Global PV Equipment Market to Expand 2.6-Fold by 2035

Release Date: March 26, 2026

Source: Our Website

Driven by the accelerating global energy transition and the continuous decline in solar power generation costs, the photovoltaic (PV) manufacturing equipment market is poised for unprecedented growth. According to the latest research report from the German Mechanical Engineering Industry Association (VDMA), the global PV equipment market is entering a period of remarkable expansion, with market size projected to increase from approximately $16.6 billion in 2025 to $43.8 billion by 2035—a growth of more than 2.6 times.

A Decade of Investment: $250–300 Billion in the Pipeline

The study, commissioned by VDMA and conducted jointly by the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) and the International Solar Energy Research Center Konstanz (ISC Konstanz), reveals that cumulative capital expenditures in global PV manufacturing are expected to reach between $250 billion and $300 billion from 2025 to 2035. This massive investment scale reflects the global solar industry’s transition from capacity expansion to technological upgrading, creating significant opportunities for PV equipment suppliers.

In parallel, the International Energy Agency (IEA) noted in its October 2024 Energy Technology Perspectives 2024 report that the global market for six key clean energy technologies—solar PV, wind power, electric vehicles, batteries, electrolyzers, and heat pumps—will grow from $700 billion in 2023 to over $2 trillion by 2035, nearly tripling in value. This macro-level trend provides a strong backdrop for the rapid expansion of the PV equipment market.

Growth Drivers: Technological Advancements and Global Capacity Expansion

The report identifies three main factors driving the expansion of the PV equipment market:

First, the accelerated commercialization of next-generation cell technologies. As the market share of PERC cells plateaus, the industry is transitioning en masse to high-efficiency technologies such as TOPCon, heterojunction (HJT), and back contact (BC) cells. Radovan Kopecek, co-founder of ISC Konstanz, noted: “European machinery has already demonstrated its strengths in the current TOPCon technology. The transition to back contact, heterojunction, and tandem cell technologies opens up significant opportunities for European equipment suppliers.”

Second, the growing regional diversification of PV manufacturing capacity. While China currently accounts for more than 80% of global PV module production, new manufacturing hubs are emerging in the United States, India, the Middle East, and elsewhere, driven by strong national industrial policies. According to Research Nester, China has invested over $50 billion in its domestic PV production and supply chain capabilities—ten times that of Europe. Meanwhile, the U.S. Inflation Reduction Act (IRA) is heavily promoting domestic PV manufacturing, with domestic module capacity expected to reach 40 GW by 2026, capable of meeting up to 80% of projected demand.

Third, the continued improvement in PV economics. According to the IEA, solar PV has become one of the most cost-competitive sources of electricity. Global PV module prices have fallen steadily in recent years, stabilizing at $0.11 per watt (DC) in the first quarter of 2024. Research Nester forecasts that the solar PV market will reach $927.33 billion by 2035, with a compound annual growth rate (CAGR) of approximately 9.8%.

Regional Landscape: Asia-Pacific Leads, Europe and North America Follow

From a regional perspective, Asia-Pacific continues to solidify its position as the global hub for PV manufacturing. According to Research Nester, the Asia-Pacific solar equipment market is expected to hold a leading 44.7% share by 2035. China alone accounts for over 53% of global PV module production.

However, North America and Europe also show strong growth potential. The Solar Energy Industries Association (SEIA) reported that the United States installed 40.3 GWDC of new solar capacity in 2023, bringing total installed capacity to 186.5 GWDC. By 2035, solar power is expected to meet 40% of U.S. electricity demand, accelerating decarbonization across transportation, buildings, and manufacturing.

In Europe, Peter Fath, Chairman of the VDMA PV Equipment Division, stated: “We are well aware that building a competitive European solar manufacturing industry is entirely possible with the technological capabilities and R&D strengths of our mechanical engineering sector.” However, he emphasized that Europe needs smart industrial policy measures and effective financing tools to remain competitive in export markets such as India and the United States.

Segment Spotlight: PV Inverters on the Rise

As the “core hub” of PV systems, the inverter market is also poised for rapid growth. According to Transparency Market Research Inc., the global PV inverter market is expected to climb from $18.6 billion in 2024 to $49 billion by 2035, with a steady CAGR of 9.2% between 2025 and 2035.

The report notes that the proliferation of “solar + storage” integrated solutions, the integration of smart grid construction with EV charging networks, and the deep penetration of digital technologies are driving the evolution of inverters from simple power converters into intelligent energy network hubs.

Challenges and Opportunities: The European Equipment Sector’s Path Forward

Despite the promising market outlook, the PV equipment industry still faces structural challenges. The report notes that while European equipment manufacturers are renowned for their technological excellence, high reliability, long service life, and close collaboration with research institutions, they face pressures in cost competitiveness. Interviews with international factory operators confirm that although European equipment is valued for its quality, precision, and reliability, Chinese manufacturers hold advantages in delivery speed and cost-effectiveness, giving them an edge over their European counterparts.

To capture the opportunities emerging over the next decade, the study recommends that European companies expand their turnkey capabilities, develop risk-sharing business models, strengthen after-sales service systems, and enhance localized presence in key markets. At the same time, more coordinated and effective industrial strategies at the European level—including targeted investment support, procurement programs, and closer alignment between national and EU measures—are needed.

Outlook: PV Manufacturing Enters a New Era of High-Quality Growth

As countries around the world update their Nationally Determined Contributions (NDCs) and accelerate progress toward net-zero commitments, solar PV will play an increasingly critical role in the global power mix. Research Nester analysts predict that global cumulative PV capacity will reach 5 TWDC by 2030 and 15 TWDC by 2050.

For PV equipment manufacturers, this signals a golden decade of opportunity. From the industrialization of high-efficiency cell technologies to the diversification of regional manufacturing hubs and the upgrading of smart production lines, technological innovation and capacity expansion will together drive the PV manufacturing sector into a new phase of high-quality development.

As the VDMA report concludes: “Europe remains a global leader in PV equipment technology, but its future competitiveness depends on the ability to translate engineering excellence into industrial scale and business agility.” This insight holds true for participants in the global PV equipment market: in the twin waves of technological change and market expansion, only continuous innovation and agile adaptation can secure a leading position.

Note: The data and forecasts in this article are sourced from authoritative industry research organizations and international institutions. Readers should exercise their own judgment based on actual circumstances when making investment decisions.