Agrivoltaics pertains to the integration of solar panels with agriculture wherein solar panels are mounted above crop fields and livestock grazing areas. Agrivoltaics help optimize land use by allowing for the simultaneous use of acreage for solar power production and agriculture. The agriculture sector continues to face challenges in terms of increasing food demand and limited availability of cultivable land. Agrivoltaic systems enable the dual use of land thereby helping to address both these concerns. Additionally, the solar panels provide some climatic benefits to the crops through shading and reduction in evaporation.
The Agrivoltaics Market is estimated to be valued at US$ 323.6 Mn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the United States Agrivoltaics Market are Enel Green Power S.p.A.,Boralex,Sunrise Power Solutions,McIntosh Energy Japan Co., Ltd., and SolarEdge.
Key opportunities in the market include growth in dual use farming systems, increasing investment by farmers and manufacturers for agrivoltaic projects and growing focus on renewable energy integration in agriculture.
North America is expected to witness significant growth on account of favorable government policies and incentives for solar energy adoption in the agriculture sector. Major players are expanding their footprint in countries like the US, Canada and Mexico through strategic partnerships with local farmers.
Market Drivers
Growth in supportive government policies around the US for agrivoltaic projects is a key market driver. States like California have introduced subsidies and tax incentives for farmers investing in agrivoltaic installations. This is encouraging widespread adoption.
Market Restraints
High initial investment costs associated with agrivoltaic installations is a major challengeCurrently, the systems require massive capital which small and marginal farmers find difficult to afford. This could restrain faster market growth in the initial years.
Market Drivers And Restrain:
Growth in supportive government policies around the US for agrivoltaic projects is a key market driver. States like California have introduced subsidies and tax incentives for farmers investing in agrivoltaic installations. This is encouraging widespread adoption.
High initial investment costs associated with agrivoltaic installations is a major challenge. Currently, the systems require massive capital which small and marginal farmers find difficult to afford. This could restrain faster market growth in the initial years. Complex regulatory frameworks for land use are another challenge. Obtaining clearances for dual use of farmland is complicated and deters some players. However, simplification of norms is anticipated.
Segment Analysis
The United States agrivoltaics market is dominated by the ground-mounted agrivoltaic systems sub-segment. This sub-segment holds the dominant market share owing to the large acreage of agricultural land it can harness solar energy from. The dual use of spaces saves on land acquisition costs and maximizes agricultural output. Floating agrivoltaic systems are witnessing significant growth as it helps utilize otherwise non-arable water bodies for both solar power generation and aquaculture. They are emerging as a viable solution for densely populated countries facing issues of land scarcity.
Global Analysis
The North America region dominates the global agrivoltaics market and the trend is likely to continue during the forecast period. Availability of large swathes of agricultural lands and government support through various rebate programs on solar installations are driving the market in the US. Declining prices of solar panels along with innovative agrivoltaic mounting and tracking solutions are making the technology economically viable for farmers. Countries like Mexico and Canada are also embracing agrivoltaics for their benefits of sustainable land use and supplemental income for farmers. The Asia Pacific region will witness the fastest growth on account of increasing electricity demand, supportive renewable policies and growing acceptance of integrated food-energy systems, especially in densely populated countries.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )
What Are The Key Data Covered In This United States Agrivoltaics Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the United States Agrivoltaics's growth between 2024 and 2031.
:- Accurate calculation of the size of the United States Agrivoltaics and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- United States Agrivoltaics Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of United States Agrivoltaics vendors
FAQ’s
Q.1 What are the main factors influencing the United States Agrivoltaics?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top United States Agrivoltaics companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the United States Agrivoltaics’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it