Global Solar Powered Vehicles Market By Vehicle Type (Passenger Vehicle, Commercial Vehicle), By Battery Type (Lithium Ion Battery, Lead Acid Battery, Lead Carbon Battery), By Solar Panel Type (Monocrystalline, Polycrystalline), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global solar-powered vehicles market was valued at USD 396.5 Million, and is expected to reach USD 2,543 Million in 2032, Between 2023 and 2032, this market is estimated to register the highest CAGR of 21.1%.

Vehicles powered by solar energy rely on the sun as their main or auxiliary power source. Such vehicles come equipped with photovoltaic cells to harvest solar rays, transforming them into electric power. This electricity is stored in battery units, which energize the vehicle’s motor and other electrical components.

Among their many benefits, these solar-reliant vehicles contribute to a reduction in greenhouse gas output, offer cost savings by minimizing or removing the need for traditional fuels, and lessen reliance on fossil fuel sources. They serve as a more environmentally responsible option compared to conventional vehicles that operate on petrol or diesel.

In addition, vehicles using solar energy are advantageous from an environmental standpoint, emitting no harmful substances since they don’t consume non-renewable energy or combust fuel. These vehicles create electric power without discharging harmful pollutants or greenhouse gases into the atmosphere.

Photovoltaic cells employed in these vehicles typically consist of silicon material, which captures heat energy and turns it into electrical power stored in onboard batteries for later use. Factors such as global expansion, increased spending power, and technological advances are driving up the consumer demand for vehicles running on solar energy.

Key Takeaways

• Market Developments: In 2022, the global Solar Powered Vehicles market was valued at USD 396.5 Million; by 2032 this market should have grown exponentially to reach an anticipated total value of USD 2,543 Million and post CAGR of 21.1% between 2023-2032.
• Vehicle Type Analysis: The market can be divided into passenger vehicles and commercial vehicles, with passenger car sales accounting for 63% of revenue share by 2022 due to population increases driving sales up significantly and making passenger car purchases an important contributor in today’s market.
• Battery Type Analysis: The market can be divided into lead-acid, lead carbon, and lithium-ion battery segments; lithium-ion held the highest market revenue share at 39% by 2022 and was preferred due to their lightweight nature, high energy output, faster recharge times, higher voltage output as well as durability and safety features.
• Analysis of Solar Panel Types: The solar market can be broadly broken down into monocrystalline and polycrystalline modules, with monocrystalline accounts taking the largest market share by revenue share (62% by 2022) due to their increased efficiency due to high-temperature coefficients that cause minimal output degradation.
• Regional Analysis: Europe is estimated to hold a significant share of the global solar-powered vehicles market, with the largest market share of 31.5% in 2022.

Market Scope

Vehicle Type Analysis

The Passenger Vehicles Segment is Dominant in the Market, with Largest Revenue Share

Based on vehicle type, the market is segmented into passenger vehicles and commercial Vehicles. Among these, the passenger vehicles segment dominated the market, with the largest revenue share of 63% in 2022. With the escalation in population numbers, the sales of passenger cars have witnessed a marked increase, playing a pivotal role in broadening this market sector.

Additionally, incorporating solar technologies in commercial modes of transport is environmentally benign, producing zero toxic emissions and fueling market expansion. Commercial transportation options such as pickup trucks, semi-trucks, vans, and taxi cabs predominantly serve the purpose of ferrying goods and individuals.

When such vehicles harness solar power, they not only trim down on fuel costs but also pave the way for business scalability. This dual benefit has triggered an enhanced interest and, consequently, higher demand in the transport sector for such eco-friendly options. The rising population also feeds into the escalating demand for taxi services and auto-rickshaws.

Owing to these dynamics, manufacturing entities are gradually pivoting towards creating solar-fueled vehicles, thus elevating their standing in the market. Consequently, it is projected that the appetite for solar-driven commercial transport will experience an upswing, especially in regions such as the U.S. and Europe, in the foreseeable future.

Battery Type Analysis

The lithium Ion Battery Segment is Dominant in the Market

Based on battery type, the market is categorized into lead acid, lead carbon, and lithium-ion batteries. The lithium-ion battery segment dominated the market, with the largest market revenue share of 39% in 2022.

One of the advantages of lithium-ion batteries is their light weight combined with a high energy output, allowing cars to go further on a single charge. Moreover, these batteries don’t need as much time to recharge as their counterparts, a primary reason they’re becoming more popular. They also hold a higher voltage, enabling more electric storage.

Lithium-ion options also rank high in terms of durability and safety, making them particularly in demand for solar-powered vehicles. Meanwhile, lead-acid batteries are growing at a fast rate, primarily because they’re more affordable.

Solar Panel Type Analysis

The Monocrystalline Solar Panels Segment has Dominated the Market Owing to Their Higher Efficiency.

Based on the solar panel type, the market is segmented into monocrystalline and polycrystalline.  Among both, the monocrystalline solar panel segment dominated the market’s largest revenue share of 62% in 2022. Monocrystalline solar panels provide higher efficiency due to their high-temperature coefficients that cause low output degradation, such as driving range and battery pack temperature.

In addition, the monocrystalline solar panels are manufactured from higher-grade silicone that ensures low resistance in electricity flow. As a result, monocrystalline solar panels in solar-powered vehicles are space efficient, requiring less space than other counterparts. In addition, monocrystalline solar panels have a higher life span. The polycrystalline solar panel segment is expected to grow at the fastest CAGR due to its cost-effectiveness and simple manufacturing process.

Key Market Segments

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Battery Type

• Lithium Ion Battery
• Lead Acid Battery
• Lead Carbon Battery

By Solar Panel Type

• Monocrystalline
• Crystalline
  

Drivers

Zero Emission and Strict Government Restrictions on Emission of Hazardous Gases Driving the Demand for Solar-Powered Vehicles

The adoption of the latest technologies for vehicles is increasing, which is driving market growth. In addition, increasing consumer preference for self-charging vehicles and rising disposable income drive solar-powered car marketers. Also, due to increasing environmental pollution due to fuel-based vehicles and the high cost of fuels, individuals are shifting towards adopting solar power-based vehicles due to their zero-emission and cost-effectiveness.

Furthermore, due to increasing government regulations on the emission of hazardous gases, manufacturers are focusing on using renewable sources such as solar energy for vehicles, driving the growth of solar-powered vehicles. Petrol and diesel are the primary sources of ignition vehicles.

The prices of these fuels are very high and are not affordable for middle-class individuals; due to this, they are shifting towards solar vehicles to overcome such problems. Ignition vehicles emit more carbon dioxide and other hazardous gases, which harm the environment. The government implemented measures to curb the emission of such gases.

Solar-powered electric vehicles do not emit any hazardous gases and use renewable energy sources by reducing fuel costs; due to this, the popularity of solar-powered vehicles is increasing, which drives the market growth.

Restraints

High Initial Cost for Implementation Restraining the Growth of the Market

Initial implementation costs of solar panels are very high and require regular maintenance, which is the primary factor restraining market growth. Also, the manufacturing costs of solar-powered vehicles are high. Solar-powered vehicles are technologically advanced, and manufacturing requires a skilled workforce.

Thus, the lack of a skilled workforce also had a negative impact on market growth. Moreover, one of the major restraints in the market for solar-powered vehicles is the limitation of solar energy as a primary fuel source. Solar panels on vehicles can only generate a limited amount of energy, often insufficient for long-distance travel or heavy-duty applications.

This makes these vehicles less practical for certain uses compared to traditional fuel-based or even other types of electric vehicles.

Opportunity

High Consumer Demand for Zero Emission and Noise Free Vehicles is Expected to Create Significant Growth Opportunities for Market

Global demand for solar-powered vehicles is increasing due to their attractive designs and zero emissions. In addition, these vehicles are noise-free and require low maintenance compared to ICE-based vehicles. This is anticipated to create lucrative global solar-powered vehicle market growth opportunities. Fossil fuels such as petrol and diesel are non-renewable sources of energy.

They require high costs for extraction and processing. As a result, manufacturers are moving towards solar-powered vehicles to reduce extraction costs. Also, increased fuel prices and the low availability of fossil fuels will create lucrative opportunities for solar-powered vehicle manufacturers in the coming years.

Trends

Adoption of Various Technologies and the Integration of Lightweight Solar Panels are New Trends in the Market

Several key players in the solar-powered vehicles market are focusing on manufacturing commercially available vehicles with solar rooftop panels. Moreover, the adoption of new technologies is anticipated to boost the sales of the market.

For instance, Vehicle-to-Grid (V2G) Technology allows solar-powered vehicles to take electricity from the grid for charging but also to send electricity back into the grid. V2G technology makes solar-powered vehicles active participants in the smart grid, potentially earning the vehicle owner credits or income. In addition, traditional solar panels are rigid and can add considerable weight to the vehicle.

However, newer flexible and lightweight solar materials are being integrated into the car’s body, reducing weight and increasing efficiency. Such trends are currently witnessed in the market, driving the growth of the global solar-powered vehicles market.

Geopolitical Impact Analysis

Significant Geopolitical Impact Resulted in Disruption of the Supply and Manufacturing Chain, Which Had a Negative Impact on Market Growth

The essential components required to assemble solar panels and batteries, such as lithium and certain rare earth materials, originate from particular geographical locations. Political volatility or conflicts over trade in European regions can result in supply chain disruptions, subsequently elevating expenses and decelerating the manufacturing process.

Moreover, the imposition of tariffs and the occurrence of trade disagreements can play a crucial role in determining the pricing of solar-powered vehicles. For instance, added duties on critical components such as solar panels can inflate the end price of these vehicles, thereby reducing their appeal to consumers. In addition, regulatory frameworks related to environmental conservation and emission standards differ from country to country.

In jurisdictions with rigorous environmental mandates, incentives or subsidies may be provided to boost the uptake of solar-powered and other environmentally friendly vehicles, stimulating market expansion. Conversely, in areas with lenient guidelines, there might be less motivation to adopt such eco-conscious transportation options.

Regional Analysis

Europe Region is estimated to hold a significant share of the global solar-powered vehicles market, with the largest market share of 31.5% in 2022. The region’s growth is attributed to the high adoption of solar-powered vehicles in developed countries such as Germany, France, and the UK. The technological advancement rate in Europe is high, which is driving the market growth in this region.

Europe has about 5.6 million plug-in electric passenger cars and commercial vehicles on the road. Moreover, strict government regulations on zero CO2 emission for new passenger cars and light commercial vehicles are expected to create significant growth opportunities in the solar-powered vehicles market.

On the other hand, several U.S. and Canadian solar-powered vehicle companies are driving North America’s market growth. Also, the advancements in R&D facilities and the technological adoption rate in North America is greater. Therefore, increasing restrictions on the emission of hazardous gases are expected to drive the market during the forecast period in North America.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Major key players in the solar-powered vehicles market are expanding their businesses in foreign countries. Key players are focusing on new product innovation to stay competitive. Solar vehicle companies are concentrating on increasing battery power and durability to provide more mileage and longer durability.

In addition, leading solar-powered vehicle companies are adopting market strategies such as merging, acquisition, and competitive pricing. In addition, prices for solar panels are decreasing rapidly, positively impacting the market growth.

Following are a few major players in the solar-powered vehicles market, including Volkswagen AG, Toyota Motor Corporation, Ford, Mahindra & Mahindra Limited., Sono Motors GmbH, Hanergy Thin Film Power Group, Lightyear, Alke, Hyundai Motor Company, Toyota Motor Corp, and Other Key Players.

Market Key Players

• Volkswagen AG
• Toyota Motor Corporation
• Ford
• Mahindra & Mahindra Limited.
• Sono Motors GmbH
• Hanergy Thin Film Power Group
• Lightyear
• Alke
• Hyundai Motor Company
• Other Key Players

Recent Developments

• In May 2023, Toyota used Japanese chemical company Kaneka’s 26.63%-efficient solar cells for electric vehicles.
• In October 2021, ARI Motors presented the ARI 485, a small, lightweight utility vehicle equipped with five of Sono’s solar panels, which provide up to 450 Watts. These solar cells should extend the vehicle range by up to 48 kilometers.
• In August 2021, Volkswagen planned to allocate approximately €40 million by 2025 to bolster the growth of wind and solar energy installations across Europe.
• In May 2019, Hanergy announced a partnership with DHL to become the provider of CIGS flexible solar panels for the rooftops of their commercial vehicles in the UK and Germany.

Report Scope