Agrivoltaics Market
                     Agrivoltaics  Market Growth Driven by Clean Energy Demand and Sustainable
Farming Practices
According to a new report published by Allied Market Research, the  agrivoltaics market size
was valued at $3.6 billion in 2021 and is projected to reach $9.3 billion by 2031, growing at a
CAGR of 10.1% from 2022 to  2031.  Rapid expansion of  the solar  power sector,  rising land
scarcity,  and the  need for  climate-resilient  agricultural  practices  are  key  factors  driving  the
global agrivoltaics market.
Key Findings of the Study
 Fixed solar panels are projected to grow at a CAGR of ~10.5% during the forecast period
 Monocrystalline cells dominated the agrivoltaics market in 2021
 Crop-based agrivoltaics applications led the market
 North America remained the largest revenue contributor and fastest-growing region
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Introduction to Agrivoltaics
Agrivoltaics, also known as agrophotovoltaics, refers to the simultaneous use of land for both
agricultural  production  and  solar  photovoltaic  power  generation.  This  innovative  approach
allows crops to grow beneath or alongside solar panels, enabling efficient land utilization while
producing renewable energy. The agrivoltaics market leverages synergies between agriculture
and solar energy to address land constraints, improve farm income, and support sustainable
rural development.
By integrating solar installations with farming activities, agrivoltaics helps protect biodiversity,
enhance water efficiency, and reduce greenhouse gas emissions, making it a promising solution
for both food security and clean energy transition.
Market Drivers: Clean Energy Transition and Land Scarcity
The growing global demand for renewable energy is a major driver of the agrivoltaics market
growth. As countries accelerate their transition toward low-carbon energy systems, solar power
capacity continues to expand rapidly. However, large-scale solar projects often compete with
agricultural land, creating land-use conflicts. Agrivoltaics addresses this challenge by enabling
dual land use, making it particularly attractive in regions facing land scarcity.
Climate change is another key driver. Increasing droughts,  heatwaves, and extreme weather
events are threatening agricultural productivity worldwide. Agrivoltaics systems provide shade
to crops, reducing heat stress, limiting water evaporation, and protecting plants from hail and
heavy rainfall. These benefits improve crop resilience while ensuring zero-emission electricity
generation.
Technological Progress and Global Adoption
The  agrivoltaics  market  has  witnessed  significant  technological  advancements  and  global
dissemination over the past decade. The global installed capacity of agrivoltaics increased from
approximately 5 MW in 2012 to nearly 2.9 GW in 2020, highlighting growing acceptance of this
integrated solution.
Innovations in panel  design,  mounting structures,  and tracking systems have enhanced light
diffusion and energy efficiency, enabling better crop yields and higher solar output. In addition,
photovoltaic panels benefit from the cooling effect created by crop transpiration, which helps
improve panel efficiency and overall system performance.
One notable  example is  the world’s  largest agrivoltaics  installation near the  Gobi  Desert  in
China, where berries are cultivated beneath solar modules with a capacity of  700 MW. Such
projects demonstrate the scalability and commercial viability of agrivoltaics solutions.
Government Support and Policy Landscape
Supportive  government  policies  play  a  crucial  role  in  accelerating  the  agrivoltaics  market
development.  Subsidies,  tax  incentives,  reduced  loan  rates,  lease  agreements,  and  joint
ventures  are  essential  to  reduce financial  risks  and encourage investment.  Clear  regulatory
frameworks  are  also  needed  to  ensure  that  solar  installations  do  not  negatively  impact
agricultural productivity.
In some regions, concerns over crop yield reduction have led to stricter regulations on  solar
farm deployment. However, research shows that certain crops—especially cool-season plants—
benefit from partial shading, making agrivoltaics a win-win solution when properly designed
and implemented in collaboration with farmers.
Market Challenges and Constraints
Despite its advantages, the agrivoltaics market faces several challenges. These include the lack
of  international  standardization,  regulatory  hurdles,  and  the  need  for  comprehensive
monitoring systems. Economic feasibility remains a concern in some regions, particularly where
initial installation costs are high.
Another  challenge  is  ensuring  farmer  participation  and  awareness.  Successful  agrivoltaics
projects  require  close  cooperation  with  farmers  to  minimize  interference  with  agricultural
activities and optimize crop selection. Continued improvements in system efficiency and cost
reduction will be critical for broader adoption.
Market Segmentation Analysis
The  agrivoltaics  market  analysis is  segmented  by  system  design,  cell  type,  crop  type,  and
region.
By System Design
 Fixed Solar Panels
 Dynamic Systems
The fixed solar panel segment dominated the agrivoltaics market share in 2021 and is expected
to  maintain  its  dominance  throughout  the  forecast  period.  Fixed  systems  offer  ease  of
installation, lower maintenance requirements, and high power generation efficiency. In contrast,
dynamic systems require regular panel adjustments, increasing operational complexity.
By Cell Type
 Monocrystalline
 Polycrystalline
The  monocrystalline segment accounted for over  51.7% of the agrivoltaics market share in
2021. These cells are favored for their higher efficiency and better performance in commercial
applications, making them suitable for integrated solar-agriculture systems.
By Crop Type
 Crops
 Vegetables
 Fruits
 Others
The  crop segment dominated the market in 2021, driven by the need to protect staple crops
from extreme weather and dehydration. Vegetables are expected to follow closely,  as many
benefit from diffused sunlight and reduced heat stress.
Regional Outlook
Region-wise, the agrivoltaics market is analyzed across  North America, Europe,  Asia-Pacific,
and LAMEA.
North America dominated the agrivoltaics market share in 2021 and is projected to grow at a
CAGR of 10.7% during the forecast period. Declining arable land availability, rising clean energy
demand, and supportive renewable energy policies are driving market growth in the region.
Europe  and  Asia-Pacific  are  also  witnessing  increasing  adoption  due  to  strong  climate
commitments, renewable energy targets, and agricultural sustainability initiatives.
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Competitive Landscape
Key  players  operating  in  the  agrivoltaics  industry include  Next2Sun,  Sun’Agri,  Ombrea,
Namaste Solar, Mirai Solar, SunSeed APV, Enel Green Power S.p.A., JA Solar Technology Co.,
Ltd., BayWa AG, and Insolight SA. These companies are focusing on innovation, partnerships,
and large-scale pilot projects to strengthen their market presence.
Conclusion
In conclusion, the  agrivoltaics market is poised for strong growth, supported by rising clean
energy demand, climate-resilient agriculture needs, and efficient land utilization. As technology
advances and supportive policies expand, agrivoltaics is expected to play a vital role in achieving
sustainable food production and renewable energy goals worldwide.