Solar Tracker Market Size, Share & COVID-19 Impact Analysis, By Type (Photovoltaic (PV), Concentrated Solar Power (CSP)), By Movement (Single Axis, Dual Axis), By Application (Utility, Non-Utility), and Regional Forecast, 2022-2029

The global solar tracker market size was valued at USD 6.05 billion in 2021. The market is projected to grow from USD 6.88 billion in 2022 to USD 16.73 billion by 2029, exhibiting a CAGR of 13.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 18.0% in 2020 as compared to 2019. 

A solar tracker is a system that positions an object at an angle relative to the sun. The most common solar tracking system is placing photovoltaic (PV) panels to remain perpendicular to the sun’s rays and set space telescopes to determine the sun’s direction. PV solar tracking system adjusts the path that a solar panel faces according to the sun's position in the sky. By keeping the panel perpendicular to the sun, more sunlight strikes the solar panel, less light is reflected, and more solar energy is absorbed. That energy can be converted into power.

COVID-19 IMPACT

Significant Installation of Solar Energy Amid COVID-19 Pandemic Drives the Market

The global health emergency caused by the spread of COVID-19 has unleashed the greatest global crisis in generations, sending shockwaves in various systems, economies, and societies worldwide. The energy industry has faced multiple challenges and was also hit hard in 2020 with repeated lockdowns and transportation restrictions, resulting in economic slowdown and trade activity on a global scale while pushing energy use down by 4%. Subsequently, the clean energy transition must be at the center of economic recovery and stimulus plans, which has brought the bright spot on renewables, resulting in continuous expansion installation even during the pandemic. The market was valued at USD 5.04 billion in 2020, a growth of almost 24% compared to the 2019 value. However, the disruptions to transportation and logistics caused due to strict government regulations and nationwide lockdown resulted in a significant delay in delivering the product, increased shipment cost and price of fuel, taxes, and labor, and disruptions to shipping facilities.

Major renewable and fossil energy-producing countries, such as China and India, have taken strict measures to prevent the growth of the COVID-19 virus. Various governments in the regions have put forward strict action plans to curb the spread of the infection. For context, in March 2020, the Government of India announced a nationwide lockdown to stop all industrial operations, domestic & global trade, construction activities, automotive movement, and many other activities to suppress COVID-19 expansion.

LATEST TRENDS

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Integrating Software Technologies Hold Immense Growth Opportunity

Artificial intelligence is one of the modern-day technologies integrated with renewable energy, leading to various operational advantages and cost-effectiveness. Incorporating these technologies helps track control strategy under real terrain conditions and control strategy based on real-time weather data. For instance, Arctech Solar developed a new generation of Artificial Intelligence (AI) solar tracking solutions, which helps PV tracking power plants to adopt different conditions according to various weather conditions, topographies, and terrains. Moreover, the AI control system can perform algorithm optimization on the tracker angle along with weather sampling, feedback distribution, and constant comparison of information, which could help improve the power generation of solar power plants by up to 7%.

DRIVING FACTORS

Green Energy Targets to Fuel Investments in Solar Industry

As the world moves toward a clean energy transition, carbon reduction has increased the adoption of renewable energies. Dramatic improvements to solar technologies and other clean energy technologies have enabled rapid growth in deployment and provide cost-effective options for decarbonizing the energy sector. The inequitable adoption of a solar tracking system has garnered increasing attention as an energy justice issue as a modular approach that is easily scalable for large and small projects. For instance, NEXTracker was selected by Mahindra Sustain to be the supplier for Sakaka Solar Park. The project is undertaken as part of Saudi Arabia’s national program to deploy clean energy resources. The project is expected to have a total capacity of 9.5 GW by 2023 and 58.7 GW by 2030.

Growing Adoption of Renewable Sources for Power Generation to Boost Market

Over the past decade, the growing population in developing countries has directly impacted power generation. With increase in carbon reduction, power generation through renewable sources is being looked upon as the best possible replacement for conventional power sources, such as coal and oil products, and is increasing at a healthy rate. Renewable energy source accounts for around 29% of the total electricity generation globally. Moreover, as per the International Energy Agency (IEA), it is expected that renewables are set to account for almost 95% of the increase in global power capacity by 2026, with solar PV alone accounting for more than half of capacity, driven by stronger support from government policies and more ambitious clean energy goals. 

RESTRAINING FACTORS

High Investment and Lack of Required Infrastructure Poses Threat to Market Growth

One of the major factors that hinders the solar tracker market growth is the rise in steel prices, which further drives the cost of the tracking systems used in most utility-scale projects. More than 65% of the total cost of solar tracking systems typically comes from steel, which makes solar trackers more expensive. Additionally, the total cost of the solar tracking system is costlier than installing normal solar panels, which reduces its adoption in residential purposes where energy demand is generally less. For context, the installation of 15 ground-mounted solar panels with a power rating of 300 watts would come with a total cost of USD 14,625. The installation would cost an additional USD 500 per solar module. This rise in initial cost results in less adoption of the solar tracking system.

In addition, the lack of necessary infrastructure is the other factor that slows down investment in the market. In Asia Pacific and Europe, lack of awareness regarding the advantages and increased preference for fixed-tilt installations over tracker installations have hampered growth.

SEGMENTATION

By Type Analysis

Increasing Solar Photovoltaic Installations Will Drive Growth of Segment

The market is segmented into photovoltaic and concentrated solar power based on type.

Concentrated Solar Power (CSP) technology uses mirrors to accumulate the sunrays and focus on a single point. As a result, only dual-axis trackers are preferred in these installations.

Photovoltaic installations are very large compared to concentrated solar power, installed in specific countries only due to which it dominates the solar tracker market share.

By Movement Analysis

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Economic Feasibility and Delivery of Expected Results to Drive Single Axis Segment Growth 

Solar tracking approaches two basic types, single axis and dual axis. The most common are single-axis tracking systems. These trackers with a single axis follow the sun's trajectories by moving in one axis, most commonly in the east-west direction.

Furthermore, solar trackers with dual axis can be moved in two-axis motion, primarily in the north-south direction and east-west direction, making them more precise than single axis trackers, but with higher cost due to the additional axis of rotation.

By Application Analysis

Increasing Solar-Grid Integration by Utilities Will Fuel the Growth of Utility Segment

The market is segmented into utility and non-utility in terms of application. The utility segment is expected to lead the market due to rising solar grid integrations that have become common in many countries. The standalone systems and the rooftop solar installation are found to have fixed-tilt, eliminating trackers. Further, the introduction of DEG and VPP technologies, which work on the concept of decentralized power, is also expected to attract investments in solar devices, as per the solar tracker market analysis.

REGIONAL INSIGHTS

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Based on region, the market is studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

In North America, the United States, with the maximum deployment of solar trackers for operational efficiency of the installed panels, will aid the demand for products across the region, resulting in North America holding the lead position in the global market during the forecast timeframe.

Subsequently, Brazil and Mexico in Latin America have emerged as major importers of solar technologies trackers. Out of the shipments of solar trackers, more than half were being done for North America.

The demand for solar power increased at a healthy rate in Europe. Italy, U.K., Germany, and Spain have been the front runners in increasing solar penetration in the country’s overall power mix. This trend, along with ambitious green energy targets, poses enormous growth opportunities for the market in the region.

Asia Pacific is the production hub for trackers, as 40% of the global capacity is manufactured in China. India, China, and the other Southeast Asian countries are expected to boost their renewable energy capacity in the coming years, creating a huge demand for trackers.

South Africa holds the lion’s share of the market in the Middle East & Africa, which is expected to witness healthy growth over the forecast period with contracts for solar power to be commissioned.

KEY INDUSTRY PLAYERS

Key Players Concentrate on Enhancing their Product Capabilities to Meet Customer Demand.

The competitive landscape of this market depicts market dominance by major solar tracker manufacturers such as NEXTracker, PV Hardware, Array Technologies, and Soltec. NEXTracker has the maximum share in the global market, acquiring contracts from different countries in every region. A well-established supply chain, customer preference, and an established brand name have been the factors for the company's success. The market also includes other players such as Array Technologies, Trina Solar, and Solar Steel, increasing their customer reach and establishing a strong footprint in the market. This is expected to lead to a competitive market for tracker sales in the forthcoming years.  For instance, On December 01, 2021, Gonvarri Solar Steel has signed an agreement with Elawan Energy. The contract includes the supply of more than 1,000 solar trackers that will enable the installation of 800,000 modules (solar panels) in Torrijos, Escuderos, and Belinchón.

LIST OF KEY COMPANIES PROFILED:

• NEXTracker (U.S.)


• Array Technologies (U.S.)


• Trina Solar (China)


• SunPower Corporation (U.S.)


• ArcelorMittal Projects (Luxemburg)


• Soltec (Spain)


• Convert Italia (Italy)


• PV Hardware (Spain)


• Arctech Solar (U.S.)


• Solar Steel (Spain)


• Ideematec (Germany)


• Scorpius Trackers (India)


• Sun Action Trackers (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 - Solar Steel is developing a project called Digital Twins of photovoltaic plants for the design, engineering, and O&M phases. The digital twin virtually reproduces the behavior and performance of a process or product. This allows for predicting failures and anomalous situations, being able to perform certain actions to avoid them


• April 2021 - Array Technologies, Inc. bagged a contract with Primoris Services Corporation to supply up to 4 GW of solar trackers to be used in more than ten projects across North America.

REPORT COVERAGE

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The research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed analysis of market segments, including applications and regions, helping our readers get a comprehensive overview of the global market.

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