Agrivoltaics Market to Reach $8.41 Billion by 2032

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The Global Agrivoltaics Market is expected to reach $8.41 billion by 2032, growing at a CAGR of 8.68% during the forecast period. The market is driven by government incentives for renewable energy, increasing solar capacity installations, and the need for sustainable farming practices. Fixed-tilt solar panel systems dominate the product type segment, while Europe leads the regional market due to favorable policies and R&D initiatives.

Why it matters

Agrivoltaics represents a transformative opportunity to combine renewable energy production with sustainable agriculture, addressing global challenges around climate change, food security, and efficient land use. The integration of solar panels and crops can improve crop yields, reduce water consumption, and generate additional income for farmers, making it an attractive solution for governments and industry stakeholders focused on transitioning to a greener economy.

The details

The agrivoltaics market is segmented by product type (fixed-tilt and tracking solar panels), system design (row-mounted, elevated structures, and canopy-style), and end-user applications (crop farming, horticulture, and livestock farming). Fixed-tilt solar panels dominate the market due to their cost-effectiveness and ease of installation, while tracking systems are gaining traction for high-efficiency applications. Crop farming holds the largest market share as agrivoltaic installations help optimize sunlight distribution and generate renewable energy. Elevated structures and canopy-style systems are preferred for crops requiring high vertical clearance, while row-mounted systems are widely used in conventional crop fields.

• The Global Agrivoltaics Market was valued at approximately USD 4.32 billion in 2024.
• The market is projected to reach USD 8.41 billion by 2032, growing at a CAGR of 8.68% during the forecast period 2025-2032.

What’s next

As the agrivoltaics market continues to expand, industry experts and policymakers will likely focus on addressing challenges such as high initial costs, complex system design requirements, and limited awareness among farmers. Integrating advanced technologies like IoT and AI to optimize system performance and crop management will be a key focus area for market players. Additionally, governments may introduce new incentives and regulations to further drive the adoption of agrivoltaic systems and support the transition to a more sustainable agricultural and energy landscape.