Electric Vehicle Solar Modules Market Will Grow At Highest Pace Owing To Increasing Demand For Sustainable Transportation

 

EV Solar Modules Market

The EV solar modules market comprises photovoltaic panels that are installed on electric vehicles to charge the vehicles battery while they are parked. Solar modules capture energy from sunlight and convert it to electricity that can be used to power EVs or charge their batteries. This reduces the vehicles dependence on conventional charging points. Solar modules are lightweight, durable, and require very low maintenance. They provide a supplemental charge to EV batteries and reduce the need for at-home charging.

The Global EV solar modules Market is estimated to be valued at US$ 1,829.8 Mn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the EV Solar Modules Market are Volkswagen, Jinko Solar, Trina Solar, Canadian Solar, JA Solar, Hanwha Q CELLS, LONGi Solar, REC Group, LG Electronics, SunPower, Capsolar, Innolia, and Maxeon Solar Technologies. The increasing awareness about environmental protection and sustainable transportation has boosted the demand for electric vehicles. Major automakers are focusing on introducing electric vehicles with integrated solar rooftop panels. Technological advancements have led to the development of more efficient solar modules that can charge electric vehicles faster.

Market Trends
Growing demand for zero-emission mobility: Stringent emission regulations and rising environmental concerns have increased the demand for zero-emission electric vehicles. Solar modules help extend the driving range of EVs and reduce dependency on grid charging.
Introduction of innovative solar panel designs: To boost the on-board charging capability of EVs, solar panel manufacturers are focusing on advanced designs with higher power conversion efficiency and lighter materials. Foldable panels and transparent solar films are some innovations.

Market Opportunities

Integration of solar panels in new EV models: Leading automakers are expected to introduce more EV models with pre-installed solar rooftop panels to enhance driving range.
Developing lightweight, flexible and durable panels: Startups are working on novel solar panel technologies using lightweight and flexible materials like carbon fiber or plastic base to improve installation on curved EV surfaces.

Impact of COVID-19 on EV Solar Modules Market growth
The COVID-19 pandemic had a significant impact on the EV solar modules market. Factory shutdowns during lockdowns disrupted the supply of EV solar modules. This directly impacted the production of electric vehicles which utilize solar modules. The decline in vehicle production led to reduced demand for solar modules in 2020 and 2021.

However, many countries announced incentives and subsidies for electric vehicles post the pandemic to drive greener recovery. This boosted the demand for EVs and consequently solar modules from 2022 onwards. Manufacturers are ramping up production capacity to meet the rising demand. They are also investing in automation and new production facilities to ensure stable supply. Governments providing production-linked incentives are encouraging local manufacturing of solar modules which will make EVs more affordable.

While the short term outlook was impacted, analysts project strong growth in the coming years backed by climate action policies of nations. Increased focus on renewable energy integration and net-zero targets of companies will propel the utility of solar power in EVs. Falling costs of solar technology and long term savings on fuel will make solar EVs more competitive compared to gasoline vehicles. Collaborations between auto and solar industries will help develop innovative solar solutions. The pandemic has emphasized the need to strengthen domestic supply chains to avoid future disruptions.

Regions where EV solar modules market value is concentrated
Currently, the market for EV solar modules is concentrated in Asia Pacific and Europe regions in terms of value. China dominates with a significant share of global EV production and focus on new energy vehicles. Other Asian countries like Japan, South Korea and India are also major automotive manufacturing hubs investing in electrification.

Europe is spearheading the shift to sustainable mobility. Strong policy push provided by the European Union along with consumer demand for green transport has boosted the sales of electric vehicles in countries like Germany, France, UK, Netherlands etc. Manufacturers are establishing solar module production facilities in these regions to satisfy local demand.

Fastest growing region for EV solar modules market
The fastest growing regional market for EV solar modules is expected to be North America between 2024-2031. Factors such as the Inflation Reduction Act with incentives for domestic EV manufacturing, adoption of stricter emission norms, investments by auto giants are directing the transition to electric. Countries like the US and Canada are emerging as hotspots for EV startups and Tesla's dominance will catalyze the accompanying solar industry. Mass production of affordable EVs integrated with solar power can gain widespread popularity here, presenting lucrative opportunities. Rising environmental consciousness and technological advancements will drive the evangelization of solar EVs in the near future.

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