Agrivoltaics, also known as agrophotovoltaics, is the innovative practice of combining solar energy production with agricultural activities on the same land. This approach optimizes land use by enabling both farming and energy generation, contributing to sustainability. The agrivoltaics market is expanding due to the growing demand for renewable energy and sustainable farming.

Applications include integrating solar panels in crop fields, orchards, and livestock farms. A notable example is a project in Germany’s Heggelbach farm, launched in 2016, where solar panels were installed above crops, boosting energy production while maintaining crop yield. In Japan, since 2013, agrivoltaic systems have been implemented to support small-scale farmers by generating additional income from solar power. End users, such as farmers, benefit from increased revenue streams, reduced carbon footprints, and enhanced crop resilience to climate variability. In terms of revenue, the global agrivoltaics market was worth US$ 3.23 Bn in 2023, anticipated to witness CAGR of 11.2% During 2024 – 2034.

Growth Drivers of Global Agrivoltaics Market

• Rising Demand for Renewable Energy and Sustainable Agriculture: The global push for renewable energy is driving the growth of the agrivoltaics market. As countries aim to reduce carbon emissions, agrivoltaic systems are increasingly being adopted to combine energy generation with sustainable agriculture. For example, Japan has been investing in agrivoltaics since 2013, with the Shizen Energy project integrating solar panels with crop production. This approach supports farmers by providing an additional revenue stream from energy production, while maintaining crop yield. As governments worldwide promote clean energy initiatives, agrivoltaics is becoming an essential solution for optimizing land use and reducing environmental impact.

• Climate Change Resilience and Agricultural Protection: Agrivoltaic systems offer farmers a way to protect crops from extreme weather while generating electricity. The shade provided by solar panels can reduce heat stress and improve water retention in soil, helping crops survive in areas affected by climate change. A notable example is the 2016 Heggelbach farm project in Germany, where solar panels shielded crops from excessive sunlight, improving resilience during heatwaves. This dual benefit of energy production and agricultural protection is a key driver for agrivoltaics adoption, especially as climate-related challenges intensify globally.

Technology Analysis of Agrivoltaics:

Global Agrivoltaics Market Revenue & Forecast, (US$ Million), 2016 – 2034

Global Agrivoltaics Market By System

In 2023, dynamic systems dominated the global agrivoltaics market, accounting for 50.2% of the market’s revenue share. These systems, which adjust the angle of solar panels to follow the sun’s path, optimize both energy generation and crop growth. An example of this technology is the Sun’Agri project in France, where dynamic solar panels were installed over vineyards in 2020. The system allows panels to move in real-time, adapting to the specific needs of crops, such as providing shade during intense sunlight or maximizing exposure during cooler periods, making it a highly efficient solution for sustainable farming and energy production.

Global Agrivoltaics Market By Crop Type

Herbs and medicinal plants are expected to experience the fastest growth in the agrivoltaics market during the forecast period. These plants thrive under partially shaded conditions, making them ideal for cultivation beneath solar panels. In Japan, a 2020 agrivoltaic project focused on growing medicinal herbs like ginseng under semi-transparent solar panels, which provided the right balance of sunlight for plant growth while generating renewable energy. This dual-purpose system not only enhances plant health and yield but also boosts income for farmers, as demand for natural and medicinal products continues to rise globally, fueling further adoption of agrivoltaics in this segment.

Global Agrivoltaics Market By Mounting Type

Ground mounted agrivoltaics led the global market in 2023 with a revenue share of 78.1%. These systems involve installing solar panels directly on agricultural land, allowing for large-scale energy generation while maintaining crop cultivation. For instance, in 2016, Germany’s Heggelbach farm successfully implemented a ground-mounted agrivoltaic system, where solar panels were strategically placed above crops like potatoes and wheat. This setup maximized land use efficiency, providing shade for crops while producing renewable energy. The widespread adoption of ground-mounted systems is driven by their flexibility, scalability, and suitability for various agricultural environments, making them a dominant solution in the market.

Global Agrivoltaics Market By Application

In 2023, orchards captured 15.8% of the revenue share in the global agrivoltaics market and are projected to be the fastest-growing segment. The integration of solar panels into orchards not only optimizes land use but also enhances crop protection. For instance, in 2020, Sun’Agri in France implemented agrivoltaic systems in vineyards, using dynamic panels to shield crops from excessive sunlight while generating renewable energy. This model is gaining traction in orchards, where solar panels provide shade, reduce water evaporation, and protect fruits from harsh weather. The dual benefits of energy production and improved agricultural output are driving rapid adoption in this sector.

Global Agrivoltaics Market By Region

In 2023, Asia Pacific dominated the global agrivoltaics market, holding a 32.2% revenue share. The region’s leadership is driven by large-scale projects and government support for renewable energy initiatives. Japan has been a key player, with significant investments in agrivoltaics since 2013, including Shizen Energy’s project that integrates solar panels with crop cultivation. Additionally, China has rapidly expanded its agrivoltaic installations to enhance rural electrification while supporting sustainable agriculture. These countries’ focus on optimizing land use for both energy and food production has positioned Asia Pacific as the leading region in the global agrivoltaics market.

Competitive Landscape

Some of the players operating in the agrivoltaics market are

• Agrivoltaic Solution LLC
• BayWa AG
• Boralex
• Enel Green Power
• Mackin Energy
• REM TEC
• Sun Agri
• Sunrise Power Solutions
• Suntech Power Holdings
• TotalEnergies SE
• Other Industry Participants

Global Agrivoltaics Market Scope:

Global Agrivoltaics Market

By System

• Static
• Dynamic

By Crop Type

• Fruits
• Vegetables
• Grains
• Herbs and Medicinal Plants
• Others

By Mounting Type

• Roof Mounted
• Ground Mounted

By Application

• Agriculture Farms
• Greenhouses
• Orchards
• Agroforestry
• Livestock Farms
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

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Table of Contents

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Note: This ToC is tentative and can be changed according to the research study conducted during the course of report completion.

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Global Agrivoltaics Market

By System

• Static
• Dynamic

By Crop Type

• Fruits
• Vegetables
• Grains
• Herbs and Medicinal Plants
• Others

By Mounting Type

• Roof Mounted
• Ground Mounted

By Application

• Agriculture Farms
• Greenhouses
• Orchards
• Agroforestry
• Livestock Farms
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

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