Solar Tree Market Expected to Reach $425.2 Million by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Solar Tree Market," The solar tree market size was valued at $247.4 million in 2022, and is estimated to reach $425.2 million by 2032, growing at a CAGR of 5.7% from 2023 to 2032.

A solar tree is a tree-like structure that uses photovoltaic (PV) panels to generate solar energy. It exploits biomimicry principles, utilizing a natural system—in this example, the form of a tree—to assist in the resolution of a major global challenge: replacing greenhouse gas-emitting energy sources such as coal, oil, and gas with renewable energy. These eye-catching structures typically consist of a robust metal, plastic, or stone foundation that stretches up and out into "branches" on which solar panels are affixed. Beyond this fundamental structure, the design of solar tree units varies greatly, reflecting unique answers to specific settings, climates, and local energy needs.

Solar trees symbolize a cutting-edge solution in the realm of renewable energy, leveraging sunlight to generate electricity and markedly reducing dependence on fossil fuels. Their vertically integrated solar cells not only impart them with aesthetic appeal but also foster efficient energy production, capturing more sunlight on average compared to traditional ground-mounted or roof-mounted arrangements. What sets solar trees apart in terms of performance and resourcefulness is their advanced vertical integration, complemented by a flexible stem that can rotate to harness wind energy. A key competitive advantage lies in their minimal space requirement, making them particularly well-suited for urban areas where land conservation is paramount. They can be strategically positioned in parking lots, parks, and other public spaces, effectively addressing the challenge of limited land availability. This not only aligns with sustainable energy initiatives but also unlocks new possibilities for dual land use, enabling solar energy generation alongside agricultural activities, thereby benefiting both rural and urban areas. These factors are anticipated to boost solar tree market share. 

The complex structure of solar trees poses maintenance challenges that can affect their long-term viability. Cleaning the panels and ensuring optimal sunlight exposure become more intricate tasks due to the tree-like arrangement. The shading between branches and the three-dimensional design make it challenging to maintain peak performance. Consequently, additional effort and resources may be required for regular maintenance and repairs, adding to the overall operational costs of solar trees. These factors are anticipated to restrain solar tree market growth. 

In terms of cost-effectiveness, solar trees present a compelling case. The unique design and variable height contribute to increased efficiency, with potential electricity production surpassing traditional solar PV modules by 10 to 15%. This, coupled with the minimal land requirement, positions solar trees as a cost-effective and space-efficient alternative to conventional solar energy solutions. Solar trees, such as the Spotlight Solar tree, provide a competitive edge in the realm of renewable energy by offering a unique and visually striking design. The common benefit shared with traditional solar power systems is the potential for significant savings on power bills. With available sizes ranging from 1.7 kW to 5 kW, these solar trees can generate substantial electricity output, translating to substantial annual savings, especially under favorable site conditions. Furthermore, the reduced transmission losses associated with locating solar generation closer to the point of consumption contribute to improved overall energy efficiency. This feature enhances the appeal of solar trees as a practical and eco-friendly energy solution. In addition, the built-in energy storage capability of many solar tree models ensures a consistent power supply, even during periods of limited sunlight or cloudy weather, further enhancing their reliability and functionality. These factors are anticipated to boost solar tree market opportunities in the upcoming years.

The solar tree market analysis is segmented on the basis of connectivity, component, application, and region. By connectivity, the market is divided into on-grid and off-grid. By component, the market is classified into solar PV modules, battery, cables & connectors, and others. By application, the market is classified into residential, commercial & industrial, and utilities. By region, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America.

The key players profiled in the solar tree market forecast report include Beam Global, Smartflower, SolarBotanic Trees Ltd, Solvis, Solar Forma, Spotlight Solar, Power Tree, IYSERT ENERGY, NESSA, and ARTEMIDE S.P.A.

The report offers a comprehensive analysis of the global solar tree market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the solar tree market.

Impact of COVID-19 on the Global Solar Tree Industry

• The pandemic disrupted worldwide supply systems, including those in the solar industry. Manufacturing facilities were temporarily closed, and manufacturing and delivery of solar panels and other components were delayed. These interruptions had an impact on the availability and pricing of solar panels, particularly Solar Trees, and the pandemic caused economic uncertainty, which impacted demand for solar installations.
• Many construction projects, including solar installations, have been halted or delayed. Reduced installations and potential issues for solar panel manufacturers stemmed from the drop in demand. The pandemic underlined the significance of reliable and resilient energy infrastructure.
• Some governments recognized the importance of hastening the transition to renewable energy sources, such as solar power, in order to minimize reliance on fossil fuels and increase energy security. This increased focus on renewable energy could drive demand for solar panels, including solar tree.

Key Findings of the Study

• Based on connectivity, the off-grid sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing during the forecast period.
• Based on component, the solar PV modules sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on application, the commercial & industrial sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is projected to maintain its position during the forecast period.