Solar Farming Revolution: Agrivoltaics Market Growing at 10.1% CAGR to 2031
???? Agrivoltaics Market Set to Reach $9.3 Billion by 2031 | Clean Energy Meets Agriculture
WILMINGTON, DE, UNITED STATES, November 28, 2025 /EINPresswire.com/ --
According to a recent report 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 robust CAGR of 10.1% between 2022 and 2031. As the world seeks sustainable solutions to growing land scarcity, food security pressures, and clean energy targets, agrivoltaics—the innovative combination of agriculture and solar power—has emerged as one of the most promising global technologies.
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?? Key Findings
Fixed solar panels projected to grow at ~10.5% CAGR
Monocrystalline cells held 51.7% share in 2021
North America to grow at 10.7% CAGR in the forecast period
?? What Is Agrivoltaics?
Agrivoltaics is the practice of integrating agricultural production and solar photovoltaics on the same land area, allowing farmers to grow crops beneath elevated solar panels. This dual-use land strategy optimizes land efficiency, boosts farm incomes, and supports renewable energy growth—all while protecting crops from extreme weather conditions.
?? Why Agrivoltaics Is Gaining Global Momentum
In recent years, the agrivoltaics market has witnessed rapid progress, with global installed capacity rising from 5 MW in 2012 to nearly 2.9 GW in 2020. This surge is driven largely by:
?? Land scarcity in high-population regions
??? Increasing droughts & extreme temperatures
?? Rising clean energy demand
?? Government incentives for solar farming
?? Need for resilient food systems
Agrivoltaics is particularly positioned to address both clean energy transition and food security, making it essential for sustainable rural development.
?????? Agrivoltaics Helps Combat Climate Change & Weather Extremes
Climate change has increased the frequency of droughts, heatwaves, hailstorms, and heavy rainfall. Agrivoltaics protects crops by:
Providing diffused shade to reduce plant stress
Lowering soil evaporation, preserving soil moisture
Reducing air temperature under panels
Cooling the panels through plant transpiration, increasing solar efficiency
This mutual benefit creates a win-win system for both farmers and energy developers.
One of the world’s largest agrivoltaic installations, located at the edge of China’s Gobi Desert, uses elevated solar arrays to grow berries underneath a massive 700 MW solar field, proving the concept can scale massively.
?? Market Drivers & Opportunities
?? 1. Increasing Need for Land Optimization
As agricultural land becomes limited, agrivoltaics allows farmers and governments to maximize land output for both crops and electricity.
?? 2. Government Subsidies & Incentives
To promote agrivoltaics, many countries are introducing:
Subsidies for solar installations
Joint venture policies
Land leasing benefits
Risk reduction financing
These initiatives will strongly support market growth.
?? 3. Technological Advancements
Advancements in:
Dynamic solar trackers
High-efficiency panel designs
Lightweight mounting structures
…are making agrivoltaic systems more feasible for diverse crop types.
?? Challenges & Barriers
Despite its huge potential, the agrivoltaics market faces hurdles such as:
Lack of global standardization
Regulatory restrictions on land use
Need for strong farmer involvement
Reduced crop yield under certain configurations
Complex permitting processes
Addressing these challenges will be crucial for long-term adoption.
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?? Agrivoltaics Market Segmentation
?? By System Design
Fixed Solar Panels (Dominant Segment)
Easiest to install
High reliability
Lower maintenance
Expected to grow at 10.5% CAGR
Dynamic Systems
Adjustable panels
Higher efficiency
More complex to maintain
Fixed systems will continue to dominate due to operational simplicity.
?? By Cell Type
Monocrystalline (51.7% market share in 2021)
Higher efficiency
Expected to grow fastest
Polycrystalline
Cheaper but less efficient
?? By Crop
Crops (Dominant in 2021)
Benefit greatly from shade protection
Vegetables
Expected to grow significantly
Fruits
Others
?? Regional Insights
?? North America (Market Leader)
Highest share in 2021
Expected to grow at 10.7% CAGR
Driven by:
Scarcity of arable land
Strong clean energy mandates
High adoption of advanced solar technology
Other global regions like Europe, Asia-Pacific, and LAMEA are also increasingly adopting agrivoltaics to enhance food and energy security.
?? Key Market Players
Leading companies in the Agrivoltaics Market include:
Next2Sun
Sun’Agri
Ombrea
Namaste Solar
Mirai Solar
SunSeed APV
Enel Green Power
JA SOLAR Technology
BayWa AG
Insolight SA
These players are focusing on innovation, improved solar module designs, and strategic partnerships to boost global market penetration.
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?? Conclusion
The Agrivoltaics Market is rapidly transforming global agriculture and renewable energy landscapes. With its ability to enhance crop protection, improve land productivity, and accelerate clean energy adoption, agrivoltaics is set to play a crucial role in global sustainability goals. As governments intensify support for clean energy transitions and land optimization, the market is expected to experience strong and continuous growth through 2031.
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About Us
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
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Allied Market Research
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