Global Solar Powered Vehicles Market: Industry Analysis and Forecast (2019-2026)

Dhruv Bindhani · Jun 20, 2025

The global solar-powered vehicles market is poised for significant growth, driven by a confluence of environmental concerns, government policies, and technological advancements in the automotive sector. This market is seen as a key component of the future of the automobile industry, aiming to reduce vehicular pollution and contribute to sustainable mobility.

Market Growth and Drivers:

The global solar-powered vehicles market is expected to grow at a XX% CAGR during the forecast period. (Based on external research, various reports project different CAGRs for the solar vehicle market. For instance, some report CAGRs between 12.7% and 32.43% for different forecast periods ending between 2030 and 2035, with market sizes ranging from USD 450 million to USD 6,393.2 million in current or projected years. The precise figure is contained within the full report.)

Key drivers include:

Government Emphasis on Pollution Reduction: Governments worldwide are implementing stringent regulations and setting ambitious targets to curb vehicular pollution and carbon emissions. For example, the European Union targeted a 20% decrease in greenhouse gas emissions by 2020 compared to 1990 levels, and a 21% reduction of greenhouse gases compared to 2005 levels, as part of the EU ETS. These mandates encourage the adoption of cleaner vehicle technologies, including solar-powered solutions.
Regulations on Fuel Efficiency and Carbon Emissions: Policies promoting fuel efficiency and limiting carbon emissions directly benefit the solar-powered vehicles market by making traditional internal combustion engine (ICE) vehicles less competitive.
Advancements in Semi-Autonomous Technologies: While not directly solar-powered, the overall progress in automotive technology, including adaptive cruise control, forward collision avoidance, and automatic parking, fosters an environment conducive to the development and acceptance of advanced vehicles like solar-powered ones.
Developments in AI, Blockchain, and Cloud Computing: These technologies facilitate the development of more sophisticated and unconventional self-driving and solar-powered cars, enabling specialized startups to collaborate with major automotive players.
Increasing Government Support for Electric Vehicles (EVs): Since solar-powered vehicles often integrate with electric vehicle technology, government incentives and subsidies for fully electric vehicles directly boost this market segment.
- In 2017, the estimated electricity demand from EVs increased by XX% compared to 2016. (IEA data from 2017 indicates that global energy demand grew by 2.1% and electricity generation increased by 3.1%. While a specific percentage for EV electricity demand increase in 2017 isn't readily available in the search results, the overall trend was towards increased electricity consumption.)
- Electricity demand from EVs was equivalent to XX% of the total global electricity consumption in 2017. (External IEA data for 2023 indicates that the global EV fleet consumed about 130 TWh of electricity, which accounted for about 0.5% of current total final electricity consumption worldwide. Data specifically for 2017 is not directly available to confirm the exact "XX%" from the abstract.)
- In China, EV electricity demand was XX% of the total demand. (China's EV market saw significant growth in 2017, with sales reaching 579,000 plug-in passenger cars. While a precise percentage of total electricity demand due to EVs in 2017 for China is not directly available, China's total electricity demand growth in 2017 was largely driven by industry and included a significant contribution from EV production and charging in subsequent years.)
- In Norway, EV electricity demand was XX% of the total demand. (Norway had over 142,000 EVs by the end of 2017, the largest per capita EV fleet globally. While specific electricity demand as a percentage of total demand for 2017 is not directly stated, the high adoption rate implies a notable, though likely small, contribution to overall electricity consumption.)

Impact of COVID-19 Pandemic:The report explicitly states that it has "analyzed revenue impact of COVID-19 pandemic on the sales revenue of market leaders, market followers and market disrupters in the report and same is reflected in our analysis." The pandemic likely brought mixed effects, potentially slowing down initial manufacturing and sales due to supply chain disruptions and economic uncertainties, but also accelerating interest in sustainable and personal transportation solutions in the long term.

Market Segmentation:

The report segments the global solar-powered vehicles market by:

Electric Vehicles:
- Fully electric vehicle (expected to witness faster growth due to government support)
- Hybrid electric vehicle
Vehicle Type:
- Commercial Vehicles
- Passenger Cars
Type (likely referring to the number of wheels):
- Three wheelers
- Four wheelers
Region:
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- South America

Regional Analysis:

APAC Region Leading: The Asia Pacific (APAC) region is forecasted to hold the largest XX% share in the global solar-powered vehicle market during the forecast period. This dominance is driven by:
- Growing production and sales of batteries and hybrid electric vehicles in China and Japan.
- Rising demand for solar-powered electric buses, fueled by government initiatives.
- China's significant push for New Energy Vehicles (NEVs) to combat urban pollution, including the recent extension of vehicle trade-in subsidy schemes. Chinese manufacturers are also beginning to export solar-powered electric trucks to the U.S., increasing China's global influence.
Challenges in India: High Goods and Services Tax (GST) on batteries in India is identified as a potential roadblock, affecting sales and hindering the government's drive to promote NEVs. This highlights the need for supportive government policies to reduce battery costs and boost green mobility adoption.

Competitive Landscape and Key Developments:

The solar-powered vehicles industry is characterized by strategic collaborations and partnerships aimed at developing innovative solutions and gaining a competitive edge.

Strategic Partnerships: Companies are engaging in strategic contracts to enhance connectivity solutions. For instance, in January 2019, Sono Motors partnered with Bosch to develop advanced connectivity solutions for its Sion solar vehicle.
Key Players: The market includes a mix of established automotive giants and specialized solar vehicle manufacturers:
- Guangzhou Jcar Industrial Company Ltd
- Venturi Eclectic
- Cruise Car
- Immortus
- Kiira Motors Corporation (KMC)
- Volkswagen
- Toyota
- Ford
- Mahindra & Mahindra
- Nissan
- General Motors
- Sono Motors
- Hanergy Thin Film Power Group
- Solar Electric Vehicle Company
- Jinko Solar
- Trina Solar

The report aims to provide a comprehensive analysis for all stakeholders, covering market dynamics, competitive analysis, and the impact of micro-economic factors, serving as an investor's guide to this rapidly evolving market.

Global Solar Powered Vehicles Market: Industry Analysis and Forecast (2019-2026)

Dhruv Bindhani

Active member