The agrivoltaics market comprises photovoltaic systems that are installed above agricultural lands or livestock grazing areas in order to generate solar power without disrupting farming or ranching practices below. Agrivoltaic systems enable farmers to grow crops or raise livestock under solar panels and utilize land for dual purposes of generating food and renewable energy. This conserves agricultural land use while providing an additional income stream through sales of electricity.
The global agrivoltaics market is estimated to be valued at US$ 7.61 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the agrivoltaics market are Ombrea, SunAgri, SunSeed APV Private Limited, JA Solar Holdings Co. Ltd., Enel Green Power Spa, Mirai Solar, Namaste Solar, BayWa AG, Next2Sun Technology GmbH, and Insolight SA. These market players are continuously investing in research and development activities to develop innovative agrivoltaic systems with advanced technologies that ensure high yield of crops and livestock as well as optimal power generation.
There exists considerable opportunities for Agrivoltaics Market Demand players in countries that are strongly supporting renewable energy development through favourable policies and incentives. Double cropping of certain high-value crops under solar panels and production of livestock can further boost revenues of farmers and make agrivoltaics a financially attractive land-use option.
The global expansion of agrivoltaics market is expected to be led by Asia Pacific region owing to extensive investments by government and private entities in solar energy coupled with presence of large agricultural lands. Countries like India, China, Japan are emerging as top markets and initiatives like World Agroforestry are aiding transfer of agrivoltaic knowledge and technologies internationally.
Market Drivers
The primary driver for the Agrivoltaics Market Size And Trends is growing need to optimally utilize agricultural land for dual purposes of food and renewable energy production. As arable land availability is shrinking due to rapid urbanization, agrivoltaics help restore the balance between renewable energy generation and sustainable agriculture.
Market Restraints
High initial capital investment required for installation and maintenance of agrivoltaic systems acts as a major restraint for the market. Additional costs are incurred towards research and development of appropriate crop varieties and livestock breeds suitable for this land-use practice. Returns take relatively longer duration to break-even, limiting large-scale adoption.
Segment Analysis
Rooftop agrivoltaics is the dominating sub-segment in the agrivoltaics market. Rooftop agrivoltaic systems are cheaper and easier to implement as compared to ground-mounted systems. They optimize the use of limited rooftop space by generating solar power as well as growing crops below the panels. The shadow cast by panels is utilized for crops that require partial shade like lettuce, kale etc. Additional benefits include reduction in infrastructure costs, water use and effective crop protection from harsh weather conditions.
Global Analysis
The Asia Pacific region is the fastest growing as well as the dominating regional market for agrivoltaics. Countries like India and China are increasingly adopting agrivoltaic systems to boost farm productivity and incomes of farmers. India offers lucrative growth opportunities owing to government initiatives for distributed solar power and integrated farming. Europe is another major regional market led by Germany, Netherlands and Italy. However, North America is expected to witness highest CAGR during the forecast period due to rising trend of agrivoltaics adoption across utility sector and increasing agricultural automation in the US and Canada.
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