility and non-utility applications due to the rising cost of electricity brought on by the supply-demand mismatch.

• According to the International Renewable Energy Agency (IRENA), the capacity of the installed solar PV in India was around 38.98 GW in 2020 from 34.86 in 2019. The growth was estimated at around 11% during the year. The growth depended on the high number of installations of solar tracking systems in India for various projects. The Indian Government is planning to enhance the capacity of solar PV systems with time.

When compared to fresnel collectors, lenses, and mirrors on the CSP and CPV technology trackers, the usage of solar trackers on PV modules is subject to fewer design restrictions.

In the solar industry, CPV is a developing technology owing to its low production costs and minimal need for raw materials, CPV systems generate solar power at a low cost. In order to create energy, this technology concentrates a lot of sunlight onto a tiny surface of PV materials using optics, like lenses.

Utilizing the full potential of the sun's energy, concentrated solar power (CSP) has the ability to supply consumers throughout the world with dependable renewable energy even when the sun isn't shining. Concentrator photovoltaics (CPV), a rapidly developing technology that is also less expensive than PV solar electricity, has been in increasing competition with CSP during the past several years.

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Application Segment Analysis

In terms of application, the market is fragmented into non-utility and utility. The utility segment held a key market share in 2021. Solar trackers are anticipated to be used frequently in utility applications as a result of rising electricity costs and growing demand for renewable energy sources.

Since solar utility solar installations are ground mounted and single axis trackers may be used to follow the sun all day long, they are the most important popular solar tracking system in the utility industry. Due to rising government subsidies and feed-in tariff programs, particularly in North America and Europe, trackers are being employed extensively in utility applications.

The high cost of trackers is one of the primary constraints impeding their use in non-utility applications. Although installing solar trackers can be very expensive, it results in the production of 25% to 30% more solar power than a fixed solar panel. Solar trackers, however, are typically not practical for use in residential and commercial settings due to their high cost and land requirements.

Regional Analysis

On the basis of region, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2021. Growth of the market in the region is attributed to the Paris Climate Change Agreement, which encouraged the use of renewable energy in the nation's energy supply, and the growing emphasis on renewable energy.

The U.S. government is aiming to promote the use of solar power in the economic world through a number of initiatives. Over 350 initiatives from businesses, independent colleges, and government laboratories have been funded by the initiative.

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