Solar Tracker Market

The solar tracker market is projected to grow from USD  10.32 billion in 2024 to USD  22.87 billion by 2029 at a CAGR of 17.3% during the forecast period. The market for solar trackers is expected to witness a massive surge in the forecast period. Energy conservation through solar energy and rising propensity towards renewable sources instead of non-renewable has been driving demand for solar energy, thereby, the adoption of solar trackers in the planet. Solar trackers utilize various electric components, including motors, actuators, sensors, that position the solar cells by attaining maximum exposure of sunlight and capturing energy. The captured solar radiation is then converted into electricity for various end-user applications. The growing use of solar power as a viable commercial energy source has become popular due to the falling cost of solar PV panels, which further supports the growth of the solar tracker market.

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SOLAR TRACKER MARKET  Dynamics

Driver: Green Energy Goals

The growth of the solar tracker market is extremely rapid because of the increasing adoption of renewable energy, especially solar power, thus stimulated by global green energy targets. Several countries have vowed to reduce the carbon emissions and reduce the usage of fossil fuels, thereby leading to a number of investments in solar energy. With an estimated 29% of global electricity drawn from renewable sources, the International Energy Agency expects that, by 2026, renewables will constitute nearly 95% of new global power capacity, with solar PV being above half of that. Tax incentives are driving the growth of solar installations, as evidenced by the exemption from taxation that Brazil has granted photovoltaic generation until 2045. This only sharpens demand for solar trackers.

Restraints: High Initial Cost

One of the key factors limiting the expansion of the market is higher initial cost, as solar trackers are rather costlier compared to the other solar technologies. Many of the potential customers, especially in developing countries, have limited funds and thus cannot invest in the high technology solar apparatus. Additionally, more upfront cost is involved as compared with permanent installations of solar panels because solar trackers are designed in such a way that the angle of the solar panels is set to maximize daily sunshine exposure. With these payback durations and return on investment, the higher initial cost may deter households and firms from using solar tracking systems. Besides, however beneficial solar trackers may be to increasing energy yields and efficiency, sometimes the upfront costs are even higher than what they are supposed to benefit through in the long run in light of cheap electricity or little incentives for solar. The installation and servicing needs of a solar tracker are very complicated. In this case, it is not easy for a potential customer to make a decision regarding this technology; he or she may prefer more straightforward and cheaper fixed installations.

Opportunities: Enhanced Grid Integration

Enhanced grid integration presents significant opportunities for the solar tracker market as it makes solar energy more compatible with the existing electrical grids. Utilities and other grid operators are in need of solutions to boost energy generation as renewable energy gains momentum day by day, yet maintain the stability of the grid. Solar trackers optimize energy production throughout the day, leading to better steadiness of energy supply and balancing the fluctuations in supply and demand. Nevertheless, these technologies improve the resilience of the grids through the potential of energy storage in solar power. They offer an ability to store energy at peak demand or nighttime, while integrating smart grid technology can monitor and control flows of energy in real-time, improving the efficiency of the grid and perhaps lessening the curtailment problems. Increases in grid integration efforts from utilities and regulators will spur growth and innovation in the solar tracker market while aligning with broader climate goals as utilities and regulators focus more efforts on sustainable energy solutions.

Challenges: Energy Consumption

Energy consumption is one of the key issues in the solar tracker market, as such systems require energy for operation, which might downsizes the total efficiency and economic feasibility. Electricity for motors may neutralize the advantages of additional sun exposure; therefore, fixed solar panels are a bargain in areas where there is an expensive energy cost. Necessary supplemental power also complicates energy management, especially off-grid. Adverse weather conditions will further ensure reduced tracker performance and increased energy needs for maintenance purposes. The manufacturers stand to benefit greatly with wider market appeal if they design systems that are highly energy efficient, combining both smart technology and power saving capabilities.

Solar Tracker Market  Ecosystem

 Key players in this industry include Nextracker Inc (US), Array Technologies Inc (New Mexico), Soltec (US), Arctech (China), and Trinasolar (China). These prominent companies in this sector are renowned for their reliability and financial stability as providers of solar tracker. They offer a diverse range of products, cutting-edge technology, extensive experience, and robust global sales and marketing networks. Their proven track record in the industry makes them trusted and knowledgeable partners for clients seeking solar tracker products. These are the companies that have proved that they can still deliver good products and services under the changing market dynamics.

By technology, solar photovoltaic (PV) segment expected to be the largest market during the forecast period

The solar photovoltaic (PV) solar tracker segment is the largest and fastest-growing technology in the global solar tracker market, with the highest market share. This is because of the apparent advantages of PV trackers, where solar panels can be oriented to face the sun during the day, giving the benefit of up to a 20-30% rise in energy output over fixed-mount systems. All these make the PV trackers particularly appealing for large-scale utility projects. There is also minimal maintenance, cost-effective installation, and simpler production compared to other technologies like concentrated solar power, which involve many complex parts.

By type, grid-connected segment is expected to be the largest market during forecast period

Efficiency and simplicity, in turn, have made grid-connected photovoltaic power systems the most dominant today. They produce electricity tied to the utility grid so that there is no need for battery backup. The extra energy produced is fed back into the grid without much hassle while the users benefit from net metering. North American solar tracker market markets for grid-connected solar trackers are particularly strong in North America, as high levels of solar irradiance are seen along the southwestern United States and the extensive, synchronized power transmission grid ensures reliability and stability across the continent.

"North America: largest solar tracker market during forecast period"

North America is the leading market region in the solar tracker market and holds a global share of 37.3% in 2023. Its massive lead results from widening adaptation of solar panels in utility and non-utility applications, with high competition among globally and locally producing manufacturers. Governmental initiatives, for example, are reflected in National Community Solar Partnership and the Climate Action Incentive Fund, thus encouraging technologies like bifacial solar systems. Favorable economic environment in the U.S. Also boosts investments in solar solutions, and high public awareness about rooftop solar systems further boost demand in the region. Formulations of various energy policies by regional governments also boost the development and deployment of efficient solar tracker solutions. All these factors put North America at the forefront of the solar tracker market, pushing innovation and growth.

Key Market Players

• Nextracker Inc(US)
• Array Technologies Inc (New Mexico)
• PVHardware (Spain)
• Soltec (US)
• GameChange Solar (US)
• Arctech (China)
• FTC Solar (US)
• Valmont Industries, Inc. (US)
• All Earth Renewables (UK)
• Xiamen Grace Solar New Energy Technology Co., Ltd. (China)
• Sun Action Trackers (US)
• Trinasolar (China)
• ADES TEMPERO GROUP (Spain)
• Aivatechology (US)
• ArcelorMittal (Luxembourg)

Recent Developments

• In June 2024, Nextracker Inc has launched the Industry's First Low Carbon Solar Tracker Solution. This new tracker system has been named as NX Horizon solar tracker system.
• In April 2024, Nextracker and Jennmar's JM Steel subsidiary finished a major expansion of Nextracker-dedicated manufacturing lines at JM Steel's Leetsdale facility, which will expand capacity to 4 GW.
• In November 2022, Soltec, which is one of the biggest manufacturers of solar trackers in the world, has now entered a strategic agreement with Spanish firm Endesa's renewable energy subsidiary, Enel Green Power España, for the setting up of a new solar tracker production facility in the Spanish region of Aragon.

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