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
- Published date: Sep 2023
- Report ID: 106868
- Number of Pages: 386
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.
- 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 compound annual compound annual compound annual compounding annual rates 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.
- Market Drivers: An increase in sustainable and eco-friendly transportation solutions is driving demand for solar-powered vehicles, while technological advancements, government initiatives to promote renewable energy sources and an emphasis on carbon reduction is fuelling this market segment.
- Challenges: Limited range due to varying sunlight conditions, high initial costs, limited charging infrastructure, and the need for efficient energy storage solutions are significant challenges facing the widespread adoption of solar-powered vehicles.
- Opportunities: Technological advancements aimed at improving solar panel efficiency, battery technology, and collaborations between automotive and solar industries offer significant growth opportunities. Additionally, government incentives and subsidies for solar vehicle adoption drive market growth.
- Trends: Increasing research and development activities to enhance solar panel efficiency, integration of solar power with electric vehicle charging stations, and partnerships between automobile manufacturers and solar technology providers are notable trends in the solar-powered vehicles market.
- 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.
- Key Players: Major companies in the solar-powered vehicles market are investing in research and development, strategic partnerships, and product innovation to strengthen their market presence and expand their product offerings.
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
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.
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.
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.
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.
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
- The UK
- Russia & CIS
- Rest of Europe
- South Korea
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East & Africa
- 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
- Mahindra & Mahindra Limited.
- Sono Motors GmbH
- Hanergy Thin Film Power Group
- Hyundai Motor Company
- Other Key Players
- 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 Features Description Market Value (2022) US$ 396.5 Mn Forecast Revenue (2032) US$ 2,543 Mn CAGR (2023-2032) 21.0% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Vehicle Type- Passenger Vehicle, Commercial Vehicle; By Battery Type- Lithium Ion Battery, Lead Acid Battery, and Lead Carbon Battery; By Solar Panel Type- Monocrystalline, and Polycrystalline. Regional Analysis 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 Competitive Landscape 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. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is a solar-powered vehicle market?
A solar-powered vehicle is an electric vehicle (EV) that utilizes solar energy, typically from solar panels installed on the vehicle's surface, to charge its batteries and power its electric motor.How do solar-powered vehicles market work?
Solar-powered vehicles capture sunlight using solar panels, which convert the sunlight into electricity. This electricity is stored in the vehicle's batteries and used to power the electric motor, propelling the vehicle.Are solar-powered vehicles market practical for daily use?
Solar-powered vehicles are becoming more practical for daily use, especially for short-distance commuting. Advances in solar technology and energy storage have improved their viability and range over the years.How is the future outlook of the solar-powered vehicles market?
The future of the solar-powered vehicles market looks promising with ongoing advancements in solar technology, improving energy storage capabilities, and growing environmental consciousness driving the demand for sustainable transportation solutions.
- Volkswagen AG
- Toyota Motor Corporation
- Mahindra & Mahindra Limited.
- Sono Motors GmbH
- Hanergy Thin Film Power Group
- Hyundai Motor Company
- Other Key Players
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