Agrivoltaics Market (System Type: Ground Mounted Systems, Elevated Systems, and Solar Greenhouses; Installation Type: Fixed-tilt Systems, and Tracking Systems; Functional Coating, Smart Coating, and Others; Resin: Acrylic, Epoxy, Alkyd, Polyurethane, and Others; Technology: Silicon Photovoltaic Cells, Thin Film Photovoltaic Cells, Organic Solar Cells, Perovskite, and Others; Capacity: Up to 500 kW, 500 kW to 1 MW, and More than 1 MW; Application: Crop Farms, Horticulture Farms, Vineyards, Greenhouses, Livestock Farms, and Others)- Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2025-2035

The global agrivoltaics market (https://www.transparencymarketresearch.com/agrivoltaics-market.html)is entering a decisive growth phase, driven by mounting pressure to optimize land resources, strengthen energy security, and ensure resilient food systems. Valued at US$ 4.0 Bn in 2024, the industry is forecast to expand significantly and reach US$ 11.3 Bn by 2035, advancing at a robust compound annual growth rate (CAGR) of 10.0% between 2025 and 2035. This accelerated growth reflects increasing global recognition of agrivoltaics—also known as solar sharing—as a pivotal solution that enables agricultural land to be used simultaneously for food production and renewable electricity generation.

As countries move toward low-carbon economies and more sustainable land-use frameworks, agrivoltaics is emerging as a practical response to climate volatility, water scarcity, and agricultural land shrinking under urbanization and industrialization pressures. Analysts affirm that the market landscape will continue shifting from experimental research projects to large-scale commercial implementation over the next decade, particularly as national renewable energy targets and food security programs begin to intersect.

Analysts' Perspective: A Market Built on Innovation, Yield Gains, and Sustainable Land Use
According to analysts, the agrivoltaics industry is undergoing an important transformation—transitioning from niche pilot deployments to fully integrated agricultural-energy infrastructure. This shift is supported by demonstrated commercial value, including increased farmer revenue streams, improved crop yields, and greater land-use efficiency.

Pilot installation results highlight measurable benefits that are accelerating adoption globally. For instance, vineyards in Europe have reported 20-60% yield improvement, while pilot agrivoltaic systems in India have enabled 30-40% increases in farmer income. In regions experiencing rising heat stress, such as southern Europe or the U.S. Southwest, crops grown underneath solar panels have shown reduced water evaporation and better heat tolerance, contributing directly to climate resilience and reduced irrigation demand.

Europe continues to lead global adoption, backed by enabling regulations and sustainability-driven investment strategies. Meanwhile, North America and Asia-Pacific are rapidly scaling deployment capacity, signaling a geographically diversified growth trajectory.

Global Market Overview: A Convergence of Agriculture and Renewable Energy
Agrivoltaics enables energy developers, agricultural operators, and policymakers to address dual priorities—maintaining food production while expanding clean electricity capacity. Using the same land resource for both applications offers a clear advantage in regions where land competition is intensifying or where renewable energy goals conflict with agricultural land preservation.

Beyond generating solar power, agrivoltaic systems moderate microclimates by reducing soil temperature, preserving moisture, increasing biodiversity, and protecting crops from extreme sunlight. These conditions make agrivoltaics suitable for cropland, horticulture farms, livestock pastures, vineyards, orchards, and greenhouse systems, offering flexible implementation pathways.

Key Market Drivers Supporting Growth
Two core factors are currently shaping global market momentum:

1. Rising Adoption of Renewable Energy
The global push toward decarbonization and net-zero emission commitments is strengthening investments in solar infrastructure. As of 2023, global installed solar capacity surpassed 1.4 terawatts, with projections suggesting a rise to 2.3 TW by 2027. Agrivoltaics uniquely supports renewable capacity expansion without displacing agriculture.

In markets such as Germany and Japan, agrivoltaic systems have demonstrated the ability to produce up to 60% of conventional solar farm output while retaining 70-90% of agricultural yield, highlighting superior land-use productivity.

2. Increasing Global Focus on Food Security
With the global population expected to reach 9.7 billion by 2050, agricultural output must grow approximately 70% to satisfy food demand. Traditional agriculture alone may not be sufficient due to land constraints and climate change implications.

Research from Arizona and Europe suggests that crops grown under agrivoltaic structures can require up to 50% less irrigation and see 5-15% yield improvement for staples like lettuce and wheat. Such results validate agrivoltaics as a viable strategy for future agricultural resilience.

Market Landscape and Application Outlook
Crop farms are currently the largest adopters of agrivoltaics, given the availability of over 1.5 billion hectares of cropland globally, according to the FAO. Pilot trials in Japan have shown that rice fields integrated with solar infrastructure can yield 0.5-1 MW per hectare of installed capacity while maintaining 80-90% of crop output, demonstrating a strong economic justification for dual land use.

Livestock farms, vineyards, and protected horticulture structures such as greenhouses are expected to gain adoption momentum over the forecast period, particularly in drought-prone markets.

Regional Market Trends
Europe remains the dominant region in the market, supported by ambitious renewable energy directives and large-scale deployment programs. The EU's renewable energy policy target of 42.5% renewable share by 2030 is accelerating agrivoltaic applications, particularly in France, Germany, Spain, and Italy.

Italy's National Recovery and Resilience Plan (PNRR) alone has allocated €1.1 billion to agrivoltaics, expected to deploy 1.04 GW of new capacity by 2026. Spain continues expanding applications in drought-sensitive vineyard operations, while France has already developed more than 2,000 hectares of agrivoltaic integration.

Asia-Pacific—particularly China, India, Japan, and South Korea—is expected to become the fastest-expanding regional market by 2035, given high agricultural land availability and rapidly growing solar investment.

Competitive Landscape and Strategic Developments
The market consists of both energy developers and agricultural technology innovators. Leading players include BayWa r.e. AG, Sun'Agri, Enel Green Power, Silicon Ranch, Akuo Energy, Iberdrola S.A., Cero Generation, OET, Next2Sun, SUNfarming, and Heliene.

Recent developments, such as SUNfarming's 753 MWp Klimapark Steinhöfel agrivoltaic farm in Germany and Akuo Energy's FruitPV pilot project in Portugal, signal increasing industry maturity and large-scale geographic rollout.

Conclusion: Agrivoltaics as a Foundation for Sustainable Land and Energy Systems
With rising environmental pressures, rapid expansion of solar energy infrastructure, and increasing demand for sustainable agricultural production, the agrivoltaics market is positioned for long-term growth and mainstream adoption.

By offering a dual solution—supporting both energy generation and agricultural productivity—agrivoltaics is becoming an essential framework for nations pursuing climate targets, food security strategies, and rural economic transformation. As innovation accelerates and system designs mature, the market is expected to transition from pilot success stories to widespread commercial deployment, ultimately redefining the future of global land use and renewable energy integration.