Dual Axis Solar Tracker Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Dual Axis Solar Tracker Market Analysis

The dual axis solar tracker market size is expected to reach US$ 13.76 Bn by 2030, from US$ 6.46 Bn in 2023, at a CAGR of 11.4% during the forecast period. Dual axis solar trackers are devices used to orient solar panels toward the sun to maximize energy capture throughout the day. The trackers rotate solar panels along two axes to follow the sun's east-west movement across the sky and adjust for seasonal changes in the sun's path. The use of dual axis trackers can increase solar energy production by 25-35% compared to fixed tilt systems. Key drivers of the dual axis tracker market include government policies supporting renewable energy adoption, declining costs of solar power, and rising energy demand globally.

The dual axis solar tracker market is segmented based on product type, technology, application, and region. By product type, the market is segmented into single axis and dual axis trackers.

Dual Axis Solar Tracker Market Drivers

• Supportive Government Policies and Incentives: Governments across the globe are implementing policies, incentives, and initiatives to accelerate the adoption of solar energy. Countries have set ambitious solar energy targets and introduced renewable energy policies to phase out fossil fuel-based power generation. For instance, the US Solar Investment Tax Credit (ITC) provides a 26% tax credit for solar systems installed through 2023. Similarly, the Indian government aims to achieve 100 GW of solar capacity by 2022 under the National Solar Mission. Such policies encourage investments in utility-scale solar projects featuring advanced technologies like dual-axis trackers to maximize energy yield. The favorable regulatory landscape is a key driver propelling the dual axis solar tracker market.
• Declining Cost of Solar Power Generation: The levelized cost of electricity (LCOE) from solar photovoltaic systems has declined significantly over the past decade, making solar power cost-competitive with conventional energy sources. According to IRENA, the global weighted-average LCOE of utility-scale solar PV declined by almost 90% between 2009 and 2021. Dual axis trackers lower LCOE by increasing energy generation per watt of installed capacity. The reducing cost of solar power along with the higher yields from trackers make them an attractive value proposition, fueling tracker adoption for utility and commercial installations.
• Advancements in Solar Cell Technology: Continuous R&D in solar cell technologies such as thin-film solar cells, Perovskites, and high-efficiency mono/multi c-Si cells have steadily increased the solar cell efficiency. Cell efficiencies have risen from 15% to over 25% for mono c-Si cells in the past decade. Higher efficiency solar modules coupled with advanced dual-axis tracker systems can dramatically increase energy yields over conventional fixed-tilt systems. The improvements in underlying solar cell technology are complementing innovations in tracker systems.
• Growth in Emerging Economies: Emerging economies like China, India, Brazil, and African countries present immense potential for solar due to high irradiance levels and rising energy demand. These countries are investing heavily in utility-scale solar projects. For instance, in 2021, 130 GW of new solar capacity was added globally, with China accounting for over 50% of additions. Dual axis trackers are preferred in utility projects owing to higher energy generation, especially in high ambient temperature conditions prevalent in emerging economies. The growth in emerging solar markets is driving the tracker adoption.

Dual Axis Solar Tracker Market Restraints

• High Initial Costs: While trackers improve the long-term value proposition, their upfront costs are still relatively high compared to fixed-tilt mounting structures. The added mechanical and electronic components increase tracker system pricing. The typical capital expenditure for dual-axis tracker systems is 20-30% more than fixed-tilt. The high initial investment required is a restraint, especially for smaller solar projects.
• Alternative Renewable Technologies: Solar trackers face competitive pressure from alternative renewable energy technologies like wind power that are accelerating in maturity and affordability. Wind energy costs have decreased by up to 65% since 2015, making it highly cost-competitive. While trackers enhance yields, wind power provides a viable, low-cost alternative for renewable energy generation. This restricts market growth opportunities for more expensive tracking systems.
• Harsh Weather Conditions: Solar trackers may incur damage and operational issues due to harsh weather elements such as very high winds, heavy snow loads, flooding, etc. which can reduce power output and necessitate repair costs. Although tracker designs continue to improve wind resistance, severe weather remains a challenge. Such issues limit tracker adoption in certain geographic locations with extreme climate conditions.

Dual Axis Solar Tracker Market Opportunities

• Grid Expansion and Modernization: Several emerging economies are undertaking large-scale grid infrastructure expansion projects to improve electricity access in rural areas. Grid modernization also aims to support the integration of increasing share of renewable energy into the existing grid networks. These grid upgrade projects present a major long-term opportunity for deploying large utility-scale solar power plants integrated with advanced dual-axis tracking systems to accelerate renewable energy capacity growth.
• Floating Solar Power Plants: Floating solar power plants are an emerging area of opportunity for dual-axis trackers. Floating PV systems installed over water bodies mitigate land constraints and provide higher efficiency due to cooler ambient temperatures over water surfaces. Dual-axis trackers further maximize yields for these floating plants. As the trend of floating solar farms gains momentum, it could potentially boost the adoption of specially designed dual-axis trackers.
• Solar+Storage Systems: Pairing PV systems with energy storage is rising as it allows solar energy to be used anytime and reduces intermittency concerns. Dual-axis trackers coupled with storage systems provide consistent renewable energy output. With declining storage costs, the solar+storage market is expected to grow significantly in the coming years. This provides an opportunity for tracker vendors to provide integrated tracker and storage solutions.
• Technological Innovations: Ongoing R&D in terms of robotics, Internet of Things (IoT), artificial intelligence, and advanced materials is expanding the capabilities and performance of dual-axis trackers. For instance, trackers are integrating computer vision, machine learning, and cloud predictive tracking to improve automation and minimize power losses. Advancements in structural composites help develop lightweight and corrosion-resistant trackers. Such technological innovations would enable efficiency and performance improvements, creating new growth avenues.

Dual Axis Solar Tracker Market Trends

• Single-axis Trackers: Single-axis trackers are emerging as a promising technology owing to their simple design and lower costs compared to dual-axis trackers. Single-axis trackers rotate panels along the east-west axis, following the sun's daily movement. They are gaining traction for use in low latitude regions where seasonal tilt adjustments are not required. Single-axis tracker adoption is rising in the Middle East, India, and parts of the U.S. Further design advancements in single-axis trackers could boost adoption going forward.
• Bifacial PV Modules: Bifacial Photovoltaic modules are gaining popularity as they can generate power from both sides of the panel, increasing energy yield by up to 30% for trackers. Prominent tracker companies are now offering optimized solutions purpose-built for bifacial modules. Bifacial technology combined with the bidirectional tracking of dual-axis trackers can maximize power generation. Thus, the shift toward bifacial technology will influence tracker product offerings.
• AI and IoT Integration: Dual-axis trackers are incorporating artificial intelligence technologies and the internet of things solutions for real-time tracking, predictive analytics, and intelligent control. Built-in sensors, communication systems, and cloud connectivity help remotely monitor tracker operations and energy output. Integrated control systems adjust tracker movement based on weather forecasting data to minimize shading. Tracker vendors are collaborating with AI solution providers to integrate smart capabilities.
• Solar-agriculture Models: The solar-agriculture co-location concept that allows agricultural activities under and around solar installations is gaining interest. The elevated structure of trackers facilitates this approach. This model provides opportunities to promote sustainable solar farming. Dual-axis trackers would play a key role in enabling optimized land usage via these solar-agriculture systems.

Dual Axis Solar Tracker Market Regional Insights

• North America is expected to be the largest market for dual axis solar trackers during the forecast period, accounting for a market share of 35.6% in 2023. The growth of the market in this region can be attributed to the declining cost of solar energy, government support for renewable energy, and the increasing demand for clean energy from the commercial and industrial sectors.
• Europe is expected to be the second-largest market for dual axis solar trackers during the forecast period, accounting for a market share of 28.2% in 2023. The growth of the market in this region can be attributed to the increasing adoption of renewable energy targets by European governments and the growing demand for solar energy from the utility sector.
• Asia Pacific is expected to be the fastest-growing market for dual axis solar trackers during the forecast period, growing at a CAGR of 14.7% from 2023 to 2030 The growth of the market in this region can be attributed to the rapid growth of the solar energy sector, government support for renewable energy, and the increasing demand for clean energy from the commercial and industrial sectors.

Figure 1. Dual Axis Solar Tracker Market Share (%), by Region, 2023

Recent Developments in Dual Axis Solar Tracker Market

Dual Axis Solar Tracker Market Segmentation