Solar EPC Market Expected to Reach $1.2 Trillion by 2034

According to a new report published by Allied Market Research, titled, “Solar EPC Market," The solar epc market was valued at $0.4 trillion in 2024, and is estimated to reach $1.2 trillion by 2034, growing at a CAGR of 11.9% from 2025 to 2034.

Solar EPC (Engineering, Procurement, and Construction) refers to a comprehensive service model used in the solar energy industry where a single contractor manages all aspects of a solar project from start to finish. The EPC contractor is responsible for designing the system (engineering), sourcing and delivering all components (procurement), and executing the installation and commissioning of the solar plant (construction). This turnkey approach ensures streamlined project execution, technical consistency, and accountability throughout the project lifecycle. Solar EPC services are used for residential, commercial, and utility-scale projects and often include postinstallation maintenance and performance monitoring. This model helps reduce risk for project owners and accelerates deployment timelines while ensuring quality and compliance with local and international standards.

The global solar EPC (Engineering, Procurement, and Construction) market is experiencing robust growth, driven by several key factors. Government incentives, such as tax credits, feed-in tariffs, and renewable energy mandates, have made solar projects and solar EPC contractors more financially viable. For instance, the U.S. federal solar investment tax credit (ITC) allows investors to deduct a significant percentage of the cost of solar systems from their federal taxes, thereby stimulating market growth. Moreover, the rising costs of conventional energy sources are pushing consumers and businesses to seek more affordable alternatives. As fossil fuel prices fluctuate, solar energy presents a stable, long-term energy solution. The global push for energy independence and security has further amplified the demand for solar installations, making solar EPC industry crucial in developing reliable solar power infrastructure.

Despite the promising growth trajectory, the Solar PV EPC market faces several challenges. One significant restraint is the high upfront costs associated with solar installations. While the overall costs of solar technology have declined, the initial investment can still be prohibitive for some consumers and small businesses. Additionally, fluctuating raw material prices for components like silicon and copper can impact project budgets, leading to potential delays or cancellations. Another factor affecting market growth is the regulatory complexity surrounding solar projects. Navigating local, state, and federal regulations can be cumbersome and time-consuming. Inconsistent policies and incentives can also create uncertainty for investors and EPC contractors, complicating project financing and execution.

Additionally, the Solar EPC market holds substantial opportunities. Emerging markets in Asia, Latin America, and Africa present vast opportunities due to their high solar irradiance levels, renewable energy integration, power purchase agreements (PPA), and growing energy needs. Government initiatives and international investments in these regions are creating conducive environments for the growth of solar energy, paving the way for Solar EPC companies to establish a strong foothold. Technological innovation presents another substantial opportunity for the Solar EPC market. Continuous advancements in solar panel efficiency, energy storage, and smart grid integration are enhancing the viability and attractiveness of solar projects. The development of new materials and manufacturing techniques is one of the major solar EPC market trends which in turn is driving down costs, making solar power more competitive with traditional energy sources. Moreover, the integration of digital technologies such as artificial intelligence (AI) and the Internet of Things (IoT) in solar project management and operation is improving efficiency and reliability, creating new avenuessolar EPC industry growth.

The global solar EPC market is segmented on the basis of technology, installation type, size, end-use, and region. By technology, the market is segmented into photovoltaic solar and concentrated solar power. As per installation type, the market is classified into rooftop, ground mounted, and floating. By size, the market is divided into small (up to 1 MW), medium (1 to 10 MW), and large (more than 10 MW). By end-use, the solar EPC market is segmented into residential, commercial and industrial, and utility. Region-wise, the global EPC market is divided into North America, Europe, Asia-Pacific, and LAMEA.

The global solar EPC market profiles leading key players such as Jinko Solar Holding Co. Ltd., JA Solar Holdings Co. Ltd., Hanwha Solutions, First Solar, Inc., Trina Solar Limited., Larsen & Toubro, Canadian Solar, Yingli Green Energy Holding Company Limited, SolarEdge Technologies, Inc., SunPower Corporation.

Key Findings of the Study:

• By technology, the photovoltaic solar segment accounted for the highest solar EPC market share of 81.2% in 2024 and is estimated to grow at a CAGR of 12.0% during the forecast period.
• By installation type, rooftop segment accounted for the highest solar EPC market size in terms of revenue in 2024 and is estimated to grow at a CAGR of 12.1% during the solar EPC market forecast period.
• By size, the small (up to 1 MW) segment is projected to grow at the highest CAGR of 12.2% during the forecast period.
• By end-use, the commercial and industrial segment accounted for the highest share in terms of revenue and is projected to grow at a CAGR of 12.1% during the forecast period.
• Region-wise, Asia-Pacific accounted for the highest share of 41.4% and is projected to grow at a CAGR of 12.3% during the forecast period.