Global solar vehicle market is projected to witness a CAGR of 37.29% in the forecast period 2024-2031, growing from USD 503.23 million in 2023 to USD 6351.52 million during 2031. The market has witnessed significant growth in recent years and is expected to maintain a rapid pace of expansion in the coming years due to rising concerns about environmental pollution, high buying power of vehicles, advancements in battery storage technology, and an increase in government support for eco-friendly alternatives. Significant advancement in technology and rising adoption of innovative technologies have surged the global solar vehicle market demand. The automotive industry is a huge market due to the increase in the development of a variety of vehicles resulting in rising consumer concerns about an increase in carbon emissions driving the global market growth in the forecast period.
Furthermore, the rise in prices of fuels and a rapid trend of customization, coupled with growing government investments to produce alternative fuel vehicles, including public buses is fostering the global solar vehicles market growth. Companies in the market are investing heavily in the development of solar vehicles to expand their product portfolio and address the rising demand for solar vehicles. Moreover, the significant rise in investments in solar-powered car startups is propelling the market growth globally. These investments and expansions in the global market are accelerating the innovation in environmentally friendly transportation.
For instance, in February 2023, an India-based startup, Vayve Mobility Pvt Ltd announced the launch of India’s first solar electric car Eva in 2024 that comprises 150-watt solar panels on the sunroof to address the rising demand for solar vehicles.
Rapid Technological Advancements Push the Global Solar Vehicles Market Growth
Continuous technological advancements in energy storage systems and solar panel technology act as a key driver in the global solar vehicle market growth. With the advancement in solar panels, solar-powered vehicles become more viable and practical for daily usage due to increase in effectiveness. The technology of solar-powered vehicles is advancing rapidly with the latest advancements aiming at enhancing the durability of battery storage technology and the efficiency of solar panels integrated into automobiles. In addition, advancements in energy storage systems are improving the efficiency to utilize and store solar power efficiently, propelling the driving range of solar-powered cars. Furthermore, the considerable advancement in regenerative braking systems efficiently captures kinetic energy by converting and deceleration it into usable electricity to further drive the vehicle’s power requirements. These advancements in solar vehicles are propelling the global solar vehicles market demand. Manufacturers in the market are launching advanced solar vehicles through continuous innovations in manufacturing processes, battery efficiency, material science, and others.
For instance, in May 2022, Squad Mobility B.V. announced the launch of its solar city car for private ownership and shared mobility to bridge the gap between passenger EVs and electric two-wheelers. These solar city cars are featured with a regenerative braking system and large windows to offer a panoramic view.
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Growing Concern to Reduce Carbon Footprint Drive the Global Solar Vehicles Market Demand
Emerging countries across the globe are working on cutting carbon emissions rate and accomplishing climate targets by promoting the production of solar vehicles. Throughout operations, solar vehicles produce zero emissions, reducing the transportation sector’s contribution to greenhouse gas emissions and air pollution. The alignment with climate objectives positions solar vehicles as an important component of their wider effort to decarbonize transportation. In addition, businesses are significantly adopting eco-friendly practices into their operations of producing solar vehicles to align with corporate sustainability objectives that offer a way to decrease carbon footprints. In addition, automakers are introducing electric vehicles with solar panels to reduce their carbon footprint and address the rising demand for solar vehicles.
For instance, in April 2024, Aptera Motors Corp. announced an expansion to launch solar electric vehicles in UAE to address consumer demand for clean mobility solutions supported by a favorable regulatory framework.
Government Favorable Rules and Regulations Propel the Global Market Growth
The adoption of solar vehicles has positively impacted the environment as solar vehicles release zero carbon emissions. In emerging countries, government incentives, regulations, and policies have promoted the adoption of solar vehicles. Also, governments of different regions across the globe are implementing policies to adopt electric vehicles and renewable energy which further drives the demand for solar vehicles. In addition, varied countries are offering tax benefits to buyers and sellers to decrease the overall ownership cost. The governments of emerging countries are planning to invest in different charging stations and other infrastructure to promote the adoption of solar vehicles and reduce their greenhouse gas emissions.
For instance, in February 2024, the Government of India altered the Electricity Act to boost electric vehicles and solar energy to promote the adoption of renewable energy.
Passenger Vehicle Dominates the Global Solar Vehicle Market Share
Passenger vehicle dominates the largest share of the global solar vehicle market due to the increased adoption of passenger vehicles, the rise in purchasing power of consumers, strict government regulations concerning passenger vehicles, and a surge in investment in developing solar panels for passenger vehicles. Companies in the market are significantly developing fuel-efficient passenger vehicles and a range of solar passenger vehicles. Also, preference for solar passenger vehicles in emerging countries are increasing at a higher pace due to rising environmental awareness and a growth in the development of solar-powered passenger cars with hybrid systems. Furthermore, manufacturers are investing significantly in introducing solar passenger vehicles to address the growing demand for alternative fuel vehicles.
For instance, in June 2022, Lightyear Technologies B.V. announced the launch of a solar-powered car that feature solar panels on its bonnet, roof, and boot that convert renewable solar energy into electric power for driving.
Asia-Pacific Registers the Largest Global Solar Vehicle Market Size
Asia-Pacific registers the largest market size in market due to the presence of giant market players, an increase in population, and strict and favorable government regulations in emerging countries including China and India. In emerging countries, consumers have high purchasing power that drives the demand for solar vehicles and rapid customization. Government initiatives to encourage the usage of solar-powered vehicles, rising requirements to reduce greenhouse gas emissions, and growing concerns about air pollution are propelling the Asia-Pacific solar vehicles market growth.
In addition, manufacturers are efficiently aiming to produce advanced solar vehicles projected to fuel the growth of solar vehicles in the region. For instance, in July 2022, Gecko Motors announced the launch of China’s first solar-powered intelligent car that has a maximum speed of 79.2 km per hour. The car fascinated notable interest from high-status institutions and enterprises.
Future Market Scenario (2024 – 2031F)
- Development of fuel-efficient vehicles and technological advancement in solar vehicles drives the global solar vehicle market demand in the forecast period.
- Globally, the government is providing incentives and subsidies to seller and purchasers of solar vehicles, propelling the global solar vehicle market growth.
- Integration of artificial intelligence, Internet of Things, and machine learning will accelerate the adoption rate of solar vehicles in the forecast period.
- Collaboration and partnership between the key participants of market are fostering the growth in the solar vehicle market.
Report Scope
“Solar Vehicle Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global solar vehicle market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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